[Federal Register Volume 78, Number 52 (Monday, March 18, 2013)]
[Notices]
[Pages 16738-16740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06157]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69123; File No. SR-ISE-2013-21]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Schedule of Fees To Reflect Regulatory Fees Related
To the Central Registration Depository
March 12, 2013.
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 March 11, 2013, 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 Exchange.
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 Exchange proposes to amend it Schedule of Fees with respect to
regulatory fees related to the Central Registration Depository (``Web
CRD''), which are collected by the Financial Industry Regulatory
Authority (``FINRA''). The text of the proposed rule change is
available on the Exchange's Web site 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 Exchange 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.
[[Page 16739]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Schedule of Fees with respect to
regulatory fees related to Web CRD, which are collected by FINRA
(``FINRA Web CRD Fees'').\3\ The proposed fees, which the Exchange is
adopting for the first time on its Schedule of Fees, are collected and
retained by FINRA via Web CRD for the registration of employees of ISE
members that are not FINRA members (``Non-FINRA members''). The
Exchange is merely listing these fees on its Schedule of Fees. The
Exchange does not collect or retain these fees.
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\3\ FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers.
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The FINRA Web CRD Fees listed on ISE's Schedule of Fees consists of
General Registration Fees of $100 (for each initial Form U4 filed for
the registration of a representative or principal), $110 (for the
additional processing of each initial or amended Form U4, Form U5 or
Form BD that includes the initial reporting, amendment or certification
of one of more disclosure events or proceedings), and $45 (annual
system processing fee assessed only during renewals). The FINRA Web CRD
Fees listed on the ISE Schedule of Fees also consists of Fingerprint
Processing Fees for the initial, second and third submissions. There is
a separate fee for electronic submissions and paper submissions. The
initial electronic and paper submission fees are $29.50 and $44.50,
respectively. The second electronic and paper submission fees are
$15.00 and $30.00, respectively. The third electronic and paper
submission fees are $29.50 and $44.50, respectively. Finally, there is
a $30 processing fee for fingerprint results submitted by self-
regulatory organizations other than FINRA.
The FINRA Web CRD Fees are user-based and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently
assessed by FINRA.\4\
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\4\ See Securities Exchange Act Release No. 67247 (June 25,
2012), 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (``FINRA Fee
Filing'').
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2. Statutory Basis
The Exchange believes that its proposal to amend its Schedule of
Fees is consistent with Section 6(b) \5\ of the Act, in general, and
furthers the objectives of Sections 6(b)(4) \6\ and 6(b)(5) \7\ of the
Act, in particular, because it provides for the equitable allocation of
reasonable dues, fees and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change is reasonable
because the proposed fees are identical to those adopted by FINRA for
use of Web CRD for disclosure and the registration of FINRA members and
their associated persons. In the FINRA Fee Filing, FINRA noted that it
believed that its fees are reasonable based on the increased costs
associated with operating and maintaining Web CRD, and listed a number
of enhancements made to Web CRD in support of its fee change. These
costs are borne by FINRA when a Non-FINRA member uses Web CRD. FINRA
further noted its belief that the fees are reasonable because they help
to ensure the integrity of the information in Web CRD, which is very
important because the Commission, FINRA, other self-regulatory
organizations and state securities regulators use Web CRD to make
licensing and registration decisions, among other things.
The Exchange notes that the proposed rule change is reasonable
because the amount of the fees are those provided by FINRA, and the
Exchange does not collect or retain these fees. The proposed rule
change is also equitable and not unfairly discriminatory because the
Exchange will not be collecting or retaining these fees, therefore will
not be in a position to apply them in an inequitable or unfairly
discriminatory manner.
B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange notes that the proposed rule change will result
in the same regulatory fees being charged to all members required to
report information to Web CRD and for services performed by FINRA,
regardless of whether or not such members are FINRA members.
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-
4(f)(6) \9\ thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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The Exchange has requested the Commission to waive the 30-day
operative delay to allow the proposed rule change to become operative
upon filing.\10\ The Commission believes it is consistent with the
public interest to waive the 30-day operative delay. The proposed rule
change lists FINRA's fees on the Exchange's Schedule of Fees--the
Exchange will not collect or retain these fees. As such, the Commission
believes that the proposal presents no novel regulatory issues and will
make the fees more transparent to ISE members. Waiver of the operative
delay will allow the Exchange to list on its Schedule of Fees the fees
that FINRA charges for use of WebCRD without undue delay. Therefore,
the Commission grants such waiver and designates the proposal operative
upon filing.\11\
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\10\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided the Commission with written notice of its intent to file
the proposed rule change along with a brief description and the text
of the proposed rule change, at least five business days prior to
the date of filing of the proposed rule change, or such shorter time
as designated by the Commission.
\11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the 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
[[Page 16740]]
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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 email to [email protected]. Please include
File No. SR-ISE-2013-21 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-2013-21. This file
number should be included on the subject line if email 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 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 10:00 a.m. and
3:00 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-2013-21 and should be
submitted on or before April 8, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-06157 Filed 3-15-13; 8:45 am]
BILLING CODE 8011-01-P