43204 Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices 

45 15 U.S.C. 78s(b)(2). 

46 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The Commission previously approved the 

trading of options on NZD, PZO and SKA. See 

Securities Exchange Act Release No. 55575 (April 

3, 2007), 72 FR 17963 (April 10, 2007) (Order 

approving the listing and trading of FX Options). 

6A FXPMM is a primary market maker selected 

by the Exchange that trades and quotes in FX 

Options only. See ISE Rule 2213. 

7A FXCMM is a competitive market maker 

selected by the Exchange that trades and quotes in 

FX Options only. See ISE Rule 2213. 

8These fees will be 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). 

9The 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. 

10The amount of the execution fee for non-ISE 

Market Maker transactions executed in the 

Exchange’s Facilitation and Solicitation 

Mechanisms is $0.20 per contract. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,45 that the 

proposed rule change (SR–BX–2009– 

028), as modified by Amendment No. 1, 

be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.46

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20541 Filed 8–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60536; File No. SR–ISE– 

2009–59] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes and 

an Incentive Plan for Three Foreign 

Currency Options 

August 19, 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 August 3, 

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. ISE has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge applicable only to a 

member under Section 19(b)(3)(A)(ii) of 

the Act,3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the proposal 

effective upon filing with the 

Commission. 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 initiate an 

incentive plan for market makers in 

three newly listed foreign currency 

options (‘‘FX Options’’) and to establish 

fees for transactions in these FX 

Options. 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 purpose of this proposed rule 

change is to initiate an incentive plan 

for market makers on three newly listed 

FX Options, specifically, the New 

Zealand dollar (‘‘NZD’’), the Mexican 

peso (‘‘PZO’’) and the Swedish krona 

(‘‘SKA’’) 5 and to establish fees for 

transactions in these products. Options 

on NZD, PZO and SKA began trading on 

the Exchange on August 3, 2009. As 

such, this proposed fee change will be 

operative and effective on August 3, 

2009. 

In order to promote trading in these 

new FX Options, the Exchange proposes 

to initiate an incentive plan for market 

makers in NZD, PZO and SKA. Market 

makers will be able to enter into the 

incentive plan until October 5, 2009. 

Participants in the incentive plan are 

known on the Exchange’s Schedule of 

Fees as Early Adopter Market Makers. 

Under the incentive plan, the Exchange 

will waive the applicable transaction 

fees for both the Early Adopter 

FXPMM 6 and all Early Adopter 

FXCMMs 7 that make a market in NZD, 

PZO and SKA for as long as the 

incentive plan is in effect. Further, 

pursuant to a revenue sharing agreement 

entered into between an Early Adopter 

Market Maker and ISE, the Exchange 

will pay the Early Adopter FXPMM 

forty percent (40%) of the transaction 

fees collected on any customer trade in 

NZD, PZO and SKA and will pay up to 

ten (10) Early Adopter FXCMMs that 

participate in the incentive plan twenty 

percent (20%) of the transaction fees 

collected for trades between a customer 

and that FXCMM. Market makers that 

do not participate in the incentive plan, 

i.e., market makers that begin to quote 

and trade in NZD, PZO and SKA after 

October 5, 2009, will be charged regular 

transaction fees for trades in these 

products. 

The Exchange is proposing to adopt 

an execution fee of $0.40 per contract 

for all Public Customer transactions in 

options on NZD, PZO and SKA.8 The 

amount of the execution fee for all Firm 

Proprietary transactions will be $0.20 

per contract and the execution fee for all 

non-Early Adopter ISE Market Makers 

in NZD, PZO and SKA shall be equal to 

the execution fee currently charged by 

the Exchange for ISE Market Maker 

transactions in equity options.9 Finally, 

the amount of the execution fee for all 

non-ISE Market Maker transactions in 

these products shall be $0.45 per 

contract.10 The Exchange will not 

charge a Payment for Order Flow fee for 

these products. 

The Exchange also [sic] proposes to 

waive transaction charges for all Early 

Adopter Market Makers in NZD, PZO 

and SKA in order to further encourage 

the trading of these FX Options. The 

Exchange believes that the revenue 

generated from customer, firm 

proprietary and non-ISE market maker 

transaction charges and increased order 

flow would offset the transaction fees 

that would otherwise be applied to 

market makers in NZD, PZO and SKA, 

thereby allowing the Exchange to 

recoup those fees while increasing order 

flow and generating increased revenues. 

The Exchange believes the proposed 

rule change will further the Exchange’s 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices 43205 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(4). 

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

14 17 CFR 240.19b–4(f)(2). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

goal of introducing new products to the 

marketplace that are competitively 

priced. 

2. Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,11

in general, and furthers the objectives of 

Section 6(b)(4),12 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. The 

Exchange believes that the proposed 

incentive plan will generate additional 

order flow to the Exchange by creating 

incentives to trade these FX Options as 

well as defray operational costs for Early 

Adopter Market Makers. 

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 13 and Rule 19b–4(f)(2) 14

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 email to rulecomments@sec.gov. Please include File 

Number SR–ISE–2009–59 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–2009–59. This file 

number should be included on the 

subject line if email 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 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–ISE–2009–59 and should be 

submitted on or before September 16, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20540 Filed 8–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60528; File No. SR–MSRB– 

2009–13] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Amendment to Rule 

A–14, on Annual Fee 

August 18, 2009. 

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 August 

13, 2009, the Municipal Securities 

Rulemaking Board (‘‘MSRB’’ or 

‘‘Board’’), 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 substantially prepared by the 

MSRB. The MSRB has designated the 

proposed rule change as changing a fee 

applicable to brokers, dealers and 

municipal securities dealers pursuant to 

Section 19(b)(3)(A)(ii) of the Act,3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 MSRB is filing an amendment to 

Rule A–14, which provides for an 

annual fee paid by dealers to the MSRB. 

The MSRB is amending the rule to 

increase the annual fee paid by dealers 

from $300 to $500. The text of the 

proposed rule change is available on the 

MSRB’s Web site at http:// 

www.msrb.org/msrb1/sec.asp, at the 

MSRB’s principal office, 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 

MSRB 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 MSRB has 

prepared summaries, set forth in 


jlentini on DSKJ8SOYB1PROD with NOTICES