Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Notices 17265 

3 17 CFR 242.610(c)(2) 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4) 

6 15 U.S.C. 78s(b)(3)(A)(ii). 

7 17 CFR 240.19b–4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

may be examined at the places specified 

in Item IV below. The CHX 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 

Through this filing, the Exchange 

would amend its Fee Schedule to 

provide for transaction and order 

processing fees and rebates to Exchange 

Participants for transactions involving 

issues priced less than one dollar that 

occur within the Exchange’s Matching 

System. 

Rule 610(c)(2) of Regulation NMS 3

generally requires that the fees changed 

by a trading center for execution of an 

order against a quotation of less than 

$1.00 per share cannot exceed or 

accumulate to more than 0.3% of the 

quotation price per share. In order to 

comply with the rule, the Exchange 

proposes to charge a ‘‘take’’ fee equal to 

0.30% of the trade value and to pay a 

‘‘provide’’ rebate equal to 0.10% of the 

trade value. Trade value is defined as a 

dollar amount equal to the price per 

share multiplied by the number of 

shares executed. These changes are 

designed, at least in part, to provide an 

incentive for Participants to submit 

single-sided orders involving issues 

priced less than one dollar to the 

Matching System for execution. 

Currently, the Exchange does not charge 

any fee or pay any rebates in connection 

with the execution of trades at a price 

less than one dollar per share. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 4 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 5 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members. 

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. 

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 6 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 7 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 

Accordingly, the proposal is effective 

upon Commission receipt of the filing. 

At any time within 60 days of the filing 

of such 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 purpose 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–CHX–2009–03 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CHX–2009–03. 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–CHX–2009–03 and should 

be submitted on or before May 5, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8429 Filed 4–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59724; File No. SR–ISE– 

2009–18] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Order 

Granting Accelerated Approval to a 

Proposed Rule Change, as Modified by 

Amendment No. 1, Relating to 

Lowering the Liquidity Rebate Amount 

That Direct Edge ECN Passes Through 

to Non-International Securities 

Exchange, LLC Members 

April 7, 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 April 2, 

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, II, and III below, which items 

have been prepared by the ISE. The ISE 

filed Amendment No. 1 to the proposal 

17266 Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Notices 

3Amendment No. 1 supersedes and replaces the 

original filing in its entirety. 

4See SR–ISE–2009–17. 

5 15 U.S.C. 78f. 

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

7 In approving the proposal, the Commission has 

considered the proposal’s impact on efficiency, 

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

8 15 U.S.C. 78f(b)(4). 

on April 7, 2009.3 The Commission is 

publishing notice to solicit comments 

on the proposed rule change, as 

amended, from interested persons, and 

is approving the proposal, as amended, 

on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE proposes to lower the 

liquidity rebate 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. 

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 

DECN, a facility of ISE, operates two 

trading platforms, EDGX and EDGA. On 

March 27, 2009, the ISE filed for 

immediate effectiveness a proposed rule 

change to amend DECN’s fee schedule 

for ISE Members to lower the rebate that 

ISE Members receive for orders that add 

liquidity on EDGX in securities priced 

at or above $1.00 that are reported to 

Tape B.4

DECN is a member of ISE as well as 

a facility of ISE. 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. Pursuant to SR–ISE–2009–17, 

DECN, as an ISE Member and 

introducing broker, receives rebates 

from DECN for transactions it executes 

on EDGX in its capacity as introducing 

broker for non-ISE Members. Since the 

rebate was lowered, DECN wishes to 

pass the lowered rebate through to nonISE Member subscribers of DECN. As a 

result, the per share rebate that non-ISE 

member subscribers receive will be the 

same as the rebate that ISE Members 

receive pursuant to SR–ISE–2009–17. 

Finally, ISE is seeking accelerated 

approval of this proposed rule change, 

as well as a retroactive effective date of 

April 1, 2009. ISE represents that this 

proposal will ensure that both ISE 

Members and non-ISE Members (by 

virtue of the pass-through described 

above) will in effect receive equivalent 

amounts and that the imposition of such 

amounts will begin on the same April 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,5

in general, and furthers the objectives of 

Section 6(b)(4),6 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 

both ISE Members and Non-ISE 

Members (by virtue of the pass-through 

described above) will receive equivalent 

rebates. 

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, as amended, 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–2009–18 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–2009–18. 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 

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. 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–2009–18 and should be 

submitted by May 5, 2009. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change, as Amended 

The Commission finds that the 

proposed rule change, as amended, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.7 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,8 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. 

Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Notices 17267 

9See Securities Exchange Act Release No. 59592 

(April 2, 2009) (notice of filing and immediate 

effectiveness of File No. SR–ISE–2009–17) (the 

‘‘Member Fee Filing’’). The Member Fee Filing 

reduced the rebate for these orders from $.0035 per 

share to $.003 per share. 

10See note 9, supra. 

11 15 U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59586 

(March 17, 2009), 74 FR 12166 (March 23, 2009) 

(SR–FINRA–2008–045) (‘‘SD Approval Order’’). 

4See SR–FINRA–2008–045, Exhibit 2 (filed 

September 8, 2008). Amendment No. 1 to SR– 

FINRA–2008–045 replaced and superseded the 

original rule filing except with regard to Exhibit 2. 

5See Securities Exchange Act Release No. 59208 

(January 6, 2009), 74 FR 1738 (January 13, 2009) 

(SR–FINRA–2008–045) (notice). 

ISE recently amended DECN’s fee 

schedule to lower the rebate that DECN 

subscribers who also are ISE members 

receive for orders in Tape B securities 

priced at or above $1 that add liquidity 

on EDGX.9 DECN receives this rebate for 

transactions it executes on EDGX in its 

capacity as an introducing broker for its 

non-ISE member subscribers. 

The current proposal, which will 

apply retroactively to April 1, 2009, will 

allow DECN to pass through the lowered 

rebate to the non-ISE member 

subscribers for which it acts as an 

introducing broker. The Commission 

finds that the proposal is consistent 

with the Act because it will provide a 

rebate amount for non-ISE member 

subscribers that is equivalent to the 

rebate amount established for ISE 

member subscribers in the Member Fee 

Filing.10

ISE has requested that the 

Commission find good cause for 

approving the proposal prior to the 

thirtieth day after the date of 

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 lowered rebate amount 

established for ISE member subscribers 

in the Member Fee Filing, resulting in 

equivalent rebate amounts for ISE 

member and non-member subscribers. 

In addition, because the proposal will 

apply the reduced rebate retroactively to 

April 1, 2009, the reduced rebates for 

ISE member and non-member 

subscribers will have the same effective 

date, thereby promoting consistency in 

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, as 

amended, 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,11 that the 

proposed rule change (File No. SR–ISE– 

2009–18), as amended, is approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8425 Filed 4–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59722; File No. SR–FINRA– 

2009–022] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change Relating to 

FINRA’s Regulatory Notice on the 

FINRA Rule 9520 Series (Eligibility 

Proceedings) 

April 7, 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 March 31, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II below, 

which Items have been substantially 

prepared by FINRA. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons and to approve 

the proposal on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA proposes to make technical 

amendments to the proposed Regulatory 

Notice entitled ‘‘Eligibility Proceedings: 

Amendments to FINRA Rule 9520 

Series to Establish Procedures 

Applicable to Firms and Associated 

Persons Subject to Certain Statutory 

Disqualifications’’ (the ‘‘SD Regulatory 

Notice’’) that details impending changes 

to the FINRA Rule 9520 Series. The 

Commission recently approved 

amendments to the FINRA Rule 9520 

Series, which governs the eligibility 

procedures for persons subject to certain 

disqualifications, to comport with the 

amended definition of disqualification 

in the FINRA By-Laws.3 The 

amendments to the FINRA Rule 9520 

Series will become effective on June 15, 

2009. 

The proposed rule change makes 

technical amendments to the original 

SD Regulatory Notice filed on 

September 8, 2008, in connection with 

the amendments to the FINRA Rule 

9520 Series. 

The text of the proposed rule change 

is available at FINRA, the Commission’s 

Public Reference Room, and http:// 

www.finra.org. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA 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. FINRA 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 

In September 2008, FINRA filed a 

proposed rule change to amend the 

FINRA Rule 9520 Series, which governs 

eligibility proceedings under which 

FINRA may allow a person subject to a 

statutory disqualification to enter or 

remain in the securities industry, to 

comport with the amended definition of 

disqualification in the FINRA By-Laws. 

FINRA filed the original SD Regulatory 

Notice as part of its original filing on 

September 8, 2008, and amended its 

filing on December 11, 2008.4 The SD 

Regulatory Notice describes in detail the 

circumstances under which persons 

must obtain FINRA approval to enter or 

remain in the securities industry, 

notwithstanding the existence of 

additional categories of statutory 

disqualification. The proposed rule 

change was published for comment in 

the Federal Register on January 13, 

2009.5 The Commission received no 

comments on the proposed rule change. 

On March 17, 2009, the Commission