The International Securities Exchange last week increased regulatory fees for market makers and electronic traders, in order to recoup surveillance costs. Overall, the largest ISE firms could see a spike of $15,000-$18,000 in fees per firm on top of over $100,000 in total trading fees, depending on how many staffers the firm has trading on the ISE. "The exchange has determined that the cost of surveilling its members far exceeds the amount that is generated by the current fees," ISE said in a related filing with the Securities and Exchange Commission. ISE does not disclose what percentage of total revenues regulatory fees make up.

This is how the fee increases will break down: ISE will charge firms who have primary market makers trading on the exchange $7,500 for surveillance of the first PMM and $1,500 for each additional PMM. Competitive market makers will be charged $5,000 for the first trader and $1,000 for each additional CMM. PMMs oversee all trading, including manual trading for complex orders, in their assigned options classes and CMMs stabilize trading. Firms that simply trade but do not make markets will be charged $5,000 per trader. Previously, ISE charged PMMs, CMMs and electronic traders $3,500 annually per trader, regardless of what that person's business was. "The exchange believes that the tiered fee system is the most equitable method of assessing the fees," ISE said. Competitors' fees for the same types of members are comparable.