Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices 70057 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See, e.g., Securities Exchange Act Release No. 

27967 (May 1, 1990), 55 FR 19124 (May 8, 1990) 

(approving File No. SR–NYSE–89–22, Series 17); 

Securities Exchange Act Release No. 36629, 

International Series Release No. 909 (Dec. 21, 1995), 

60 FR 67385, corrected, Securities Exchange Act 

Release No. 36629A, International Series Release 

No. 909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996) 

(approving File No. SR–NYSE–95–29, Series 37 and 

Series 38); Securities Exchange Act Release No. 

36825 (Feb. 9, 1996), 61 FR 6052 (approving File 

No. SR–NASD–96–04, Series 37 and 38); Securities 

Exchange Act Release No. 38274 (February 12, 

1997), 62 FR 7485 (approving File No. SR–CBOE– 

97–04, Series 17, 37 and 38); Securities Exchange 

Act Release No. 38921 (August 11, 1997), 62 FR 

44023 (approving File No. SR–AMEX–97–26, Series 

17, 37 and 38); see also NASD Rule 1032(a)(2)(B) 

and (C); NASDAQ Rule 1032(a)(2)(B) and (C); 

Securities Exchange Act Release No. 59292 (January 

23, 2009), 74 FR 5690 (January 30, 2009) (approving 

File No. SR–BATS–2009–003). 

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 website 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 

a.m. and 3 p.m. Copies of the 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– 

NYSEAmex–2010–105 and should be 

submitted on or before December 7, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28778 Filed 11–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63286; File No. SR–EDGA– 

2010–16] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rules 

2.5 and 11.4 To Permit Qualification 

and Registration of Authorized Traders 

of Members Pursuant to Certain 

Foreign Examination Modules 

Equivalent to the Series 7 Examination 

November 9, 2010. 

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 October 

27, 2010, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGA’’) filed with 

the Securities and Exchange 

Commission (‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rules 2.5 and 11.4 to permit 

qualification and registration of 

Authorized Traders of Members 

pursuant to certain foreign examination 

modules equivalent to the Series 7 

examination. The Exchange also 

proposes to make a technical 

amendment to Rule 2.3. The text of the 

proposed rule change is available on the 

Exchange’s Web site at http:// 

www.directedge.com, at the 

Commission’s Web site at http:// 

www.sec.gov, at the Exchange’s 

principal office, and at the Public 

Reference Room of the Commission. 

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 

Exchange Rules 2.5 and 11.4 both 

state that the Series 7 is required for 

registration with the Exchange as an 

Authorized Trader. The purpose of the 

proposed rule change is to expand the 

types of exams that may satisfy the 

Exchange’s Series 7 requirement by 

recognizing foreign examination 

modules equivalent to the Series 7 

examination. 

The proposal would reduce 

duplicative qualification standards that 

foreign registered representatives 

encounter to qualify as a U.S. general 

securities registered representative. For 

example, the examination modules for 

the U.K. (Series 17) and Canada (Series 

37/38) currently are accepted as 

equivalent to the U.S. Series 7 by the 

NYSE, the Financial Industry 

Regulatory Authority (‘‘FINRA’’), the 

NASDAQ Stock Market, NYSE 

AlterNext US [sic], NYSE Arca, the 

Chicago Board Options Exchange 

(‘‘CBOE’’), and the BATS Exchange, Inc. 

(‘‘BATS’’).3

The Series 17 version, the United 

Kingdom—Limited General Securities 

Registered Representative Examination, 

is for U.K. registrants who have 

successfully completed the basic exam 

of the U.K. and who are in good 

standing with the Financial Services 

Authority (‘‘FSA’’). Essentially, this 

modified Series 7 examination deletes 

those substantive sections of the 

standard Series 7 that overlap with the 

FSA examination. The Series 17 is a 100 

question examination, is 120 minutes in 

duration, and deals with U.S. securities 

laws, regulations, sales practices and 

special products drawn from the 

standard Series 7 examination. 

The Series 37 version is for Canadian 

registrants who have successfully 

completed the basic core module of the 

CSI Global Education (‘‘CSI’’, formerly 

the Canadian Securities Institute) 

program. The Series 38 version is for 

Canadian registrants who, in addition to 

having successfully completed the basic 

core module of the CSI program, have 

also successfully completed the 

Canadian option and futures program. 

Both the Series 37 and 38 share topics 

and test questions with the parent Series 

7 program but cover only subject matter 

that is not covered, or not covered in 

sufficient detail, on the Canadian 

qualification examination. The Series 37 

has 90 questions and is 150 minutes in 

duration, while the Series 38, an 

abbreviated version of the series 37, has 

only 45 questions and is 75 minutes in 

duration. Forty-five questions pertaining 

to options from the series 37 were 

omitted from the Series 38. 

The Exchange wishes to give U.K. and 

Canadian registered representatives the 

same advantage they have at other 

exchanges by eliminating duplicative 

examinations. The Exchange believes 

that acceptance of these examinations 

mstockstill on DSKH9S0YB1PROD with NOTICES

70058 Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices 

4The Exchange notes that the U.K. (Series 17) and 

Canada (Series 37/38) represent foreign 

examination modules that allow persons in good 

standing with the securities regulators of their 

respective countries to qualify as general securities 

registered representatives (equivalent to Series 7 

registrants) by successfully completing certain 

modified general securities representative 

examinations which were developed, along with 

others for other foreign jurisdictions, by the New 

York Stock Exchange (‘‘NYSE’’) more than 10 years 

ago. 

5 15 U.S.C. 78f(c)(3)(B). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78(c)(f). 

will benefit both the Exchange and the 

foreign representatives affected by the 

proposal. Accordingly, pursuant to the 

amended rules, as proposed, the 

Exchange would approve the 

examination modules for the U.K. 

(Series 17) and Canada (Series 37/38) as 

equivalent foreign examination 

modules.4 The Exchange has added 

Interpretation .05 to Rule 2.5 to define 

what it means to have passed an 

equivalent foreign examination module. 

Technical Amendment to Rule 2.3(c): 

The Exchange proposes to amend 

Rule 2.3 to clarify that all Authorized 

Traders who are to function as 

Principals on the Exchange shall be 

registered as Principals with the 

Exchange consistent with paragraph (e) 

of Rule 2.3, which requires that there be 

at least one such Principal registered. 

2. Statutory Basis 

The statutory basis for the Exchange’s 

acceptance of these foreign examination 

modules lies in Section 6(c)(3)(B) of the 

Act.5 Under that section, it is the 

Exchange’s responsibility to prescribe 

standards of training, experience, and 

competence for persons associated with 

Exchange Members. Pursuant to this 

statutory obligation, the Exchange has 

adopted examinations that are 

administered by other self-regulatory 

organizations to establish that 

Authorized Traders of Exchange 

Members have attained specified levels 

of competence and knowledge. 

The rule change proposed in this 

submission is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.6

Specifically, the proposed change is 

consistent with Section 6(b)(5) of the 

Act,7 because it would promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest, by helping foreign 

representatives to qualify for registration 

with the Exchange by reducing 

duplicative qualification requirements. 

Accordingly, the modifications to EDGA 

Rules 2.5 and 11.4 promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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. 

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 

The proposed rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) of the Act and paragraph 

(f)(6) of Rule 19b–4 thereunder, in that 

the proposed rule change: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest; provided the selfregulatory organization has given the 

Commission written notice of its intent 

to file the proposed rule change, along 

with a brief description and 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. The Exchange has 

requested that the Commission waive 

the 30-day operative delay. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, as it will allow the 

Exchange to recognize proficiency 

examinations already currently 

recognized by other self-regulatory 

organizations. The Exchange has noted 

that foreign representatives who have 

passed foreign examination modules 

equivalent to the Series 7 examination, 

are registered with other self-regulatory 

organizations, and wish to register with 

EDGA would be disadvantaged by 

having to wait for the proposed rule 

changes to become operative. 

Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission.8

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 e-mail to rulecomments@sec.gov. Please include File 

No. SR–EDGA–2010–16 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File No. 

SR–EDGA–2010–16. This file number 

should be included on the subject line 

if e-mail 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 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices 70059 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Options classes subject to maker/taker fees are 

identified by their ticker symbol on the Exchange’s 

Schedule of Fees. 

4A Market Maker Plus is a market maker who is 

on the National Best Bid or National Best Offer 80% 

of the time for series trading between $0.03 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was less than 

or equal to $100) and between $0.10 and $5.00 (for 

options whose underlying stock’s previous trading 

day’s last sale price was greater than $100) in 

premium in each of the front two expiration months 

and 80% of the time for series trading between 

$0.03 and $5.00 (for options whose underlying 

stock’s previous trading day’s last sale price was 

less than or equal to $100) and between $0.10 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was greater 

than $100) in premium across all expiration months 

in order to receive the rebate. The Exchange 

determines whether a market maker qualifies as a 

Market Maker Plus at the end of each month by 

looking back at each market maker’s quoting 

statistics during that month. If at the end of the 

month, a market maker meets the Exchange’s stated 

criteria, the Exchange rebates $0.10 per contract for 

transactions executed by that market maker during 

that month. The Exchange provides market makers 

a report on a daily basis with quoting statistics so 

that market makers can determine whether or not 

they are meeting the Exchange’s stated criteria. 

5A Customer (Professional) is a person who is not 

a broker/dealer and is not a Priority Customer. 

6A Non-ISE Market Maker, or Far Away Market 

Maker (‘‘FARMM’’), is a market maker as defined in 

Section 3(a)(38) of the Securities Exchange Act of 

1934, as amended (‘‘Exchange Act’’), registered in 

the same options class on another options 

exchange. 

7A Priority Customer is defined in ISE Rule 

100(a)(37A) as a person or entity that is not a 

broker/dealer in securities, and does not place more 

than 390 orders in listed options per day on average 

during a calendar month for its own beneficial 

account(s). 

8The proposed fee for responses to special orders 

is similar to fees currently in place at other options 

exchanges. See Securities Exchange Act Release No. 

62632 (August 3, 2010), 75 FR 47869 (August 9, 

2010) (Notice of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend the Fee 

Schedule of the Boston Options Exchange Facility) 

(SR–BX–2010–049). 

9Pre-existing Market Maker, Market Maker Plus, 

Firm Proprietary and Customer (Professional) 

interest that trades with special orders in the 

Exchange’s various auctions will continue to be 

charged $0.25 per contract. 

available for website 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 a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of EDGA. 

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 No. 

SR–EDGA–2010–16 and should be 

submitted on or before December 7, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28749 Filed 11–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63283; File No. SR–ISE– 

2010–106] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

November 9, 2010. 

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 October 

26, 2010, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The ISE is proposing to amend its 

transaction fees and rebates for adding 

and removing liquidity. 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 

The Exchange currently assesses a per 

contract transaction charge to market 

participants that add or remove 

liquidity from the Exchange (‘‘maker/ 

taker fees’’) in 100 options classes (the 

‘‘Select Symbols’’).3 The Exchange 

currently charges a take fee of: (i) $0.25 

per contract for Market Maker, Market 

Maker Plus,4 Firm Proprietary and 

Customer (Professional) 5 orders; (ii) 

$0.35 per contract for Non-ISE Market 

Maker 6 orders; (iii) $0.20 per contract 

for Priority Customer 7 orders for 100 or 

more contracts. Priority Customer orders 

for less than 100 contracts are not 

assessed a fee for removing liquidity. 

The Exchange proposes to increase the 

take fee to $0.40 per contract for Market 

Maker, Market Maker Plus, Firm 

Proprietary, Customer (Professional) and 

Non-ISE Market Maker interest that 

responds to special orders.8 A special 

order is an order submitted for 

execution in the Exchange’s Facilitation 

Mechanism, Solicited Order 

Mechanism, Block Order Mechanism 

and Price Improvement Mechanism. A 

response to a special order is any 

contra-side interest submitted after the 

commencement of an auction in the 

Exchange’s Facilitation Mechanism, 

Solicited Order Mechanism, Block 

Order Mechanism and Price 

Improvement Mechanism.9

Additionally, to incentivize members, 

the Exchange currently offers a rebate of 

$0.15 per contract to contracts that do 

not trade with the contra order in the 

Exchange’s Facilitation Mechanism and 

Price Improvement Mechanism. The 

Exchange proposes to (i) extend that 

$0.15 per contract rebate to contracts 

that do not trade with the contra order 

in the Exchange’s Solicited Order 

Mechanism, and (ii) increase the rebate 

applied to contracts that do not trade 

with the contra order in the Exchange’s 

Price Improvement Mechanism from 

$0.15 per contract to $0.25 per contract. 

Finally, the Exchange currently 

charges Non-ISE Market Maker orders a 

fee of $0.20 per contract for adding 

liquidity. The Exchange proposes to 

lower this fee to $0.10 per contract. 

With this proposed fee reduction, the 

fee charged to Non-ISE Market Maker 

orders that add liquidity shall be equal 

to all other non-Priority Customer 

orders that add liquidity. 

The Exchange also proposes to change 

the symbol for UAL Corporation on the 

Schedule of Fees from ‘‘UAUA’’ to 

mstockstill on DSKH9S0YB1PROD with NOTICES