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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6744 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

is repetitive of the amended third sentence in 

footnote 3 (‘‘stocks prices below $1.00 on the NYSE 

are charged $0.0018 per share when removing 

liquidity.’’) As a result, on Flag J, footnote 3 was 

deleted as the reference no longer applies. However, 

footnote 3 was relocated to Flag D in order to 

further clarify it. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

10The text of the proposed rule change is 

available on ISE’s Web site at http://www.ise.com, 

on the Commission’s Web site at http:// 

www.sec.gov, at ISE, and at the Commission’s 

Public Reference Room. 

11 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

12 15 U.S.C. 78f(b)(4). 

13 Id. 

pursuant to SR–ISE–2010–10 became 

operative on February 1, 2010. 

In its capacity as a member of ISE, 

DECN currently serves as an introducing 

broker for the non-ISE Member 

subscribers of DECN to access EDGX 

and EDGA. DECN, as an ISE Member 

and introducing broker, receives rebates 

and is assessed charges from DECN for 

transactions it executes on EDGX or 

EDGA in its capacity as introducing 

broker for non-ISE Members. Since the 

amounts of such rebates and charges 

were changed pursuant to SR–ISE– 

2010–10, DECN wishes to make 

corresponding changes to the amounts it 

passes through to non-ISE Member 

subscribers of DECN for which it acts as 

introducing broker. As a result, the per 

share amounts that non-ISE Member 

subscribers receive and are charged will 

be the same as the amounts that ISE 

Members receive and are charged. 

ISE is seeking accelerated approval of 

this proposed rule change, as well an 

effective date of February 1, 2010. ISE 

represents that this proposal will ensure 

that both ISE Members and non-ISE 

Members (by virtue of the pass-through 

described above) will in effect receive 

and be charged equivalent amounts and 

that the imposition of such amounts 

will begin on the same February 1, 2010 

start date. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,8

in general, and furthers the objectives of 

Section 6(b)(4),9 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 

particular, this proposal will ensure that 

dues, fees and other charges imposed on 

ISE Members are equitably allocated to 

both ISE Members and non-ISE 

Members (by virtue of the pass-through 

described above). 

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. 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–ISE–2010–11 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–ISE–2010–11. 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,10 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 the filing also 

will be available for inspection and 

copying at the principal office of the 

ISE. 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–ISE–2010–11 and should be 

submitted on or before March 3, 2010. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.11 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) 12 of the Act, which requires that 

the rules of a national securities 

exchange provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among members and 

issuers and other persons using its 

facilities. 

As described more fully above, ISE 

recently amended DECN’s fee schedule 

for ISE Members pursuant to SR–ISE– 

2010–10 (the ‘‘Member Fee Filing’’). The 

fee changes made pursuant to the 

Member Fee Filing became operative on 

February 1, 2010. DECN receives rebates 

and is charged fees for transactions it 

executes on EGDX or EDGA in its 

capacity as an introducing broker for its 

non-ISE member subscribers. The 

current proposal, which will apply 

retroactively to February 1, 2010, will 

allow DECN to pass through the revised 

rebates and fees to the non-ISE member 

subscribers for which it acts as an 

introducing broker. The Commission 

finds that the proposal is consistent 

with the Act because it will provide 

rebates and charge fees to non-ISE 

member subscribers that are equivalent 

to those established for ISE member 

subscribers in the Member Fee Filing.13

ISE has requested that the 

Commission find good cause for 

approving the proposed rule change 

prior to the thirtieth day after 

publication of notice of filing thereof in 

the Federal Register. As discussed 

above, the proposal will allow DECN to 

pass through to non-ISE member 

subscribers the revised rebate and fees 

established for ISE member subscribers 

in the Member Fee Filing, resulting in 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6745 

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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

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

equivalent rebates and fees for ISE 

member and non-member subscribers. 

In addition, because the proposal will 

apply the revised rebates and fees 

retroactively to February 1, 2010, the 

revised rebates and fees will have the 

same effective date, thereby promoting 

consistency in the DECN’s fee schedule. 

Accordingly, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act, for approving the proposed 

rule change prior to the thirtieth day 

after the date of publication of notice of 

filing thereof in the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–ISE–2010–11) 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2948 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61499; File No. SR– 

NYSEAmex–2010–04] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending Rule 991 Options 

Communications 

February 4, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

13, 2010, NYSE Amex LLC (‘‘NYSE 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially 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 its 

option trading rules pertaining to its 

advertising, branch officer examination 

requirement, and assuming customer 

loss policies to harmonize these policies 

with those of the Financial Industry 

Regulatory Authority (‘‘FINRA’’). The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Pursuant to Rule 17d–2 under the Act, 

the American Stock Exchange, LLC, the 

Boston Stock Exchange, Inc., the 

Chicago Board Options Exchange, Inc., 

the International Securities Exchange, 

LLC, Financial Industry Regulatory 

Authority, Inc., The NASDAQ Stock 

Market LLC, the New York Stock 

Exchange, LLC, NYSE Arca, Inc., and 

the Philadelphia Stock Exchange, Inc. 

(collectively, the ‘‘Options Self 

Regulatory Council’’), entered into an 

agreement dated June 5, 2008 (the ‘‘17d– 

2 Agreement’’) to allocate regulatory 

responsibility for common rules. The 

Exchange is currently in the process of 

recertifying this 17d–2 Agreement. 

In order to continue this successful 

regulatory agreement, the Exchange 

proposes to harmonize the following 

option trading rules with comparable 

FINRA rules: NYSE Amex Rule 991, 

Communications to Customers and 

NYSE Amex Rule 1106, Prior Approval 

of Certain Communications to 

Customers. 

Options Communications 

In furtherance of the 17d–2 

Agreement, and in order to maintain 

substantial similarity with FINRA rules, 

the Exchange proposes to amend NYSE 

Amex Rule 991, Communications to 

Customers, to correspond to FINRA 

Rule 2220, Options Communications. 

Many elements of current NYSE Amex 

Rule 991 are identical to FINRA Rule 

2220. However, FINRA 2220 contains a 

more comprehensive definition section 

and approval process for 

advertisements, correspondence, and 

institutional sales material. The 

Exchange believes it is in the best 

interest of its Members to adopt 

FINRA’s more comprehensive 

requirements. To the extent that other 

FINRA rules are incorporated into 

FINRA 2220 by reference, the Exchange 

proposes to add such language directly 

into the corresponding sections of 

proposed Rule 991. 

For instance, FINRA Rule 2357 makes 

the provisions of FINRA 2220 

applicable to index warrants, currency 

index warrants and currency warrants. 

As stated above, the Exchange proposes 

to amend NYSE Amex Rule 991 to 

correspond to FINRA Rule 2220. Thus, 

to harmonize its rules with FINRA’s, the 

Exchange proposes to amend NYSE 

Amex Rule 1106 to correspond to 

FINRA Rule 2357, so that proposed 

NYSE Amex Rule 1106 will make the 

provisions of proposed NYSE Amex 

Rule 991 applicable to index warrants, 

currency index warrants and currency 

warrants. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 4 of the Act, in general, and 

furthers the objectives of Section 

6(b)(5),5 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system. Specifically, the proposed rule 

changes would provide NYSE Amex 

Members with a clearer, more 

consistent, and more comprehensive 

regulatory scheme, by harmonizing 

NYSE Amex rules with FINRA rules. 

The Exchange further notes that the 

proposed changes are neither novel nor 

controversial and are modeled on 

existing FINRA rules. 

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. 


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