Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 51901 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Note to the CMM Inactivity Fee on the 

Schedule of Fees provides that the fee applies to the 

owner of the CMM membership, unless the inactive 

CMM membership is subject to a lease that was 

approved by the Exchange prior to the effective date 

of the fee, in which case the fee would apply to the 

lessee. 

4A firm that owns five or more inactive CMMs 

would pay the $25,000 maximum fee. 

necessary or appropriate in furtherance 

of the purposes of Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 

days after the date of the filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, provided that the selfregulatory organization has given 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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of Exchange Act 8

and Rule 19b–4(f)(6) thereunder.9

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 Exchange 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 Exchange 

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–NYSE–2009–94 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–2009–94. 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 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–NYSE– 

2009–94 and should be submitted on or 

before October 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24260 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60767; File No. SR–ISE– 

2009–67] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

October 1, 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 

September 25, 2009, 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, 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 ISE is proposing to amend its 

Schedule of Fees to change its 

Competitive Market Maker (‘‘CMM’’) 

Inactivity Fee. 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 

ISE currently charges the owner 3 of a 

CMM membership an Inactivity Fee of 

$5,000 a month per trading right, with 

a cap of $25,000 on a per-firm basis,4 if 

the owner does not (i) itself operate the 

CMM membership, (ii) lease the CMM 

trading right to another member which 

operates the CMM membership, or (iii) 

avail itself to one of the exemptions 

specifically authorized in the Notes to 

the CMM Inactivity Fee on the Schedule 

of Fees. The CMM Inactivity Fee was 

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51902 Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 

5See Securities Exchange Act Release No. 46272 

(July 26, 2002); 67 FR 50497 (August 2, 2002). 

6See Securities Exchange Act Release No. 53223 

(February 3, 2006); 71 FR 7098 (February 10, 2006). 

7 Id. 

8See Securities Exchange Act Release No. 59066 

(December 8, 2008), 73 FR 76080 (December 15, 

2008). 

9 ISE represents that it based the amount of the 

fee on a conservative estimate of the revenues lost 

for an inactive CMM. ISE notes that the amount of 

the proposed fee is the same as the amount that ISE 

previously assessed to an inactive CMM. See e-mail 

from Samir Patel, Assistant General Counsel, 

Exchange, to Nicholas Shwayri, Law Clerk, Division 

of Trading and Markets, Commission dated 

September 30, 2009. 

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

11 17 CFR 19b–4(f)(2). 12 17 CFR 200.30–3(a)(12). 

adopted by the Exchange in 2002 5 at a 

time when there was significant demand 

for CMM memberships and some 

owners were holding onto inactive 

memberships. The purpose of the CMM 

Inactivity Fee has always been to 

promote greater trading activity on the 

Exchange. 

The Exchange subsequently lowered 

this fee because, in the Exchange’s 

opinion, the circumstances that lead to 

the enactment of the fee no longer 

existed to the same degree they did in 

2002.6 For one thing, the demand for 

trading rights had waned. There were a 

number of other reasons that were taken 

into consideration by the Exchange 

when it lowered this fee.7 With the 

demand for CMM trading rights now 

much greater, the Exchange proposes to 

reinstitute the original fee. Specifically, 

the Exchange proposes to increase the 

fee to $25,000 per month per trading 

right and to eliminate the current cap. 

The Exchange believes that anything 

short of full utilization of its trading 

rights has adverse consequences. Not 

only does the Exchange lose fee 

revenues that these trading rights would 

generate, the ISE market place loses 

liquidity that additional market making 

would provide. Further, since this fee 

was reduced in 2006, the Exchange has 

relaxed quoting requirements applicable 

to CMMs thus making the operation of 

these trading rights more manageable.8

The options industry has grown 

exponentially over the last few years 

with exchanges notching record trading 

volumes. The increased trading volume 

has resulted in additional lost revenue 

for the Exchange because all of its 

trading rights are not fully utilized. ISE 

believes the proposed fee change will 

allow the Exchange to recoup some lost 

revenue.9 This proposed fee change will 

be operative on October 1, 2009. 

Also, as a matter of ‘‘housekeeping,’’ 

the Exchange proposes to replace 

certain language in the Notes to the 

CMM Inactivity Fee with language that 

accurately reflects CMM memberships 

as trading rights. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change is 

the requirement under Section 6(b)(4) 

that an exchange have an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. In 

particular, the proposed fee change will 

allow the Exchange to recoup lost 

revenue because its trading rights are 

not being fully utilized. 

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 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–2009–67 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–2009–67. 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 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 publicly available. All 

submissions should refer to File 

Number SR–ISE–2009–67 and should be 

submitted on or before October 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24261 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

mstockstill on DSKH9S0YB1PROD with NOTICES