Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 22887 

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

8 17 CFR 240.19b–4(f)(6). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the text of 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 

Exchange has satisfied the pre-filing requirement. 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Chapter XII, Intermarket Linkage Rules, 

Section 4, Temporary Rule Governing Phase-Out of 

P and P/A Orders. 

4See Securities Exchange Act Release No. 57545 

(March 21, 2008), 73 FR 16394 (March 27, 2008). 

On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket options 

market linkage (‘‘Linkage’’) proposed by the then 

American Stock Exchange LLC, now NYSE Amex 

LLC (‘‘NYSE Amex’’), Chicago Board Options 

Exchange, Inc. (‘‘CBOE’’), and International 

Securities Exchange LLC (‘‘ISE’’). See Securities 

Exchange Act Release No. 43086 (July 28, 2000), 65 

FR 48023, (August 4, 2000). Subsequently, 

Philadelphia Stock Exchange, Inc., now NASDAQ 

OMX PHLX, Inc. (‘‘Phlx’’), Pacific Exchange, Inc., 

now NYSE Arca, Inc. (‘‘NYSE Arca’’) and Boston 

Stock Exchange, Inc., now NASDAQ OMX BX, Inc. 

(‘‘BSX’’) joined the Linkage Plan. See Securities 

Exchange Act Release Nos. 43573 (November 16, 

2000), 65 FR 70851, (November 28, 2000); 43574 

(November 16, 2000), 65 FR 70850, (November 28, 

2000); and 49198 (February 5, 2004), 69 FR 7029, 

(February 12, 2004). The Exchange was added as a 

Participant to the Linkage Plan. Linkage was 

governed by the Options Linkage Authority under 

the conditions set forth under the Plan for the 

Purpose of Creating and Operating an Intermarket 

Option Linkage approved by the Commission. 

public interest. The Exchange believes 

that codifying certain provisions of the 

OLPP, as amended, serves to foster 

investor protection. 

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 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 9 and Rule 

19b–4(f)(6)(iii) thereunder.10

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–NYSEAmex–2010–39 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–NYSEAmex–2010–39. 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 Web site viewing and 

printing 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 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– 

NYSEAmex–2010–39 and should be 

submitted on or before May 21, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10081 Filed 4–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61981; File No. SR– 

NASDAQ–2010–051] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Concerning 

Intermarket Option Linkage 

April 26, 2010. 

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 20, 

2010, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ 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 Nasdaq. 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 is filing with the 

Commission a proposed rule change to 

delete its Temporary Rule Governing 

Phase-Out of P and P/A Orders 3 and 

amend several references in the rules to 

the Plan for the Purpose of Creating and 

Operating an Intermarket Linkage 

(‘‘Linkage Plan’’).4 In addition, the 

Exchange also proposes to amend its 

fees in Rule 7050, NASDAQ Options 

Market, to discontinue its current pilot 

program (the ‘‘pilot’’) relating to options 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
22888 Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 

5See Securities Exchange Act Release Nos. 60405 

(July 30, 2009), 74 FR 39362 (August 6, 2009) 

(National Market System Plan Relating to Options 

Order Protection and Locked/Crossed Markets). The 

Plan is a national market system plan proposed by 

the seven existing options exchanges and approved 

by the Commission. See Securities Exchange Act 

Release No. 59647 (March 30, 2009), 74 FR 15010 

(April 2, 2009) (‘‘Plan Notice’’) and 60405 (July 30, 

2009), 74 FR 39362 (August 6, 2009) (‘‘Plan 

Approval’’). The seven options exchanges are: 

Chicago Board Options Exchange, Incorporated 

(‘‘CBOE’’); International Securities Exchange LLC 

(‘‘ISE’’); NASDAQ OMX BX, Inc. (‘‘BOX’’); The 

NASDAQ Stock Market LLC (‘‘Nasdaq’’); NYSE 

Amex LLC (‘‘NYSE Amex’’); NYSE Arca, Inc. 

(‘‘NYSE Arca’’); and Phlx (each exchange 

individually a ‘‘Participant’’ and, together, the 

‘‘Participating Options Exchanges’’). 

6See footnote 4. 

7See footnote 4. 

8See footnote 5. 

9See Chapter VI, Trading Systems, Section 11, 

Order Routing. 

10See Chapter XII, Intermarket Linkage Rules, 

Section 4, Temporary Rule Governing Phase-Out of 

P and P/A Orders. 

11A P/A Order is an order for the principal 

account of a Primary Market Maker (or equivalent 

entity on another Eligible Exchange that is 

authorized to represent Public Customer orders), 

reflecting the terms of a related unexecuted Public 

Customer order for which the Primary Market 

Maker is acting as agent. See Chapter XII, Section 

4(d)(4)(i). 

12A Principal Order is an order for the principal 

account of a market maker (or equivalent entity on 

another Eligible Exchange) and is not a P/A Order. 

See Chapter XII, Section 4 (d)(ii). 

13See Securities Exchange Act Release No. 60525 

(August 18, 2009), 74 FR 43188 (August 26, 2009) 

(SR–NASDAQ–2009–056). Linkage was governed 

by the Options Linkage Authority under the 

conditions set forth under the Plan for the Purpose 

of Creating and Operating an Intermarket Option 

Linkage approved by the Commission. The 

registered U.S. options markets were linked 

together on a real-time basis through a network 

capable of transporting orders and messages to and 

from each market. 

14See Securities Exchange Act Release No. 60407 

(July 30, 2009), 74 FR 39720 (August 7, 2009) (SR– 

NASDAQ–2009–073). 

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

16 15 U.S.C. 78f(b)(5). 

transaction fees for trades executed via 

the Intermarket Option Linkage 

(‘‘Linkage’’) on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com, on the 

Commission’s Web site at http:// 

www.sec.gov, at Nasdaq, 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 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 purpose of the proposed rule 

change is to eliminate existing 

references to the Linkage Plan and also 

replace some references to the Linkage 

Plan with references to the Options 

Order Protection and Locked/Crossed 

Market Plan (‘‘Plan’’) in order to clarify 

the current rules in effect. 

On June 17, 2008, the Exchange filed 

the Plan, joining all other approved 

options markets in adopting the Plan.5

The Plan requires each options 

exchange to adopt rules implementing 

various requirements specified in the 

Plan. The Plan replaces the former 

Linkage Plan. The Linkage Plan required 

Participating Exchanges to operate a 

stand-alone system or ‘‘Linkage’’ for 

sending order-flow between exchanges 

to limit trade-throughs.6 The Options 

Clearing Corporation (‘‘OCC’’) operated 

the Linkage system (the ‘‘System’’).7 The 

Exchange adopted various new rules in 

connection with the Plan to avoid tradethroughs and locked markets, among 

other things.8 The Exchange currently 

offers private routing directly to away 

markets.9

The Exchange adopted a temporary 

rule entitled Temporary Rule Governing 

Phase-Out of P and P/A Orders 

(‘‘Temporary Rule’’),10 in order to 

facilitate the participation of certain 

Participating Exchanges who may 

require the use of Principal Acting as 

Agent Orders (‘‘P/A Orders’’) 11 and 

Principal Orders (‘‘P’’) 12 after 

implementation of the Plan.13 Certain 

Participating Exchanges required a 

temporary transition period during 

which they continued to utilize these 

order types that existed under the 

Linkage Plan. The Exchange proposed 

substantially similar rules with that of 

the other Participating Exchanges to 

accommodate the possibility of 

continued use of P/A Orders and P 

Orders. At this time all Participating 

Exchanges have discontinued use of the 

Linkage Plan. The Exchange proposes at 

this time to delete this Temporary Rule 

because it is no longer necessary in light 

of the discontinued use of the Linkage 

Plan. The Exchange also proposes to 

delete a reference to the Linkage Plan in 

Chapter VII, Market Participants, 

Section 5, Obligations of Market Makers. 

Additionally, the Exchange proposes to 

amend Section 1, Definitions, in 

Chapter XII, Intermarket Linkage Rules, 

to redefine ‘‘Plan’’ to comport with the 

new Plan. 

The Exchange proposes to 

discontinue the current pilot program 

related to transaction fees sent to the 

Exchange via Linkage. The current pilot 

is set to expire July 31, 2010.14

Under the Exchange’s current rule, 

the fee for members or non-members 

entering orders via Linkage that execute 

on the Exchange is $0.45 per executed 

contract. Because there are no longer 

any participant exchanges to the 

Linkage Plan, the Exchange proposes to 

discontinue the pilot. The Exchange 

also proposes to amend Rule 7050, 

NASDAQ Options Market, to remove all 

references to Linkage fees. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 15 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 16

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

proposing the elimination of its 

Temporary Rule, which reflects usage of 

a former Linkage Plan that has since 

been replaced by a new Plan. In 

addition, the Exchange believes that 

amending its Rules to refer to the 

current Plan and by proposing to 

discontinue its pilot, to clarify that 

Linkage fees are no longer applicable, 

will provide its members clarity. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 83 / Friday, April 30, 2010 / Notices 22889 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

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. Nasdaq has satisfied this requirement. 

19 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. 78f. 

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

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 17 and Rule 19b–4(f)(6) 18

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. 

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–NASDAQ–2010–051 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–NASDAQ–2010–051. 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 Web site viewing and 

printing 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 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2010–051 and should be 

submitted on or before May 21, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10082 Filed 4–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61972; File No. SR–ISE– 

2010–32] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

April 23, 2010. 

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 14, 

2010, 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 is proposing to amend 

its Schedule of Fees. 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, on the Commission’s Web 

site at http://www.sec.gov, 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 

In SR–ISE–2009–26, the Exchange 

adopted the term ‘Singly Listed ETFs’ to 

identify those ETF products that are 

listed only on ISE and for which the 

Exchange charges a fee of $0.18 per 

contract for customer transactions. 

Currently, the First Trust ISE Water ETF 

(‘‘FIW’’), the Claymore China 

Technology ETF (‘‘CQQQ’’), the 

ProShares UltraPro Short Dow30 

(‘‘SDOW’’), the ProShares UltraPro 

Dow30 (‘‘UDOW’’), the ProShares 

UltraPro Short MidCap400 (‘‘SMDD’’), 

the ProShares UltraPro MidCap400 

(‘‘UMDD’’), the ProShares UltraPro Short 

Russell2000 (‘‘SRTY’’) and the ProShares 

UltraPro Russell2000 (‘‘URTY’’) are the 

only such ETFs listed on the Exchange’s 

fee schedule. On April 14, 2010, ISE 

began listing options on the First Trust 

ISE Global Copper Index Fund (‘‘CU’’) 

and the First Trust ISE Global Platinum 

Index Fund (‘‘PLTM’’). As of the date of 

this filing, CU and PLTM are both singly 

listed on ISE. The Exchange therefore 

proposes to charge a fee of $0.18 per 

contract for customer transactions in 

options on CU and PLTM. The 

Exchange also proposes to charge a 

Payment for Order Flow fee for 

transactions in options on these 

products. 

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 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1