[Federal Register Volume 74, Number 130 (Thursday, July 9, 2009)]
[Notices]
[Pages 33012-33013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16176]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60208; File No. SR-ISE-2009-39]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to PrecISE Fees
July 1, 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 24, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission (the ``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 is proposing to amend the fees for its 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
the ISE's fee schedule for its proprietary PrecISE Trade[supreg] order
entry terminals. ``PrecISE'' is the Exchange's internally-developed
proprietary order-routing terminal used by Electronic Access Members
(``EAM'') to send order flow to ISE. ISE currently charges a monthly
fee of $300 per user per month for the first 10 users; for all
subsequent users, ISE charges $50 per user per month.\3\ ISE recently
upgraded PrecISE, enhancing it with certain new functionalities that,
among other things, provide users with ``Greek'' calculations and the
use of Attributable Orders.\4\ Certain other user-requested
enhancements have also been built into the new version. In order for
ISE to cover the costs of building out the enhanced version, we propose
to increase the fee for the first 10 users to $350 per month and for
all subsequent users, $100 per month.
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\3\ See Securities Exchange Act Release No. 55960 (June 26,
2007), 72 FR 36531 (July 3, 2007) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change Relating to PrecISE Fees).
\4\ Attributable Order is a market or limit order in which an
EAM can choose to disclose their member ID. See Securities Exchange
Act Release No. 58701 (October 1, 2008), 73 FR 59007 (October 8,
2008) (Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to a New Order Type) (SR-ISE-2008-74).
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ISE also proposes to change the method for calculating this fee.
Currently, EAMs are billed based on the number of maximum concurrent
logins. For example, if an EAM uses five logins over the course of a
month but only three logins were used simultaneously at any point
during the month, that member is charged for just those three logins.
The Exchange now proposes to charge EAMs for the total number of logins
used during the month. Using the same example, EAMs will now be charged
for all five logins that they used over the course of the month. This
proposed fee change will be operative on July 1, 2009.
(2) Basis--The basis under the Securities Exchange Act of 1934 (the
``Exchange Act'') [sic] 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.
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) [sic] of the Act \5\ and Rule 19b-4(f)(2) \6\ thereunder. At
any time within 60 days of the filing of such proposed rule
[[Page 33013]]
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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\5\ 15 U.S.C. 78s(b)(3)(A). [sic]
\6\ 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-2009-39 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-2009-39. 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-2009-39 and should be
submitted on or before July 30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16176 Filed 7-8-09; 8:45 am]
BILLING CODE 8010-01-P