[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Pages 38434-38436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16397]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 3464743; File No. SR-ISE-2011-35]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Extend a Fee Discount Pilot Program for Large-Sized Foreign
Currency Options
June 24, 2011.
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 21, 2011, 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 and II below, which items have been prepared by the self-
regulatory organization. The
[[Page 38435]]
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 extend for an additional year the fee
discount for large-sized foreign currency (``FX'') option orders. 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 extend for an
additional year the fee discount for large-sized FX option orders. The
Exchange initially adopted the fee discount for large-sized FX option
orders in 2008.\3\ The fee discount pilot program was subsequently
extended \4\ and is now set to expire on June 30, 2011.\5\ The fee
discount applies to orders of 250 contracts or more and waives fees on
incremental volume above 250 contracts. Contracts at or under the
threshold are charged the constituent's prescribed execution fee. The
fee discount applies to all Customer \6\ orders, Firm Proprietary
orders, Market Maker orders and Non-ISE Market Maker orders in FX
options traded on the Exchange. ISE adopted this fee discount to
encourage members to execute large-sized FX option orders on the
Exchange in a manner that is cost effective. The Exchange now proposes
to extend this fee discount through June 30, 2012 in a continuing
effort to attract more activity in large-sized FX options.
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\3\ See Securities Exchange Act Release No. 58139 (July 10,
2008), 73 FR 41142 (July 17, 2008) (SR-ISE-2008-54).
\4\ See Securities Exchange Act Release No. 60192 (June 30,
2009), 74 FR 32211 (July 7, 2009) (SR-ISE-2009-42).
\5\ See Securities Exchange Act Release No. 62506 (July 15,
2010), 75 FR 42801 (July 22, 2010) (SR-ISE-2010-67).
\6\ The fee discount applies to both Professional and Priority
Customer orders. A Priority Customer is defined in ISE Rule
100(a)(37A) as a person or entity that is not a broker/dealer in
securities, and does not place more than 390 orders in listed
options per day on average during a calendar month for its own
beneficial account(s). A Professional Customer is a person who is
not a broker/dealer and is not a Priority Customer.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\7\ in general, and
furthers the objectives of Section 6(b)(4),\8\ 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. The Exchange believes the proposed rule change is
reasonable and equitable as it would extend a current fee discount,
thus effectively maintaining low fees for all market participants that
trade in large-sized FX options on the Exchange.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
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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)(A)(ii) of the Act.\9\ 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.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 proposal 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 [email protected]. Please include
File No. SR-ISE-2011-35 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 No. SR-ISE-2011-35. 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 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
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 No. SR-ISE-2011-35 and should be
submitted on or before July 21, 2011.
[[Page 38436]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16397 Filed 6-29-11; 8:45 am]
BILLING CODE 8011-01-P