[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39754-39755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15650]
[[Page 39754]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58091; File No. SR-ISE-2008-55]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Market Maker Fee Changes
July 3, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 30, 2008, International Securities Exchange, LLC (``ISE'' or
``Exchange'') 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 Exchange. ISE
filed the proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
ISE proposes to amend its Schedule of Fees related to options
market maker transaction fees. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, and
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 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 Exchange 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 Exchange proposes to amend its transaction fees applicable to
options market makers on the ISE and options market makers on other
options exchanges. With respect to ISE market makers, the Exchange
proposes to adopt a per contract transaction fee that is based on the
number of contracts the ISE market maker trades in a month as follows:
First 1,000,000 contracts in a month--$0.18 per contract.
1,000,001 to 3,000,000 contracts in a month--$0.16 per
contract.
3,000,001 to 5,000,000 contracts in a month--$0.13 per
contract.
5,000,001 to 10,000,000 contracts in a month--$0.03 per
contract.
Above 10,000,000 contracts in a month--$0.01 per contract.
The sliding scale applies to all ISE market makers for transactions
in all products, is calculated on a member firm basis,\5\ and applies
to non-discounted volume only; that is, it does not apply to orders
previously discounted by other pricing incentives that currently appear
on the Exchange's Schedule of Fees. Previously, the Exchange had
applied a sliding scale that was based upon the Exchange's overall
averaged daily volume (``ADV''). The ADV-based method reduced the ISE
market maker transaction fee for all members, regardless of the volume
executed by any individual member. Under this proposal, ISE market
maker fees are reduced on the member firm level as a volume discount.
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\5\ If a member firm operates more than one market maker
membership, all of the member firm's market maker volume will be
aggregated for purposes of the market maker transaction fee.
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The Exchange also proposes to increase the transaction fee charged
to members to execute orders for the account of options market makers
on other exchanges. Under this proposal, the ``non-ISE market maker
fee,'' previously set at $0.40 per contract, has been increased to
$0.45 cents per contract.\6\ These changes became operative on July 1,
2008.
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\6\ ISE's non-ISE market maker fee is currently $0.37 cents plus
a $0.03 comparison fee. See Securities Exchange Act Release No.
55897 (June 12, 2007), 72 FR 33546 (June 18, 2007) (SR-ISE-2007-41).
The Exchange consolidated these two fees in SR-ISE-2008-54, so that
the total non-ISE market maker fee is represented as $0.40 on the
Exchange's schedule of fees.
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2. Statutory Basis
The Exchange states that the basis under the Act for this proposed
rule change is the requirement of Section 6(b)(4) \7\ that an exchange
have an equitable allocation of reasonable dues, fees and other charges
among its members and other persons using its facilities.
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\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange states that 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 states that it has not solicited, and does not intend
to solicit, comments on this proposed rule change. Additionally, the
Exchange states that it 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 proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(2) thereunder,\9\ because it establishes or changes a due, fee, or
other charge imposed on members by ISE. Accordingly, the proposal is
effective upon filing with the Commission. At any time within 60 days
of the filing of the 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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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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-2008-55 on the subject line.
[[Page 39755]]
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2008-55. 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 the 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 Number SR-ISE-2008-55 and should be
submitted on or before July 31, 2008.
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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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15650 Filed 7-9-08; 8:45 am]
BILLING CODE 8010-01-P