Document ID: SEC-2016-0940-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2016-06-01T04:00Z

[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35079-35081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12792]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77907; File No. SR-ISE-2016-14]

Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend the Schedule of Fees

May 25, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 12, 2016, the International Securities Exchange, LLC (the 
``Exchange'' or ``ISE'') filed with the Securities and Exchange 
Commission (``Commission'')

[[Page 35080]]

the proposed rule change as described in Items I, II, and III below, 
which Items have been prepared by the Exchange. 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

    ISE proposes to amend the Schedule of Fees as described in more 
detail below. The text of the proposed rule change is available on the 
Exchange's Internet Web site at 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 Exchange 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 the 
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. 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 available to both members and non-members on an annual 
subscription basis. The current subscription rate for both members and 
non-members is $750 per month.
    ISE also sells historical ISE Open/Close Trade Profile data. This 
market data offering is comprised of the entire opening and closing 
trade data of both customers and firms that dates back to May 2005. 
This data is sold to 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 
present month (the ``Complete Set''). The historical ISE Open/Close 
Trade Profile is compiled and formatted by ISE and sold as a zipped 
file. ISE charges subscribers $600 per month for ad-hoc requests for 
each month of data and a discounted fee of $500 per request per month 
of data for the Complete Set.
    The Exchange now proposes to adopt a flat fee for the Complete Set. 
As each year passes, the cost of the Complete Set rises by $6,000 (12 
months * $500). As a result of this continual increase in cost, ISE 
believes the current cost of a Complete Set is too high to generate 
customer demand. We now propose to offer this same Complete Set for a 
price of $27,500.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\3\ in general, and Section 
6(b)(4) of the Act,\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.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed fee decrease is reasonable 
and equitable as the proposed fee is set at a level that the Exchange 
believes will be attractive to members and non-members because, over 
time, the fee for a Complete Set has become too high to generate 
sufficient customer demand and the continuing price increase would 
ultimately lead to no customer demand and prevent members and non-
members from obtaining this data. The proposed fee will ensure that for 
the foreseeable future members and non-members have access to the data 
they need for a reasonable fee. The Exchange also notes that the 
proposed Market Data Fees are not unfairly discriminatory because they 
apply equally to all members and non-members.

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

    In accordance with Section 6(b)(8) of the Act,\5\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
believes that current fee for the Complete Set became too high over 
time to generate sufficient customer demand. ISE believes the current 
fee is set at a fair price for the data being provided to both members 
and non-members. The Exchange operates in a highly competitive market 
in which market participants can readily direct their order flow to 
competing venues. In such an environment, the Exchange must continually 
review, and consider adjusting, its fees and rebates to remain 
competitive with other exchanges. For the reasons described above, the 
Exchange believes that the proposed fee changes reflect this 
competitive environment.
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    \5\ 15 U.S.C. 78f(b)(8).
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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)(ii) of the Act,\6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\7\ because it establishes a due, fee, or other charge 
imposed by ISE.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

[[Page 35081]]

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 email to rule-comments@sec.gov. Please include 
File Number SR-ISE-2016-14 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2016-14. This file 
number should be included on the subject line if email 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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 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-2016-14, and should be 
submitted on or before June 22, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-12792 Filed 5-31-16; 8:45 am]
 BILLING CODE 8011-01-P