Document ID: SEC-2009-0928-0001
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 PrecISE Fees
Posted Date: 2009-07-09T04:00Z

[Federal Register: July 9, 2009 (Volume 74, Number 130)]
[Notices]               
[Page 33012-33013]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy09-139]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60208; File No. SR-ISE-2009-39]

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

July 1, 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 June 24, 2009, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission (the ``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 the fees for its PrecISE 
Trade[supreg] order entry terminals. 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 amend 
the ISE's fee schedule for its proprietary PrecISE Trade[supreg] order 
entry terminals. ``PrecISE'' is the Exchange's internally-developed 
proprietary order-routing terminal used by Electronic Access Members 
(``EAM'') to send order flow to ISE. ISE currently charges a monthly 
fee of $300 per user per month for the first 10 users; for all 
subsequent users, ISE charges $50 per user per month.\3\ ISE recently 
upgraded PrecISE, enhancing it with certain new functionalities that, 
among other things, provide users with ``Greek'' calculations and the 
use of Attributable Orders.\4\ Certain other user-requested 
enhancements have also been built into the new version. In order for 
ISE to cover the costs of building out the enhanced version, we propose 
to increase the fee for the first 10 users to $350 per month and for 
all subsequent users, $100 per month.
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    \3\ See Securities Exchange Act Release No. 55960 (June 26, 
2007), 72 FR 36531 (July 3, 2007) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change Relating to PrecISE Fees).
    \4\ Attributable Order is a market or limit order in which an 
EAM can choose to disclose their member ID. See Securities Exchange 
Act Release No. 58701 (October 1, 2008), 73 FR 59007 (October 8, 
2008) (Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to a New Order Type) (SR-ISE-2008-74).
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    ISE also proposes to change the method for calculating this fee. 
Currently, EAMs are billed based on the number of maximum concurrent 
logins. For example, if an EAM uses five logins over the course of a 
month but only three logins were used simultaneously at any point 
during the month, that member is charged for just those three logins. 
The Exchange now proposes to charge EAMs for the total number of logins 
used during the month. Using the same example, EAMs will now be charged 
for all five logins that they used over the course of the month. This 
proposed fee change will be operative on July 1, 2009.
    (2) Basis--The basis under the Securities Exchange Act of 1934 (the 
``Exchange Act'') [sic] 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, these fees will 
enable the Exchange to cover its costs for providing an enhanced 
version of its front-end trading system.

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) [sic] 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

[[Page 33013]]

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). [sic]
    \6\ 17 CFR 19b-4(f)(2). [sic]
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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-2009-39 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-2009-39. 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 available publicly. All 
submissions should refer to File Number SR-ISE-2009-39 and should be 
submitted on or before July 30, 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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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16176 Filed 7-8-09; 8:45 am]

BILLING CODE 8010-01-P