6766 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5 ‘‘Trade value’’ is defined in our Fee Schedule as 

‘‘a dollar amount equal to the price per share 

multiplied by the number of shares executed.’’ 

6The Direct Edge ECN raised its provide credit to 

0.15% for transactions under $1 in Tape A, B and 

C securities for its EDGX trading platform beginning 

in the month of January 2010. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61493; File No. SR–CHX– 

2010–03] 

Self-Regulatory Organizations; The 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Increase 

the Provide Credit for Transactions 

Involving Issues Priced Less Than One 

Dollar 

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 

29, 2010, the Chicago Stock Exchange, 

Inc. (‘‘CHX’’ or ‘‘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 the Exchange. 

CHX has filed the proposal pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. 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 CHX proposes to amend its 

Schedule of Participant Fees and 

Assessments (the ‘‘Fee Schedule’’), 

effective February 1, 2010, to change its 

transaction fees and rebates to Exchange 

Participants for transactions involving 

issues priced less than one dollar that 

occur within the Exchange’s Matching 

System. The text of this proposed rule 

change is available on the Exchange’s 

Web site at http://www.chx.com/rules/ 

proposed_rules.htm and in the 

Commission’s Public Reference Room, 

100 F Street, NE., Washington, DC 

20549. 

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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Changes 

1. Purpose 

Through this filing, the Exchange 

would amend its Fee Schedule to 

increase the provide credit to Exchange 

Participants for transactions involving 

issues priced less than one dollar that 

occur within the Exchange’s Matching 

System. 

The Exchange proposes to increase 

the provide credit in the transactions 

described above from 0.10% to 0.15% of 

the trade value.5 The Exchange believes 

that the increased rebate will help 

attract additional orders to be displayed 

and executed on our trading facilities. 

The Exchange notes that some of our 

competitors have recently raised their 

provide rebates for securities priced 

under $1, and that our proposed 

increase will help us remain 

competitive with these entities.6

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 7 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 8 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members. Among other 

things, the change to the fee schedule 

would provide incentives to 

Participants to increase the amount of 

liquidity provided on our trading 

facilities for securities priced less than 

$1, which may contribute to an increase 

in trading volume on the Exchange and 

in the income derived therefrom. 

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 Changes Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Changes and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(B)(3)(A)(ii) [sic] of the Act 9 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 10 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 

Accordingly, the proposal is effective 

upon Commission receipt of the filing. 

At any time within 60 days of the filing 

of such rule change, the Commission 

may summarily abrogate 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 purpose 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–CHX–2010–03 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–CHX–2010–03. 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 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6767 

11 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. 

4See Securities Exchange Act Release No. 60769 

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

(SR–ISE–2009–68). 

5See Securities Exchange Act Release No. 61289 

(January 5, 2010), 75 FR 1674 (January 12, 2010) 

(SR–ISE–2009–108). 6On 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). 

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 

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–CHX– 

2010–03 and should be submitted on or 

before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2949 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61490; File No. SR–ISE– 

2010–10] 

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 

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, 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 amend its 

fee schedule by (i) re-introducing a 

rebate; (ii) adding a fee for stocks priced 

less than $1 that remove liquidity on 

EDGA; (iii) eliminating certain tables on 

the fee schedule and (iv) making 

typographical and clarifying changes to 

the fee schedule. All of the changes 

described herein are applicable to ISE 

Members. 

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. 

Re-introduction of Ultra Tier Rebate 

In SR–ISE–2009–68,4 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. 

For competitive reasons, the Exchange 

is now seeking to re-introduce an Ultra 

Tier rebate of $0.0031 per share. 

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. 

Additional Changes to the Fee Schedule 

Effective January 1, 2010,5 DECN 

adjusted its pricing model to be more 

consistent with other exchanges (even 

though DECN is not an exchange),6 by 

de-linking the pricing structures of 

DECN to eliminate pricing offers that are 

contingent on activity across both 

platforms. 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). The Exchange believes 

that these same goals are also advanced 

for the most part in this filing, which 

proposes technical and clarifying 

changes to DECN’s fee schedule. 

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, the Exchange proposes 


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