27028 Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Notices 

Approved By: llllllllllll

Date Submitted: lllllllllll

[FR Doc. 2010–11435 Filed 5–12–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 33–9123; File No. 265–26] 

COMMODITY FUTURES TRADING 

COMMISSION 

Joint CFTC–SEC Advisory Committee 

on Emerging Regulatory Issues 

AGENCY: Securities and Exchange 

Commission (‘‘SEC’’) and Commodity 

Futures Trading Commission (‘‘CFTC’’) 

(each, an ‘‘Agency,’’ and collectively, 

‘‘Agencies’’). 

ACTION: Notice of Federal Advisory 

Committee Establishment. 

SUMMARY: The Chairmen of the SEC and 

CFTC, with the concurrence of the other 

SEC and CFTC Commissioners, 

respectively, intend to establish the 

Joint CFTC–SEC Advisory Committee 

on Emerging Regulatory Issues (the 

‘‘Committee’’). 

Comments 

Because the Agencies will jointly 

review all comments submitted, 

interested parties may send comments 

to either Agency and need not submit 

responses to both Agencies. 

Respondents are encouraged to use the 

title ‘‘Joint CFTC–SEC Advisory 

Committee’’ to facilitate the organization 

and distribution of comments between 

the Agencies. Interested parties are 

invited to submit responses to: 

Securities and Exchange Commission: 

Written comments may be submitted by 

the following methods: 

Electronic Comments 

• Use the SEC’s Internet submission 

form (http://www.sec.gov/rules/ 

other.shtml); or 

• Send an email to rulecomments@sec.gov. 

Please include File No. 265–26 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F St., NE., Washington, DC 20549. 

All submissions should refer to File No. 

265–26. 

To help the SEC process and review 

your comments more efficiently, please 

use only one method. The SEC staff will 

post all comments on the SEC’s Internet 

Web site (http://www.sec.gov/rules/ 

other.shtml). Comments will also be 

available for Web site viewing and 

printing in the SEC’s Public Reference 

Room, 100 F St., NE., Washington, DC 

20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

All comments received will be posted 

without change; we do not edit personal 

identifying information from your 

submissions. You should submit only 

information that you wish to make 

available publicly. 

Commodity Futures Trading 

Commission: 

• Written comments may be mailed to 

the Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, attention Office of the Secretary; 

transmitted by facsimile to the CFTC at 

(202) 418–5521; or transmitted 

electronically to 

Jointcommittee@cftc.gov. Reference 

should be made to ‘‘Joint CFTC–SEC 

Advisory Committee.’’ 

FOR FURTHER INFORMATION CONTACT: 

Ronesha Butler, Special Counsel, at 

(202) 551–5629, Division of Trading and 

Markets, or Elizabeth M. Murphy, 

Committee Management Officer, at (202) 

551–5400, Securities and Exchange 

Commission, 100 F St., NE., 

Washington, DC 20549, or Martin 

White, Committee Management Officer, 

at (202) 418–5129, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: In 

accordance with the requirements of the 

Federal Advisory Committee Act, 5 

U.S.C. App. 2, the Agencies are 

publishing this notice that the Chairmen 

of the SEC and CFTC, with the 

concurrence of the other SEC and CFTC 

Commissioners, intend to establish the 

Committee. The Committee’s objectives 

and scope of activities are to conduct 

public meetings, submit reports and 

recommendations to the CFTC and the 

SEC and otherwise to serve as a vehicle 

for discussion and communication on 

regulatory issues of mutual concern and 

their effect on the CFTC’s and SEC’s 

statutory responsibilities. Subjects to be 

addressed by the Committee will 

include, but will not be limited to, 

identification of emerging regulatory 

risks, assessment and quantification of 

the impact of such risks and their 

implications for investors and market 

participants, and to further the 

Agencies’ efforts on regulatory 

harmonization. The committee will 

work to develop clear and specific goals 

toward identifying and addressing 

emerging regulatory risks, protecting 

investors and customers, and furthering 

regulatory harmonization, and to 

recommend processes and procedures 

for achieving and reporting on those 

goals. 

To achieve the Committee’s goals, the 

Chairmen of the SEC and CFTC will 

appoint approximately 10–15 members. 

There will be two co-designated Federal 

officers of the committee. The Chairman 

of the CFTC will appoint a CFTC 

employee to serve as one co-designated 

federal officer of the committee and the 

Chairman of the SEC will appoint an 

SEC employee to serve as the other codesignated Federal officer of the 

committee. The co-designated federal 

officers jointly call all of the advisory 

committee’s and subcommittees’ 

meetings, prepare and jointly approve 

all meeting agendas, adjourn any 

meeting when they jointly determine 

adjournment to be in the public interest, 

and chair meetings when directed to do 

so. The co-designated Federal officers 

also will attend all committee and 

subcommittee meetings. The Chairmen 

of the CFTC and of the SEC shall serve 

as Co-Chairmen of the Committee. The 

Committee’s membership will be fairly 

balanced in terms of points of view 

represented and the functions to be 

performed. 

The Committee’s charter will be filed 

with the Senate Committee on 

Agriculture, Nutrition and Forestry; the 

House of Representatives Committee on 

Agriculture; the Senate Committee on 

Banking, Housing, and Urban Affairs; 

the House Committee on Financial 

Services, and U.S. General Services 

Administration Committee Management 

Secretariat (‘‘Secretariat’’). A copy of the 

charter also will be filed with the SEC, 

CFTC and the Library of Congress. The 

charter will be available for Web site 

viewing and printing in the Public 

Reference Room at the SEC’s 

headquarters and posted on the SEC’s 

Web site at http://www.sec.gov and the 

CFTC’s Web site at http://www.cftc.gov. 

The Committee will operate for two 

years from the date it is established 

unless, before the expiration of that time 

period, its charter is re-established or 

renewed in accordance with the Federal 

Advisory Committee Act or unless 

either the Chairman of the SEC or the 

Chairman of the CFTC determines that 

the Committee’s continuance is no 

longer in the public interest. 

The Committee will meet at such 

intervals as are necessary to carry out its 

functions. It is estimated that the 

meetings will occur six times per year. 

Meetings of subgroups or 

subcommittees of the full Committee 

may occur more frequently. 

The charter will provide that the 

duties of the Committee are to be solely 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Notices 27029 

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

2 17 CFR 240.19b–4. 

3References to ISE Members in this filing refer to 

DECN Subscribers who are ISE Members. 

4This fee filing relates to the trading facility 

operated by ISE and not EDGA Exchange, Inc. and 

EDGX Exchange, Inc. Direct Edge ECN LLC (EDGA 

and EDGX) will cease to operate in its capacity as 

an electronic communications network following 

the commencement of operations of EDGA 

Exchange, Inc. and EDGX Exchange, Inc. as national 

securities exchanges. 

5See Nasdaq OMX Equity Trader Alert, #2010– 

27 (April 19, 2010) (‘‘Firms will be charged 0.10% 

(i.e., 10 basis points) of the total dollar value of the 

transaction when removing liquidity in stocks with 

prices below $1.00’’). 

6The INET order type sweeps the EDGA or EDGX 

book and removes liquidity from Nasdaq, if the 

order is marketable, or posts on Nasdaq, if the order 

is non-marketable. 

7The Access Rule of Regulation NMS limits the 

fees any trading center can charge, or allow to be 

charged, for accessing its protected quotations, both 

displayed and reserve size, to no more than $0.003 

per share. See Rule 610(c) of Regulation NMS, 

Continued 

advisory. Each Agency alone will make 

any determinations of action to be taken 

and policy to be expressed with respect 

to matters within their respective 

authority as to which the Committee 

provides advice or makes 

recommendations. 

The Chairmen of the Agencies affirm 

that the establishment of the Committee 

is necessary and in the public interest. 

Pursuant to 41 CFR 102–3.65(b), the 

Secretariat has found good cause for 

approving the establishment of this 

advisory committee prior to the fifteenth 

day after publication of notice of 

establishment in the Federal Register so 

that the Committee members can 

quickly begin to identify emerging 

regulatory issues and their potential 

impact on investors and the securities 

markets. The Committee will lend the 

CFTC and SEC expertise that ranges 

across the securities and futures 

markets. 

By the Securities and Exchange 

Commission. 

Dated: May 10, 2010. 

Elizabeth M. Murphy, 

Committee Management Officer. 

By the Commodity Futures Trading 

Commission. 

Martin White, 

Committee Management Officer. 

[FR Doc. 2010–11507 Filed 5–12–10; 8:45 am] 

BILLING CODE 8010–01–P; 6351–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62050; File No. SR–ISE– 

2010–37] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Amending the 

Direct Edge ECN Fee Schedule 

May 6, 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 April 30, 

2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which items 

have been prepared by the selfregulatory 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 

Direct Edge ECN’s (‘‘DECN’’) fee 

schedule for ISE Members 3 to (i) change 

the rates for routing in securities priced 

less than $1.00 to certain away market 

centers; (ii) reintroduce the rebate on 

securities priced less than $1.00 that 

add liquidity to EDGX; (iii) pass through 

rebates/fees from other market centers; 

and (iv) increase the rebate for Members 

meeting the Ultra Tier. All of the 

changes described herein are applicable 

to ISE Members. 

The text of the proposed rule change 

is available on the Exchange’s Internet 

Web site at http://www.ise.com. 

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 

DECN, a facility of ISE, operates two 

trading platforms, EDGX and EDGA.4

The Exchange is proposing to amend 

the routing rates to certain away market 

centers associated with the removal of 

liquidity from EDGA and EDGX in 

securities priced less than $1.00. 

Currently, for orders in securities priced 

less than $1.00 that are routed to Nasdaq 

BX in Tapes A & C securities and that 

remove liquidity, orders are charged the 

Exchange’s standard routing charge for 

securities less than $1.00 (0.30% of the 

total dollar value of the transaction, 

both on EDGA and EDGX). As a result 

of a decrease in fees by Nasdaq OMX 

when removing liquidity in securities 

priced less than $1.00,5 the Exchange 

proposes to amend its fee schedule in 

order to charge 0.10% of the total dollar 

value of the transaction (instead of 

0.30%) when orders are routed to 

Nasdaq BX in Tapes A & C securities 

and remove liquidity. This is proposed 

to be indicated by footnote number 3 on 

the existing ‘‘C’’ flag. A conforming 

amendment has also been made to the 

fee schedule to append footnote number 

3 to indicate an exception to the 

standard rate (0.30% of dollar value) for 

routing liquidity in securities priced 

less than $1.00. 

Additionally, the Exchange proposes 

to charge 0.20% of the total dollar value 

of the transaction when orders are 

routed to Nasdaq and remove liquidity 

in securities on all Tapes or orders are 

routed to Nasdaq using the INET6 order 

type and remove liquidity in securities 

on all Tapes. This is proposed to be 

indicated by footnote number 3 

appended to the existing ‘‘J,’’ ‘‘L,’’ and ‘‘2’’ 

flags. A conforming amendment has also 

been made to the fee schedule to 

append footnote number 3 to indicate 

an exception to the standard rate (0.30% 

of dollar value) for routing liquidity in 

securities priced less than $1.00. 

The Exchange believes that this rate 

change will seek to incentivize the 

removal of liquidity from EDGA and 

EDGX in securities priced less than 

$1.00 that are routed to certain away 

market centers. 

Re-Introduction of Rebate 

Currently, there is no rebate for 

adding liquidity on EDGX in securities 

priced less than $1.00. The Exchange is 

proposing to re-introduce a rebate of 

$0.00003 per share for orders that add 

liquidity to EDGX in securities priced 

less than $1.00. The Exchange believes 

that this rebate is appropriate as it 

represents 30% of the minimum price 

increment for securities priced less than 

$1.00 ($0.0001) and effectively aligns 

the rebate with access fee caps under 

Regulation NMS.7


sroberts on DSKD5P82C1PROD with NOTICES