6422 Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices 

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

6 15 U.S.C. 78s(b)(3)(A)(i). 

7 17 CFR 240.19b–4(f)(1). 8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 61211 

(December 18, 2009), 74 FR 68889. (‘‘Notice’’). 

4 In approving this proposal, 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. 78o–3(b)(6). 

found in Section 6(b)(5) of the Act,5 in 

that the proposed rule change is 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

proposed rule change identifies the 

options classes to be added to the Penny 

Pilot in a manner consistent with prior 

rule changes. 

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 written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A)(i) of the Exchange Act 6 and 

Rule 19b–4(f)(1) thereunder,7 in that it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of the 

Exchange. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the rule change if it appears to the 

Commission that the action is necessary 

or appropriate in the public interest, for 

the protection of investors, or would 

otherwise further 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–2010–09 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–2010–09. 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 No. SR–ISE–2010– 

09 and should be submitted on or before 

March 2, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2733 Filed 2–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61473; File No. SR–FINRA– 

2009–087] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Repeal 

NASD Rules 2760 and 2780, 

Incorporated NYSE Rules 2B and 411, 

and the Interpretation to Incorporated 

NYSE Rule 411(a)(ii)(5) as Part of the 

Process of Developing the 

Consolidated FINRA Rulebook 

February 2, 2010. 

On December 4, 2009, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association of 

Securities Dealers, Inc. (‘‘NASD’’)) 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 repeal NASD Rule 2760 

(Offerings ‘‘At the Market’’), NASD Rule 

2780 (Solicitation of Purchases on an 

Exchange to Facilitate a Distribution of 

Securities), Incorporated NYSE Rule 2B 

(No Affiliation between Exchange and 

any Member Organization), 

Incorporated NYSE Rule 411 (Erroneous 

Reports) and the Interpretation to 

Incorporated NYSE Rule 411(a)(ii)(5) as 

part of the process of developing a 

consolidated FINRA rulebook. The 

proposed rule change was published for 

comment in the Federal Register on 

December 29, 2009.3 The Commission 

received no comments on the proposal. 

This order approves the 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 

association.4 In particular, the 

Commission finds that the proposed 

rule change is consistent with the 

provisions of Section 15A(b)(6) of the 

Act,5 which requires, among other 

things, that FINRA rules be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 


Cprice-sewell on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 26 / Tuesday, February 9, 2010 / Notices 6423 

6 17 CFR 240.15c1–8. 

7See Securities Exchange Act Release No. 32100 

(April 2, 1993), 58 FR 18145 (April 8, 1993). 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

3The Exchange’s two modes of order interaction 

are described in NSX Rule 11.13(b). 

4 ‘‘Zero Display Orders’’ as used herein and in the 

Fee Schedule means ‘‘Zero Display Reserve Orders’’ 

as specified in NSX Rule 11.11(c)(2)(A). 

5See Explanatory Endnote (6) to the Fee 

Schedule. 

general, to protect investors and the 

public interest. 

The Commission believes that the 

proposed rule change is appropriate to 

eliminate confusion and reduce 

regulatory overlap by repealing rules 

that are similar to federal rules and 

regulations or are specific to the NYSE 

and its marketplace. As further 

described in the Notice, FINRA stated 

that NASD Rule 2760 is similar to the 

Commission’s Rule 15c1–8 under the 

Act,6 which FINRA believes 

appropriately protects investors without 

duplication by NASD Rule 2760. FINRA 

also stated that NASD Rule 2780 

duplicates the Commission’s Rule 10b– 

2, which was rescinded by the 

Commission in 1993 because it was 

duplicative of other provisions of the 

federal securities laws, including the 

Commission’s Regulation M.7 Therefore, 

FINRA believes that NASD Rule 2780 

should be deleted. In addition, FINRA 

stated that NYSE Rules 2B and 411 and 

the Interpretation to Incorporated NYSE 

Rule 411(a)(ii)(5) relate to activity that 

concerns solely the NYSE marketplace 

and, in the case of Rule 411(b)(2), is 

duplicative of existing Commission 

recordkeeping requirements. Thus, 

FINRA believes that these Incorporated 

NYSE Rules and Interpretation should 

not be included in the consolidated 

FINRA rulebook. In approving this 

proposed rule change, the Commission 

notes that FINRA members and their 

associated persons are required to 

comply with all applicable federal 

securities laws and that FINRA, as a 

self-regulatory organization, has the 

obligation to have the capacity to 

enforce compliance by its members and 

their associated persons with the Act 

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 proposed 

rule change (SR–FINRA–2009–087) be, 

and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2734 Filed 2–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–61474; File No. SR–NSX– 

2010–01] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the NSX Fee and Rebate Schedule To 

Increase the Rebate for Liquidity 

Adding Displayed Orders of Securities 

Priced Under One Dollar in the Auto 

Execution Mode of Order Interaction to 

0.25% of Trade Value 

February 2, 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 January 

29, 2010, National Stock Exchange, Inc. 

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 Commission is publishing this 

notice to solicit comment on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

National Stock Exchange, Inc. 

(‘‘NSX®’’ or ‘‘Exchange’’) is proposing a 

rule change, operative at 

commencement of trading on February 

1, 2010, which proposes to amend the 

NSX Fee and Rebate Schedule (the ‘‘Fee 

Schedule’’) to increase the rebate for 

liquidity adding displayed orders of 

securities priced under one dollar in the 

Auto Execution mode of order 

interaction (‘‘AutoEx’’) 3 to 0.25% of 

trade value. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.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 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

With this rule change, the Exchange is 

proposing to modify the Fee Schedule to 

increase the rebate for liquidity adding 

displayed orders of securities priced 

under one dollar in AutoEx to 0.25% of 

trade value. 

The current Fee Schedule provides a 

rebate in AutoEx of 0.10% of trade value 

(except for Zero Display Orders 4) with 

respect to transactions in securities 

priced under one dollar. The term ‘‘trade 

value’’ means a dollar amount equal to 

the price per share multiplied by the 

number of shares executed.5 The instant 

rule filing proposes to increase such 

rebate from 0.10% of trade value to 

0.25% of trade value. Zero Display 

Orders remain excluded from this rebate 

program. The proposed rule change 

would not modify other rebates or fees 

that are included in the Fee Schedule. 

Rationale 

The Exchange has determined that 

this change is necessary to create further 

incentive for ETP Holders to submit 

increased volumes of liquidity 

providing displayed orders of sub-dollar 

securities in AutoEx and, ultimately, to 

increase the revenues of the Exchange 

for the purpose of continuing to 

adequately fund its regulatory and 

general business functions. The 

Exchange has further determined that 

the proposed fee adjustment is 

necessary for competitive reasons. The 

Exchange believes that this rebate 

change will not impair its ability to 

carry out its regulatory responsibilities. 

The proposed modifications are 

reasonable and equitably allocated to 

those ETP Holders that opt to provide 

liquidity adding displayed orders of 

securities priced under one dollar in 

AutoEx, and is not discriminatory 

because ETP Holders are free to elect 

whether or not to send liquidity adding 

displayed orders for sub-dollar 

securities in AutoEx. In addition, the 

proposed modification will tend to 

further incentivize ETP Holders to 

submit displayed orders over Zero 


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