[Federal Register Volume 74, Number 115 (Wednesday, June 17, 2009)]
[Notices]
[Pages 28746-28747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-14170]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60087; File No. SR-ISE-2009-33]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
June 10, 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 5, 2009, 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, 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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[[Page 28747]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its Schedule of Fees. The text
of the proposed rule change is available on the Exchange's Internet Web
site at http://www.ise.com.
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
(a) Purpose--In SR-ISE-2009-26, the Exchange adopted the term
`Singly Listed ETFs' to identify those ETF products that are listed
only on ISE and for which the Exchange charges a fee of $0.18 per
contract for customer transactions. Currently, there are only two ETFs
that are singly listed on the Exchange, the First Trust ISE Water ETF
and the First Trust ISE-Revere Natural Gas ETF, identified on the
Exchange's fee schedule by their ticker symbols, FIW and FCG,
respectively. FCG was recently listed for trading on another exchange
and is therefore no longer singly listed on ISE. As FCG is now a
multiply-listed ETF option, ISE will no longer charge a transaction fee
for customer orders in this product and the Exchange proposes to remove
FCG from its fee schedule. Since options on FCG are now multiply-
listed, the Exchange has determined to charge a Payment for Order Flow
(``PFOF'') fee for this product.
Further, ISE first listed options on the First Trust ISE ChIndia
ETF (``FNI'') on July 24, 2007.\3\ At that time, FNI was singly listed
on the ISE and thus, ISE did not charge a PFOF fee for transactions in
this product. FNI remained singly listed until January 9, 2008 when
another exchange began listing options on it. Despite it being
multiply-listed, ISE did not charge a PFOF fee for transactions in FNI.
ISE now proposes to charge a PFOF fee for transactions in FNI.
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\3\ See Securities Exchange Act Release No. 56165 (July 30,
2007), 72 FR 43307 (August 3, 2007).
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(b) Basis--The Exchange believes that the proposed rule change is
consistent with the objectives of Section 6 of the Act,\4\ in general,
and furthers the objectives of Section 6(b)(4),\5\ 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.
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\4\ 15 U.S.C. 78f.
\5\ 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) 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). [sic]
\7\ 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 [email protected]. Please include
File Number SR-ISE-2009-33 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-2009-33. 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-2009-33 and should be
submitted on or before July 8, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-14170 Filed 6-16-09; 8:45 am]
BILLING CODE 8010-01-P