Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 40249 

13 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). 5 DECN currently operates a program known as 

the ‘‘Enhanced Liquidity Provider’’ (‘‘ELP’’) 

program on its two trading platforms, EDGX and 

EDGA, pursuant to which parties entering orders 

into DECN can elect to display their marketable 

orders to designated liquidity providers before the 

order is routed or cancelled. 

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–NYSE–2009–74 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–NYSE–2009–74. 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 will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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–NYSE– 

2009–74 and should be submitted on or 

before September 1, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19119 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60442; File No. SR–ISE– 

2009–57] 

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 

August 5, 2009. 

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 July 31, 

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 (i) create 

a new tier, called the Full Sweep Tier, 

to provide a rebate for ISE Members that 

use ROUT orders that meet a volume 

theshold for amount of liquidity added 

on EDGX and to (ii) adopt new fees and 

rebates. 

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, as defined below, 

whereby ISE Members are 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 to 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. 

The Exchange is now proposing to 

establish an additional tier called the 

Full Sweep Tier, whereby ISE Members 

are provided a $0.0035 rebate per share 

for securities priced at or above $1.00 

when ISE Members add liquidity on 

EDGX if the attributed MPID use of the 

ROUT order type adds 50,000,000 

shares or more of liquidity to EDGX on 

a daily basis, measured monthly. A 

ROUT order type that is sent to EDGX 

is an order type that does a full sweep 

of the EDGX book, before being exposed 

to Enhanced Liquidity Providers 

(‘‘ELPs’’).5 This order type will then 

route to away market centers if there is 

additional unexecuted liquidity. This 

order type is primarily used for agency 

orders, especially retail order flow. The 

rebate is designed to encourage the use 

of this particular type of liquidity. 

The Exchange also proposes to adopt 

additional fees and rebates. First, the 

Exchange proposes to adopt a fee of 

$0.0024 per share for securities priced at 

or above $1.00 which add liquidity to 

LavaFlow ECN (‘‘LavaFlow’’) and are 

routed from either EDGX or EDGA. Such 

a strategy is deemed a ROLF routing 

strategy, which is a destination specific 

routing strategy that will first sweep the 

EDGA or EDGX order book before being 

delivered to LavaFlow. A conforming 

amendment will be made to the fee 

schedule to yield an ‘‘M’’ flag to account 


sroberts on DSKD5P82C1PROD with NOTICES
40250 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 

6ROUC designated orders are multi-destination 

orders that sweep the internal order book and ELP 

destinations before any unfilled quantity is routed 

to low cost destinations. 

7 15 U.S.C. 78f. 

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

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

10 17 CFR 19b–4(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

for this fee. Conversely, for liquidity 

that is routed through either EDGA or 

EDGX and removes liquidity from 

LavaFlow, ISE members will be charged 

$0.0029 per share for securities priced at 

or above $1.00. Such situation will yield 

a flag of ‘‘U.’’ However, if an ISE 

member posts an average of 50,000 

shares or more using a ROLF routing 

strategy, yielding flag M, then such ISE 

member’s fee, when removing liquidity 

from LavaFlow, will decrease to $0.0022 

per share and yield flag U. Finally, the 

Exchange proposes to rebate $0.0025 per 

share for securities priced at or above 

$1.00 when ISE members add liquidity 

on EDGX via an EDGA-originated ROUC 

routing strategy.6 Such situation will 

yield liquidity Flag ‘‘P.’’ 

The fee changes discussed in this 

filing will become operative on August 

1, 2009. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,7

in general, and furthers the objectives of 

Section 6(b)(4),8 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, adopting the Full Sweep Tier 

Rebate provides pricing incentives to 

market participants who 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. 

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 9 and Rule 19b–4(f)(2) 10

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–2009–57 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–2009–57. 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–2009–57 and should be 

submitted on or before September 1, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19186 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60443; File No. SR–ISE– 

2009–58] 

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 

August 5, 2009. 

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 July 31, 

2009, the International Securities 

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

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

a proposed rule change as described in 

Items I and II below, which Items have 

been prepared by ISE. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons, and is 


sroberts on DSKD5P82C1PROD with NOTICES