Document ID: SEC-2009-0895-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes
Posted Date: 2009-07-07T04:00Z

[Federal Register: July 7, 2009 (Volume 74, Number 128)]
[Notices]               
[Page 32211-32212]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jy09-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60192; File No. SR-ISE-2009-42]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fee Changes

June 30, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on June 26, 2009, International 
Securities Exchange, LLC (``ISE'' or the ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared by ISE. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees. The text of the 
proposed rule change is available on the Exchange's Web site (http://
www.ise.com), at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, ISE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The ISE has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend the Exchange's 
Schedule of Fees. First, ISE currently waives most customer transaction 
fees, with such waiver scheduled to expire on June 30, 2009.\2\ Zero 
customer transaction fees in options are part of the competitive 
pricing landscape. Since its inception, ISE has not charged fees for 
customer transactions for most products by way of a fee waiver. Despite 
having an effective rate of $0.00 per contract for customer 
transactions in these products, ISE's fee schedule reflects a customer 
fee of $0.05 with a waiver to offset the fee. Instead of extending the 
waiver on a year-to-year basis, the Exchange proposes to remove the fee 
waiver language from its fee schedule and replace the $0.05 fee with 
$0.00 for First Market options, effective July 1, 2009. ISE believes 
this change will make its customer fees easier for market participants 
to understand. The Exchange will continue to charge $0.05 per contract 
for customer transactions in Second Market options and proposes to 
create a new line item to reflect this.
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    \2\ See Securities Exchange Act Release No. 58139 (July 10, 
2008), 73 FR 41142 (July 17, 2008).
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    Second, the Exchange currently has a fee cap for large-size foreign 
currency (``FX'') options orders. This fee discount applies for orders 
of 5,000 contracts or more and waives fees on incremental

[[Page 32212]]

volume above 5,000 contracts. Contracts at or under the threshold are 
charged the constituent's prescribed execution fee. This waiver is for 
both Public Customer orders and Firm Proprietary orders. ISE adopted 
this fee incentive, on a pilot basis, to encourage members to execute 
large-sized FX options orders on the Exchange. The current pilot 
program is set to expire on June 30, 2009.\3\ The Exchange now proposes 
to extend this fee waiver through June 30, 2010 in a continuing effort 
to attract more activity in its FX options.
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    \3\ Id.
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2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Exchange 
Act'') for this proposed rule change is the requirement under Section 
6(b)(4) that an exchange have an equitable allocation of reasonable 
dues, fees and other charges among its members and other persons using 
its facilities. In particular, the Exchange believes calculating the 
fee on a per symbol basis is necessary to allow the Exchange to target 
cancellations that do not have a valid justification.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \4\ and subparagraph (f)(2) 
of Rule 19b-4 \5\ thereunder. At any time within 60 days of the filing 
of the proposed rule change, the Commission may summarily abrogate such 
rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2009-42 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2009-42. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of ISE. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions.
    You should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-ISE-2009-42 
and should be submitted on or before July 28, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15903 Filed 7-6-09; 8:45 am]

BILLING CODE 8010-01-P