80 FR 74181 - 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 228 (November 27, 2015)
Federal Register Volume 80, Issue 228 (November 27, 2015)
| Page Range | 74181-74184 | |
| FR Document | 2015-30090 |
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)] [Notices] [Pages 74181-74184] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-30090] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76501; File No. SR-ISE-2015-40] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees November 20, 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 November 6, 2015, the International Securities Exchange, LLC (the ``Exchange'' or ``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. --------------------------------------------------------------------------- \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 proposes to amend the Schedule of Fees as described in more detail below. 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 purpose of the proposed rule change is to amend the Schedule of Fees to offer a one (1) month free trial of the [[Page 74182]] ISE Open/Close Trade Profile End of Day market data offering to all members and non-members who have never before subscribed to the offering and to remove the discounts offered to subscribers of multiple market data feeds. ISE Open/Close Trade Profile ISE currently sells a market data offering comprised of the entire opening and closing trade data of ISE listed options of both customers and firms, referred to by the Exchange as the ISE Open/Close Trade Profile. The ISE Open/Close Trade Profile offering is subdivided by origin code (i.e., customer or firm) and the customer data is then further subdivided by order size. The volume data is summarized by day and series (i.e., symbol, expiration date, strike price, call or put). The ISE Open/Close Trade Profile enables subscribers to create their own proprietary put/call calculations. The data is compiled and formatted by ISE as an end of day file (``ISE Open/Close Trade Profile End of Day''). This market data offering is currently available to both members and non-members on an annual subscription basis. The current subscription rate for both members and non-members is $750 per month with an annual subscription. The Exchange now proposes to amend its Schedule of Fees to offer a one (1) month free trial of the ISE Open/Close Trade Profile End of Day market data offering to all members and non-members that have never before subscribed to the offering. This will give potential subscribers the ability to use and test the data offering before signing up for an annual subscription. Multi-Fee Discount The Exchange currently offers five real-time market data feed offerings.\3\ In order to encourage subscriptions to multiple market data feeds, ISE adopted a multi-product subscription discount, which offers a ten percent (10%) discount for subscribers who subscribe to two feeds and twenty percent (20%) discount for subscribers who subscribe to three feeds.\4\ The Exchange now proposes to remove the discounts for subscribers of multiple feeds. --------------------------------------------------------------------------- \3\ The market data feeds are: Real[hyphen]time Depth of Market Raw Data Feed, ISE Order Feed, ISE Top Quote Feed, ISE Spread Feed, and ISE Implied Volatility and Greeks Feed. \4\ See Securities Exchange Act Release No. 34-65002 (August 1, 2011), 76 FR 47630 (August 5, 2011) (SR-ISE-2011-50). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f. \6\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- In particular, the Exchange believes the proposed free trial is reasonable and equitable because it gives potential subscribers the ability to use and test the ISE Open/Close Trade Profile End of Day offering prior to committing to an annual subscription. Furthermore, the Exchange believes that the proposed free trial is not unfairly discriminatory because it is available to all similarly-situated market participants--members and non-members who have never subscribed to the market data offering. Similarly, the removal of the multi-product subscription discount is also reasonable and equitable because the ISE believes the discount is no longer necessary to encourage multiple subscriptions. Further, the Exchange believes that the proposed removal of the discount is not unfairly discriminatory because it applies to all members and non-members who are subscribers to the feeds. 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. First, the proposed free trial does not affect competition because it is designed to give potential subscribers the ability to use and test the ISE data offering prior to committing to an annual subscription. Next, the removal of the multi-product, market data discount reflects the intense competition among exchanges and the cost of producing market data as further described below. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Notwithstanding its determination that the Commission may rely upon competition to establish fair and equitably allocated fees for market data, the NetCoaltion [sic] court found that the Commission had not, in that case, compiled a record that adequately supported its conclusion that the market for the data at issue in the case was competitive. The Exchange believes that a record may readily be established to demonstrate the competitive nature of the market in question. For the reasons discussed above, the Exchange believes that the Dodd-Frank Act amendments to Section 19 materially alter the scope of the Commission's review of future market data filings, by creating a presumption that all fees may take effect immediately, without prior analysis by the Commission of the competitive environment. Even in the absence of this important statutory change, however, the Exchange believes that a record may readily be established to demonstrate the competitive nature of the market in question. There is intense competition between exchanges that provide transaction execution and routing services and proprietary data products. Transaction execution and proprietary data products are complementary in that market data is both an input and a byproduct of the execution service. In fact, market data and trade execution are a paradigmatic example of joint products with joint costs. The decision whether and on which exchange to post an order will depend on the attributes of the exchange where the order can be posted, including the execution fees, data quality and price and distribution of its data products. Without the prospect of a taking order seeing and reacting to a posted order on a particular exchange, the posting of the order would accomplish little. Without trade executions, exchange data products cannot exist. Data products are valuable to many end users only insofar as they provide information that end users expect will assist them or their customers in making trading decisions. The costs of producing market data include not only the costs of the data distribution infrastructure, but also the costs of designing, maintaining, and operating the exchange's transaction execution platform and the cost of regulating the exchange to ensure its fair operation and maintain investor confidence. The total return that an exchange earns reflects the revenues it receives from both products and the joint costs it incurs. Moreover, an exchange's customers view the costs of transaction executions and of data as a unified cost of doing business with the exchange. A broker-dealer will direct orders to a particular exchange only if the expected revenues from executing trades on the exchange exceed net transaction execution costs and the cost of data that the broker-dealer chooses to buy to support its trading decisions (or those of its customers). The choice of data products is, in turn, a product of the value of the products in making profitable trading decisions. If the cost of the product exceeds its expected [[Page 74183]] value, the broker-dealer will choose not to buy it. Moreover, as a broker-dealer chooses to direct fewer orders to a particular exchange, the value of the product to that broker-dealer decreases, for two reasons. First, the product will contain less information, because executions of the broker-dealer's orders will not be reflected in it. Second, and perhaps more important, the product will be less valuable to that broker-dealer because it does not provide information about the venue to which it is directing its orders. Data from the competing venue to which the broker-dealer is directing orders will become correspondingly more valuable. Thus, a super-competitive increase in the fees charged for either transactions or data has the potential to impair revenues from both products. ``No one disputes that competition for order flow is `fierce'.'' \8\ However, the existence of fierce competition for order flow implies a high degree of price sensitivity on the part of broker-dealers with order flow, since they may readily reduce costs by directing orders toward the lowest-cost trading venues. A broker-dealer that shifted its order flow from one platform to another in response to order execution price differentials would both reduce the value of that platform's market data and reduce its own need to consume data from the disfavored platform. Similarly, if a platform increases its market data fees, the change will affect the overall cost of doing business with the platform, and affected broker-dealers will assess whether they can lower their trading costs by directing orders elsewhere and thereby lessening the need for the more expensive data. --------------------------------------------------------------------------- \8\ NetCoalition, at 24. --------------------------------------------------------------------------- Analyzing the cost of market data distribution in isolation from the cost of all of the inputs supporting the creation of market data will inevitably underestimate the cost of the data. Thus, because it is impossible to create data without a fast, technologically robust, and well-regulated execution system, system costs and regulatory costs affect the price of market data. It would be equally misleading, however, to attribute all of the exchange's costs to the market data portion of an exchange's joint product. Rather, all of the exchange's costs are incurred for the unified purposes of attracting order flow, executing and/or routing orders, and generating and selling data about market activity. The total return that an exchange earns reflects the revenues it receives from the joint products and the total costs of the joint products. Competition among exchanges can be expected to constrain the aggregate return each exchange earns from the sale of its joint products, but different exchanges may choose from a range of possible, and equally reasonable, pricing strategies as the means of recovering total costs. For example, some exchanges may choose to pay rebates to attract orders, charge relatively low prices for market information (or provide information free of charge) and charge relatively high prices for accessing posted liquidity. Other exchanges may choose a strategy of paying lower rebates (or no rebates) to attract orders, setting relatively high prices for market information, and setting relatively low prices for accessing posted liquidity. In this environment, there is no economic basis for regulating maximum prices for one of the joint products in an industry in which suppliers face competitive constraints with regard to the joint offering. The market for market data products is competitive and inherently contestable because there is fierce competition for the inputs necessary to the creation of proprietary data and strict pricing discipline for the proprietary products themselves. Numerous exchanges compete with each other for listings, trades, and market data itself, providing virtually limitless opportunities for entrepreneurs who wish to produce and distribute their own market data. This proprietary data is produced by each individual exchange. Market data vendors provide another form of price discipline for proprietary data products because they control the primary means of access to end users. Vendors impose price restraints based upon their business models. For example, vendors such as Bloomberg and Reuters that assess a surcharge on data they sell may refuse to offer proprietary products that end users will not purchase in sufficient numbers. Internet portals, such as Google, impose a discipline by providing only data that will enable them to attract ``eyeballs'' that contribute to their advertising revenue. Retail broker-dealers, such as Schwab and Fidelity, offer their customers proprietary data only if it promotes trading and generates sufficient commission revenue. Although the business models may differ, these vendors' pricing discipline is the same: they can simply refuse to purchase any proprietary data product that fails to provide sufficient value. The Exchange and other producers of proprietary data products must understand and respond to these varying business models and pricing disciplines in order to market proprietary data products successfully. 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,\9\ and subparagraph (f)(2) of Rule 19b-4 thereunder,\10\ because it establishes a due, fee, or other charge imposed by ISE. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(ii). \10\ 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 Number SR-ISE-2015-40 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-ISE-2015-40. This file number should be included on the subject line if email is used. To help the Commission process and review your [[Page 74184]] 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 Number SR-ISE-2015-40, and should be submitted on or before December 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-30090 Filed 11-25-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices 74181
Internet portals, such as Google, impose Electronic Comments SECURITIES AND EXCHANGE
a discipline by providing only data that COMMISSION
will enable them to attract ‘‘eyeballs’’ • Use the Commission’s Internet
comment form (http://www.sec.gov/ [Release No. 34–76501; File No. SR–ISE–
that contribute to their advertising 2015–40]
revenue. Retail broker-dealers, such as rules/sro.shtml); or
Schwab and Fidelity, offer their • Send an email to rule-comments@ Self-Regulatory Organizations;
customers proprietary data only if it sec.gov. Please include File Number SR– International Securities Exchange,
promotes trading and generates ISEGemini–2015–26 on the subject line. LLC; Notice of Filing and Immediate
sufficient commission revenue. Effectiveness of Proposed Rule
Although the business models may Paper Comments Change To Amend the Schedule of
differ, these vendors’ pricing discipline Fees
• Send paper comments in triplicate
is the same: they can simply refuse to
to Brent J. Fields, Secretary, Securities November 20, 2015.
purchase any proprietary data product
that fails to provide sufficient value. and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) of the
The Exchange and other producers of NE., Washington, DC 20549–1090. Securities Exchange Act of 1934 (the
proprietary data products must All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2
understand and respond to these notice is hereby given that on November
Number SR–ISEGemini–2015–26. This
varying business models and pricing 6, 2015, the International Securities
file number should be included on the
disciplines in order to market Exchange, LLC (the ‘‘Exchange’’ or
subject line if email is used. To help the ‘‘ISE’’) filed with the Securities and
proprietary data products successfully. Commission process and review your Exchange Commission (‘‘Commission’’)
C. Self-Regulatory Organization’s comments more efficiently, please use the proposed rule change, as described
Statement on Comments on the only one method. The Commission will in Items I, II, and III below, which Items
Proposed Rule Change Received From post all comments on the Commission’s have been prepared by the self-
Members, Participants, or Others Internet Web site (http://www.sec.gov/ regulatory organization. The
rules/sro.shtml). Copies of the Commission is publishing this notice to
The Exchange has not solicited, and submission, all subsequent solicit comments on the proposed rule
does not intend to solicit, comments on amendments, all written statements change from interested persons.
this proposed rule change. The with respect to the proposed rule
Exchange has not received any I. Self-Regulatory Organization’s
change that are filed with the Statement of the Terms of Substance of
unsolicited written comments from Commission, and all written
members or other interested parties. the Proposed Rule Change
communications relating to the
proposed rule change between the ISE proposes to amend the Schedule
III. Date of Effectiveness of the
of Fees as described in more detail
Proposed Rule Change and Timing for Commission and any person, other than
below. The text of the proposed rule
Commission Action those that may be withheld from the
change is available on the Exchange’s
public in accordance with the Internet Web site at http://www.ise.com,
The foregoing rule change has become provisions of 5 U.S.C. 552, will be
effective pursuant to Section at the principal office of the Exchange,
available for Web site viewing and and at the Commission’s Public
19(b)(3)(A)(ii) of the Act,9 and printing in the Commission’s Public
subparagraph (f)(2) of Rule 19b–4 Reference Room.
Reference Room, 100 F Street NE.,
thereunder,10 because it establishes a II. Self-Regulatory Organization’s
Washington, DC 20549 on official
due, fee, or other charge imposed by ISE Statement of the Purpose of, and
Gemini. business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule
At any time within 60 days of the Change
filing also will be available for
filing of such proposed rule change, the inspection and copying at the principal In its filing with the Commission, the
Commission summarily may office of the Exchange. All comments Exchange included statements
temporarily suspend such rule change if received will be posted without change; concerning the purpose of, and basis for,
it appears to the Commission that such the proposed rule change and discussed
the Commission does not edit personal
action is necessary or appropriate in the any comments it received on the
identifying information from
public interest, for the protection of proposed rule change. The text of these
investors, or otherwise in furtherance of submissions. You should submit only
information that you wish to make statements may be examined at the
the purposes of the Act. If the places specified in Item IV below. The
Commission takes such action, the available publicly. All submissions
self-regulatory organization has
Commission shall institute proceedings should refer to File Number SR–
prepared summaries, set forth in
to determine whether the proposed rule ISEGemini–2015–26, and should be Sections A, B and C below, of the most
should be approved or disapproved. submitted on or before December 18, significant aspects of such statements.
2015.
IV. Solicitation of Comments A. Self-Regulatory Organization’s
For the Commission, by the Division of
Statement of the Purpose of, and
Interested persons are invited to Trading and Markets, pursuant to delegated
Statutory Basis for, the Proposed Rule
submit written data, views, and authority.11
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
arguments concerning the foregoing, Robert W. Errett,
including whether the proposed rule Deputy Secretary. 1. Purpose
change is consistent with the Act. [FR Doc. 2015–30089 Filed 11–25–15; 8:45 am] The purpose of the proposed rule
Comments may be submitted by any of change is to amend the Schedule of Fees
BILLING CODE 8011–01–P
the following methods: to offer a one (1) month free trial of the
9 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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ISE Open/Close Trade Profile End of the provisions of Section 6 of the Act,5 For the reasons discussed above, the
Day market data offering to all members in general, and Section 6(b)(4) of the Exchange believes that the Dodd-Frank
and non-members who have never Act,6 in particular, in that it is designed Act amendments to Section 19
before subscribed to the offering and to to provide for the equitable allocation of materially alter the scope of the
remove the discounts offered to reasonable dues, fees, and other charges Commission’s review of future market
subscribers of multiple market data among its members and other persons data filings, by creating a presumption
feeds. using its facilities. that all fees may take effect
In particular, the Exchange believes immediately, without prior analysis by
ISE Open/Close Trade Profile the Commission of the competitive
the proposed free trial is reasonable and
ISE currently sells a market data equitable because it gives potential environment. Even in the absence of
offering comprised of the entire opening subscribers the ability to use and test this important statutory change,
and closing trade data of ISE listed the ISE Open/Close Trade Profile End of however, the Exchange believes that a
options of both customers and firms, Day offering prior to committing to an record may readily be established to
referred to by the Exchange as the ISE annual subscription. Furthermore, the demonstrate the competitive nature of
Open/Close Trade Profile. The ISE Exchange believes that the proposed the market in question.
Open/Close Trade Profile offering is free trial is not unfairly discriminatory There is intense competition between
subdivided by origin code (i.e., because it is available to all similarly- exchanges that provide transaction
customer or firm) and the customer data situated market participants—members execution and routing services and
is then further subdivided by order size. and non-members who have never proprietary data products. Transaction
The volume data is summarized by day subscribed to the market data offering. execution and proprietary data products
and series (i.e., symbol, expiration date, Similarly, the removal of the multi- are complementary in that market data
strike price, call or put). The ISE Open/ product subscription discount is also is both an input and a byproduct of the
Close Trade Profile enables subscribers reasonable and equitable because the execution service. In fact, market data
to create their own proprietary put/call ISE believes the discount is no longer and trade execution are a paradigmatic
calculations. The data is compiled and example of joint products with joint
necessary to encourage multiple
formatted by ISE as an end of day file costs. The decision whether and on
subscriptions. Further, the Exchange
(‘‘ISE Open/Close Trade Profile End of which exchange to post an order will
believes that the proposed removal of
Day’’). This market data offering is depend on the attributes of the exchange
the discount is not unfairly
currently available to both members and where the order can be posted,
discriminatory because it applies to all
non-members on an annual subscription including the execution fees, data
members and non-members who are
basis. The current subscription rate for quality and price and distribution of its
subscribers to the feeds.
both members and non-members is $750 data products. Without the prospect of
per month with an annual subscription. B. Self-Regulatory Organization’s a taking order seeing and reacting to a
Statement on Burden on Competition posted order on a particular exchange,
The Exchange now proposes to amend the posting of the order would
its Schedule of Fees to offer a one (1) In accordance with Section 6(b)(8) of accomplish little. Without trade
month free trial of the ISE Open/Close the Act,7 the Exchange does not believe executions, exchange data products
Trade Profile End of Day market data that the proposed rule change will cannot exist. Data products are valuable
offering to all members and non- impose any burden on intermarket or to many end users only insofar as they
members that have never before intramarket competition that is not provide information that end users
subscribed to the offering. This will give necessary or appropriate in furtherance expect will assist them or their
potential subscribers the ability to use of the purposes of the Act. First, the customers in making trading decisions.
and test the data offering before signing proposed free trial does not affect The costs of producing market data
up for an annual subscription. competition because it is designed to include not only the costs of the data
give potential subscribers the ability to distribution infrastructure, but also the
Multi-Fee Discount
use and test the ISE data offering prior costs of designing, maintaining, and
The Exchange currently offers five to committing to an annual operating the exchange’s transaction
real-time market data feed offerings.3 In subscription. Next, the removal of the execution platform and the cost of
order to encourage subscriptions to multi-product, market data discount regulating the exchange to ensure its fair
multiple market data feeds, ISE adopted reflects the intense competition among operation and maintain investor
a multi-product subscription discount, exchanges and the cost of producing confidence. The total return that an
which offers a ten percent (10%) market data as further described below. exchange earns reflects the revenues it
discount for subscribers who subscribe Notwithstanding its determination receives from both products and the
to two feeds and twenty percent (20%) that the Commission may rely upon joint costs it incurs. Moreover, an
discount for subscribers who subscribe competition to establish fair and exchange’s customers view the costs of
to three feeds.4 The Exchange now equitably allocated fees for market data, transaction executions and of data as a
proposes to remove the discounts for the NetCoaltion [sic] court found that unified cost of doing business with the
subscribers of multiple feeds. the Commission had not, in that case, exchange. A broker-dealer will direct
2. Statutory Basis compiled a record that adequately orders to a particular exchange only if
supported its conclusion that the market the expected revenues from executing
The Exchange believes that the for the data at issue in the case was trades on the exchange exceed net
mstockstill on DSK4VPTVN1PROD with NOTICES
proposed rule change is consistent with competitive. The Exchange believes that transaction execution costs and the cost
a record may readily be established to of data that the broker-dealer chooses to
3 The market data feeds are: Real-time Depth of demonstrate the competitive nature of buy to support its trading decisions (or
Market Raw Data Feed, ISE Order Feed, ISE Top the market in question. those of its customers). The choice of
Quote Feed, ISE Spread Feed, and ISE Implied data products is, in turn, a product of
Volatility and Greeks Feed.
4 See Securities Exchange Act Release No. 34– 5 15 U.S.C. 78f. the value of the products in making
65002 (August 1, 2011), 76 FR 47630 (August 5, 6 15 U.S.C. 78f(b)(4). profitable trading decisions. If the cost
2011) (SR–ISE–2011–50). 7 15 U.S.C. 78f(b)(8). of the product exceeds its expected
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![74184 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices
comments more efficiently, please use prepared by the Exchange. The of the Act 3 in general, and furthers the
only one method. The Commission will Commission is publishing this notice to objectives of Section 6(b)(5) of the Act 4
post all comments on the Commission’s solicit comments on the proposed rule in particular, in that it is designed to
Internet Web site (http://www.sec.gov/ change from interested persons. promote just and equitable principles of
rules/sro.shtml). Copies of the trade, to remove impediments to and
I. Self-Regulatory Organization’s
submission, all subsequent perfect the mechanism of a free and
amendments, all written statements Statement of the Terms of Substance of
open market and a national market
with respect to the proposed rule the Proposed Rule Change
system, and, in general to protect
change that are filed with the The Exchange proposes to amend BX investors and the public interest, by
Commission, and all written Rules at Chapter VI, Section 9, entitled correcting citation errors within the BX
communications relating to the ‘‘Price Improvement Auction Rulebook.
proposed rule change between the (‘‘PRISM’’),’’ to correct two cross- The Exchange’s proposal to correct
Commission and any person, other than references to BX Rules. The text of the the citations will serve to avoid
those that may be withheld from the proposed rule change is available on the confusion as to the correct algorithm.
public in accordance with the Exchange’s Web site at http:// The proposed changes are non-
provisions of 5 U.S.C. 552, will be nasdaqomxbx.cchwallstreet.com, at the substantive rule changes.
available for Web site viewing and principal office of the Exchange, and at
printing in the Commission’s Public the Commission’s Public Reference B. Self-Regulatory Organization’s
Reference Room, 100 F Street NE., Room. Statement on Burden on Competition
Washington, DC 20549 on official BX does not believe that the proposed
business days between the hours of II. Self-Regulatory Organization’s
Statement of the Purpose of, and rule change will impose any burden on
10:00 a.m. and 3:00 p.m. Copies of such competition that is not necessary or
filing also will be available for Statutory Basis for, the Proposed Rule
Change appropriate in furtherance of the
inspection and copying at the principal purposes of the Act. The proposed
office of the Exchange. All comments In its filing with the Commission, the changes do not impose any burden on
received will be posted without change; Exchange included statements competition, rather, the non-substantive
the Commission does not edit personal concerning the purpose of and basis for rule changes correct incorrect references
identifying information from the proposed rule change and discussed within the Rulebook. As a result, there
submissions. You should submit only any comments it received on the will be no substantive changes to the
information that you wish to make proposed rule change. The text of these Exchange’s operations or its rules.
available publicly. All submissions statements may be examined at the
should refer to File Number SR–ISE– places specified in Item IV below. The C. Self-Regulatory Organization’s
2015–40, and should be submitted on or Exchange has prepared summaries, set Statement on Comments on the
before December 18, 2015. forth in sections A, B, and C below, of Proposed Rule Change Received From
For the Commission, by the Division of the most significant aspects of such Members, Participants, or Others
Trading and Markets, pursuant to delegated statements. No written comments were either
authority.11 solicited or received.
A. Self-Regulatory Organization’s
Robert W. Errett,
Statement of the Purpose of, and the III. Date of Effectiveness of the
Deputy Secretary.
Statutory Basis for, the Proposed Rule Proposed Rule Change and Timing for
[FR Doc. 2015–30090 Filed 11–25–15; 8:45 am] Change Commission Action
BILLING CODE 8011–01–P
1. Purpose The Exchange has filed the proposed
The Exchange proposes to amend BX rule change pursuant to Section
SECURITIES AND EXCHANGE Rules at Chapter VI, Section 9, entitled 19(b)(3)(A)(iii) of the Act 5 and Rule
COMMISSION ‘‘Price Improvement Auction 19b–4(f)(6) thereunder.6 Because the
[Release No. 34–76487; File No. SR–BX– (‘‘PRISM’’)’’ to correct two cross- proposed rule change does not: (i)
2015–068] references to BX Rules. Specifically, the Significantly affect the protection of
Exchange cited to its Size Pro-Rata investors or the public interest; (ii)
Self-Regulatory Organizations; allocation algorithm in the BX PRISM impose any significant burden on
NASDAQ OMX BX, Inc.; Notice of Filing Rule at Chapter VI, Section 9(ii)(E). The competition; and (iii) become operative
and Immediate Effectiveness of cite was to Chapter VI, Section prior to 30 days from the date on which
Proposed Rule Change Relating to BX 10(1)(C)(1)(a) when it should have cited it was filed, or such shorter time as the
PRISM to Section 10(1)(C)(2). Further, the Commission may designate, if
Exchange cited to its Price/Time consistent with the protection of
November 20, 2015.
allocation algorithm in the BX PRISM investors and the public interest, the
Pursuant to Section 19(b)(1) of the
Rule at Chapter VI, Section 9(ii)(F). The proposed rule change has become
Securities Exchange Act of 1934
cite was to Chapter VI, Section effective pursuant to Section 19(b)(3)(A)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November 10(1)(C)(2)(1) when it should have cited
9, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ to Section 10(1)(C)(1). These 3 15 U.S.C. 78f(b).
4 15 U.S.C. 78f(b)(5).
or the ‘‘Exchange’’) filed with the clarifications to the BX PRISM rule will
5 15 U.S.C. 78s(b)(3)(A)(iii).
mstockstill on DSK4VPTVN1PROD with NOTICES
Securities and Exchange Commission update the Rulebook and help avoid 6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
(‘‘SEC’’ or ‘‘Commission’’) the proposed confusion for Participants. The 4(f)(6)(iii) requires a self-regulatory organization to
rule change as described in Items I and proposed changes are non-substantive give the Commission written notice of its intent to
II below, which Items have been rule changes. file the proposed rule change, along with a brief
description and text of the proposed rule change,
2. Statutory Basis at least five business days prior to the date of filing
11 17 CFR 200.30–3(a)(12). of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). The Exchange believes that its as designated by the Commission. The Exchange
2 17 CFR 240.19b–4. proposal is consistent with Section 6(b) has satisfied this requirement.
VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\27NON1.SGM 27NON1](https://thefederalregister.org/doc/80_FR_74409/page/4.svg)
Document Created: 2015-12-14 14:04:56
Document Modified: 2015-12-14 14:04:56
| 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 74181 |
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