Document ID: SEC-2009-1524-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving a Proposed Rule Change Relating to Historical ISE Open/Close Trade Profile Fees
Posted Date: 2009-10-28T04:00Z

[Federal Register: October 28, 2009 (Volume 74, Number 207)]
[Notices]               
[Page 55610-55611]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28oc09-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60859; File No. SR-ISE-2009-64]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Order Approving a Proposed Rule Change Relating to Historical ISE 
Open/Close Trade Profile Fees

October 21, 2009.
    On August 25, 2009, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend its Schedule of Fees to 
adopt reduced subscription fees for academic institutions for the sale 
of historical open and close volume data on ISE listed options. Notice 
of the proposed rule change was published for comment in the Federal 
Register on September 17, 2009.\3\ The Commission received no comments 
on the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60654 (September 17, 
2009), 74 FR 47848 (``Notice'').
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    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 (``ISE Open/Close Trade Profile'').\4\ 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 annual subscription basis.\5\
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    \4\ See Securities Exchange Act Release No. 56254 (August 15, 
2007), 72 FR 47104 (August 22, 2007) (approving SR-ISE-2007-70).
    \5\ The current subscription rate for both members and non-
members is $600 per month.
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    ISE also sells to both members and non-members 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 (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 for 
their research purposes.\6\ 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. In addition, 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.
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    \6\ The Exchange stated that 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.
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    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\7\ 
In particular, the Commission finds that the proposed rule change is 
consistent with the requirements of Section 6(b)(4) of the Act,\8\ 
which requires that the rules of a national securities exchange provide 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using its facilities, and 
Section 6(b)(5) of

[[Page 55611]]

the Act,\9\ which requires, among other things, that the rules of an 
exchange be designed to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest; and not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \7\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to reduce fees for subscriptions to its 
historical ISE Open/Close Trade Profile by academic institutions only 
if they use the data for their research purposes. The proposed fees 
will apply equally to all academic institutions. The proposed rule 
change should promote academic research, which can benefit all market 
participants. Further, the Commission notes that Options Price 
Reporting Authority (``OPRA'') has in place a similar Academic Waiver 
Policy, pursuant to which OPRA waives its fees for universities that 
wish to use its data for research and educational instruction 
purposes.\10\
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    \10\ See Securities Exchange Act Release 58424 (August 26, 
2008), 73 FR 51545 (September 3, 2008) (Notice of Filing and 
Immediate Effectiveness of Proposed Amendment to the Options Price 
Reporting Authority's Academic Waiver Policy).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-ISE-2009-64), be and hereby is 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-25832 Filed 10-27-09; 8:45 am]

BILLING CODE 8011-01-P