[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61037-61039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24576]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67955; File No. SR-ISE-2012-76]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Adopt Reduced Fees for Historical ISE Open/Close Trade 
Profile Intraday Market Data Offering

October 1, 2012.
    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 September 20, 2012, 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 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its Schedule of Fees to adopt 
reduced subscription fees for academics for the sale of historical ISE 
Open/Close Trade Profile Intraday market data offering. The text of the 
proposed rule change is available on the Exchange's Web site

[[Page 61038]]

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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    ISE currently sells the ISE Open/Close Trade Profile Intraday, a 
market data offering comprised of the entire opening and closing trade 
data of ISE listed options of both customers and firms updated at 10-
minute intervals throughout the trading day.\3\ The ISE Open/Close 
Trade Profile Intraday offering is subdivided by origin code (i.e., 
customer or firm) and the customer data is then further subdivided by 
order size. The volume data is summarized by day and series (i.e., 
symbol, expiration date, strike price, call or put). The ISE Open/Close 
Trade Profile Intraday enables subscribers to create their own 
proprietary put/call calculations. This market data offering is 
currently available to both members and non-members on annual 
subscription basis. The current subscription rate for both members and 
non-members is $2,000 per month.
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    \3\ See Securities Exchange Act Release No. 61317 (January 8, 
2010), 75 FR 2915 (January 19, 2010) (SR-ISE-2009-103).
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    ISE also sells historical ISE Open/Close Trade Profile Intraday. 
The historical ISE Open/Close Trade Profile Intraday offering is a 
compilation of the ISE Open/Close Trade Profile Intraday files. ISE 
sells historical ISE Open/Close Trade Profile Intraday on an ad-hoc 
basis. An ad-hoc request can be for any number of months, quarters or 
years for which the data is available. Members and non-members are 
currently able to purchase this data by paying a one-time fee of $1,000 
per month, $2,000 per quarter or $8,000 per year. For example, a 
subscriber that wants to purchase data for August 2012 will pay $1,000; 
a subscriber that wants to purchase data for July, August and September 
of 2012 will pay $2,000; a subscriber that wants to purchase data for 
all twelve months of 2011 will pay $8,000.
    The Exchange now proposes to adopt reduced fees for subscriptions 
to historical ISE Open/Close Trade Profile Intraday by academic 
institutions.\4\ Occasionally, academic institutions inquire with the 
Exchange about subscribing to the historical ISE Open/Close Trade 
Profile Intraday for research purposes but are not inclined to pay the 
full price. In order to encourage and promote academic studies of its 
market data, ISE proposes to charge a flat rate of $1,000 for an ad-hoc 
request of up to 12 months of data or $2,000 for the complete data set. 
Academic institutions may use this data for academic purposes only and 
not for actual securities trading. The proposed discount applies only 
to the market data fees and does not cover any access or 
telecommunication charges that may be incurred by an academic 
institution. Moreover, with the adoption of reduced fees for academic 
institutions, ISE is not waiving any of its contractual rights and all 
academic institutions that subscribe to this data will be required to 
execute the appropriate subscriber agreement.
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    \4\ The Exchange currently has reduced subscription fees for 
academic institutions that want to purchase historical ISE Open/
Close Trade Profile End of Day market data offering. Academic 
institutions are able to purchase a complete set of the data or on 
an ad-hoc basis for up to 12 months of data. See Securities Exchange 
Act Release No. 60859 (October 21, 2009), 74 FR 55610 (October 28, 
2009) (SR-ISE-2009-64).
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    Further, the Exchange will apply a credit towards the purchase of 
historical ISE Open/Close Trade Profile Intraday data by an academic 
institution or academic author if such academic institution or academic 
author has previously purchased historical ISE Open/Close Trade Profile 
End of Day data and if the academic institution and/or academic author 
provides ISE with a link to published research papers on the use of the 
ISE Open/Close data that can be posted on the Exchange's Web site. For 
example, a university that previously purchased a complete set of the 
ISE Open/Close Trade Profile End of Day data and paid the Exchange 
$1,000 for that data will pay an incremental $1,000 for a complete set 
of the ISE Open/Close Trade Profile Intraday data instead of paying 
$2,000 for the complete set.
2. Basis
    The basis under the Securities Exchange Act of 1934 (the ``Act'') 
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. The Exchange believes that the proposed rule change is 
consistent with the provisions of Section 6 of the Act,\5\ in general, 
and with Section 6(b)(4) of the Act,\6\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and other persons using any facility or 
system which ISE operates or controls. The Exchange notes that the 
proposed fees are reasonable and equitable in that they are deeply 
discounted and apply equally to all academic institutions as long as 
the purpose for subscribing to the data is educational and not 
vocational. Further, the Exchange believes the proposed rule filing 
will promote academic research of market data which can be of benefit 
to all market participants.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    ISE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that the 
proposed rule change will further promote and encourage academic 
studies of the ISE Open/Close Trade data for the benefit of all market 
participants.

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 \7\ and Rule 19b-4(f)(2) \8\ thereunder. 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

[[Page 61039]]

the purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule change should be approved or disapproved.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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 email to [email protected]. Please include 
File Number SR-ISE-2012-76 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-2012-76. 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 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 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 offices 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-
2012-76, and should be submitted on or before October 26, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24576 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P