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, Issue 45 (March 9, 2015)
| Page Range | 12535-12537 | |
| FR Document | 2015-05292 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \3\ Market participants pay the same fees regardless of whether they choose to connect to both exchanges or solely to ISE Gemini. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f. \5\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(ii). \8\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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 CommentsUse 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\ --------------------------------------------------------------------------- \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
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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
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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.
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![Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 12537
submissions. You should submit only II. Self-Regulatory Organization’s not add any new functionality but
information that you wish to make Statement of the Purpose of, and instead enhanced and clarified
available publicly. All submissions Statutory Basis for, the Proposed Rule descriptions of the order type and
should refer to File No. SR–ISE Gemini- Change modifier functionality on the Exchange.
2015–04 and should be submitted by In its filing with the Commission, the More recently, as part of its ongoing
March 30, 2015.9 self-regulatory organization included review to streamline its rules and
statements concerning the purpose of, reduce complexity among its order type
For the Commission, by the Division of offerings, the Exchange filed a proposed
Trading and Markets, pursuant to delegated and basis for, the proposed rule change
and discussed any comments it received rule change, which the Commission
authority. approved, to eliminate specified order
on the proposed rule change. The text
Brent J. Fields, types, modifiers, and related
of those statements may be examined at
Secretary. the places specified in Item IV below. references.7
[FR Doc. 2015–05292 Filed 3–6–15; 8:45 am] The Exchange has prepared summaries, The Exchange is filing this proposed
BILLING CODE 8011–01–P set forth in sections A, B, and C below, rule change to continue its efforts to
of the most significant parts of such review and clarify its rules governing
statements. order types. First, the Exchange has
SECURITIES AND EXCHANGE identified additional order types and
A. Self-Regulatory Organization’s functionality to eliminate and proposes
COMMISSION
Statement of the Purpose of, and to delete related rule text in NYSE Arca
Statutory Basis for, the Proposed Rule Equities Rule 7.31 (‘‘Rule 7.31’’), as
[Release No. 34–74415; File No. SR– Change described in more detail below.
NYSEArca–2015–08] Second, the Exchange is proposing
1. Purpose
certain non-substantive and clarifying
Self-Regulatory Organizations; NYSE On June 5, 2014, in a speech entitled changes to its rules. As Rule 7.31 has
Arca, Inc.; Notice of Filing of Proposed ‘‘Enhancing Our Market Equity been amended through the years,
Rule Change To Eliminate Additional Structure,’’ Mary Jo White, Chair of the additional order types and modifiers
Order Type Combinations and Delete Securities and Exchange Commission have been added as new subsections to
Related Rule Text and To Restructure (‘‘SEC’’ or the ‘‘Commission’’) requested what was the end of the rule text at any
the Remaining Rule Text in NYSE Arca the equity exchanges to conduct a given time. Accordingly, the rule text
Equities Rule 7.31 comprehensive review of their order describes the Exchange’s order types
types and how they operate in practice, and modifiers in the order in which
March 3, 2015. and as part of this review, consider those order types and modifiers were
Pursuant to Section 19(b)(1) 1 of the appropriate rule changes to help clarify added. In addition, when rule text has
Securities Exchange Act of 1934 (the the nature of their order types.4 been deleted and replaced with
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Subsequent to the Chair’s speech, the references to ‘‘Reserved,’’ the
notice is hereby given that, on February SEC’s Division of Trading and Markets subsections have not been renumbered.
19, 2015, NYSE Arca, Inc. (the requested that the equity exchanges The Exchange proposes to provide
complete their reviews and submit any additional clarity to Rule 7.31 by re-
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
proposed rule changes by November 1, grouping and re-numbering current rule
the Securities and Exchange
2014.5 text, removing references to ‘‘reserved’’
Commission (‘‘SEC’’ or the The Exchange notes that it
‘‘Commission’’) the proposed rule subsections, and making other non-
continually assesses its rules governing substantive, clarifying changes. In this
change as described in Items I, II, and order types and undertook on its own regard, the proposed rule changes are
III below, which Items have been initiative a review of its rules related to not intended to reflect changes to
prepared by the self-regulatory order functionality to assure that its functionality but rather to clarify Rule
organization. The Commission is various order types, which have been 7.31 to make it easier to navigate.8
publishing this notice to solicit adopted and amended over the years,
comment on the proposed rule change accurately describe the functionality Proposed Elimination of Additional
from interested persons. associated with those order types, and Orders and Modifiers
more specifically, how different order As part of its review, the Exchange
I. Self-Regulatory Organization’s types may interact. As a result of that has identified the following additional
Statement of the Terms of Substance of review, in 2013, the Exchange submitted order types and functionality to
the Proposed Rule Change a proposed rule change, which the eliminate:
Commission approved, to update its • All-or-None (‘‘AON’’) Orders: An
The Exchange proposes to eliminate
rules relating to order types and AON Order is a limit order that is to be
additional order type combinations and modifiers.6 The 2013 Review Filing did executed in its entirety or not at all. A
delete related rule text and to limit order marked AON does not trade
restructure the remaining rule text in 4 See Mary Jo White, Chair, Securities and
through a Protected Quotation. AONs
NYSE Arca Equities Rule 7.31. The text Exchange Commission, Speech at the Sandler, are defined as a type of Working Order,
of the proposed rule change is available O’Neill & Partners, L.P. Global Exchange and
Brokerage Conference (June 5, 2014) (available at currently set forth in Rule 7.31(h)(1). To
on the Exchange’s Web site at www.sec.gov/News/Speech/Detail/Speech/
www.nyse.com, at the principal office of 1370542004312#.U5HI-fmwJiw). 7 See Securities Exchange Act Release No. 72942
mstockstill on DSK4VPTVN1PROD with NOTICES
the Exchange, and at the Commission’s 5 See Letter from James Burns, Deputy Director, (Aug. 28, 2014), 79 FR 52784 (Sept. 4, 2014) (SR–
Division of Trading and Markets, Securities and NYSEArca–2014–75) (Approval order) (‘‘2013
Public Reference Room. Exchange Commission, to Jeffrey C. Sprecher, Chief Deletion Filing’’).
Executive Officer, Intercontinental Exchange, Inc., 8 The Exchange notes that its affiliated exchanges,
9 17 CFR 200.30–3(a)(12). dated June 20, 2014. New York Stock Exchange LLC (‘‘NYSE’’) and
1 15
6 See Securities Exchange Act Release No. 71331 NYSE MKT LLC are proposing similar restructuring
U.S.C. 78s(b)(1).
(Jan. 16, 2014), 79 FR 3907 (Jan. 23, 2014) (SR– of their respective order type rules to group order
2 15 U.S.C. 78a.
NYSEArca–2013–92) (Approval order) (‘‘2013 types and modifiers. See SR–NYSE–2014–59 and
3 17 CFR 240.19b–4. Review Filing’’). SR–NYSEMKT–2014–95.
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Document Created: 2015-12-18 12:05:25
Document Modified: 2015-12-18 12:05:25
| 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 12535 |
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