Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 30095 

174 15 U.S.C. 78s(b)(2). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 61895 

(April 13, 2010), 75 FR 20417. 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

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

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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–CBOE–2008–88. 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 

CBOE. 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–CBOE–2008–88 and should 

be submitted on or before June 18, 2010. 

IV. Conclusion 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as amended, is consistent 

with the Act and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,174 that the 

proposed rule change (SR–CBOE–2008– 

88), as modified by Amendment No. 1, 

be and hereby is approved on an 

accelerated basis. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–12936 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62157; File No. SR– 

NYSEArca–2010–28] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving Proposed 

Rule Amending Its Schedule of Fees 

May 24, 2010. 

On April 12, 2010, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

extend a pilot program capping 

transaction fees for strategy executions. 

Under this pilot program, strategy 

executions are capped at $750 per 

transaction, and $25,000 per month per 

initiating firm. This proposed rule 

change retroactively extended the 

duration of this pilot program from 

March 1, 2010 through April 1, 2010. 

The proposed rule change was 

published for comment in the Federal 

Register on April 19, 2010.3 The 

Commission received no comments 

regarding the proposal. 

The Commission has carefully 

reviewed the proposed rule change and 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange 4 and, in particular, 

Section 6(b)(5) of the Act,5 which 

requires that an exchange have rules 

designed to prevent fraudulent and 

manipulative acts and practices, 

promote just and equitable principles of 

trade, foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system. 

Specifically, the proposed rule change 

allows the pilot program to continue 

without interruption from March 1, 

2010 through April 1, 2010. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (SR–NYSEArca– 

2010–28) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12874 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62152; File No. SR–ISE– 

2010–41] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Professional 

Customer Fees 

May 21, 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 May 5, 

2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I, II, 

and III below, which items have been 

prepared by the self-regulatory 

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 ISE 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, 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. 


jlentini on DSKJ8SOYB1PROD with NOTICES
30096 Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 

3See Securities Exchange Act Release No. 59287 

(Jan. 23, 2009), 74 FR 5694 (Jan. 30, 2009). 

4The Exchange recently adopted a modified 

maker/taker pricing program applicable to a select 

number of options classes under which professional 

customer orders and broker/dealer orders are 

treated equally. See Securities Exchange Act 

Release No. 61869 (April 7, 2010), 75 FR 19449 

(April 14, 2010). 

5See Securities Exchange Act Release No. 61434 

(January 27, 2010), 75 FR 5826 (February 4, 2010). 

6Fees charged by the Exchange for professional 

customer orders are always equal to or less than 

those charged for broker/dealer orders. 

7The fees proposed herein do not apply to 

professional customer orders in a select number of 

options classes that are a part of the modified 

maker/taker pricing program recently adopted by 

the Exchange. See supra note 2. 

8 15 U.S.C. 78f. 

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

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

11 17 CFR 240.19b–4(f)(2). 

12The text of the proposed rule change is 

available on ISE’s Web site at http://www.ise.com, 

on the Commission’s Web site at http:// 

www.sec.gov, at ISE, and at the Commission’s 

Public Reference Room. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

ISE proposes to amend its Schedule of 

Fees. Specifically, the Exchange 

proposes to adopt a $0.18 per contract 

execution fee for ‘‘professional 

customers’’ who execute orders as a 

result of taking liquidity from ISE’s 

order book. 

ISE rules distinguish between Priority 

Customer Orders and Professional 

Orders.3 A Priority Customer is defined 

in ISE Rule 100(a)(37A) as a person or 

entity that is not a broker or dealer in 

securities, and does not place more than 

390 orders in listed options per day on 

average during a calendar month for its 

own beneficial account(s). A 

Professional Order is defined in ISE 

Rule 100(a)(37C) as an order that is for 

the account of a person or entity that is 

not a Priority Customer. For purpose of 

this discussion, ‘‘professional 

customers’’ are non-broker/dealer 

participants who enter at least 390 

orders per day on average during a 

calendar month for their own beneficial 

account(s). The level of trading activity 

by professional customers more 

resembles that of market makers and 

proprietary traders on the Exchange 

than it does of other customers. 

Currently, the primary distinction 

between the two types of customers is 

that Priority Customers are given 

priority on the order book over 

professional customers. Professional 

customers are on parity with market 

makers and broker/dealers. However, 

professional customers, until recently, 

did not pay transaction fees and 

currently do so on a limited basis. 

Market makers and broker/dealers on 

the other hand have always paid 

transaction fees to the Exchange. 

Specifically, for market makers, the 

Exchange currently applies a sliding 

scale, between $0.01 and $0.18 per 

contract side, based on the number of 

contracts an ISE market maker trades in 

a month. Broker/dealer orders currently 

pay a flat execution fee of $0.20 per 

traded contract.4

Earlier this year, the Exchange 

adopted a $0.20 per contract execution 

fee for professional customers who 

execute orders as a result of posting 

liquidity to ISE’s order book.5 This 

‘‘maker’’ fee applies only to professional 

customer orders, i.e., non-broker/dealer 

customer orders; it does not apply to 

market maker and broker/dealer orders 

who already pay transaction fees under 

the Exchange’s current fee schedule. 

The Exchange now proposes to adopt 

a $0.18 per contract execution fee for 

professional customers who execute 

orders as a result of taking liquidity 

from ISE’s order book.6 The Exchange 

currently has a fee cap for large-size 

foreign currency (‘‘FX’’) options orders 

where ISE waives the transaction fee on 

incremental volume above 5,000 

contracts for single-sided FX options 

orders of at least 5,000 contracts. This 

fee waiver will also apply to 

professional customer orders. The 

Exchange believes that the proposed 

fees for professional customers will 

allow the Exchange to remain 

competitive with other options 

exchanges who apply fees to 

professional customers.7

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the 

Exchange Act,8 in general, and furthers 

the objectives of Section 6(b)(4),9 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, the 

proposed rule change will help equalize 

fees among market makers, proprietary 

traders and professional customers on 

the 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) of 

the Act 10 and Rule 19b–4(f)(2) 11

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 

Number SR–ISE–2010–41 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–2010–41. 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,12 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 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 30097 

13 17 CFR 200.30–3(a)(12). 

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–2010–41 and should be 

submitted on or before June 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12872 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket No. USTR–2010–0015] 

Notice and Request for Comments: 

Canada—Compliance With Softwood 

Lumber Agreement 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Notice and request for public 

comment. 

SUMMARY: Under the 2006 Softwood 

Lumber Agreement (SLA), Canada 

agreed to impose export measures on 

Canadian exports of softwood lumber 

products to the United States. At the 

request of the United States, an arbitral 

tribunal established under the SLA 

determined in March 2008 that Canada 

had breached certain SLA obligations. 

In February 2009, the tribunal issued a 

remedy award requiring Canada to 

collect an additional 10 percent ad 

valorem export charge on softwood 

lumber shipments from Ontario, 

Quebec, Manitoba, and Saskatchewan, 

until an entire amount of CDN $ 68 

million has been collected. Canada did 

not begin collecting the additional 

export charge. In April 2009, the United 

States Trade Representative (‘‘Trade 

Representative’’) initiated an 

investigation under Section 302 of the 

Trade Act of 1974, as amended (‘‘Trade 

Act’’). In that investigation, the Trade 

Representative determined that 

Canada’s failure to implement the 

tribunal’s remedy award had the effect 

of denying U.S. rights under the SLA; 

and, pursuant to Section 301 of the 

Trade Act, the Trade Representative 

imposed 10 percent ad valorem duties 

on imports of softwood lumber products 

subject to the SLA from the provinces of 

Ontario, Quebec, Manitoba, and 

Saskatchewan (the April 2009 action). 

Under the April 2009 action, the duties 

are to remain in place until such time 

as the United States collects $54.8 

million, the U.S. dollar equivalent of 

CDN $ 68 million at the time. The 

Government of Canada, however, is now 

taking steps toward adopting its own 

measure to address Canada’s breach of 

the SLA, in the form of legislation 

requiring the collection of an additional 

10 percent charge on exports from the 

provinces of Ontario, Quebec, Manitoba, 

and Saskatchewan. In the event that the 

proposed bill becomes law by receiving 

royal assent, and if the Trade 

Representative finds that the law 

satisfactorily grants the rights of the 

United States under the SLA, the Trade 

Representative may modify or terminate 

the April 2009 action. Interested 

persons are invited to submit comments 

on the possible modification or 

termination of the April 2009 action. 

DATES: To be assured of consideration, 

comments should be submitted by no 

later than 5 p.m. on June 14, 2010, 

although USTR will continue to accept 

comments after that date. 

ADDRESSES: Non-confidential comments 

(as explained below) should be 

submitted electronically via the Internet 

at http://www.regulations.gov, docket 

number USTR–2010–0015. If you are 

unable to provide submissions by 

http://www.regulations.gov, please 

contact Sandy McKinzy at (202) 395– 

9483 to arrange for an alternative 

method of transmission. If (as explained 

below) the comments contain 

confidential information, the person 

wishing to submit such comments 

should contact Sandy McKinzy at (202) 

395–9483. 

FOR FURTHER INFORMATION CONTACT: John 

Melle, Deputy Assistant USTR for the 

Americas, (202) 395–3412, or Suzanne 

Garner, Assistant General Counsel, (202) 

395–3581, for questions concerning the 

enforcement of U.S. rights under the 

SLA; William Busis, Associate General 

Counsel and Chair of the Section 301 

Committee, (202) 395–3150, for 

questions concerning procedures under 

Section 301; or Gwendolyn Diggs, Staff 

Assistant to the Section 301 Committee, 

(202) 395–5830, for questions 

concerning procedures for filing 

submissions in response to this notice. 

SUPPLEMENTARY INFORMATION: 

A. Enforcement of U.S. Rights Under 

the SLA 

For further information concerning 

U.S. rights under the SLA and the April 

2009 action, see Initiation of Section 

302 Investigation, Determination of 

Action Under Section 301, and Request 

for Comments: Canada—Compliance 

With Softwood Lumber Agreement, 74 

FR 16,436 (April 10, 2009) (notice); 74 

FR 17,276 (April 14, 2009) (annex). 

B. Canada’s Steps Toward Addressing 

the Breach of the SLA 

On March 4, 2010, the Canadian 

Parliament introduced as part of the 

Federal budget an amendment to the 

Softwood Lumber Products Export 

Charge Act, 2006. The amendment 

provides for the collection of an 

additional export charge of 10 percent 

on softwood lumber products from the 

provinces of Ontario, Quebec, Manitoba, 

and Saskatchewan. The amendment 

might become law as soon as mid-June 

2010. 

C. Possible Modification or Termination 

of April 2009 Action 

The Trade Act authorizes the Trade 

Representative to modify or terminate 

an action taken under Section 301 if, 

among other things, ‘‘the foreign country 

is taking satisfactory measures to grant 

the rights of the United States under a 

trade agreement.’’ Sections 

301(a)(2)(B)(i) and 307(1)(A). If the 

proposed amendment becomes law, the 

Trade Representative may consider 

whether Canada is taking satisfactory 

measures to grant the rights of the 

United States under the SLA, and if so, 

may decide on an appropriate 

modification or termination of the April 

2009 action. 

Pursuant to Section 306(a) of the 

Trade Act, if the Trade Representative 

finds that the additional 10 percent 

export charge is a satisfactory measure, 

the Trade Representative will continue 

to monitor the implementation of such 

measure. Pursuant to Section 306(b), if 

the Trade Representative considers that 

Canada is not satisfactorily 

implementing the measure, the Trade 

Representative will determine what 

further action to take under Section 301. 

D. Request for Public Comment 

The Section 301 Committee invites 

comments from interested persons with 

respect to the possible modification or 

termination of the April 2009 action in 

the event the Government of Canada 

adopts a law imposing an additional 10 


jlentini on DSKJ8SOYB1PROD with NOTICES