Document ID: SEC-2009-0055-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2009-01-13T05:00Z

[Federal Register: January 13, 2009 (Volume 74, Number 8)]
[Notices]               
[Page 1740-1741]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ja09-97]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59201; File No. SR-ISE-2008-101]

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

January 6, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 31, 2008, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission the proposed rule change as described in Items I, 
II, and III below, which items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend its Schedule of Fees with 
respect to equity transactions. The text of the proposed rule change is 
available on the Exchange's Internet Web site at http://www.ise.com.

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

    In its filing with the Commission, the self-regulatory organization 
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 self-regulatory organization 
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, the Proposed Rule Change

    Purpose--Currently, the Exchange's Schedule of Fees for equity 
transactions consists of a tiered rebate structure for securities 
priced at or above $1.00 across all Tapes, averaged across an entire 
month, where the first five million maker shares executed on an average 
daily volume (ADV) basis receive a rebate of $0.0032 per share, with an 
increase in the rebate to $0.0035 for each maker share executed above 
five million ADV.
    The Exchange now proposes to rescind the tiered rebate structure 
and implement a flat rebate, irrespective of ADV. The Exchange is 
amending the fee schedule in an effort to increase order flow in 
securities that are reported to Tape B. Accordingly, the Exchange 
proposes to adopt a fee structure for transactions in securities priced 
at or above $1.00 (excluding both order delivery and MidPoint Match 
orders) whereby the maker receives a per share rebate of $0.0035 for 
transactions in securities that are reported to Tape B and a per share 
rebate of $0.0029 for transactions in securities that are reported to 
Tape A and Tape C. The aforementioned fee changes will become operative 
on January 2, 2009.
    The execution fee for orders that remove liquidity for securities, 
across all tapes, that trade at or above $1.00 will remain unchanged at 
$0.003. The execution fee for orders that remove liquidity for 
securities, across all tapes, priced under $1.00 remains unchanged, at 
0.3% of trade value with no rebates for adding liquidity in such 
securities.
    Basis--The Exchange believes that the proposed rule change is 
consistent with the objectives of Section 6 of the Act,\3\ in general, 
and furthers the objectives of Section 6(b)(4),\4\ in particular, in 
that it is designed to provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities. In particular, raising the rebate in Tape 
B securities may provide incentive to members to send order flow to the 
ISE for securities reported to Tape B.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(4).
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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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(2) \6\ thereunder. At any 
time within 60 days of the filing of such 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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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 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-2008-101 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-2008-101. 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

[[Page 1741]]

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 on official business days between the hours of 10 a.m. 
and 3 p.m. Copies of such filing also will be available for inspection 
and copying at the principal office of the Exchange. 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-2008-101 and should be 
submitted on or before February 3, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-413 Filed 1-12-09; 8:45 am]

BILLING CODE 8011-01-P