Document ID: SEC-2009-0379-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Change: International Securities Exchange, LLC
Posted Date: 2009-03-20T04:00Z

[Federal Register: March 20, 2009 (Volume 74, Number 53)]
[Notices]               
[Page 11982-11983]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr09-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59576; File No. SR-ISE-2009-07]

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

March 13, 2009.
    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 February 20, 2009, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') 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 the self-
regulatory organization. The Exchange has designated this proposal as 
one establishing or changing a due, fee, or other charge imposed by ISE 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 three 
fee changes. 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
    The purpose of this proposed rule change is to adopt three fee 
changes. These changes will be operative on March 2, 2009.
    Customer orders for Complex Orders that take liquidity from the 
complex order book: ISE currently charges $0.18 per contract to members 
for customer orders that take liquidity from the complex order book. 
This fee does not apply until a member executes, on a monthly basis, 
15,000 spread contracts that take liquidity from the complex order 
book. Once a member executes 15,000 spread contracts that take 
liquidity from the complex order book, this fee is assessed on all of 
the incremental spread contracts that take liquidity from the complex 
order book executed by the member during the month. ISE proposes to 
increase this fee to $0.20 per contract to align it with fees for 
similar types of proprietary trading.
    Customer orders entered in response to special order broadcasts: 
ISE currently charges $0.18 per contract for transactions that result 
from customer orders that are entered as responses to special order 
broadcasts. Special order broadcasts are sent to members when certain 
types of orders are entered, such as facilitation orders, solicitation 
orders, block orders, and Price Improvement Mechanism orders. ISE 
similarly proposes to increase this fee to $0.20 per contract to align 
it with firm proprietary trading fees.
    Non-ISE Market Maker (FARMM) fee discount for special orders: ISE 
currently charges a transaction fee of $0.45 per contract for FARMM 
orders. FARMM orders are orders that are sent to the Exchange by an 
Electronic Access Member on behalf of non-ISE market makers. In order 
to encourage FARMMs to execute orders in our Facilitation and 
Solicitation Mechanisms, ISE currently charges FARMMs a discounted 
transaction fee of $0.19 per contract. ISE proposes to adjust the 
current discount by increasing the discounted fee to $0.20 per 
contract. FARMM orders that respond to the Exchange's Facilitation and 
Solicitation auctions will be charged the standard fee of $0.45 per 
contract.
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 believes the proposed fee increases are 
reasonable and will result in a more equitable distribution among 
market participants of the costs associated with the type of orders to 
which these fees apply.

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 proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-
4(f)(2) \6\ thereunder, because it establishes or changes a due, fee, 
or other charge imposed by the

[[Page 11983]]

Exchange. Accordingly, the proposal will take effect upon filing with 
the Commission. 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)(ii).
    \6\ 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-2009-07 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-2009-07. 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 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-2009-07 and should be 
submitted on or before April 10, 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. E9-6086 Filed 3-19-09; 8:45 am]

BILLING CODE 8011-01-P