80 FR 12534 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 45 (March 9, 2015)

Page Range		12534-12535
FR Document		2015-05293
Federal Register, Volume 80 Issue 45 (Monday, March 9, 2015)
[Federal Register Volume 80, Number 45 (Monday, March 9, 2015)]
[Notices]
[Pages 12534-12535]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05293]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74417; File No. SR-ISE-2015-06]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend the Schedule of Fees

March 3, 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 February 18, 2015, 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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to amend its Schedule of Fees to increase certain 
network and gateway fees. 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 the proposed rule change is to amend the Schedule of 
Fees to increase certain network and gateway fees. The Exchange charges 
an Ethernet fee for its four different Ethernet connection options, 
which is $750 per month for a 1 Gigabit (``Gb'') connection, $4,000 per 
month for a 10 Gb connection, $7,000 per month for a 10 Gb low latency 
connection, and $12,500 per month for a 40 Gb low latency connection. 
These Ethernet connectivity options provide access to both the ISE and 
the ISE's sister exchange, ISE Gemini, LLC (``ISE Gemini'').\3\ The 
Exchange proposes to increase these Ethernet fees to $1,000 per month 
for the 1 Gb connection, $4,500 per month for the 10 Gb connection, 
$8,000 per month for the 10 Gb low latency connection, and $15,000 per 
month for the 40 Gb low latency connection. In addition, the Exchange 
offers both shared and dedicated gateways to facilitate member access 
to ISE and ISE Gemini for a single fee. The Exchange charges members a 
monthly gateway fee of $500 per gateway for a shared gateway or $2,000 
per gateway pair for members that elect to use their own dedicated 
gateways as an alternative to using shared gateways. The Exchange 
proposes to increase the gateway fee to $750 per month for a shared 
gateway and $2,250 per month for a dedicated gateway pair.
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    \3\ Market participants pay the same fees regardless of whether 
they choose to connect to both exchanges or solely to the ISE.
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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. The 
Exchange believes that it is reasonable and equitable to increase the 
network and gateway fees described in this filing as the new fees are 
more in line with the Exchange's current connectivity costs, including 
costs for software and

[[Page 12535]]

hardware enhancements, and resources dedicated to development, quality 
assurance, and support. The proposed fees are within the range of fees 
currently charged by other options exchanges. Furthermore, the Exchange 
believes that the proposed fees are not unfairly discriminatory as all 
market participants that use these services will pay the same fee based 
on the connectivity options that they choose, and there is no 
differentiation among market participants with regard to the fees 
charged.
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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

    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 increases certain network and gateway fees to levels that 
are within the range of fees charged by other options exchanges. These 
fees will be charged to all firms that elect to use the connectivity 
options described in this filing. The Exchange operates in a highly 
competitive market in which market participants can readily direct 
their order flow to competing venues. In such an environment, the 
Exchange must continually review, and consider adjusting, its fees to 
remain competitive with other exchanges. For the reasons described 
above, the Exchange believes that the proposed fee changes reflect this 
competitive environment.
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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.
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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 No. SR-ISE-2015-06 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 No. SR-ISE-2015-06. 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 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 No. SR-ISE-2015-06 and should be 
submitted by March 30, 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. 2015-05293 Filed 3-6-15; 8:45 am]
 BILLING CODE 8011-01-P
12534 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices

Act) received from the Fund, or its These findings and their basis will be The self-regulatory organization has
respective Master Fund, by the recorded fully in the minute books of prepared summaries, set forth in
Acquiring Fund Advisor, Trustee or the appropriate Acquiring Management sections A, B and C below, of the most
Sponsor, or an affiliated person of the Company. significant aspects of such statements.
Acquiring Fund Advisor, Trustee or For the Commission, by the Division of A. Self-Regulatory Organization’s
Sponsor, other than any advisory fees Investment Management, under delegated Statement of the Purpose of, and
paid to the Acquiring Fund Advisor, authority.
Statutory Basis for, the Proposed Rule
Trustee or Sponsor, or its affiliated Brent J. Fields, Change
person by the Fund, or its respective Secretary.
Master Fund, in connection with the [FR Doc. 2015–05288 Filed 3–6–15; 8:45 am]
1. Purpose
investment by the Acquiring Fund in BILLING CODE 8011–01–P The purpose of the proposed rule
the Fund. Any Acquiring Fund Sub- change is to amend the Schedule of Fees
Advisor will waive fees otherwise to increase certain network and gateway
payable to the Acquiring Fund Sub- SECURITIES AND EXCHANGE fees. The Exchange charges an Ethernet
Advisor, directly or indirectly, by the COMMISSION fee for its four different Ethernet
Acquiring Management Company in an connection options, which is $750 per
amount at least equal to any [Release No. 34–74417; File No. SR–ISE–
2015–06] month for a 1 Gigabit (‘‘Gb’’)
compensation received from a Fund, or connection, $4,000 per month for a 10
its respective Master Fund, by the Self-Regulatory Organizations; Gb connection, $7,000 per month for a
Acquiring Fund Sub-Advisor, or an International Securities Exchange, 10 Gb low latency connection, and
affiliated person of the Acquiring Fund LLC; Notice of Filing and Immediate $12,500 per month for a 40 Gb low
Sub-Advisor, other than any advisory Effectiveness of Proposed Rule latency connection. These Ethernet
fees paid to the Acquiring Fund Sub- Change To Amend the Schedule of connectivity options provide access to
Advisor or its affiliated person by the Fees both the ISE and the ISE’s sister
Fund, or its respective Master Fund, in exchange, ISE Gemini, LLC (‘‘ISE
connection with any investment by the March 3, 2015. Gemini’’).3 The Exchange proposes to
Acquiring Management Company in the Pursuant to Section 19(b)(1) of the increase these Ethernet fees to $1,000
Fund made at the direction of the Securities Exchange Act of 1934 (the per month for the 1 Gb connection,
Acquiring Fund Sub-Advisor. In the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 $4,500 per month for the 10 Gb
event that the Acquiring Fund Sub- notice is hereby given that on February connection, $8,000 per month for the 10
Advisor waives fees, the benefit of the 18, 2015, the International Securities Gb low latency connection, and $15,000
waiver will be passed through to the Exchange, LLC (the ‘‘Exchange’’ or the per month for the 40 Gb low latency
Acquiring Management Company. ‘‘ISE’’) filed with the Securities and connection. In addition, the Exchange
16. Any sales charges and/or service Exchange Commission (‘‘Commission’’) offers both shared and dedicated
fees charged with respect to shares of an the proposed rule change, as described gateways to facilitate member access to
Acquiring Fund will not exceed the in Items I, II, and III below, which items ISE and ISE Gemini for a single fee. The
limits applicable to a fund of funds as have been prepared by the self- Exchange charges members a monthly
set forth in NASD Conduct Rule 2830. regulatory organization. The
17. No Fund, or its respective Master gateway fee of $500 per gateway for a
Commission is publishing this notice to shared gateway or $2,000 per gateway
Fund, will acquire securities of any solicit comments on the proposed rule
other investment company or company pair for members that elect to use their
change from interested persons. own dedicated gateways as an
relying on section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained I. Self-Regulatory Organization’s alternative to using shared gateways.
in section 12(d)(1)(A) of the Act, except Statement of the Terms of Substance of The Exchange proposes to increase the
to the extent (i) the Fund, or its the Proposed Rule Change gateway fee to $750 per month for a
respective Master Fund, acquires shared gateway and $2,250 per month
The ISE proposes to amend its
securities of another investment for a dedicated gateway pair.
Schedule of Fees to increase certain
company pursuant to exemptive relief network and gateway fees. The text of 2. Statutory Basis
from the Commission permitting the the proposed rule change is available on The Exchange believes that the
Fund, or its respective Master Fund, to the Exchange’s Web site (http:// proposed rule change is consistent with
acquire securities of one or more www.ise.com), at the principal office of the provisions of Section 6 of the Act,4
investment companies for short-term the Exchange, and at the Commission’s in general, and Section 6(b)(4) of the
cash management purposes or (ii) the Public Reference Room. Act,5 in particular, in that it is designed
Fund acquires securities of the Master
II. Self-Regulatory Organization’s to provide for the equitable allocation of
Fund pursuant to the Master–Feeder
Statement of the Purpose of, and reasonable dues, fees, and other charges
Relief.
18. Before approving any advisory Statutory Basis for, the Proposed Rule among its members and other persons
contract under section 15 of the Act, the Change using its facilities. The Exchange
Board of each Acquiring Management believes that it is reasonable and
In its filing with the Commission, the
Company, including a majority of the equitable to increase the network and
self-regulatory organization included
Independent Trustees, will find that the gateway fees described in this filing as
statements concerning the purpose of,
the new fees are more in line with the
mstockstill on DSK4VPTVN1PROD with NOTICES

advisory fees charged under such and basis for, the proposed rule change
advisory contract are based on services Exchange’s current connectivity costs,
and discussed any comments it received
provided that will be in addition to, including costs for software and
on the proposed rule change. The text
rather than duplicative of, the services of these statements may be examined at 3 Market participants pay the same fees regardless
provided under the advisory contract(s) the places specified in Item IV below. of whether they choose to connect to both
of any Fund, or its respective Master exchanges or solely to the ISE.
Fund, in which the Acquiring 1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f.

Management Company may invest. 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(4).

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Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 12535

hardware enhancements, and resources Commission summarily may available publicly. All submissions
dedicated to development, quality temporarily suspend such rule change if should refer to File No. SR–ISE–2015–
assurance, and support. The proposed it appears to the Commission that such 06 and should be submitted by March
fees are within the range of fees action is necessary or appropriate in the 30, 2015.
currently charged by other options public interest, for the protection of For the Commission, by the Division of
exchanges. Furthermore, the Exchange investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
believes that the proposed fees are not the purposes of the Act. If the authority.9
unfairly discriminatory as all market Commission takes such action, the Brent J. Fields,
participants that use these services will Commission shall institute proceedings Secretary.
pay the same fee based on the to determine whether the proposed rule [FR Doc. 2015–05293 Filed 3–6–15; 8:45 am]
connectivity options that they choose, should be approved or disapproved.
BILLING CODE 8011–01–P
and there is no differentiation among IV. Solicitation of Comments
market participants with regard to the
fees charged. Interested persons are invited to
SECURITIES AND EXCHANGE
submit written data, views, and
B. Self-Regulatory Organization’s COMMISSION
arguments concerning the foregoing,
Statement on Burden on Competition including whether the proposed rule [Release No. 34–74416; File No. SR–ISE
In accordance with Section 6(b)(8) of change is consistent with the Act. Gemini–2015–04]
the Act,6 the Exchange does not believe Comments may be submitted by any of
the following methods: Self-Regulatory Organizations; ISE
that the proposed rule change will Gemini, LLC; Notice of Filing and
impose any burden on intermarket or Electronic Comments Immediate Effectiveness of Proposed
intramarket competition that is not
necessary or appropriate in furtherance • Use the Commission’s Internet Rule Change To Amend the Schedule
comment form (http://www.sec.gov/ of Fees
of the purposes of the Act. The
proposed rule change increases certain rules/sro.shtml); or March 3, 2015.
• Send an email to rule-comments@
network and gateway fees to levels that Pursuant to Section 19(b)(1) of the
sec.gov. Please include File No. SR–ISE–
are within the range of fees charged by Securities Exchange Act of 1934 (the
2015–06 on the subject line.
other options exchanges. These fees will ‘‘Act’’),1 and Rule 19b–4 thereunder,2
be charged to all firms that elect to use Paper Comments notice is hereby given that on February
the connectivity options described in • Send paper comments in triplicate 18, 2015, ISE Gemini, LLC (the
this filing. The Exchange operates in a to Secretary, Securities and Exchange ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with
highly competitive market in which Commission, 100 F Street NE., the Securities and Exchange
market participants can readily direct Washington, DC 20549–1090. Commission (‘‘Commission’’) the
their order flow to competing venues. In All submissions should refer to File No. proposed rule change, as described in
such an environment, the Exchange SR–ISE–2015–06. This file number Items I, II, and III below, which items
must continually review, and consider should be included on the subject line have been prepared by the self-
adjusting, its fees to remain competitive if email is used. To help the regulatory organization. The
with other exchanges. For the reasons Commission process and review your Commission is publishing this notice to
described above, the Exchange believes comments more efficiently, please use solicit comments on the proposed rule
that the proposed fee changes reflect only one method. The Commission will change from interested persons.
this competitive environment. post all comments on the Commission’s I. Self-Regulatory Organization’s
C. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of
Statement on Comments on the rules/sro.shtml). Copies of the the Proposed Rule Change
Proposed Rule Change Received From submission, all subsequent
ISE Gemini proposes to amend its
Members, Participants or Others amendments, all written statements
Schedule of Fees to increase certain
with respect to the proposed rule
The Exchange has not solicited, and network and gateway fees. The text of
change that are filed with the
does not intend to solicit, comments on the proposed rule change is available on
Commission, and all written
this proposed rule change. The the Exchange’s Internet Web site at
communications relating to the
Exchange has not received any http://www.ise.com, at the principal
proposed rule change between the
unsolicited written comments from office of the Exchange, and at the
Commission and any person, other than
members or other interested parties. Commission’s Public Reference Room.
those that may be withheld from the
III. Date of Effectiveness of the public in accordance with the II. Self-Regulatory Organization’s
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and
Commission Action available for Web site viewing and Statutory Basis for, the Proposed Rule
The foregoing rule change has become printing in the Commission’s Public Change
effective pursuant to Section Reference Room, 100 F Street NE., In its filing with the Commission, the
19(b)(3)(A)(ii) of the Act 7 and Washington, DC 20549, on official Exchange included statements
subparagraph (f)(2) of Rule 19b–4 business days between the hours of concerning the purpose of, and basis for,
thereunder,8 because it establishes a 10:00 a.m. and 3:00 p.m. Copies of such the proposed rule change and discussed
mstockstill on DSK4VPTVN1PROD with NOTICES

due, fee, or other charge imposed by filing also will be available for any comments it received on the
ISE. inspection and copying at the principal proposed rule change. The text of these
At any time within 60 days of the office of the Exchange. All comments statements may be examined at the
filing of such proposed rule change, the received will be posted without change; places specified in Item IV below. The
the Commission does not edit personal
6 15 U.S.C. 78f(b)(8). identifying information from 9 17 CFR 200.30–3(a)(12).
7 15 U.S.C. 78s(b)(3)(A)(ii). submissions. You should submit only 1 15 U.S.C. 78s(b)(1).
8 17 CFR 240.19b–4(f)(2). information that you wish to make 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 18:04 Mar 06, 2015 Jkt 235001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\09MRN1.SGM 09MRN1
Document Created: 2015-12-18 12:06:04
Document Modified: 2015-12-18 12:06:04
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 12534