16024 Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices 

3 15 U.S.C. 78f. 

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

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 19b–4(f)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Currently, the Exchange’s Schedule of 

Fees for equity transactions includes a 

rebate of $0.0035 per share for orders 

that add liquidity in securities priced at 

or above $1.00 (excluding both order 

delivery and MidPoint Match orders) 

that are reported to Tape B. The 

Exchange is now proposing to lower 

that rebate from $0.0035 to $0.003 per 

share for orders that add liquidity in 

securities priced at or above $1.00 

(excluding both order delivery and 

MidPoint Match orders) that are 

reported to Tape B. The Exchange is 

lowering this rebate in an effort to keep 

its pricing competitive with other 

exchanges. The aforementioned fee 

change will become operative on April 

1, 2009. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,3

in general, and furthers the objectives of 

Section 6(b)(4),4 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, lowering the rebate in Tape 

B securities will allow the ISE’s pricing 

to remain competitive with other 

exchanges. 

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)(A) 

of the Act 5 and Rule 19b–4(f)(2) 6

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 

No. SR–ISE–2009–16 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–2009–16. 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–2009–16 and should be 

submitted by April 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7975 Filed 4–7–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59692; File No. SR–ISE– 

2009–17] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

International Securities Exchange, LLC 

Relating to Amending the Direct Edge 

ECN Fee Schedule Applicable to 

International Securities Exchange 

Members 

April 2, 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 March 27, 

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. 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 

Direct Edge ECN’s (‘‘DECN’’) fee 

schedule for ISE Members to lower the 

rebate for orders that add liquidity on 

EDGX in securities priced at or above 

$1.00 that are reported to Tape B. 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. 


rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices 16025 

3See Securities and Exchange Commission 

Release No. 34–59135 (December 22, 2008), 73 FR 

79954 (December 30, 2008)(SR–ISE–2008–85) 

(Order approving a proposed rule change, as 

modified by Amendment No. 1, to purchase by 

International Securities Exchange Holdings, Inc. of 

an ownership interest in Direct Edge). 4The Commission notes that this exemption was 

granted, subject to certain conditions, to ISE with 

respect to DE ECN only, to allow DECN to operate 

as a facility of ISE without being subject to the rule 

filing requirements of Section 19(b) of the Act for 

a temporary period. See Exchange Act Release No. 

59133 (December 22, 2008), 73 FR 79940 (December 

30, 2009) (Order granting application for a 

temporary conditional exemption pursuant to 

Section 36(a) of the Act). 

5 15 U.S.C. 78f. 

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

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 19b–4(f)(2). 9 17 CFR 200.30–3(a)(12). 

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 

On December 23, 2008, the ISE closed 

a transaction whereby, among other 

things, ISE Stock Exchange, LLC (‘‘ISE 

Stock Exchange’’), a Delaware limited 

liability company, merged with and into 

Maple Merger Sub, LLC (‘‘Maple Merger 

Sub’’), a Delaware limited liability 

company and a wholly owned 

subsidiary of Direct Edge Holdings LLC 

(‘‘Direct Edge’’), with Maple Merger Sub 

being the surviving entity.3 As part of 

the same transaction, ISE Holdings 

purchased equity interests in Direct 

Edge such that subsequent to 

completing the transaction, ISE 

Holdings owns a 31.54% equity interest 

in Direct Edge. Following the closing of 

the transaction, the Commission 

deemed DECN to be a facility of the ISE, 

which would require ISE to file rules for 

DECN. However, the Commission 

granted ISE a temporary exemption from 

the rule filing requirements imposed by 

Section 19(b) of the Act, provided that 

ISE and DECN comply with certain 

conditions, including but not limited to, 

requiring ISE to file a proposed rule 

change if DECN’s fee schedule is sought 

to be modified.4

Currently, DECN’s fee schedule 

includes a rebate for ISE Members of 

$0.0035 per share for orders that add 

liquidity on EDGX in securities priced 

at or above $1.00 that are reported to 

Tape B. The Exchange is now proposing 

to lower that rebate from $0.0035 to 

$0.003 per share for orders that add 

liquidity on EDGX in securities priced 

at or above $1.00 that are reported to 

Tape B. The Exchange is lowering this 

rebate to keep its pricing consistent with 

the ISE Stock Exchange’s Schedule of 

Fees. The aforementioned fee change 

will become operative on April 1, 2009. 

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, lowering the rebate in Tape 

B securities will allow DECN’s rebate to 

match the rebate provided on the ISE 

Stock Exchange. 

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)(A) 

of the Act 7 and Rule 19b–4(f)(2) 8

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 

No. SR–ISE–2009–17 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–2009–17. 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. 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–2009–17 and should be 

submitted by April 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7976 Filed 4–7–09; 8:45 am] 

BILLING CODE 8010–01–P 


rwilkins on PROD1PC63 with NOTICES