Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 25897 

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

2 17 CFR 240.19b–4. 

3The Exchange will surveil for compliance with 

the terms of the exception. Members must be able 

to demonstrate compliance with all of the terms of 

the stopped-order exception. In this respect, the 

Exchange requests that members indicate the time 

that the order was stopped on the order ticket. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 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 text of the proposed rule change, 

or such shorted time as designated by the 

Commission. The Exchange provided a copy of this 

rule filing to the Commission at least five business 

days prior to the date of this filing. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62027; File No. SR–ISE– 

2010–28] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Related to Stopped Orders 

May 4, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on April 28, 2010, International 

Securities Exchange, LLC (the 

‘‘Exchange’’ or the ‘‘ISE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘SEC’’ or the ‘‘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 implement 

the trade-through exception for stopped 

orders contained in ISE Rule 1901(b)(8). 

The text of the rule amendment is as 

follows (additions are in italics): 

Rule 715. Types of Orders 

(a) no change. 

(b) Limit Orders. A limit order is an 

order to buy or sell a stated number of 

options contracts at a specified price or 

better. 

(1) through (5) no change. 

(6) Stopped Order. A stopped order is 

a limit order that meets the 

requirements of Rule 1901(b)(8). To 

execute stopped orders, Members must 

enter them into the Facilitation 

Mechanism or Solicited Order 

Mechanism pursuant to Rule 716. 

(c) through (l) no change. 

Supplementary Material to Rule 715 

.01 no change. 

* * * * * 

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 

On August 21, 2009, the Commission 

approved changes to the Exchange’s 

rules related to intermarket linkage. 

These rules provide, among other 

things, that transactions not be executed 

at prices that are inferior to the national 

best bid or offer (the ‘‘trade-through 

rule’’). ISE Rule 1901 (Order Protection) 

contains several exceptions to the tradethrough rule, including an exception for 

stopped orders. A stopped order is 

defined as an order for which, at the 

time of receipt of the order, a member 

had guaranteed an execution at no 

worse than a specified price, where: (i) 

The stopped order was for the account 

of a Customer; (ii) the Customer agreed 

to the specified price on an order-byorder basis; and (iii) the price of the 

Trade-Through was, for a stopped buy 

order, lower than the national Best Bid 

in the options series at the time of 

execution, or, for a stopped sell order, 

higher than the national Best Offer in 

the options series at the time of 

execution. 

In order for members to execute trades 

that qualify for the trade-through 

exception for stopped order,3 they must 

indicate on the order that the order was 

stopped and enter the order into the 

Facilitation Mechanism or Solicited 

Order Mechanism pursuant to Rule 716. 

While stopped orders will continue to 

be executed at prices that are at or 

between the ISE BBO, such orders may 

receive executions that trade through 

prices available on other exchanges as 

permitted by ISE Rule 1901(b)(8). 

2. Statutory Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(5) that 

an exchange have rules that are 

designed to promote just and equitable 

principles of trade, and to remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system, and in 

general, to protect investors and the 

public interest. In particular, the 

proposal will provide a means by which 

members execute orders on the ISE that 

qualify for the previously approved 

exception to the trade-through rule. 

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 

Exchange 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 

Because the foregoing 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 for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 4 and Rule 19b– 

4(f)(6) thereunder.5

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: 


jlentini on DSKJ8SOYB1PROD with NOTICES
25898 Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 

6 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. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The fees and rebates for adding and removing 

liquidity are applicable to executions in options 

overlying AA, AAPL, AIG, ALL, AMD, AMR, 

AMZN, BAC, C, CAT, CSCO, DELL, DIA, DRYS, EK, 

F, FAS, FAZ, GDX, GE, GLD, GS, INTC, IWM, JPM, 

LVS, MGM, MSFT, MU, NEM, PALM, PFE, POT, 

QCOM, QQQQ, RIMM, SBUX, SKF, SLV, SMH, 

SNDK, SPY, T, UAUA, UNG, USO, UYG, VZ, 

WYNN, X and XLF (‘‘Symbols’’). 

6An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through an electronic 

interface with AUTOM via an Exchange approved 

proprietary electronic quoting device in eligible 

options to which such SQT is assigned. See 

Exchange Rule 1014(b)(ii)(A). 

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–2010–28 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–2010–28. 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 

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–2010–28 and should be 

submitted on or before June 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10963 Filed 5–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62009; File No. SR–Phlx2010–64] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Rebates for Adding and Fees for 

Removing Liquidity 

April 30, 2010. 

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 April 26, 

2010, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) 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 Exchange. Phlx has 

designated this proposal as one 

establishing or changing a member due, 

fee, or other charge imposed under 

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

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 the 

Exchange’s Fee Schedule to increase the 

number of options to be included in the 

Exchange’s current schedule of 

transaction rebates for adding, and fees 

for removing, liquidity. 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

for transactions settling on or after May 

3, 2010. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 Exchange proposes to increase 

liquidity and to attract order flow by 

increasing the number of options to be 

included in the Exchange’s current 

schedule of rebates for adding liquidity, 

and fees for removing liquidity. 

Specifically, the Exchange proposes to 

add the following options: Brocade 

Communications Systems, Inc. 

(‘‘BRCD’’); International Business 

Machines Corp., (‘‘IBM’’); Nokia Corp. 

(‘‘NOK’’); Sirius XM Radio, Inc. (‘‘SIRI’’); 

and Direxion Daily Small Cap Bear 3X 

Shares (‘‘TZA’’) collectively (‘‘the 

options’’). The options would be subject 

to the rebates for adding and fees for 

removing liquidity. 

The Exchange currently assesses a 

per-contract transaction charge in 

various select symbols 5 (the ‘‘select 

Symbols’’) on six different categories of 

market participants that submit orders 

and/or quotes that remove, or ‘‘take,’’ 

liquidity from the Exchange: (i) 

Specialists, Registered Options Traders 

(‘‘ROTs’’), Streaming Quote Traders 

(‘‘SQTs’’) 6 and Remote Streaming Quote 


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