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 


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Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 40251 

3References to ISE Members in this filing refer to 

DECN Subscribers who are ISE Members. 

4 In SR–ISE–2009–57, the Exchange created a new 

tier, effective August 1, 2009, called the Full Sweep 

Tier in which 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’’). 

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. 

5 In SR–ISE–2009–57, the Exchange also adopted 

additional fees and rebates. First, the Exchange 

adopted 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 was made 

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

for this fee. Conversely, for liquidity that is routed 

through either EDGA or EDGX and removes 

liquidity from LavaFlow, the Exchange adopted a 

fee for ISE members of $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 established a 

rebate of $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. ROUC designated orders are multidestination orders that sweep the internal order 

book and ELP destinations before any unfilled 

quantity is routed to low cost destinations. Such 

situation will yield liquidity Flag ‘‘P.’’ 

6 15 U.S.C. 78f. 7 15 U.S.C. 78f(b)(4). 

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 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 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 

July 31, 2009, the ISE filed for 

immediate effectiveness a proposed rule 

change to: (i) Amend DECN’s fee 

schedule for ISE Members 3 to create a 

new tier, called the Full Sweep Tier, 

which provides a rebate for ISE 

Members that use ROUT orders that 

meet a volume threshold for amount of 

liquidity added on EDGX; 4 and (ii) 

adopt new fees and rebates.5 The fee 

changes made pursuant to SR–ISE– 

2009–57 became operative on August 1, 

2009. 

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– 

2009–57, 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 as a 

retroactive effective date of August 1, 

2009. ISE represents that this proposal 

will ensure that both ISE Members and 

non-ISE Members (by virtue of the passthrough described above) will in effect 

receive and be charged equivalent 

amounts and that the imposition of such 

amounts will begin on the same August 

1, 2009 start date. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,6

in general, and furthers the objectives of 

Section 6(b)(4),7 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 

No. SR–ISE–2009–58 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–2009–58. 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 Commissions 

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 


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40252 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices 

8 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

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

10See File No. SR–ISE–2009–57 (the ‘‘Member 

Fee Filing’’). 

11 Id. 

12 15 U.S.C. 78s(b)(2). 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

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 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–2009–58 and should be 

submitted on or before September 1, 

2009. 

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.8 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) 9 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 to, among other things, 

adopt a new Full Sweep Tier Rebate and 

adopt new fees and rebates in 

connection with the use of the ROLF 

and ROUC routing strategies.10 The fee 

changes made pursuant to the Member 

Fee Filing became operative on August 

1, 2009. 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 August 1, 2009, 

will allow DECN to pass through the 

revised rebates and fees to the non-ISE 

member subscribers for which it acts 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.11

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 

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 August 1, 2009, 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,12 that the 

proposed rule change (SR–ISE–2009–58) 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19185 Filed 8–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60436; File No. SR–NYSE– 

2009–77] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC To Modify Certain 

Equity Transaction Fees and Rebates 

August 5, 2009. 

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 July 30, 

2009, New York Stock Exchange LLC 

(the ‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule changes 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 changes from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make a 

number of changes to its schedule of 

equity transaction fees and rebates, with 

effect from August 1, 2009. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.nyse.com), at the Exchange’s 

Office of the Secretary, 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 NYSE 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 proposes to make a 

number of changes to its schedule of 

equity transaction fees, with effect from 

August 1, 2009. 

The following are the proposed 

changes: 

• The Exchange is introducing a new 

pricing tier of $0.0017 per share when 

taking liquidity from the NYSE for 

member organizations which have an 

average daily trading volume (‘‘ADV’’) 

on the NYSE in the applicable month of 

at least 130 million shares, including (i) 

providing liquidity of an ADV of at least 

30 million shares and (ii) an ADV of at 

least 15 million shares total in market 

at-the-close (‘‘MOC’’) and limit at-theVerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1

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