Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices 11151 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 clarified that if there is any 

change to the status of the Monthly MAP Volume 

Bonus and/or the MAP Marketing Subsidy, or if the 

Exchange negotiates any MAP Agreement 

extension, the Exchange will file a proposed rule 

change with the Commission. 

4See Securities Exchange Act Release No. 56274 

(August 16, 2007), 72 FR 48720 (August 24, 2007) 

(SR–Phlx–2007–54). 

5The term ‘‘Eligible MAP’’ is defined in current 

footnote 5(b) of the Market Access Provider Subsidy 

section of the Exchange’s fee schedule. 

6A MAP Agreement is typically in effect for a 

period of one year, and the Exchange may, by giving 

written notice to the Eligible MAP, elect to extend 

it for additional one year terms, in which case the 

per contract Subsidy payable during any extension 

period for that Eligible MAP is $0.01 per contract 

greater than the Subsidy Rate then in effect at the 

date of renewal. See supra note 4. 

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 available publicly. All 

submissions should refer to File 

Number SR–ISE–2009–11 and should be 

submitted on or before April 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5594 Filed 3–13–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59537; File No. SR–Phlx– 

2009–19] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change as Modified 

by Amendment No. 1 Thereto by 

NASDAQ OMX PHLX, Inc. To Amend 

the Exchange’s Fee Schedule Relating 

to the Market Access Provider Subsidy 

March 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 February 

25, 2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III, below, which Items have been 

prepared by the Exchange. On March 3, 

2009, the Exchange filed Amendment 

No. 1 to the proposal.3 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 its 

schedule of fees to remove certain 

subsidies that are available to qualifying 

Phlx member organizations that offer to 

customers automated order routing 

systems and electronic market access to 

U.S. options markets (‘‘Market Access 

Providers’’ or ‘‘MAPs’’). Specifically, the 

Exchange proposes to amend the Market 

Access Provider Subsidy section of its 

fee schedule by deleting the following 

subsidies: (i) A $0.01 per contract 

incentive above the previously 

established per-contract subsidy rate 

upon the renewal of a MAP Agreement; 

(ii) a $50,000 per month bonus payment 

(the ‘‘Monthly MAP Volume Bonus’’) for 

each month in which the number of 

contracts routed to the Exchange 

exceeds a defined number of contracts; 

and (iii) a $25,000 per month marketing 

subsidy (the ‘‘MAP Marketing 

Subsidy’’), as defined below. 

The proposed rule change is filed for 

immediate effectiveness and will be 

effective for trades settling on or after 

March 1, 2009. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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 

The purpose of the proposed rule 

change is to manage Exchange expenses 

by removing certain subsidies from the 

Exchange’s fee schedule. 

Market Access Provider 

In August, 2007, the Exchange 

amended its fee schedule to provide a 

per contract Subsidy (the ‘‘Subsidy’’) for 

certain Exchange members known as 

MAPs.4 A MAP is an Exchange member 

organization that offers to customers 

automated order routing systems and 

electronic market access to U.S. options 

markets. The Exchange pays a percontract MAP Subsidy to any Exchange 

member organization that qualifies as a 

MAP (an ‘‘Eligible MAP’’) 5 who elects 

to participate by submitting any 

application(s) and/or form(s) required 

by the Exchange, and complying with 

other conditions. 

A MAP must enter into and maintain 

an Agreement (a ‘‘MAP Agreement’’) 

with the Exchange to function as an 

Eligible MAP and be in compliance with 

all terms thereof. 

MAP Subsidy 

The Exchange currently pays a 

Subsidy to Eligible MAPs on a monthly 

basis, of $0.10 (the ‘‘Subsidy Rate’’) for 

each Eligible Contract (as defined 

below) executed in the immediately 

preceding calendar month above the 

particular Eligible MAP’s Baseline 

Order Flow (as defined below). 

‘‘Eligible Contracts’’ means contracts 

that result from the execution on the 

Exchange of: (1) Equity option orders 

(other than crosses) sent electronically 

to an Eligible MAP (and routed to the 

Exchange electronically by the Eligible 

MAP) by its customers; and (2) MAP 

Routing Orders (other than crosses) sent 

electronically by the Eligible MAP. 

‘‘Baseline Order Flow’’ for an Eligible 

MAP means the higher of: (1) 500,000 

contracts; or (2) the average contracts 

per month, calculated for the 3-month 

period immediately preceding the 

Eligible MAP entering into an agreement 

with the Exchange, that resulted from 

the execution on the Exchange of equity 

option orders (other than crosses) routed 

to Phlx electronically by such Eligible 

MAP. 

In addition, the Exchange pays an 

additional $0.01 per contract above the 

previously established per-contract 

Subsidy Rate upon the renewal of a 

MAP Agreement.6

The Exchange proposes to delete the 

additional $0.01 per contract payment 

provision respecting extended MAP 

Agreements from the Market Access 

Provider Subsidy section of its fee 

schedule. The Exchange believes that it 

would benefit both parties to negotiate 

the terms of any MAP Agreement 

extension on a case-by-case basis, rather 

than having fixed terms already in 

11152 Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices 

7 In the event that there is any change to the status 

of the Monthly MAP Volume Bonus and/or the 

MAP Marketing Subsidy, or if the Exchange 

negotiates any MAP Agreement extension, the 

Exchange will file a proposed rule change pursuant 

to Section 19(b)(3)(A)(ii) of the Act and Rule 19b– 

4(f)(2) thereunder. 

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

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

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

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. 

place. In that way, the parties can 

evaluate their current business situation 

and negotiate an extension, if any, that 

is reasonable and appropriate under 

then-existing conditions existing within 

each party, and under then-existing 

market and economic situations as a 

whole.7

Monthly MAP Volume Bonus 

The Exchange pays each Eligible MAP 

$50,000 per month (the ‘‘Volume 

Bonus’’) for each month in which the 

Eligible Contracts of such Eligible MAP 

in the immediately preceding calendar 

month exceed the higher of: (1) 

1,500,000; or (2) three times the 

Baseline Order Flow of such Eligible 

MAP. The Volume Bonus is in addition 

to the amount for any Subsidy that is 

payable. 

The Exchange proposes to delete the 

monthly MAP Volume Bonus from the 

Market Access Provider Subsidy section 

of its fee schedule in order to be in a 

better position to manage its allocation 

of costs. 

Marketing Subsidy 

Currently, the Exchange pays a MAP 

Marketing Subsidy of $25,000.00 per 

month, for a maximum of three months 

(totaling $75,000.00) to Eligible MAPs, 

in addition to the per-contract Subsidy. 

The MAP Marketing Subsidy is 

intended to be used by the Eligible MAP 

to: (i) Promote the Subsidy program; (ii) 

provide technical assistance and 

information to its customers on the 

equity options order routing 

functionality that pertains to the 

Subsidy program; and (iii) analyze the 

volume based usage of such order 

routing functionality by the Eligible 

MAP and its customers, in each case 

with a view towards the successful 

launch of the Eligible MAP’s 

participation in the Subsidy for Eligible 

MAPs. 

The Exchange proposes to delete the 

Marketing Subsidy from the Market 

Access Provider Subsidy section of its 

fee schedule. The Exchange intends to 

attract new participants into the MAP 

program using more of a variable cost 

rather than a fixed cost. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 8 in general, and furthers the 

objectives of Sections 6(b)(4) of the Act 9

in particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees and other charges 

among Exchange members by deleting 

standardized volume bonuses and 

marketing subsidies, thus enabling the 

Exchange to manage its costs relating to 

MAPs. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition 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 

No written comments were either 

solicited or received. 

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)(A)(ii) of the Act 10 and 

paragraph (f)(2) of Rule 19b–4 11

thereunder. At any time within 60 days 

of the filing of the 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–Phlx–2009–19 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–Phlx–2009–19. 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 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–Phlx– 

2009–19 and should be submitted on or 

before April 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5564 Filed 3–13–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59538; File No. SR–Phlx– 

2009–17] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing of a Proposed Rule Change 

Relating to the Nomination and 

Election of Candidates for Governor 

and Independent Governor 

March 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 February 

23, 2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or the ‘‘Exchange’’) filed with