Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 53527 

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

2 17 CFR 240.19b–4. 

3The 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). 

4See Securities Exchange Act Release No. 34– 

60536 [sic] (August 19, 2009), 74 FR 43204 (August 

26, 2009) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change Relating to 

Fee Changes and an Incentive Plan for Three 

Foreign Currency Options). 

5Participants in the incentive plan are known on 

the Exchange’s Schedule of Fees as Early Adopter 

Market Makers. 

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. 

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

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60810; File No. SR–ISE– 

2009–80] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to a Market Maker 

Incentive Plan for Foreign Currency 

Options 

October 9, 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 October 

6, 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 extend an 

incentive plan for market makers in 

three recently listed foreign currency 

options (‘‘FX Options’’) and make 

clarifying changes regarding 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 

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 

On August 3, 2009, the Exchange 

began trading options on the New 

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

peso (‘‘PZO’’) and the Swedish krona 

(‘‘SKA’’) 3 and adopted an incentive 

plan applicable to market makers in 

NZD, PZO and SKA.4 The purpose of 

this proposed rule change is to extend 

the date by which market makers may 

join the incentive plan. The Exchange 

also proposes to make clarifying 

changes regarding fees for transactions 

in these products. 

In order to promote trading in these 

FX Options, the Exchange has an 

incentive plan pursuant to which the 

Exchange waives the transaction fees for 

the Early Adopter 5 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 pays the Early Adopter 

FXPMM forty percent (40%) of the 

transaction fees collected on any 

customer trade in NZD, PZO and SKA 

and pays 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 are charged regular 

transaction fees for trades in these 

products. In order to participate in the 

incentive plan, market makers were 

required to enter into the incentive plan 

no later than October 5, 2009. The 

Exchange now proposes to extend the 

date by which market makers may enter 

into the incentive plan to December 31, 

2009. 

Further, the Exchange proposes to 

make clarifying changes to its Schedule 

of Fees. In the filing that adopted the 

incentive plan, the Exchange 

inadvertently excluded two fee 

discounts applicable to trading in 

options on NZD, PZO and SKA. First, 

for Complex Orders in NZD, PZO and 

SKA, the Exchange charges a fee only 

for the leg of the trade consisting of the 

most contracts. Second, pursuant to a 

pilot program, transaction fees in all FX 

Options traded on the Exchange are 

waived entirely on incremental volume 

above 5,000 contracts for single-sided 

orders of at least 5,000 contracts. The 

Exchange has applied these two fee 

discounts to trades in NZD, PZO and 

SKA since these products began trading 

on the Exchange on August 3, 2009 and 

now proposes to reflect the applicability 

of these fee discounts on its Schedule of 

Fees. 

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. The 

Exchange believes the proposed rule 

change will permit additional market 

makers to join the incentive plan which 

in turn 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 


sroberts on DSKD5P82C1PROD with NOTICES
53528 Federal Register / Vol. 74, No. 200 / Monday, October 19, 2009 / Notices 

10 15 U.S.C. 78s(b)(3)(A) [sic]. 

11 17 CFR 240.19b–4(f)(2). 

12 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)(1). 

4See Registration Statement on Form S–3 for 

PowerShares DB Commodity Index Tracking Fund 

(No. 333–158733, dated April 23, 2009) (‘‘DBC 

Registration Statement’’) and the Post-Effective 

Amendment No. 1 to Form S–1 for PowerShares DB 

Agriculture Fund (No. 333–150501, dated April 15, 

2009) (‘‘DBA Registration Statement’’). In addition, 

the issuer has filed Current Reports on Forms 8–K 

with respect to DBC (No. 001–32726, filed Sept. 30, 

2009) (‘‘DBC Current Report’’) and DBA (No. 001– 

33238, filed Sept. 30, 2009) (‘‘DBA Current Report’’) 

regarding replacement of the indexes underlying 

the Funds. 

5See Securities Exchange Act Release No. 58993 

(November 21, 2008), 73 FR 72548 (November 28, 

2008) (SR–NYSEArca–2008–128) (order approving 

listing on the Exchange of the Funds) (‘‘NYSE Arca 

Order’’). The Funds were previously traded on the 

Exchange pursuant to unlisted trading privileges 

(‘‘UTP’’). See Securities Exchange Act Release Nos. 

53736 (April 27, 2006), 71 FR 26582 (May 5, 2006) 

(SR–PCX–2006–22) (order approving UTP trading of 

DB Commodity Index Tracking Fund); 55453 

(March 13, 2007), 72 FR 13333 (March 21, 2007) 

(SR–NYSEArca–2006–62) (order approving UTP 

trading of PowerShares DB Agriculture Fund and 

other PowerShares commodity-based funds). The 

Funds were originally approved for listing on the 

American Stock Exchange LLC (the ‘‘Amex’’, now 

known as NYSE Amex LLC). See Securities 

Exchange Act Release Nos. 53105 (January 11, 

2006), 71 FR 3129 (January 19, 2006) (SR–Amex– 

2005–59) (approving listing of DB Commodity 

Index Tracking Fund (now known as PowerShares 

DB Commodity Index Tracking Fund)) (‘‘Amex DBC 

Order’’); 55029 (December 29, 2006), 72 FR 806 

(January 8, 2007) (SR–Amex–2006–76) (approving 

listing of PowerShares DB Agriculture Fund and 

other PowerShares commodity-based funds) 

(‘‘Amex DBA Order’’). See also, Securities Exchange 

Act Release No. 53858 (May 24, 2006), 71 FR 31232 

(June 1, 2006) (SR–Amex–2006–53) (‘‘Supplemental 

Amex DBC Filing’’, in which the Amex clarified the 

manner in which the index underlying DBC is 

maintained by providing that the replacement of 

expiring futures contracts would be based on 

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–2009–80 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–2009–80. 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, 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– 

80 and should be submitted on or before 

November 9, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25003 Filed 10–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60819; File No. SR– 

NYSEArca–2009–89] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change Relating to 

Replacement Indexes for PowerShares 

DB Commodity Index Tracking Fund 

and PowerShares DB Agriculture Fund 

October 13, 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 October 

8, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 and is 

approving the proposed rule change on 

an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Pursuant to the provisions of Section 

19(b)(1) of the Act,3 the Exchange, 

through its wholly owned subsidiary 

NYSE Arca Equities, Inc. (‘‘NYSE Arca 

Equities’’), proposes to describe a 

replacement to the indexes underlying 

the PowerShares DB Commodity Index 

Tracking Fund and the PowerShares DB 

Agriculture Fund, which are listed on 

the Exchange under Commentary .02 to 

NYSE Arca Equities Rule 8.200. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The PowerShares DB Commodity 

Index Tracking Fund (‘‘DBC’’) and the 

PowerShares DB Agriculture Fund 

(‘‘DBA’’ and together with DBC, the 

‘‘Funds’’) 4 are currently listed on the 

Exchange under Commentary .02 to 

NYSE Arca Equities Rule 8.200 (‘‘Trust 

Issued Receipts’’).5 Deutsche Bank AG 


sroberts on DSKD5P82C1PROD with NOTICES