80 FR 12535 - Self-Regulatory Organizations; ISE Gemini, 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)

[Federal Register Volume 80, Number 45 (Monday, March 9, 2015)]
[Notices]
[Pages 12535-12537]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05292]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74416; File No. SR-ISE Gemini-2015-04]


Self-Regulatory Organizations; ISE Gemini, 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, ISE Gemini, LLC (the ``Exchange'' or ``ISE 
Gemini'') 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

    ISE Gemini 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 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

[[Page 12536]]

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 ISE Gemini 
and ISE Gemini's sister exchange, the International Securities 
Exchange, LLC (``ISE'').\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 ISE Gemini.
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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 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 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 No. SR-ISE Gemini-2015-04 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 Gemini-2015-04. 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

[[Page 12537]]

submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File No. SR-ISE 
Gemini-2015-04 and should be submitted by March 30, 2015.\9\
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.
Brent J. Fields,
Secretary.
[FR Doc. 2015-05292 Filed 3-6-15; 8:45 am]
 BILLING CODE 8011-01-P