1428 Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 

11See note 4. 

12 17 CFR 200.30–3(a)(73). 

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. 

this date.11 At any time within 60 days 

of the date of effectiveness of the 

proposed rule change, the Commission, 

after consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

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–NFA–2009–01. 

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–NFA–2009–01. 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 NFA. 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 publicly available. 

All submissions should refer to File 

Number SR–NFA–2009–01 and should 

be submitted on or before February 1, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–222 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61287; File No. SR–ISE– 

2009–113] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Make the Exchange’s Pilot 

Program To Expose All-Or-None 

Orders Permanent 

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, II, and III 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 make 

permanent its pilot program regarding 

limitations on orders to include the 

exposure of all-or-none orders. 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 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 

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 

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 purpose of the 

proposed rule change is to make 

permanent the Exchange’s pilot program 

regarding limitations on orders to 

include the exposure of all-or-none 

orders. 

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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 1429 

7The 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. 

8See Exchange Act Release No. 60311 (July 15, 

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

9See Exchange Act Release No. 60866 (October 

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

10See Exchange Act Release No. 61016 

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

2009). 

11The Commission notes that the pilot will 

become permanent as of February 1, 2010 (see 

supra Section II(A)(a)). 

12 17 CFR 240.19b–4(f)(6). 13 17 CFR 200.30–3(a)(12). 

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. The broadcast message, which 

includes all of the terms of the order, 

will be made available to any market 

participant, not just members.7

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.8 The Exchange 

subsequently extended the pilot for an 

additional month,9 and again through 

December 31, 2009.10 During the 

extension through December 31, 2009, 

the broadcast message was made 

available to any market participant, not 

just members. Thus, all of the terms of 

the order continue to be disclosed to all 

market participants. The pilot was 

subsequently extended for an additional 

month and is set to expire on January 

31, 2010. The Exchange now proposes 

to make the pilot permanent, as of 

February 1, 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 

This proposed rule change does not 

significantly affect the protection of 

investors or the public interest, does not 

impose any significant burden on 

competition, and, by its terms, does not 

become operative for 30 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.11 The 

Exchange provided the Commission 

with 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 

the proposed rule change as required by 

Rule 19b–4(f)(6).12 The proposed rule 

change will permit the exchange to 

make the current pilot program 

permanent. For the foregoing reason, 

this rule filing qualifies for immediate 

effectiveness as a ‘‘non-controversial’’ 

rule change under paragraph (f)(6) of 

Rule 19b–4 of the Act, as it does not 

raise any new, unique or substantive 

issues, and is beneficial for competitive 

purposes and to promote a free and 

open market for the benefit of investors. 

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–2009–113 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–2009–113. 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–2009–113 and should be 

submitted on or before February 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–240 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 


srobinson on DSKHWCL6B1PROD with NOTICES