[Federal Register Volume 80, Number 27 (Tuesday, February 10, 2015)]
[Notices]
[Pages 7514-7515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02644]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74205; File No. SR-ISE Gemini-2015-03]
Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Schedule of Fees
February 4, 2015.
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 January 23, 2015, ISE Gemini, LLC (the ``Exchange'' or ``ISE
Gemini'') filed with the Securities and Exchange 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
ISE Gemini proposes to amend the Schedule of Fees to eliminate fees
and rebates for Mini Options, which were delisted on the Exchange as of
the close of business on December 17, 2014. The text of the proposed
rule change is available on the Exchange's Internet Web site at 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 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
The Exchange is permitted to list Mini Option contracts overlying
ten shares of the following five symbols: SPY, AAPL, GLD, GOOGL, and
AMZN, pursuant to Supplementary Material .13 to Rule 504. Due to the
smaller exercise and assignment value of Mini Options contracts, the
Exchange charges fees and provides rebates in these Mini Option classes
at a rate that is 1/10th the rate of fees and rebates the Exchange
provides for trading in Standard Options. As the Exchange has delisted
all Mini Options as of the close of business on December 17, 2014, the
Exchange now proposes to eliminate fees and rebates for Mini Options in
the Schedule of Fees. In particular, the Exchange also proposes to
remove language related to Mini Options in the following sections of
the Schedule of Fees:
1. Sections II, which contains tables on Regular Order Fees and
Rebates for Mini Options, including Qualifying Tier Thresholds. This
section will be eliminated in its entirety.\3\
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\3\ The Exchange proposes to update section references to take
into account the new section numbers when this section is removed.
Section references in this proposed rule change are to the current
section numbers.
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2. The definition of Mini Options in the Preface.
3. Language related to basing volume thresholds on both Standard
and Mini Option volume in the footnotes to the Qualifying Tier
Thresholds of section I.
4. Route-out fees for Mini Options in section III, A.
5. Language related to charging the Options Regulatory Fee for
options transactions in Mini Options in section IV, A.
[[Page 7515]]
In connection with the above changes, the Exchange further proposes
to remove related references to Standard Options, as the distinction
between Standard Options and Mini Options is no longer necessary with
the delisting of Mini Options.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of section 6 of the Act,\4\ in general, and section
6(b)(4) of the Act,\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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Specifically, the Exchange believes that the proposed rule change
is reasonable, equitable, and not unfairly discriminatory as all Mini
Option classes have been delisted on the Exchange as of the close of
business on December 17, 2014. The Exchange believes that eliminating
fees and rebates for Mini Options (and removing superfluous references
to Standard Options) will simplify the Schedule of Fees and reduce
investor confusion as to what products trade on the Exchange. The
Exchange represents that in the event it determines to relist Mini
Options in the future it will first submit a proposed rule change to
adopt fees and rebates applicable to Mini Options.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with section 6(b)(8) of the Act,\6\ the Exchange does
not believe that the proposed rule change will impose any burden on
intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
rule change is intended solely to eliminate investor confusion as to
the products that trade on the Exchange. As such, the Exchange believes
the proposed rule change will have no competitive impact.
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\6\ 15 U.S.C. 78f(b)(8).
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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 subparagraph (f)(2) of Rule 19b-4
thereunder,\8\ because it establishes a due, fee, or other charge
imposed by ISE Gemini.
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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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At any time within 60 days of the filing of such 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 Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule 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 Number SR-ISE Gemini-2015-03 on the subject line.
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 Gemini-2015-03. 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, 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 will also 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 Gemini-2015-03 and
should be submitted on or before March 3, 2015.
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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Brent J. Fields,
Secretary.
[FR Doc. 2015-02644 Filed 2-9-15; 8:45 am]
BILLING CODE 8011-01-P