Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices 32529 

8 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

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

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–ISE–2010–56 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–2010–56. 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–2010–56 and should be 

submitted on or before June 29, 2010. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission 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.8 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) 9 of the Act, 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. 

As described more fully above, ISE 

recently amended DECN’s fee schedule 

for ISE Members pursuant to SR–ISE– 

2010–55 (the ‘‘Member Fee Filing’’). The 

fee change made pursuant to the 

Member Fee Filing became operative on 

June 1, 2010. DECN receives rebates and 

is charged fees for transactions it 

executes on EGDX or EDGA in its 

capacity as an introducing broker for its 

non-ISE member subscribers. The 

current proposal, which will apply 

beginning on June 1, 2010, will allow 

DECN to pass through the revised fee to 

the non-ISE member subscribers for 

which it acts an introducing broker. The 

Commission finds that the proposal is 

consistent with the Act because it will 

charge fees to non-ISE member 

subscribers that are equivalent to those 

established for ISE member subscribers 

in the Member Fee Filing. 

ISE has requested that the 

Commission find good cause for 

approving the proposed rule change 

prior to the thirtieth day after 

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 revised fee established 

for ISE member subscribers in the 

Member Fee Filing, resulting in 

equivalent fees for ISE member and nonmember subscribers. In addition, 

because the proposal will apply the 

revised fee beginning on June 1, 2010, 

the revised fees will have the same 

effective date, thereby promoting 

consistency in the 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 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,10 that the 

proposed rule change (SR–ISE–2010–56) 

is approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13767 Filed 6–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62209; File No. SR– 

NYSEArca–2010–42] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Arca, Inc. Amending Rule 6.82 

June 2, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on May 18, 

2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 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 Exchange proposes to amend 

Rule 6.82 by revising the minimum 

financial requirements of Lead Market 

Makers. The text of the proposed rule 

change is below. Proposed new 

language is italicized; proposed 

deletions are in brackets: 

Rules of NYSE Arca, Inc. 

* * * * * 

Rule 6.82. Lead Market Makers 

(a)–(b) No Change 

(c) Obligations of Lead Market 

Makers: 

Each LMM must meet the following 

obligations: 

(1)–(11) No Change 

(12) Maintain a cash or liquid asset 

position of at least $1,000,000. 

[$350,000, plus $25,000 for each issue 

over 8 issues that has been allocated to 

the LMM.] In the event that two or more 

LMMs are associated with each other 

and deal for the same LMM account, 

this requirement will apply to such 

LMMs collectively, rather than to each 

LMM individually; 

(13)–(14) No Change 

(d)–(h) No Change 

* * * * * 


emcdonald on DSK2BSOYB1PROD with NOTICES
32530 Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices 

4See NYSE Amex Rule 927NY(c)(10). 

5See NYSE Arca Rules 6.82(c)–(d). 

6See NYSE Amex Rules 927NY(c)–(d). 

7See NYSE Arca Rule 6.82(e)(1). 

8See NYSE Arca Rule 6.82(f)(1)(B). 

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

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

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 purpose of this filing is to revise 

Rule 6.82. Specifically, NYSE Arca 

proposes to revise the minimum 

financial requirements of a Lead Market 

Maker (‘‘LMM’’) contained in Rule 

6.82(c)(12). 

Minimum Financial Requirement for 

LMMs 

LMMs on NYSE Arca are required to 

maintain a cash or net liquid asset 

position of at least $350,000. In 

addition, LMMs that have more than 

eight allocated issues are required to 

have an additional $25,000 in cash or 

net liquid assets for each additional 

allocated issue. The Exchange now 

proposes that instead of the base 

minimum financial requirement of 

$350,000 plus an additional $25,000 for 

each issue over eight, all LMMs will 

now be required to maintain cash or net 

liquidating balance of at least 

$1,000,000 (‘‘$1 million’’). The $1 

million requirement will apply 

regardless of the number of issues an 

LMM is allocated. 

Establishing a $1 million minimum 

financial requirement, applicable to 

LMMs regardless of the number of 

issues they may be allocated, is 

consistent with the financial obligations 

rules for Options Specialists on NYSE 

Amex LLC.4 The rights and obligations 

of LMMs pursuant to the rules of NYSE 

Arca 5 are substantially similar to the 

rights and obligations of Specialists 

contained in the rules of NYSE Amex.6

Accordingly, establishing a $1 million 

minimum financial requirement for 

Arca would further harmonize the rules 

of the two exchanges. 

The Exchange notes that the proposed 

requirement to maintain at least $1 

million in cash or liquid assets 

represents only the minimum financial 

obligation of an LMM. When allocating 

options issues to LMMs, the Exchange 

takes into consideration the ‘‘adequacy 

of capital’’ 7 of each LMM and could 

require an LMM to have a cash or liquid 

assets balance in excess of the $1 

million, as a condition of being 

allocated a given options issue(s). Also, 

the Exchange may reallocate an options 

issue(s) if an LMM is to incur a material 

change to its financial situation.8

Financial requirements established by 

the Exchange as a condition of issue 

allocation are separate from the $1 

million minimum financial requirement 

of Rule 6.8(c)(12). 

In addition to any LMM-specific 

financial obligation or requirement 

established by NYSE Arca, LMMs must 

maintain net capital sufficient to 

comply with the requirements of 

Exchange Act Rule 15c3–1. 

The Exchange has conducted an 

analysis of financial positions for all 

OTP Holders presently registered as an 

LMM. Based on this analysis, the 

Exchange has determined that certain 

LMMs will realize a decrease in their 

present minimum financial 

requirement, while others may realize 

an increase. However, due to the fact 

that LMMs are represented by highly 

capitalized OTP Holders, the Exchange 

has concluded that any increase in the 

minimum financial requirement will not 

impose undue hardships on any OTP 

Holders at this time. In addition, the 

Exchange does not believe that the 

change to the minimum financial 

requirement creates an unnecessary 

burden, or onerous barrier to entry, for 

OTP Holders who in the future may 

seek approval to operate as an LMM. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, 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. This rule change is 

designed to make the minimum 

financial requirement for LMMs 

consistent with similar requirements at 

NYSE Amex while still maintaining a 

standard designed to ensure that OTP 

Holders on NYSE Arca are adequately 

capitalized to fulfill their obligations as 

LMMs. 

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 

Written comments were neither 

solicited nor 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 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

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–NyseArca–2010–42. 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices 32531 

13 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). 

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–NYSEArca–2010–42. 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– 

NYSEArca–2010–42 and should be 

submitted on or before June 29, 2010. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13765 Filed 6–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62195; File No. SR–ISE– 

2010–46] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

May 28, 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 18, 

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 at 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 

(a) Purpose—The Exchange currently 

identifies on its Schedule of Fees certain 

ETF products whose options 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’’), 

the ProShares UltraPro Russell2000 

(‘‘URTY’’), the First Trust ISE Global 

Copper Index Fund (‘‘CU’’) and the First 

Trust ISE Global Platinum Index Fund 

(‘‘PLTM’’) are the only such ETFs listed 

on the Exchange’s fee schedule. On May 

18, 2010, ISE began listing options on 

the First Trust Amex Biotechnology 

Index Fund (‘‘FBT’’), the First Trust 

Financials AlphaDEX Fund (‘‘FXO’’) and 

the First Trust NASDAQ 100 Weighted 

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

this filing, FBT, FXO and QQEW are 

singly listed on ISE. The Exchange 

therefore proposes to charge a fee of 

$0.18 per contract for customer 

transactions in options on FBT, FXO 

and QQEW. The Exchange also proposes 

to charge a Payment for Order Flow fee 

for transactions in options on these 

products. 

(b) 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. 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES