Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 1667 

20For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

21See supra note 4. 22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

other things, that waiver of the 30-day 

operative delay will allow the change to 

become operative on the same date as 

NYSE’s rule change and conform to the 

Commission’s desire to eliminate any 

disparities involving voting. 

The Commission believes that the 

waiver of the 30-day operative delay 

period is consistent with the protection 

of investors and the public interest.20

The proposal would permit the 

Exchange to comply with the 

Commission’s stated goal that other selfregulatory organizations, that currently 

allow member discretionary voting for 

director elections, conform their rules to 

the NYSE’s new rules to eliminate any 

disparities involving voting depending 

on where the shares are held. Further, 

the proposal would codify previously 

published interpretations with respect 

to voting on investment advisory 

contracts. Finally, the Commission 

notes that the NYSE’s recently adopted 

rule changes, which are identical to the 

Exchange’s proposed changes, were 

subject to full notice and comment, and 

considered and approved by the 

Commission.21 Based on the above, the 

Commission finds that waiving the 30- 

day operative delay period is consistent 

with the protection of investors and the 

public interest and the proposal is 

therefore deemed effective upon filing. 

At any time within 60 days of the 

filing of the 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–NYSEAmex–2009–93 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–NYSEAmex–2009–93. 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 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–NYSEAmex–2009–93 and 

should be submitted on or before 

February 2, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–308 Filed 1–11–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–61296; File No. SR–ISE– 

2009–114] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

January 6, 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 December 

31, 2009, International Securities 

Exchange, LLC (‘‘ISE’’ 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. 

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 ISE is proposing to amend its 

Schedule of Fees to increase the 

surcharge fee for transactions in options 

on the Nasdaq-100® Stock Index. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.ise.com), at the principal 

office of the Exchange, 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 

Exchange 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 

Exchange 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 

The Exchange is proposing to amend 

its Schedule of Fees to increase the 

surcharge fee for transactions in options 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

1668 Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices 

3See Securities Exchange Act Release No. 51121 

(February 1, 2005), 70 FR 6476 (February 7, 2005) 

(Order approving the trading of options on full and 

reduced values of the Nasdaq-100 Stock Index). 

4These fees are charged only to Exchange 

members. Under a pilot program that is set to expire 

on July 31, 2010, these fees will also be charged to 

Linkage Principal Orders (‘‘Linkage P Orders’’) and 

Linkage Principal Acting as Agent Orders (‘‘Linkage 

P/A Orders’’). The amount of the execution fee 

charged by the Exchange for Linkage P Orders and 

Linkage P/A Orders is $0.27 per contract side and 

$0.18 per contract side, respectively. See Securities 

Exchange Act Release No. 60175 (June 25, 2009), 74 

FR 32026 (July 6, 2009) (SR–ISE–2009–36). 

5The Exchange applies a sliding scale, between 

$0.01 and $0.18 per contract side, based on the 

number of contracts an ISE market maker trades in 

a month. 

6The amount of the execution fee for non-ISE 

Market Maker transactions executed in the 

Exchange’s Facilitation and Solicitation 

Mechanisms and for Orders entered into the Price 

Improvement Mechanism by the member initiating 

the price improvement order is $0.20 per contract. 

7Public Customer Order is defined in Exchange 

Rule 100(a)(39) as an order for the account of a 

Public Customer. Public Customer is defined in 

Exchange Rule 100(a)(38) as a person or entity that 

is not a broker or dealer in securities. 

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

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

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

11 17 CFR 240.19b-4(f)(2). 

12The text of the proposed rule change is 

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

www.sec.gov. 

13 17 CFR 200.30–3(a)(12). 

on the Nasdaq-100 Stock Index, both 

full value (‘‘NDX’’) and 1/10 value 

(‘‘MNX’’).3 The Exchange currently 

charges an execution fee for most 

transactions in options on NDX and 

MNX.4 Specifically, the amount of the 

execution fee for transactions in options 

on NDX and MNX is $0.20 per contract 

for all Firm Proprietary orders. The 

amount of the execution fee for all ISE 

Market Maker transactions in options on 

NDX and MNX is equal to the execution 

fee currently charged by the Exchange 

for ISE Market Maker transactions in 

equity options.5 Finally, the amount of 

the execution fee for all non-ISE Market 

Maker transactions is $0.45 per 

contract.6 For competitive reasons, the 

Exchange does not charge an execution 

fee for transactions in options on NDX 

and MNX executed by Public Customer 

Orders.7

Pursuant to a license agreement 

between the Exchange and the NASDAQ 

OMX Group, Inc., (‘‘NASDAQ’’), the 

Exchange currently charges a surcharge 

fee of $0.16 per contract for trading in 

options on NDX and MNX. The 

Exchange recently renewed its license 

agreement with NASDAQ pursuant to 

which the Exchange is now being 

charged six (6) cents more per contract. 

Accordingly, to defray the increased 

licensing costs, the Exchange proposes 

to increase the surcharge fee to $0.22 

per contract for trading in options on 

NDX and MNX, effective January 1, 

2010. The Exchange believes charging 

the participants that trade these 

instruments is the most equitable means 

of recovering the costs of the license. 

However, because of competitive 

pressures in the industry, the Exchange 

proposes to continue excluding Public 

Customer Orders from this surcharge 

fee. Accordingly, this surcharge fee will 

only be charged to Exchange members 

with respect to non-Public Customer 

Orders (e.g., Market Maker, Non-ISE 

Market Maker & Firm Proprietary 

orders). 

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. 

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–2009–114 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–2009–114. 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,12 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, on official business days between 

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

of such filing will also 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 No. SR–ISE–2009– 

114 and should be submitted on or 

before February 2, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–300 Filed 1–11–10; 8:45 am] 

BILLING CODE 8011–01–P 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES