
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)]
[Notices]
[Pages 55669-55671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23210]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75874; File No. SR-ISE-2015-25]


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

September 10, 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 August 27, 2015, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission the proposed rule change, as described in Items I 
and II 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 its Schedule of Fees to extend its 
Managed Data Access Service program for the sale of a number of real-
time market data products. 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
    On June 6, 2013 the ISE implemented a temporary Managed Data Access 
Service program that established a new pricing and distribution model 
for the sale of a number of real-time market data products.\3\ The 
Exchange extended this program for an additional six month period on 
December 20, 2013,\4\ and then on September 17, 2014 instituted another 
temporary program on the same terms for a one year period set to expire 
on August 31, 2015.\5\ The Exchange now proposes to extend its current 
Managed Data Access Service program for an additional one year period 
ending August 31, 2016 so that the Exchange can continue to provide 
this alternative delivery option for ISE data feeds.\6\ Managed Data 
Access Service is a pricing and administrative option

[[Page 55670]]

whereby the ISE assesses fees to Managed Data Access Distributors,\7\ 
who redistribute market data to Managed Data Access Recipients.\8\ 
Managed Data Access Distributors are required to monitor the delivery 
of the data retransmitted to their clients, and must agree to reformat, 
redisplay and/or alter the data feeds prior to retransmission without 
affecting the integrity of the data feeds and without rendering any of 
the feeds inaccurate, unfair, uninformative, fictitious, misleading, or 
discriminatory.
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    \3\ See Securities Exchange Act Release No. 69806 (June 20, 
2013), 78 FR 38424 (June 26, 2013) (ISE-2013-39). The Exchange also 
offers a similar Managed Data Access Service program for its Implied 
Volatility and Greeks Feed. See Securities Exchange Act Release No. 
65678 (November 3, 2011), 76 FR 70178 (November 10, 2011) (ISE-2011-
67). This filing does not apply to the Managed Data Access Service 
program for the Implied Volatility and Greeks Feed, which is a 
permanent program.
    \4\ See Securities Exchange Act Release No. 71230 (January 2, 
2014), 79 FR 1405 (January 8, 2014) (ISE-2013-74).
    \5\ See Securities Exchange Act Release No. 73276 (October 1, 
2014), 79 FR 60545 (October 7, 2014) (ISE-2014-41).
    \6\ The current Managed Data Access Service program provides an 
alternative delivery option for the Real-time Depth of Market Raw 
Data Feed (``Depth Feed''), the Order Feed, the Top Quote Feed, and 
the Spread Feed.
    \7\ A Managed Data Access Distributor redistributes ISE data 
feeds and permits access to the information in those data feeds 
through a controlled device. A Managed Data Access Distributor can 
also redistribute a data feed solution to specific IP addresses, 
including an Application Programming Interface (``API'') or similar 
automated delivery solutions, with only limited entitlement controls 
(e.g., usernames and/or passwords) to a recipient of the 
information.
    \8\ A Managed Data Access Recipient is a subscriber to the 
Managed Data Access Distributor who receives a reformatted data feed 
in a controlled device or at a specific IP address. Market Data 
Access Recipients may be Professional or Non-Professional users.
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    The current fees for the Managed Data Access Service are as 
follows:
    The Exchange charges a fee to each Managed Data Access Distributor 
of $2,500 per month for the Depth Feed, $1,500 for each of the Top 
Quote Feed and Spread Feed, and $1,000 per month for the Order Feed. 
The Exchange also charges a fee for each IP address at Managed Data 
Access Recipients that receive market data redistributed by a Managed 
Data Access Distributor, which is $750 per month for the Depth Feed, 
$500 per month for each of the Top Quote Feed and Spread Feed, and $350 
per month for the Order Feed.\9\ In addition, the Exchange charges a 
controlled device fee for each controlled device permitted to access 
market data redistributed by a Managed Data Access Distributor to a 
Market Data Access Recipient that is a Professional user,\10\ which is 
$50 per month for the Depth Feed, $20 per month for the Top Quote Feed, 
$25 per month for the Spread Feed, and $10 per month for the Order 
Feed.\11\ Finally, the Exchange charges a controlled device fee of $5 
per month for each controlled device permitted to access information in 
the Depth Feed redistributed by a Managed Data Access Distributor to a 
Market Data Access Recipient that is a Non-Professional user.\12\ For 
each of the above ISE data feeds, Market Data Access Distributors are 
subject to a minimum fee, which is $5,000 per month for the Depth Feed, 
$3,000 per month for each of the Top Quote Feed and Spread Feed, and 
$2,000 per month for the Order Feed.
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    \9\ This fee is charged per IP address, which covers both 
primary and back-up IP addresses at a Managed Data Access Recipient.
    \10\ A ``Professional user'' is an authorized end-user of the 
ISE data feeds that has not qualified as a Non-Professional user.
    \11\ A controlled device is any device that a distributor of an 
ISE data feed permits to access the information in that data feed.
    \12\ There is no controlled device fee for Non-Professional 
users of the Top Quote Feed, Spread Feed, or Order Feed. A ``Non-
Professional user'' is an authorized end-user of the ISE data feeds 
who is a natural person and who is neither: (a) Registered or 
qualified with the Securities and Exchange Commission, the 
Commodities Futures Trading Commission, any state securities agency, 
any securities exchange or association, or any commodities or 
futures contract market or association; (b) engaged as an 
``investment advisor'' as that term is defined Section 202(a)(11) of 
the Investment Advisers Act of 1940 (whether or not registered or 
qualified under that act); nor (c) employed by a bank or other 
organization exempt from registration under Federal and/or state 
securities laws to perform functions that would require him/her to 
be so registered or qualified if he/she were to perform such 
functions for an organization not so exempt.
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    The Exchange is not proposing to make any changes to the fees 
currently charged under the Managed Data Access Service program.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Securities Exchange Act of 1934 (the 
``Act''),\13\ and the rules and regulations thereunder that are 
applicable to a national securities exchange, including the 
requirements of Section 6(b) of the Act.\14\ In particular, the 
proposal is consistent with Section 6(b)(5) of the Act,\15\ because is 
designed to promote just and equitable principles of trade, remove 
impediments to and perfect the mechanisms of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest. The Exchange believes that the proposed program is 
consistent with the protection of investors and the public interest as 
the Exchange already runs a Managed Data Access Service program, and is 
merely proposing to extend this program for an additional one year 
period. The Exchange established the Managed Data Access Service as a 
temporary program in order to gauge the level of interest in this new 
pricing and distribution model, and now wishes to extend this temporary 
program so that it may continue to offer an attractive program that 
competes with programs offered by other options exchanges.\16\ The 
Exchange is constrained in pricing the Managed Data Access Service as 
these services are entirely optional, and firms may choose whether or 
not to purchase proprietary ISE market data products or to utilize any 
specific pricing alternative. Moreover, the program will continue to 
provide an opportunity for all distributors and subscribers, both 
Professional and Non-Professional, to access the ISE data feeds at a 
potentially lower cost.
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    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ A number of other exchanges have adopted managed data 
access services to distribute their proprietary market data. See 
e.g. Securities Exchange Act Release Nos. 63276 (November 8, 2010), 
75 FR 69717 (November 15, 2010) (SR-NASDAQ-2010-138); and 69182 
(March 19, 2013), 78 FR 18378 (March 26, 2013) (SR-PHLX-2013-28). 
ISE also offers managed data access service on a permanent basis for 
the ISE Implied Volatility and Greeks Feed. See supra note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\17\ 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. To the contrary, 
the Exchange believes that the proposed rule change will promote 
competition as it extends a program that provides an attractive 
alternative delivery model for ISE market data that is similar to 
programs in place on other options exchanges. The vigor of competition 
for market data is significant and the Exchange believes that this 
proposal clearly evidences such competition. ISE proposes to continue 
to offer this optional Managed Access Data Service in order to keep 
pace with changes in the industry and evolving customer needs.
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    \17\ 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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of

[[Page 55671]]

investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-
4(f)(6) thereunder.\19\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange stated that waiver of the operative delay will 
permit the Exchange to continue to provide access to subscribers 
interested in the Managed Data Access Service program. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\20\
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    \20\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the 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-2015-25 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-2015-25. 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-2015-25, and should be 
submitted on or before October 7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-23210 Filed 9-15-15; 8:45 am]
 BILLING CODE 8011-01-P


