80 FR 9843 - 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 36 (February 24, 2015)

[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9843-9844]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03657]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74286; File No. SR-ISE-2015-04]


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

February 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 February 3, 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 eliminate fees 
and rebates for Mini Options, which were delisted on the Exchange as of 
the close of business on December 17, 2014. The text of the proposed 
rule change is available on the Exchange's Web site (http://www.ise.com), at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is permitted to list Mini Option contracts overlying 
ten shares of the following five symbols: SPY, AAPL, GLD, GOOGL, and 
AMZN, pursuant to Supplementary Material .13 to Rule 504. Due to the 
smaller exercise and assignment value of Mini Options contracts, the 
Exchange charges fees and provides rebates in these Mini Option classes 
at a rate that is 1/10th the rate of fees and rebates the Exchange 
provides for trading in Standard Options. As the Exchange has delisted 
all Mini Options as of the close of business on December 17, 2014, the 
Exchange now proposes to eliminate fees and rebates for Mini Options in 
the Schedule of Fees. In particular, the Exchange also proposes to 
remove language related to Mini Options in the following sections of 
the Schedule of Fees:
    1. Sections III and IV, which contain tables on Regular Order Fees 
and Rebates for Mini Options and Complex Order Fees and Rebates for 
Mini Options, respectively. These sections will be eliminated in their 
entirety.\3\
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    \3\ The Exchange proposes to update section references to take 
into account the new section numbers when these two sections are 
removed. Section references in this proposed rule change are to the 
current section numbers.
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    2. The definition of Mini Options in the Preface.
    3. Language related to combining volume in Standard Options and 
Mini Options to calculate Priority Customer ADV and Priority Customer 
Complex ADV in the footnotes to Sections I and II.
    4. QCC and Solicitation Rebate for Mini Options in Section VI, A, 
including language related to combining volume in Standard Options and 
Mini Options to determine applicable volume tiers.
    5. ISE Market Maker Discount Tiers for Mini Options in Section VI, 
C, including language related to combining volume in Standard Options 
and Mini Options to determine applicable volume tiers.
    6. Payment for Order Flow fees for Mini Options in Non-Penny Pilot 
Symbols in Section VI, D.
    7. Route-out fees for Mini Options in Section VI, F.
    8. The Credit for Responses to Flash Orders in Mini Options in 
Section VI, G.
    9. The service fee for Crossing Orders in Mini Options in Section 
VI, H.
    10. Language related to charging the Options Regulatory Fee for 
options transactions in Mini Options in Section IX, C.
    In connection with the above changes, the Exchange further proposes 
to remove related references to Standard Options, as the distinction 
between Standard Options and Mini Options is no longer necessary with 
the delisting of Mini Options.
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.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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    Specifically, the Exchange believes that the proposed rule change 
is reasonable, equitable, and not unfairly discriminatory as all Mini 
Option classes have been delisted on the Exchange as of the close of 
business on December 17, 2014. The Exchange believes that eliminating 
fees and rebates for Mini Options (and removing superfluous references 
to Standard Options) will simplify the Schedule of Fees and reduce 
investor confusion as to what products trade on the Exchange.

[[Page 9844]]

The Exchange represents that in the event it determines to relist Mini 
Options in the future it will first submit a proposed rule change to 
adopt fees and rebates applicable to Mini Options.

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 is intended solely to eliminate investor confusion as to 
the products that trade on the Exchange. As such, the Exchange believes 
the proposed rule change will have no competitive impact.
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    \6\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\8\ because it establishes a due, fee, or other charge 
imposed by ISE.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-ISE-2015-04 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 Number SR-ISE-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 submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ISE-2015-04 and should be 
submitted on or before March 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03657 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P