1430 Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See ISE Rule 716(d) (Facilitation Mechanism), 

Rule 716(e) (Solicited Order Mechanism) and Rule 

723 (Price Improvement Mechanism for Crossing 

Transactions). 

6Supplementary Material .02 to ISE Rule 713. 

7See Exchange Act Release No. 60311 (July 15, 

2009), 74 FR 36290 (July 22, 2009). 

8See Exchange Act Release No. 60866 (October 

22, 2009), 74 FR 55879 (October 29, 2009). 

9See Exchange Act Release No. 61016 (November 

17, 2009), 74 FR 61393 (November 24, 2009). 

10The AON broadcast message is available 

through the Exchange’s application programming 

interface (‘‘API’’). Any member or non-member 

connecting to the API can receive the AON 

broadcast message. The Exchange is not proposing 

to adopt a fee associated with receiving this 

message, and any future fee would be filed with the 

Commission. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61286; File No. SR–ISE– 

2009–112] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Extend the Pilot Program 

To Expose All-or-None Orders Until 

January 31, 2010 

January 5, 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 December 

24, 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 and II below, which items 

have been prepared by the Exchange. 

The Exchange has filed the proposal as 

a ‘‘non-controversial’’ proposed rule 

change pursuant to Section 

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

19b–4(f)(6) thereunder.4 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 rules to implement a broadcast 

message that will inform market 

participants when a non-marketable allor-none limit order is placed on the 

limit order book. The text of the 

proposed rule change is as follows, with 

deletions in [brackets] and additions 

italicized: 

Rule 717. Limitations on Orders 

* * * * * 

Supplementary Material to Rule 717 

.01–.03 No Change. 

.04 A non-marketable all-or-none limit 

order shall be deemed ‘‘exposed’’ for the 

purposes of paragraphs (d) and (e) one 

second following a broadcast notifying 

market participants that such an order to buy 

or sell a specified number of contracts at a 

specified price has been received in the 

options series. This provision shall be in 

effect on a pilot basis expiring [December 31, 

2009] January 31, 2010. 

* * * * * 

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—Pursuant to ISE Rule 

717(d) and (e), Electronic Access 

Members must expose agency orders on 

the Exchange for at least one second 

before entering a contra-side proprietary 

order or a contra-side order that was 

solicited from a broker-dealer, or utilize 

one of the Exchange’s execution 

mechanisms that have one second 

exposure periods built into the 

functionality.5

The Exchange operates an integrated 

system that consolidates all market 

maker quotes and orders, and 

automatically disseminates the best bid 

and offer. If a limit order is designated 

as all-or-none (‘‘AON’’), the contingency 

that the order must be executed in full 

makes it ineligible for display in the 

best bid or offer. Nevertheless, such 

orders are maintained in the system and 

remain available for execution after all 

other trading interest at the same price 

has been exhausted.6 Upon the receipt 

of a non-marketable all-or-none limit 

order, the system automatically will 

send a broadcast message to all market 

participants notifying them that an allor-none order to buy or to sell a 

specified number of contracts at a 

specified price has been placed on the 

book. 

On July 9, 2009, the Exchange 

adopted a proposed rule change on a 

three-month pilot basis to specify that a 

non-marketable all-or-none limit order 

is deemed ‘‘exposed’’ for the purposes of 

Rule 717(d) and (e) one second 

following a broadcast notifying 

members that such an order to buy or 

sell a specified number of contracts at 

a specified price has been received in 

the options series.7 The Exchange 

subsequently extended the pilot for an 

additional month,8 and then extended it 

again through December 31, 2009.9

During the last extension, the broadcast 

message was made available to any 

market participant, not just members.10

Thus, all of the terms of the order are 

disclosed to all market participants. The 

Exchange now proposes to extend the 

pilot until January 31, 2010. 

(b) Basis—The basis under the 

Securities Exchange Act of 1934 

(‘‘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, under the 

proposed rule change all-or-none orders 

will continue to be exposed to all 

market participants so that there is a 

greater opportunity for them to interact 

with such orders. 

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 

Because the proposed rule change: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 1431 

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

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and 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 satisfied this 

requirement. 

14 Id. 

15For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

3On December 31, 2009, NFA filed an update to 

the proposed rule change to indicate that the CFTC, 

by letter dated December 28, 2009, advised NFA 

that the CFTC had determined not to review the 

proposal and that NFA was permitted to make the 

proposal effective as of December 28, 2009. 

days after the date of the filing, 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 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.13 However, Rule 19b– 

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. ISE 

has requested that the Commission 

waive the 30-day operative delay. The 

Commission notes that waiver of the 

operative delay will permit the pilot to 

continue until January 31, 2010 without 

further delay, and will provide all 

market participants with the 

opportunity to receive ISE’s broadcast 

message with information about the 

terms of new AON orders. The 

Commission also notes that no 

comments were received to date on the 

existing pilot. For these reasons, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, and designates the 

proposed rule change to be operative 

upon filing with the Commission.15

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 

No. SR–ISE–2009–112 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 No. 

SR–ISE–2009–112. 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, 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 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 No. 

SR–ISE–2009–112 and should be 

submitted on or before February 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–239 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61284; File No. SR–NFA– 

2009–02] 

Self-Regulatory Organizations; 

National Futures Association; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Change to the 

Interpretive Notice Regarding Security 

Futures Products Proficiency Training 

January 4, 2010. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–7 under the Act 2

notice is hereby given that on December 

11, 2009, National Futures Association 

(‘‘NFA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘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. NFA 

concurrently filed the proposed rule 

change with the Commodity Futures 

Trading Commission (‘‘CFTC’’).3

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The amendments to the Interpretive 

Notice titled ‘‘NFA Compliance Rules 2– 

7 and 2–24 and Registration Rule 401: 

Proficiency Requirements for Security 

Futures Products’’ extend the relief from 

having to take a proficiency exam to 

engage in security futures activities from 

December 31, 2009 to December 31, 

2012. 

A copy of this filing is available on 

the Exchange’s Web site at http:// 

www.nfa.futures.org, on the 

Commission’s Web site at http:// 

www.sec.gov, the Exchange’s principal 

office 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 


srobinson on DSKHWCL6B1PROD with NOTICES