Document ID: SEC-2009-1330-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change Relating to Historical ISE Open/Close Trade Profile Fees
Posted Date: 2009-09-17T04:00Z

[Federal Register: September 17, 2009 (Volume 74, Number 179)]
[Notices]
[Page 47848-47849]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se09-85]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60654; File No. SR-ISE-2009-64]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing of Proposed Rule Change Relating to Historical
ISE Open/Close Trade Profile Fees

September 11, 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 August 25, 2009, 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 ISE is proposing to amend its Schedule of Fees to adopt reduced
subscription fees for academics for the sale of historical open and
close volume data on ISE listed options. 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, 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

1. Purpose
    ISE currently sells a market data offering comprised of the entire
opening and closing trade data of ISE listed options of both customers
and firms, referred to by the Exchange as the ISE Open/Close Trade
Profile.\3\ The ISE Open/Close Trade Profile offering is subdivided by
origin code (i.e., customer or firm) and the customer data is then
further subdivided by order size. The volume data is summarized by day
and series (i.e., symbol, expiration date, strike price, call or put).
The ISE Open/Close Trade Profile enables subscribers to create their
own proprietary put/call calculations. The data is compiled and
formatted by ISE as an end of day file. This market data offering is
currently

[[Page 47849]]

available to both members and non-members on annual subscription basis.
The current subscription rate for both members and non-members is $600
per month.
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    \3\ See Securities Exchange Act Release No. 56254 (August 15,
2007), 72 FR 47104 (August 22, 2007) (Approving SR-ISE-2007-70).
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    ISE also sells historical ISE Open/Close Trade Profile, a market
data offering comprised of the entire opening and closing trade data of
both customers and firms that dates back to May 2005, to both members
and non-members, on an ad-hoc basis or as a complete set that dates
back to May 2005. Ad-hoc subscribers can purchase this data for any
number of months, beginning from May 2005 through the current month.
Alternatively, subscribers can purchase the entire set of this data,
beginning from May 2005 through the current month. The historical ISE
Open/Close Trade Profile is compiled and formatted by ISE and sold as a
zipped file. ISE charges ad-hoc subscribers $600 per request for each
month of data and a discounted fee of $500 per request per month for
subscribers that want the complete set, i.e., from May 2005 to the
present month.
    The Exchange now proposes to adopt reduced fees for subscriptions
to historical ISE Open/Close Trade Profile by academic institutions.
Occasionally, academic institutions inquire with the Exchange about
subscribing to the historical ISE Open/Close Trade Profile for research
purposes but are not inclined to pay the full price. In order to
encourage and promote academic studies of its market data, ISE proposes
to charge a flat rate of $500 for up to 12 months of data or $1,000 for
the complete data set. Academic institutions may not use the data in
support of actual securities trading. The proposed discount applies
only to the market data fees and does not cover any access or
telecommunication charges that may be incurred by an academic
institution. Moreover, with the adoption of reduced fees for academic
institutions, ISE is not waiving any of its contractual rights and all
academic institutions that subscribe to this data will be required to
execute the appropriate subscriber agreement.
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. The Exchange notes that the proposed fees are
reasonable and equitable in that they are deeply discounted and apply
equally to all academic institutions as long as the purpose for
subscribing to the data is educational and not vocational. Further, the
Exchange believes the proposed rule filing will promote academic
research of market data which can be of benefit to all market
participants.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (a) By order approve such proposed rule change; or
    (b) Institute proceedings to determine whether the proposed rule
change should be disapproved.

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-2009-64 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-2009-64. 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 such 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 publicly available. All
submissions should refer to File Number SR-ISE-2009-64 and should be
submitted on or before October 8, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22391 Filed 9-16-09; 8:45 am]

BILLING CODE 8010-01-P