Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6741 

5 15 U.S.C. 78s(b)(3)(A)(i). 

6 17 CFR 240.19b–4(f)(1). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Nat’l ranking Symbol Company name Nat’l ranking Symbol Company name 

161 ................. HL .................. Hecla Mining Co. 165 ................ WLP .............. WellPoint Inc. 

193 ................. HOG .............. Harley-Davidson Inc. 191 ................ XLB ............... Materials Select Sector SPDR Fund. 

206 ................. HON .............. Honeywell International Inc. 173 ................ XRX ............... Xerox Corp. 

210 ................. JOYG ............ Joy Global Inc. 148 ................ XTO ............... XTO Energy Inc. 

213 ................. JWN .............. Nordstrom Inc. 130 ................ YRCW ........... YRC Worldwide Inc. 

137 ................. KFT ............... Kraft Foods Inc. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act, in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest, by 

identifying the options classes to be 

added to the Pilot in a manner 

consistent with prior approvals and 

filings. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

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)(i) of the Exchange Act 5 and 

Rule 19b–4(f)(1) thereunder,6 in that it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of the 

Exchange. At any time within 60 days 

of the filing of the proposed rule change, 

the Commission may summarily 

abrogate the rule change if it appears to 

the Commission that the action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or would otherwise further the purposes 

of the Act. 

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 

Number SR–NYSEArca–2010–06 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 

Number SR–NYSEArca–2010–06. 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 

Internet 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 

available for Web 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 

NYSE Arca’s principal office and on its 

Web site at http://www.nyse.com. 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–NYSEArca–2010–06 and should be 

submitted on or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2944 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61489; File No. SR–CBOE– 

2010–008] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing of Proposed Rule 

Change Relating to Co-Location 

Service Fees 

February 4, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

28, 2010, Chicago Board Options 

Exchange, Inc. (‘‘CBOE’’ or the 

‘‘Exchange’’) 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 CBOE. 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 

Chicago Board Options Exchange, Inc. 

(‘‘CBOE’’ or ‘‘Exchange’’) proposes to 

amend its Fees Schedule relating to colocation service fees. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 


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6742 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

3See Securities Exchange Act Release No. 57191 

(January 24, 2008), 73 FR 5611 (January 30, 2008). 

The fee for a Sponsored User is $20 per month per 

‘‘U’’. See Securities Exchange Act Release 

No. 58189 (July 18, 2008), 73 FR 43274 (July 24, 

2008). 

4A member using the co-location service may 

also pay certain CBOEdirect Connectivity Charges 

that are set forth in Section 16 of the Fees Schedule. 

These fees are charged for member connectivity to 

CBOEdirect regardless of whether or not a member 

is using the co-location service. These fees include 

a $40 per month ‘‘CMi Application Server’’ fee for 

server hardware used to connect to the CBOE CMi 

API, a $40 per month ‘‘Network Access Port’’ fee for 

use of the CMi API and a $40 per month ‘‘FIX Port’’ 

fee for use of the FIX API. See Securities Exchange 

Act Release No. 57191, supra footnote 1. Each of the 

foregoing fees are $80 per month for a Sponsored 

User. See Securities Exchange Act Release No. 

58189, supra footnote 1. 

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

6 15 U.S.C. 78f(b)(4). 

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

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE 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. CBOE 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 

For a monthly fee, the Exchange 

provides members with cabinet space in 

CBOE’s building for placement of 

network and server hardware. The fee is 

$10 per month per ‘‘U’’ of shelf space 

(which is equal to 1.75 inches).3 A 

member also receives power, cooling, 

security and assistance with installation 

and connection of the equipment to the 

Exchange’s servers, at no additional 

charge. This ‘‘co-location service’’ 

provides members with close physical 

proximity to the Exchange’s electronic 

trading system, which helps meet their 

need for high performance processing 

and low latency. 

The co-location service is available to 

any member that requests the service 

and pays the monthly fee.4 The 

Exchange believes that for the 

foreseeable future it has sufficient space 

to accommodate all members who may 

request the co-location service. Other 

than the co-location service, the 

Exchange does not provide any colocating member with any advantage 

over any other co-locating member or 

any non-co-locating member with 

respect to access to the Exchange’s 

trading system. The Exchange’s systems 

are designed to minimize, to the extent 

possible, any advantage for one member 

over another. The foregoing statements 

apply equally to both inbound and 

outbound data. 

The Exchange proposes to clarify its 

Fees Schedule relating to co-location 

fees in a couple of respects. First, the 

Exchange proposes to move the colocation fees from Section 17 of the Fees 

Schedule (Hybrid Fees) to Section 8 

(Facility Fees) because these fees are 

more accurately described as facility 

fees. Second, the Exchange proposes to 

clarify that the co-location fees are 

charged in increments of 4 ‘‘U’’ (which 

is equal to 7 inches) because the cabinet 

space is available in 4 U increments. 

2. Statutory Basis 

By clarifying the Exchange’s fees for 

its co-location service and providing a 

fuller description of the service, the 

Exchange believes the proposed rule 

change is consistent with Section 6(b) of 

the Securities Exchange Act of 1934,5 in 

general, and furthers the objectives of 

Section 6(b)(4) 6 of the Act in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and other persons using its 

facilities. In addition, the Exchange 

believes the proposed rule change 

furthers the objectives of Section 

6(b)(5) 7 of the Act in that it is designed 

to 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, to protect 

investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 

Number SR–CBOE–2010–008 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 

Number SR–CBOE–2010–008. 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 

Internet 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 

available for Web site 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 the 

Exchange. All comments received will 

be posted without change; the 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6743 

8 17 CFR 200.30–3(a)(12). 

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. 

4 In SR–ISE–2009–68, the Exchange amended the 

criteria for meeting the Ultra Tier by allowing ISE 

Members to receive a $0.0032 rebate per share for 

securities priced at or above $1.00 when ISE 

Members add liquidity on EDGX if the attributed 

MPID posts 1% of the total consolidated volume 

(‘‘TCV’’) in average daily volume (‘‘ADV’’). TCV is 

defined as volume reported by all exchanges and 

trade reporting facilities to the consolidated 

transaction reporting plans for Tape A, B, and C 

securities. See Securities Exchange Act Release No. 

60769 (October 2, 2009), 74 FR 51903 (October 8, 

2009) (SR– ISE–2009–68). In SR–ISE–2010–10, the 

Exchange re-introduced an Ultra Tier rebate of 

$0.0031 per share for competitive reasons. 

The Ultra Tier rebate ($0.0031 per share), which 

is a higher rebate than the next best rebate ($0.0029 

per share) for adding liquidity on EDGX, is also 

more difficult to reach, as a higher volume 

threshold is required based on recent TCV figures. 

For example, 1% of the average TCV for January 

2010 (8.9 billion) was approximately 89 million 

shares. This threshold far exceeds the criteria (no 

minimum share volume requirement) to meet the 

next best rebate of $0.0029 per share. In addition, 

the higher rebate also results in part from lower 

administrative costs associated with higher volume. 

5 In SR–ISE–2010–10, the Exchange added a fee 

to its schedule to provide that stocks priced less 

than $1 will be charged 0.20% of the dollar value 

if they do not meet the minimum average daily 

share volume of 50,000 shares on EDGA to qualify 

for the removal rate. A conforming footnote 1 was 

added in the first table on the fee schedule (next 

to the word ‘‘Free’’) for removing liquidity in stocks 

less than $1.00 on EDGA. 

6 In SR–ISE–2010–10, in order to further simplify 

its fee schedule for Members, the Exchange deleted 

the table on the fee schedule entitled ‘‘Fees per 

Share for Special Order Types’’ as the Exchange 

believed that the information on this schedule was 

repetitive of the information in the ‘‘liquidity flags 

and associated fees’’ table below it. As a result of 

this deletion, the Exchange relocated footnote 

numbers 4 and 5. Footnote 4 was relocated to ‘‘Flag 

E’’ and also added to ‘‘Flag 5’’ to clarify it. Footnote 

5 was relocated to ‘‘Flag O.’’ These are the 

corresponding areas where these references belong. 

7Effective January 1, 2010, DECN adjusted its 

pricing model to be more consistent with other 

exchanges (even though DECN is not an exchange), 

by de-linking the pricing structures of DECN to 

eliminate pricing offers that are contingent on 

activity across both platforms. See Securities 

Exchange Act Release No. 61289 (January 5, 2010), 

75 FR 1674 (January 12, 2010) (SR–ISE–2009–108). 

Secondly, the Exchange simplified its fee schedule 

in order to provide Members with greater 

consistency and transparency during the period that 

the EDGA and EDGX Exchanges are preparing to 

launch, when volume will be transitioning from 

DECN to the EDGA and EDGX Exchanges (assuming 

their respective Form 1 applications are approved 

by the Commission). On May 7, 2009, each of EDGA 

Exchange, Inc. and EDGX Exchange, Inc. (the 

‘‘EDGA and EDGX Exchanges’’) filed their respective 

Form 1 applications to register as a national 

securities exchange (‘‘Form 1’’) pursuant to Section 

6 of the Securities Exchange Act of 1934. On July 

30, 2009, the Exchanges filed Amendment No. 1 to 

the Form 1 Application. On September 17, 2009, 

the Form 1 was published in the Federal Register 

for notice and comment. See Securities Exchange 

Act Release No. 60651 (September 11, 2009), 74 FR 

47827 (September 17, 2009). The Exchange believes 

that these same goals were also advanced for the 

most part in SR–ISE–2010–10, which made 

technical and clarifying changes to DECN’s fee 

schedule. 

In SR–ISE–2009–108, to effectuate the foregoing, 

the Exchange deleted certain charges in footnote 1 

of the fee schedule, including one whereby ISE 

Members were charged $0.0002 per share to add 

liquidity on EDGA unless the attributed MPID 

added a minimum average daily share volume, 

measured monthly, of at least 50,000,000 shares on 

EDGA. Prior to January 1, 2010, any attributed 

MPID meeting the aforementioned minimum was 

not charged to add liquidity on EDGA. Since this 

charge was deleted from footnote 1, in SR–ISE– 

2010–10, the Exchange deleted the corresponding 

footnote 1 from flags B, V, Y, 3, and 4 from the 

EDGA column as this footnote no longer applies. 

In addition, in SR–ISE–2010–10, the Exchange reworded the first sentence in footnote 1 to clarify 

that adding can include placing hidden orders. 

In SR–ISE–2009–108, for securities priced less 

than $1, the Exchange changed the fee for adding 

liquidity on EDGX from free to a rebate of 0.15% 

of the dollar value of the transaction. In SR– ISE– 

2010–10, the Exchange corrected a typographical 

error on its current schedule by adding parenthesis 

around the ‘‘0.15% of dollar value’’ to clarify that 

this was a rebate, and not a charge, for adding 

liquidity on EDGX in securities priced less than $1. 

In SR–ISE–2010–10, for Flag P, the Exchange 

corrected a typographical error on the schedule by 

inverting the columns that were displayed. For 

EDGX, flag P was corrected to read ‘‘N/A’’ and for 

EDGA it was corrected to read a rebate of $0.0025 

per share (i.e., (0.0025)). 

In SR–ISE–2010–10, the Exchange also clarified 

Footnote 3. The second sentence of this footnote 

states that the ‘‘rebate for adding liquidity on the 

NYSE of $0.0010 per share.’’ This information was 

already conveyed in Flag F and was deleted in 

order to simplify and clarify the fee schedule. The 

first sentence of footnote 3 was also deleted as it 

Continued 

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–CBOE– 

2010–008 and should be submitted on 

or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2946 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61491; File No. SR–ISE– 

2010–11] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Order 

Granting Accelerated Approval to a 

Proposed Rule Change Relating to the 

Amounts That Direct Edge ECN, in Its 

Capacity as an Introducing Broker for 

Non-ISE Members, Passes Through to 

Such Non-ISE Members 

February 4, 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 January 

29, 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 and II 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, and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

amounts that Direct Edge ECN 

(‘‘DECN’’), in its capacity as an 

introducing broker for non-ISE 

Members, passes through to such nonISE 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 III 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. On 

January 29, 2010, the ISE filed for 

immediate effectiveness a proposed rule 

change to amend Direct Edge ECN’s 

(‘‘DECN’’) fee schedule for ISE 

Members 3 to simplify its fee schedule 

by (i) re-introducing a rebate; 4 (ii) 

adding a fee for stocks priced less than 

$1 that remove liquidity on EDGA; 5 (iii) 

eliminating certain tables on the fee 

schedule; 6 and (iv) making 

typographical and clarifying changes to 

the fee schedule.7 The changes made 


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