[Federal Register: October 28, 2009 (Volume 74, Number 207)]
[Notices]
[Page 55610-55611]
[DOCID:fr28oc09-129]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60859; File No. SR-ISE-2009-64]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Order Approving a Proposed Rule Change Relating to Historical ISE
Open/Close Trade Profile Fees

October 21, 2009.
    On August 25, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend its Schedule of Fees to
adopt reduced subscription fees for academic institutions for the sale
of historical open and close volume data on ISE listed options. Notice
of the proposed rule change was published for comment in the Federal
Register on September 17, 2009.\3\ The Commission received no comments
on the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60654 (September 17,
2009), 74 FR 47848 (``Notice'').
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    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 (``ISE Open/Close Trade Profile'').\4\ 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. This market data offering is currently available to both
members and non-members on annual subscription basis.\5\
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    \4\ See Securities Exchange Act Release No. 56254 (August 15,
2007), 72 FR 47104 (August 22, 2007) (approving SR-ISE-2007-70).
    \5\ The current subscription rate for both members and non-
members is $600 per month.
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    ISE also sells to both members and non-members historical ISE Open/
Close Trade Profile, a market data offering comprised of the entire
opening and closing trade data of both customers and firms that dates
back to May 2005 (on an ad-hoc basis or as a complete set that dates
back to May 2005). Ad-hoc subscribers can purchase this data for any
number of months, beginning from May 2005 through the current month.
Alternatively, subscribers can purchase the entire set of this data,
beginning from May 2005 through the current month. The historical ISE
Open/Close Trade Profile is compiled and formatted by ISE and sold as a
zipped file. ISE charges ad-hoc subscribers $600 per request for each
month of data and a discounted fee of $500 per request per month for
subscribers that want the complete set, i.e., from May 2005 to the
present month.
    The Exchange now proposes to adopt reduced fees for subscriptions
to historical ISE Open/Close Trade Profile by academic institutions for
their research purposes.\6\ In order to encourage and promote academic
studies of its market data, ISE proposes to charge a flat rate of $500
for up to 12 months of data or $1,000 for the complete data set.
Academic institutions may not use the data in support of actual
securities trading. The proposed discount applies only to the market
data fees and does not cover any access or telecommunication charges
that may be incurred by an academic institution. In addition, with the
adoption of reduced fees for academic institutions, ISE is not waiving
any of its contractual rights and all academic institutions that
subscribe to this data will be required to execute the appropriate
subscriber agreement.
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    \6\ The Exchange stated that occasionally, academic institutions
inquire with the Exchange about subscribing to the historical ISE
Open/Close Trade Profile for research purposes but are not inclined
to pay the full price.
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    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\7\
In particular, the Commission finds that the proposed rule change is
consistent with the requirements of Section 6(b)(4) of the Act,\8\
which requires that the rules of a national securities exchange provide
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using its facilities, and
Section 6(b)(5) of

the Act,\9\ which requires, among other things, that the rules of an
exchange be designed to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest; and not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to reduce fees for subscriptions to its
historical ISE Open/Close Trade Profile by academic institutions only
if they use the data for their research purposes. The proposed fees
will apply equally to all academic institutions. The proposed rule
change should promote academic research, which can benefit all market
participants. Further, the Commission notes that Options Price
Reporting Authority (``OPRA'') has in place a similar Academic Waiver
Policy, pursuant to which OPRA waives its fees for universities that
wish to use its data for research and educational instruction
purposes.\10\
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    \10\ See Securities Exchange Act Release 58424 (August 26,
2008), 73 FR 51545 (September 3, 2008) (Notice of Filing and
Immediate Effectiveness of Proposed Amendment to the Options Price
Reporting Authority's Academic Waiver Policy).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-ISE-2009-64), be and hereby is
approved.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-25832 Filed 10-27-09; 8:45 am]

BILLING CODE 8011-01-P