78288 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

15 17 CFR 240.19b–4(f)(6)(iii). 

16 Id. 

17The Exchange has stated that it will notify 

members by phone and through Equity Trader 

Alerts to prepare members for this rule change. 

18For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition 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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Exchange Act 13 and 

Rule 19b–4(f)(6) 14 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.15 However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.16 The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Exchange has requested that 

the Commission waive the 30-day 

operative delay and designate the 

proposed rule change to become 

operative upon ten days written notice 

to PSX Participants, upon this 

proposal’s publication in the Federal 

Register. 17 The Exchange proposes to 

uniformly apply Exchange Rule 909 to 

all members of NASDAQ OMX PHLX, 

options and equities. The Exchange 

currently requires members who 

transact options to comply with Rule 

909 and provide the Exchange with an 

NSCC number for the purpose of direct 

debiting. The Exchange believes that 

expanding this Rule to apply to 

members transacting equities, PSX 

Participants, would allow the Exchange 

to alleviate administrative processes 

related to the collection of monies. The 

Exchange desires to provide PSX 

Participants adequate time to transition 

to direct debit and therefore requests the 

Commission waive the 30-day operative 

delay. Based on the foregoing, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and hereby designates 

the proposal operative upon ten days 

written notice to PSX Participants, upon 

this proposal’s publication in the 

Federal Register.18

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or 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–Phlx–2010–171 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–Phlx–2010–171. 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 website (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 website 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–Phlx– 

2010–171 and should be submitted on 

or before January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31457 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63494; File No. SR–ISE– 

2010–112] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

December 9, 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 November 

26, 2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I and 

II, and below, which items have been 

prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 


hsrobinson on DSK69SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 78289 

3Options classes subject to maker/taker fees are 

identified by their ticker symbol on the Exchange’s 

Schedule of Fees. See Securities Exchange Act 

Release Nos. 61869 (April 7, 2010), 75 FR 19449 

(April 14, 2010) (SR–ISE–2010–25), 62048 (May 6, 

2010), 75 FR 26830 (May 12, 2010) (SR–ISE–2010– 

43), 62282 (June 11, 2010), 75 FR 34499 (June 17, 

2010) (SR–ISE–2010–54), 62319 (June 17, 2010), 75 

FR 36134 (June 24, 2010) (SR–ISE–2010–57), 62508 

(July 15, 2010), 75 FR 42809 (July 22, 2010) (SR– 

ISE–2010–65), 62507 (July 15, 2010), 75 FR 42802 

(July 22, 2010) (SR–ISE–2010–68), 62665 (August 9, 

2010), 75 FR 50015 (August 16, 2010) (SR–ISE– 

2010–82) and 62805 (August 31, 2010), 75 FR 54682 

(September 8, 2010) (SR–ISE–2010–90). 

4A Market Maker Plus is a market maker who is 

on the National Best Bid or National Best Offer 80% 

of the time for series trading between $0.03 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was less than 

or equal to $100) and between $0.10 and $5.00 (for 

options whose underlying stock’s previous trading 

day’s last sale price was greater than $100) in 

premium in each of the front two expiration months 

and 80% of the time for series trading between 

$0.03 and $5.00 (for options whose underlying 

stock’s previous trading day’s last sale price was 

less than or equal to $100) and between $0.10 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was greater 

than $100) in premium across all expiration months 

in order to receive the rebate. The Exchange 

determines whether a market maker qualifies as a 

Market Maker Plus at the end of each month by 

looking back at each market maker’s quoting 

statistics during that month. If at the end of the 

month, a market maker meets the Exchange’s stated 

criteria, the Exchange rebates $0.10 per contract for 

transactions executed by that market maker during 

that month. The Exchange provides market makers 

a report on a daily basis with quoting statistics so 

that market makers can determine whether or not 

they are meeting the Exchange’s stated criteria. 

5A Customer (Professional) is a person who is not 

a broker/dealer and is not a Priority Customer. 

6A Non-ISE Market Maker, or Far Away Market 

Maker (‘‘FARMM’’), is a market maker as defined in 

Section 3(a)(38) of the Securities Exchange Act of 

1934, as amended (‘‘Exchange Act’’), registered in 

the same options class on another options 

exchange. 

7A Priority Customer is defined in ISE Rule 

100(a)(37A) as a person or entity that is not a 

broker/dealer in securities, and does not place more 

than 390 orders in listed options per day on average 

during a calendar month for its own beneficial 

account(s). 

8See Securities Exchange Act Release No. 63283 

(November 9, 2010), 75 FR 70059 (November 16, 

2010) (SR–ISE–2010–106). 9 15 U.S.C. 78f(b)(4). 

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 

transaction fees and rebates for adding 

and removing liquidity. 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 

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 

The Exchange currently assesses a per 

contract transaction charge to market 

participants that add or remove 

liquidity from the Exchange (‘‘maker/ 

taker fees’’) in 100 options classes (the 

‘‘Select Symbols’’).3 The Exchange 

currently charges a take fee of: (i) $0.25 

per contract for Market Maker, Market 

Maker Plus,4 Firm Proprietary and 

Customer (Professional) 5 orders; (ii) 

$0.35 per contract for Non-ISE Market 

Maker 6 orders; (iii) $0.20 per contract 

for Priority Customer 7 orders for 100 or 

more contracts. Priority Customer orders 

for less than 100 contracts are not 

assessed a fee for removing liquidity. 

The Exchange also currently charges a 

take fee to $0.40 per contract for Market 

Maker, Market Maker Plus, Firm 

Proprietary, Customer (Professional) and 

Non-ISE Market Maker interest that 

responds to special orders.8

Additionally, the Exchange currently 

charges a make fee of: (i) $0.10 per 

contract for Market Maker, Non-ISE 

Market Maker, Firm Proprietary and 

Customer (Professional) orders. Priority 

Customer orders, regardless of size, and 

Market Maker Plus orders are not 

assessed a fee for adding liquidity. 

In order to promote and encourage 

liquidity in the Select Symbols, the 

Exchange currently offers a rebate of: (i) 

$0.10 per contract for Market Maker 

Plus orders; (ii) $0.15 per contract to 

contracts that do not trade with the 

contra order in the Exchange’s 

Facilitation Mechanism and Solicited 

Order Mechanism; (iii) $0.20 per 

contract for Priority Customer Complex 

orders, regardless of size, that trade with 

non-customer orders in the Exchange’s 

Complex Order Book; and (iv) $0.25 per 

contract to contracts that do not trade 

with the contra order in the Exchange’s 

Price Improvement Mechanism. 

The Exchange now proposes to amend 

its maker/taker fees by making the 

following changes to the Select 

Symbols: (i) Remove AAPL, BIDU and 

GS and (ii) add Sirius XM radio, Inc. 

(‘‘SIRI’’), Starbucks Corporation 

(‘‘SBUX’’) and Vivus, Inc. (‘‘VVUS’’). 

The Exchange has designated this 

proposal to be operative on December 1, 

2010. 

2. Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(4) 9 that 

an exchange have an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. The 

impact of the proposal upon the net fees 

paid by a particular market participant 

will depend on a number of variables, 

most important of which will be its 

propensity to add or remove liquidity in 

options overlying the Select Symbols. 

The Exchange operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to another exchange if they deem 

fee levels at a particular exchange to be 

excessive. The Exchange believes that 

the proposed fees it charges for options 

overlying the Select Symbols remain 

competitive with fees charged by other 

exchanges and therefore continue to be 

reasonable and equitably allocated to 

those members that opt to direct orders 

to the Exchange rather than to a 

competing exchange. Additionally, the 

Exchange believes that the addition and 

removal of option classes that are 

subject to the Exchange’s maker/taker 

fees are both equitable and reasonable 

because those fees apply to all 

categories of participants in the same 

manner. The Exchange’s maker/taker 

fees, which are currently applicable to 

each market participant, will continue 

to apply to the Select Symbols. 

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. 


hsrobinson on DSK69SOYB1PROD with NOTICES
78290 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

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

11 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. 

4Commentary .02 to NYSE Arca Equities Rule 

8.200 applies to TIRs that invest in ‘‘Financial 

Instruments’’. The term ‘‘Financial Instruments’’, as 

defined in Commentary .02(b)(4) to NYSE Arca 

Equities Rule 8.200, means any combination of 

investments, including cash; securities; options on 

securities and indices; futures contracts; options on 

futures contracts; forward contracts; equity caps, 

collars and floors; and swap agreements. 

5See, e.g., Securities Exchange Act Release No. 

58161 (July 15, 2008), 73 FR 42380 (July 21, 2008) 

(SR–Amex–2008–39). 

6See, e.g., Securities Exchange Act Release No. 

58163 (July 15, 2008), 73 FR 42391 (July 21, 2008) 

(SR–NYSEArca–2008–73). 

7See, e.g., Securities Exchange Act Release No. 

58457 (September 3, 2008), 73 FR 52711 (September 

10, 2008) (SR–NYSEArca–2008–91). 

8See Securities Exchange Act Release No. 62213 

(June 3, 2010), 75 FR 32828 (June 9, 2010) (SR– 

NYSEArca–2010–22) (order approving listing on the 

Exchange of Teucrium Corn Fund). 

9See, e.g., Securities Exchange Act Release Nos. 

57456 (March 7, 2008), 73 FR 13599 (March 13, 

2008) (SR–NYSEArca–2007–91) (order granting 

accelerated approval for NYSE Arca listing the 

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)(A)(ii) of the Act.10 At any time 

within 60 days of the filing of such 

proposed rule change, the Commission 

summarily may temporarily suspend 

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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or 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 

No. SR–ISE–2010–112 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–ISE–2010–112. 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 

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–2010–112 and should 

be submitted by January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31456 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63493; File No. SR– 

NYSEArca–2010–110] 

Self-Regulatory Organizations; NYSE 

Arca Inc.; Notice of Filing of Proposed 

Rule Change To List and Trade Shares 

of the Teucrium Natural Gas Fund 

Under NYSE Arca Equities Rule 8.200 

December 9, 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 December 

3, 2010, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

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 list and 

trade shares of the Teucrium Natural 

Gas Fund under NYSE Arca Equities 

Rule 8.200. The text of the proposed 

rule change is available at the Exchange, 

the Commission’s Public Reference 

Room, and http://www.nyse.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 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 

NYSE Arca Equities Rule 8.200, 

Commentary .02 permits the trading of 

Trust Issued Receipts (‘‘TIRs’’) either by 

listing or pursuant to unlisted trading 

privileges (‘‘UTP’’).4 The Exchange 

proposes to list and trade shares 

(‘‘Shares’’) of the Teucrium Natural Gas 

Fund (‘‘Fund’’) pursuant to NYSE Arca 

Equities Rule 8.200. 

The Exchange notes that the 

Commission has previously approved 

the listing and trading of other issues of 

Trust Issued Receipts on the American 

Stock Exchange LLC,5 trading on NYSE 

Arca pursuant to unlisted trading 

privileges (‘‘UTP’’),6 and listing on NYSE 

Arca.7 Among these is the Teucrium 

Corn Fund, a series of the Teucrium 

Commodity Trust (‘‘Trust’’).8 In addition, 

the Commission has approved other 

exchange-traded fund-like products 

linked to the performance of underlying 

commodities.9


hsrobinson on DSK69SOYB1PROD with NOTICES