Document ID: SEC-2009-1432-0001
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: 2009-10-08T04:00Z

[Federal Register: October 8, 2009 (Volume 74, Number 194)]
[Notices]               
[Page 51895-51896]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc09-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60780; File No. SR-ISE-2009-71]

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

October 2, 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 September 30, 2009, the International Securities Exchange, LLC 
(the ``Exchange'' or ``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 proposes to amend its fees relating to the Exchange's 
proprietary 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 ISE's fees 
relating to the Exchange's proprietary PrecISE Trade[supreg] order 
entry terminals. First, the Exchange currently has a monthly PrecISE 
sponsored customer fee of $250 per terminal, with a maximum of $1,500 
per sponsored customer. A ``Sponsored Customer'' is a non-Member of the 
Exchange that trades under a sponsoring Member's execution and clearing 
identity. The Exchange permits Sponsored Customers of Members to access 
the Exchange directly via a PrecISE trade terminal, provided certain 
conditions are met. The Exchange's sponsored customer fees have been in 
place since 2007.\3\
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    \3\ See Exchange Act Release No. 34-56496 (September 21, 2007), 
72 FR 55268 (September 28, 2007).
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    Earlier this year, the Exchange amended its PrecISE terminal fees 
by increasing those fees from $300 to $350 per month for the first 10 
users and from $50 to $100 per month for all subsequent users.\4\ The 
Exchange increased its PrecISE terminal fees to cover its costs of 
building out an enhanced PrecISE terminal. The PrecISE terminals that 
sponsored customers use have the same functionalities as the terminals 
that are used by ISE Members. ISE now proposes to amend its PrecISE 
sponsored customer fee by aligning this fee with its PrecISE terminal 
fees. Accordingly, the Exchange proposes to increase its PrecISE 
sponsored customer fee from $300 to $350 per terminal per month for the 
first 10 users and from $50 to $100 per month for all subsequent users.
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    \4\ See Exchange Act Release No. 34-60208 (July 1, 2009), 74 FR 
33012 (July 9, 2009) (the ``PrecISE Fee Filing'').
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    In the PrecISE Fee Filing, the Exchange also changed the method for 
calculating its PrecISE terminal fees.\5\ ISE now proposes to adopt the 
same method for calculating its PrecISE sponsored customer fee that it 
currently uses for calculating the PrecISE terminal fee, which is to 
charge users for the total number of logins used during a month per 
Sponsored Customer.
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    \5\ Id.
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    Second, the Exchange proposes to remove the PrecISE through VPN fee 
from its fee schedule. The Exchange no longer supports a PrecISE 
through VPN

[[Page 51896]]

connection. Members that used to connect to the Exchange through a VPN 
now connect to the Exchange via the Internet.
    These proposed fee changes will be operative on October 1, 2009.
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. In particular, these fees will enable the Exchange to 
cover its costs for providing an enhanced version of its front-end 
trading system to sponsored customers.

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) of the Act \6\ and Rule 19b-4(f)(2) \7\ 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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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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-2009-71 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-2009-71. 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 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 No. SR-ISE-2009-71 and should be 
submitted on or before October 29, 2009.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-24268 Filed 10-7-09; 8:45 am]

BILLING CODE 8011-01-P