Subject: File No. SR-ISE-2005-31
From: Bryan Weisberg

July 6, 2005

This rule unfairly punishes financially, and therefore prohibits, a customer who chooses to try and add liquidity and size to the market...I often place bids on the ISE, often for 100 contracts or more, many times bettering the market on the exchange. If I do not get a fill or I get filled on a small amount of contracts and then cancel or change my price, I will be charged an exorbatant fee for doing nothing wrong in fact, I am improving price and/or liquidity. Very rarely do I have bids/offers in more than 3 contracts at a time so I am not causing problems with bandwidth. Based on the first 2 days of this month, I would be charged 853 in fees based on 494 contracts filled and 9032 cancelled. I would think ise would be happy having my business but apparently not as I can no longer afford to provide liquidity, size and price improvement on ise. They apparently dont want customers unless they only buy offers and take bids. Apparently a little competition will a small customer like myself is threatening to them. They should charge all their market makers the same fees to cancel and change orders...that would put us all on a level trading field but then the exchange will shut down. I do not know what problem ise has with a retail customer like me but they are showing it by charging me excess fees to trade with their exchange. This should be denied immediately. An example...I bid 10 cents higher for 100 ibm calls...i get filled on 10...I cancel...I will be charged 9.00 to cancel this order even though I provided a service to another customer who received a better prioce than ise was offering and provided liquidity to the market. What is this rule really about? Is it because market makers on ise are charged .25 per contract and dont make money when a retail customer trades with another retail customer? I have been a loyal customer of ise, probably trading many tens of thousands, maybe more, since they opened. Why do they want to unjustly punish customers like myself?