80 FR 15651 - 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 56 (March 24, 2015)

Page Range		15651-15652
FR Document		2015-06623

Federal Register, Volume 80 Issue 56 (Tuesday, March 24, 2015)

[Federal Register Volume 80, Number 56 (Tuesday, March 24, 2015)]
[Notices]
[Pages 15651-15652]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-06623]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74528; File No. SR-ISE-2015-10]

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

March 18, 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 March 13, 2015, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission (the ``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 the Schedule of Fees to expand low
latency Ethernet fees to non-members. 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.\3\
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\3\ The text of the proposed rule change is marked to show
changes made by ISE-2015-11.
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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 Exchange charges an Ethernet fee for its four different
Ethernet connection options, which is $1,000 per month for a 1 Gigabit
(``Gb'') connection, $4,500 per month for a 10 Gb connection, $8,000
per month for a 10 Gb low latency connection, and $15,000 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'').\4\ While the 1 Gb and 10 Gb Ethernet fees
apply to both members and non-members, the 10 Gb low latency and 40 Gb
low latency fees apply only to members. The Exchange now proposes to
amend the Schedule of Fees to apply the low latency Ethernet fee to
non-members as well. The Exchange designates this filing to become
effective on March 16, 2015.
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\4\ 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,\5\ in general, and Section
6(b)(4) of the Act,\6\ 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, equitable, and not unfairly
discriminatory to extend the low latency Ethernet fees to non-members.
Market participants that establish connectivity to the Exchange will
continue to pay the same fee based on the Ethernet options that they
choose, and there will be no discrimination between the fees charged
for members and non-members. While these low latency connections will
likely continue to be of primary interest to Exchange members, the
Exchange believes that these options should be available to interested
non-members as well. Furthermore, the Exchange notes that the proposed
rule change does not modify the fees applicable to these premium low
latency Ethernet options, which will remain at their current

[[Page 15652]]

levels. The low latency Ethernet fees described in this filing remain
consistent with the Exchange's connectivity costs, including costs for
software and hardware enhancements, and resources dedicated to
development, quality assurance, and support.
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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

In accordance with Section 6(b)(8) of the Act,\7\ 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 amends the Schedule of Fees to apply low latency Ethernet
fees to non-members in addition to members, and is not intended to have
any competitive effect. 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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\7\ 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 \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\9\ because it establishes a due, fee, or other charge
imposed by ISE.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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 rule-comments@sec.gov. Please include
File Number SR-ISE-2015-10 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-2015-10. 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the ISE. 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-2015-10 and should be
submitted by April 14, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-06623 Filed 3-23-15; 8:45 am]
BILLING CODE 8011-01-P

15652 Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices

levels. The low latency Ethernet fees Commission takes such action, the For the Commission, by the Division of
described in this filing remain Commission shall institute proceedings Trading and Markets, pursuant to delegated
consistent with the Exchange’s to determine whether the proposed rule authority.10
connectivity costs, including costs for should be approved or disapproved. Jill M. Peterson,
software and hardware enhancements, Assistant Secretary.
and resources dedicated to IV. Solicitation of Comments
[FR Doc. 2015–06623 Filed 3–23–15; 8:45 am]
development, quality assurance, and Interested persons are invited to BILLING CODE 8011–01–P
support. submit written data, views, and
B. Self-Regulatory Organization’s arguments concerning the foregoing,
Statement on Burden on Competition including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
In accordance with Section 6(b)(8) of
Comments may be submitted by any of
the Act,7 the Exchange does not believe
the following methods: Sunshine Act Meeting
that the proposed rule change will
impose any burden on intermarket or Electronic Comments Notice is hereby given, pursuant to
intramarket competition that is not the provisions of the Government in the
necessary or appropriate in furtherance • Use the Commission’s Internet
Sunshine Act, Public Law 94–409, that
of the purposes of the Act. The comment form (http://www.sec.gov/
the Securities and Exchange
proposed rule change amends the rules/sro.shtml); or
Commission will hold a Closed Meeting
Schedule of Fees to apply low latency • Send an email to rule- on Thursday, March 26, 2015 at 2 p.m.
Ethernet fees to non-members in comments@sec.gov. Please include File
addition to members, and is not Commissioners, Counsel to the
Number SR–ISE–2015–10 on the subject
intended to have any competitive effect. Commissioners, the Secretary to the
line.
The Exchange operates in a highly Commission, and recording secretaries
competitive market in which market Paper Comments will attend the Closed Meeting. Certain
participants can readily direct their staff members who have an interest in
• Send paper comments in triplicate the matters also may be present.
order flow to competing venues. In such
to Secretary, Securities and Exchange
an environment, the Exchange must The General Counsel of the
Commission, 100 F Street NE.,
continually review, and consider Commission, or her designee, has
adjusting, its fees to remain competitive Washington, DC 20549–1090.
certified that, in her opinion, one or
with other exchanges. For the reasons All submissions should refer to File more of the exemptions set forth in 5
described above, the Exchange believes Number SR–ISE–2015–10. This file U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
that the proposed fee changes reflect number should be included on the and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
this competitive environment. subject line if email is used. To help the and (10), permit consideration of the
C. Self-Regulatory Organization’s Commission process and review your scheduled matter at the Closed Meeting.
Statement on Comments on the comments more efficiently, please use Commissioner Aguilar, as duty
Proposed Rule Change Received From only one method. The Commission will officer, voted to consider the items
Members, Participants or Others post all comments on the Commission’s listed for the Closed Meeting in closed
Internet Web site (http://www.sec.gov/ session, and determined that no earlier
The Exchange has not solicited, and rules/sro.shtml). Copies of the
does not intend to solicit, comments on notice thereof was possible.
submission, all subsequent
this proposed rule change. The amendments, all written statements The subject matter of the Closed
Exchange has not received any with respect to the proposed rule Meeting will be:
unsolicited written comments from change that are filed with the
members or other interested parties. Institution and settlement of injunctive
Commission, and all written actions;
III. Date of Effectiveness of the communications relating to the
proposed rule change between the Institution and settlement of
Proposed Rule Change and Timing for administrative proceedings;
Commission Action Commission and any person, other than
those that may be withheld from the Adjudicatory matter; and
The foregoing rule change has become
public in accordance with the Other matters relating to enforcement
effective pursuant to Section
provisions of 5 U.S.C. 552, will be proceedings.
19(b)(3)(A)(ii) of the Act 8 and
available for Web site viewing and
subparagraph (f)(2) of Rule 19b–4 At times, changes in Commission
printing in the Commission’s Public
thereunder,9 because it establishes a priorities require alterations in the
Reference Room, 100 F Street NE.,
due, fee, or other charge imposed by scheduling of meeting items.
Washington, DC 20549 on official
ISE.
business days between the hours of 10 For further information and to
At any time within 60 days of the
a.m. and 3 p.m. Copies of such filing ascertain what, if any, matters have been
filing of such proposed rule change, the
also will be available for inspection and added, deleted or postponed, please
Commission summarily may
copying at the principal office of the contact the Office of the Secretary at
temporarily suspend such rule change if
ISE. All comments received will be (202) 551–5400.
it appears to the Commission that such
posted without change; the Commission
mstockstill on DSK4VPTVN1PROD with NOTICES

action is necessary or appropriate in the Dated: March 19, 2015.
does not edit personal identifying
public interest, for the protection of Brent J. Fields,
information from submissions. You
investors, or otherwise in furtherance of Secretary.
should submit only information that
the purposes of the Act. If the
you wish to make available publicly. All [FR Doc. 2015–06720 Filed 3–20–15; 11:15 am]
7 15 U.S.C. 78f(b)(8).
submissions should refer to File BILLING CODE 8011–01–P
8 15 U.S.C. 78s(b)(3)(A)(ii). Number SR–ISE–2015–10 and should be
9 17 CFR 240.19b–4(f)(2). submitted by April 14, 2015. 10 17 CFR 200.30–3(a)(12).

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Document Created: 2015-12-18 11:45:27
Document Modified: 2015-12-18 11:45:27

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 15651