Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
The ISE is proposing to amend its Schedule of Fees. The text of the proposed rule change is available on the Exchange's Web site (
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.
The Exchange currently assesses per contract transaction fees and provides rebates to market participants that add or remove liquidity from the Exchange (“maker/taker fees and rebates”) in 101 options classes (the “Select Symbols”).
Additionally, the Exchange proposes to add the following 32 symbols to the list of Special Non-Select Penny Pilot Symbols: Arch Coal, Inc. (“ACI”), American Capital Agency Corporation (“AGNC”), Amylin Pharmaceuticals, Inc. (“AMLN”), Alpha Natural Resources, Inc. (“ANR”), Apache Corporation (“APA”), Arena Pharmaceuticals, Inc. (“ARNA”), ATP Oil & Gas Corporation (“ATPG”), Yamana Gold, Inc. (“AUY”), Baxter International, Inc. (“BAX”), Delta Airlines, Inc. (“DAL”), E.I. du Pont de Nemours and Company (“DD”), The Walt Disney Company (“DIS”), Dow Chemical Company, Inc. (“DOW”), Human Genome Sciences, Inc. (“HGSI”), JC Penney Co., Inc. (“JCP”), Joy Global, Inc. (“JOY”), KB Home (“KBH”), Kinross Gold Corporation (“KGC”), Mastercard, Inc. (“MA”), MBIA, Inc. (“MBI”), Medtronic, Inc. (“MDT”), Nike, Inc. (“NKE”), Pepsico, Inc. (“PEP”), SandRidge Energy, Inc. (“SD”), Union Pacific Corporation (“UNP”), United Technologies Corporation (“UTX”), Valero Energy Corporation (“VLO”), Walgreen Co. (“WAG”), Western Digital Corporation (“WDC”), Walter Energy, Inc. (“WLT”), Utilities Select Sector SPDR Fund (“XLU”) and Zynga, Inc. (“ZNGA”) (“Additional Special Non-Select Symbols”).
With this proposed rule change, the 40 symbols noted above, i.e., the Proposed Deleted Select Symbols and the Additional Special Non-Select Symbols, together with the 25 symbols that are already designated as Special Non-Select Penny Pilot Symbols, will now be subject to the fees for Special Non-Select Penny Pilot Fees listed in Section I of the Schedule of Fees.
The Exchange believes that its proposal to amend its Schedule of Fees is consistent with Section 6(b) of the Act
The Exchange believes that it is reasonable to remove the Proposed Deleted Select Symbols from its list of Select Symbols and add them to the list of Special Non-Select Penny Pilot Symbols. The Exchange also believes it is reasonable to add the Additional Special Non-Select Symbols to the current list of Special Non-Select Penny Pilot Symbols. The Exchange believes that applying the fees applicable to Special Non-Select Penny Pilot Symbols to the Proposed Deleted Select Symbols and to the Additional Special Non-Select Symbols will attract additional order flow to the Exchange.
The Exchange believes that it is equitable and not unfairly discriminatory to amend its list of Select Symbols to remove the Proposed Deleted Symbols and to amend its list of Special Non-Select Penny Pilot Symbols to add the Additional Special Non-Select Symbols because the list of Select Symbols and Special Non-Select Penny Pilot Symbols would apply uniformly to all categories of participants in the same manner. All market participants who trade the Select Symbols and the Special Non-Select Penny Pilot Symbols would be uniformly subject to the fees and rebates applicable to those symbols.
The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
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.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
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:
• Use the Commission's Internet comment form (
• Send an email to
• Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.