1674 Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 

10 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 and Exchange Act Release No. 

60232 (July 2, 2009), 74 FR 33309 (July 10, 2009) 

(SR–ISE–2009–43). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

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–FINRA–2009–095 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–FINRA–2009–095. 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 inspection and copying 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 FINRA. 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–FINRA–2009–095 and 

should be submitted on or before 

February 2, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–359 Filed 1–11–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61289; File No. SR–ISE– 

2009–108] 

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 

January 5, 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 December 

30, 2009, 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 simplify 

its fee schedule by (i) eliminating the 

Super Tier and Ultra Tier rebates and 

(ii) amending its fees and rebates. 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. On 

July 1, 2009,4 the Exchange adopted a 

new Ultra Tier Rebate whereby ISE 

Members were provided 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 satisfies one of the following 

criteria on a daily basis, measured 

monthly: (i) Adding 100,000,000 shares 

or more on EDGX; or (ii) adding 

50,000,000 shares or more of liquidity 

on EDGX, so long as added liquidity on 

EDGX is at least 20,000,000 shares 

greater than the previous calendar 

month. The rebate described above is 

referred to as an ‘‘Ultra Tier Rebate’’ on 

the DECN fee schedule. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 1675 

5See Securities Exchange Act Release No. 60769 

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

(SR–ISE–2009–68). 

6See Securities Exchange Act Release No. 59887 

(May 7, 2009), 74 FR 22792 (May 14, 2009) (SR– 

ISE–2009–24). 

7On 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). 

On October 1, 2009,5 the Exchange 

amended the criteria for meeting this 

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. 

On May 1, 2009,6 the Exchange 

amended the Super Tier rebate, which 

provides a $0.0030 rebate per share for 

liquidity added on EDGX if the 

attributed MPID satisfies any of the 

following three criteria on a daily basis, 

measured monthly: (i) Adding 

40,000,000 shares or more on either 

EDGX, EDGA, or EDGX and EDGA 

combined; (ii) adding 20,000,000 shares 

or more on either EDGX, EDGA, or 

EDGX and EDGA combined and routing 

20,000,000 shares or more through 

EDGA; or (iii) adding 10,000,000 shares 

or more of liquidity to EDGX, so long as 

added liquidity on EDGX is at least 

5,000,000 shares greater than the 

previous calendar month. 

To adjust DECN’s pricing model to be 

more consistent with other exchanges 

(even though DECN is not an 

exchange),7 the Exchange is now 

proposing to de-link the pricing 

structures of DECN to eliminate pricing 

offers that are contingent on activity 

across both platforms. Secondly, the 

Exchange is proposing to simplify its fee 

schedule, which will 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). Finally, 

the Exchange believes that the proposed 

rate changes will help to maintain the 

competitive position of DECN. 

To effectuate the foregoing, the 

Exchange proposes to delete the Super 

Tier and Ultra Tier rebates discussed 

above and proposes the amendments, 

described below, to its fees and rebates. 

For securities priced less than $1, the 

Exchange proposes to change fees for 

adding liquidity on EDGX from free to 

0.15% of the dollar value of the 

transaction. For removing liquidity on 

EDGX, the Exchange proposes to change 

the removal fee from 0.20% of the dollar 

value of the transaction to 0.30% of the 

dollar value of the transaction. 

DECN does not charge port charges to 

Members executing 200,000 shares or 

more of combined liquidity on EDGX 

and/or EDGA on a monthly basis, per 

port. Any port (or number of ports) in 

excess of this, however, is currently 

charged $50 per port, per month. The 

Exchange is proposing to eliminate this 

contingency and provide that all port 

charges are free irrespective of how 

much volume the Member executes. 

Currently, the Exchange provides that 

the current removal rate on EDGA, a 

rebate of $0.0002 per share, is 

contingent on the attributed MPID 

adding or routing a minimum average 

daily share volume, measured monthly, 

of 50,000 shares on EDGA. The 

Exchange proposes to provide that 

hidden order executions (Flag H) also 

count toward this volume. As a result, 

any attributed MPID not meeting this 

minimum will be charged $0.0030 per 

share for removing liquidity from 

EDGA. In addition, the Exchange 

proposes to eliminate this contingency 

(in footnote 1 of the fee schedule) as it 

applies to EDGX or EDGA/EDGX 

combined volume. As mentioned above, 

the Exchange is now proposing to delink the pricing structures of DECN 

(EDGA/EDGX) to eliminate pricing 

offers that are contingent on activity 

across both platforms. 

For adding liquidity on EDGA, 

currently Members are charged $0.0002 

per share to add liquidity on EDGA 

unless the attributed MPID adds a 

minimum average daily share volume, 

measured monthly, of at least 

50,000,000 shares on EDGA. Any 

attributed MPID meeting this minimum 

will not be charged to add liquidity on 

EDGA. The Exchange is proposing to 

delete the above paragraph in footnote 

1 as the current charge of $0.0002 per 

share to add liquidity on EDGA is no 

longer dependent on Members adding a 

minimum average daily share volume, 

measured monthly, of at least 

50,000,000 shares on EDGA. In addition, 

the Exchange is proposing that any 

attributed MPID meeting this minimum 

will also be charged $0.0002 per share 

to add liquidity on EDGA. Therefore, 

the text in footnote 1 has been deleted 

to reflect this change. 

Currently, Members can qualify for a 

rebate of $0.0032 per share for all 

liquidity posted on EDGX if they: (i) 

Add or route at least 10,000,000 shares 

of average daily volume prior to 9:30 

a.m. or after 4 p.m. (includes all flags 

except 6); and (ii) add a minimum of 

75,000,000 shares of average daily 

volume on EDGX in total, including 

during both market hours and pre- and 

post-trading hours. For EDGX, the 

Exchange proposes to amend this as 

follows: For Members adding volume in 

securities priced $1 and over, they will 

receive a rebate of $0.0031 per share for 

all liquidity posted on EDGX if they: (i) 

Add or route at least 5,000,000 shares of 

average daily volume prior to 9:30 a.m. 

or after 4 p.m. (includes all flags except 

6); and (ii) add a minimum of 

50,000,000 shares of average daily 

volume on EDGX in total, including 

during both market hours and pre- and 

post-trading hours (emphasis added). 

The new thresholds allow more 

Members to receive this rebate and is 

designed to reward members who add 

or route significant order flow to EDGX 

both during market hours and pre- and 

post-trading hours. It is also designed to 

increase liquidity during pre- and posttrading hours. For all Members, 

including Members not meeting the 

above thresholds, the Exchange now 

proposes to rebate $0.0029 per share for 

adding liquidity (to EDGX) in securities 

on all Tapes. This replaces the Super 

Tier and Ultra Tier structure presently 

in place that is described above. 

Conforming amendments have been 

made to flags B, V, Y, 3 & 4 (‘‘add 

liquidity’’ flags) to reflect this fee 

change. 

For removing liquidity, the Exchange 

currently charges $0.0028 per share for 

removing liquidity on EDGX for 

securities on all Tapes. The Exchange 

now proposes to charge $0.0029 per 

share for removing liquidity on EDGX. 

The Exchange believes that this fee 

structure will enable it to compete 

effectively with other market centers. 

Conforming amendments have been 

made to the N, W, and 6 flags (‘‘remove 

liquidity’’ flags) to reflect this fee 

change. 

Finally, the Exchange proposes to 

amend the fee for EDGA orders routed 

to EDGX. Currently, the Exchange 

charges $0.0028 per share and this event 

yields flag ‘‘I’’. The Exchange is 

proposing to increase this fee to $0.0029 

per share on the EDGA platform. The 

Exchange believes that this rate change 

will enable it to maintain a competitive 

position with regards to other away 

market centers. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

1676 Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 

8 15 U.S.C. 78f. 

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

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

The changes discussed in this filing 

will become operative on January 1, 

2010. 

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, as 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, simplifying the rate structure 

for Members provides pricing incentives 

to market participants that route orders 

to DECN, allowing DECN to remain 

competitive. ISE notes that DECN 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. The 

proposed rule change reflects a 

competitive pricing structure designed 

to incent market participants to direct 

their order flow to DECN. ISE believes 

the fees and credits remain competitive 

with those charged by other venues and 

therefore continue to be reasonable and 

equitably allocated to those members 

that opt to direct orders to DECN rather 

than competing venues. The ISE also 

believes that the proposed rates are 

equitable in that they apply uniformly 

to all Members. Finally, to adjust 

DECN’s pricing model to be more 

consistent with other exchanges (even 

though DECN is not an exchange), the 

Exchange desires to (i) de-link the 

pricing structures of DECN (EDGA/ 

EDGX) to eliminate pricing offers that 

are contingent on activity across both 

platforms; and (ii) simplify 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 EDGA/ 

EDGX Exchanges (assuming their 

respective Form 1 applications are 

approved by the Commission). 

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 foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 10 and Rule 19b–4(f)(2) 11

thereunder. At any time within 60 days 

of the filing of such proposed 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 

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–ISE–2009–108 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–2009–108. 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 inspection and copying 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–2009–108 and should 

be submitted on or before February 2, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–296 Filed 1–11–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61291; File No. SR– 

NYSEAmex–2009–95] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC To Establish Registered 

Representative Fees 

January 5, 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 December 

28, 2009, 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 

prepared by the Exchange. 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 end its 

waiver of registered representative fees 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES