22794 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

9 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

10 15 U.S.C. 78f(b)(4). 

11See Securities Exchange Act Release No. 34– 

59888 (May 7, 2009) (notice of filing and immediate 

effectiveness of File No. SR–ISE–2009–23) (the 

‘‘Member Fee Filing’’). 

12See note 11, supra. 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

other charges among its members and 

other persons using its facilities. In 

particular, this proposal will ensure that 

both ISE Members and non-ISE 

Members (by virtue of the pass-through 

described above) will receive equivalent 

rebates. 

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. 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–2009–24 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–2009–24. 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. Copies of such 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–2009–24 and should be 

submitted by June 4, 2009. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change, as amended, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.9 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4),10 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 any 

facilities. 

ISE recently amended DECN’s fee 

schedule to increase the Super Tier 

Rebate in securities reported to Tape A 

and Tape C and revise other rebates and 

fees.11 DECN receives rebates and 

charges 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 retroactively to May 1, 2009, will 

allow DECN to pass through the revised 

rebates and fees to the non-ISE member 

subscribers for which it acts as an 

introducing broker. The Commission 

finds that the proposal is consistent 

with the Act because it will provide 

rebates and charge fees to non-ISE 

member subscribers that are equivalent 

to those established for ISE member 

subscribers in the Member Fee Filing.12

ISE has requested that the 

Commission find good cause for 

approving the proposed rule change 

prior to the thirtieth day after 

publication of notice in the Federal 

Register. As discussed above, the 

proposal will allow DECN to pass 

through to non-ISE member subscribers 

the revised rebate and fees established 

for ISE member subscribers in the 

Member Fee Filing, resulting in 

equivalent rebates and fees for ISE 

member and non-member subscribers. 

In addition, because the proposal will 

apply the revised rebates and fees 

retroactively to May 1, 2009, the revised 

rebates and 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 

thereof in the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change, as amended (SR– 

ISE–2009–24) be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11229 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59875; File No. SR– 

NASDAQ–2009–043] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify DOT, 

SCAN and STGY Routing Strategies To 

Incorporate an Optional Pre-Routing 

Display Period 

May 6, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 30, 

2009, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) 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 Nasdaq. Nasdaq 

has designated the proposed rule change 

as constituting a non-controversial rule 

change under Rule 19b–4(f)(6) under the 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 22795 

3 17 CFR 240.19b–4(f)(6). 

4 15 U.S.C. 78f. 

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

Act,3 which renders the proposal 

effective upon filing with the 

Commission. 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 

Nasdaq proposes a rule change to 

modify its DOT, SCAN and STGY 

routing strategies so as to incorporate an 

optional pre-routing display period for 

all orders using such strategies. 

The text of the proposed rule change 

is below. Proposed new language is 

italicized. 

4758. Order Routing 

(a) Order Routing Process 

(1) The Order Routing Process shall be 

available to Participants from 7 a.m. 

until 8 p.m. Eastern Time, and shall 

route orders as described below: All 

routing of orders shall comply with Rule 

611 of Regulation NMS under the 

Exchange Act. 

(A) The System provides three routing 

options. Of these three, DOT is only 

available for orders ultimately sought to 

be directed to either the New York Stock 

Exchange (‘‘NYSE’’) or NYSE Amex. 

The System will consider the quotations 

only of accessible markets. The three 

System routing options are: 

(i) DOT (‘‘DOT’’)—under this option, after 

checking the System for available shares if so 

instructed by the entering firm, orders are 

sent to other available market centers for 

potential execution, per entering firm’s 

instructions, before being sent to the 

destination exchange, so long as the price at 

such market centers would not violate the 

Order Protection Rule. If instructed by the 

entering firm, prior to sending orders to other 

available markets, such orders shall be 

displayed to Nasdaq market participants 

(and market data vendors) for potential 

execution, at the NBBO price, for a period of 

time not to exceed 3 seconds as determined 

by Nasdaq. Any un-executed portion will 

thereafter be sent to the NYSE or NYSE 

Amex, as appropriate, at the order’s original 

limit order price. This option may only be 

used for orders with time-in-force parameters 

of either SDAY, SIOC, MDAY, MIOC, GTMC 

or market-on-open/close. Notwithstanding 

the foregoing, orders designated for 

participation in the NYSE or NYSE Amex 

opening or closing processes will not check 

the System for available shares prior to 

routing. 

(ii) Reactive Electronic Only (‘‘STGY’’)— 

under this option, after checking the System 

for available shares if so instructed by the 

entering firm, orders are sent to other 

available market centers for potential 

execution, per entering firm’s instructions. 

When checking the book, the System will 

seek to execute at the price it would send the 

order to a destination market center. If 

instructed by the entering firm, prior to 

sending orders to other available markets, 

such orders shall be displayed to Nasdaq 

market participants (and market data 

vendors) for potential execution, at the NBBO 

price, for a period of time not to exceed 3 

seconds as determined by Nasdaq. If shares 

remain un-executed after routing, they are 

posted on the book. Once on the book, 

should the order subsequently be locked or 

crossed by another accessible market center, 

the System shall route the order to the 

locking or crossing market center. With the 

exception of the Minimum Quantity order 

type, all time-in-force parameters and order 

types may be used in conjunction with this 

routing option. 

(iii) Electronic Only Scan (‘‘SCAN’’)— 

under this option, after checking the System 

for available shares if so instructed by the 

entering firm, orders are sent to other 

available market centers for potential 

execution, per entering firm’s instructions, in 

compliance with Rule 611 under Regulation 

NMS. When checking the book, the System 

will seek to execute at the price it would 

send the order to a destination market center. 

If instructed by the entering firm, prior to 

sending orders to other available markets, 

such orders shall be displayed to Nasdaq 

market participants (and market data 

vendors) for potential execution, at the NBBO 

price, for a period of time not to exceed 3 

seconds as determined by Nasdaq. If shares 

remain un-executed after routing, they are 

posted on the book. Once on the book, 

should the order subsequently be locked or 

crossed by another market center, the System 

will not route the order to the locking or 

crossing market center. With the exception of 

the Minimum Quantity order type, all timein-force parameters and order types may be 

used in conjunction with this routing option. 

Orders that do not check the System for 

available shares prior to routing may not be 

sent to a facility of an exchange that is an 

affiliate of Nasdaq, except for orders that are 

sent to the NASDAQ OMX BX Equities 

Market. 

(B) No change. 

(b) No change. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq 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. Nasdaq 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 

Nasdaq is proposing to expand its 

DOT, SCAN and STGY routing 

strategies to provide an optional prerouting display period for orders using 

those strategies. Under the proposal, 

orders entered using any form of the 

DOT, SCAN or STGY routing strategies 

will, after first executing to the 

maximum extent possible in Nasdaq’s 

book, have their remaining share 

amounts and prices displayed to Nasdaq 

market participants and market data 

vendors for a period of time determined 

by Nasdaq which will not exceed 3 

seconds. This display to Nasdaq market 

participants and market data vendors 

shall take place before routing any order 

or order remainder to any other 

available market and will be the default 

processing preference for the DOT, 

SCAN and STGY strategies. Parties not 

wishing to have their orders displayed 

prior to routing may direct the system 

to avoid the pre-routing display period. 

Nasdaq notes that such pre-routing 

display functionality has already been 

approved by the Commission for use by 

the CBOE Stock Exchange and that such 

functionality can be expected to provide 

system users with greater control over 

their trading. Except for the changes to 

the DOT, SCAN and STGY routing 

functionality itself describe here, 

nothing in the proposal will modify or 

alter any existing rule or process related 

to order priority, order execution, tradethrough protection or locked or crossed 

markets. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,4 in 

general, and with Sections 6(b)(5) of the 

Act,5 in particular, in that the proposal 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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. Nasdaq notes that 

similar functionality has already been 


pwalker on PROD1PC71 with NOTICES
22796 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

6Securities Exchange Act Release No. 54422 

(September 11, 2006), 71 FR 54537 (September 15, 

2006) (SR–CBOE–2004–21); Securities Exchange 

Act Release No. 59359 (February 4, 2009), 74 FR 

6927 (February 11, 2009) (SR–CBOE–2008–123). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 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. Nasdaq has 

requested that the Commission waive this five-day 

pre-filing notice requirement. The Commission 

hereby grants this request. 9 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. 

found to be consistent with the Act by 

the Commission.6

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

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 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 

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 7 and Rule 19b– 

4(f)(6) thereunder.8

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–NASDAQ–2009–043 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–NASDAQ–2009–043. 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 the filing also will be available 

for inspection and copying at the 

principal office of Nasdaq. 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–NASDAQ–2009–043 and 

should be submitted on or before June 

4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11168 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59869; File No. SR–NYSE– 

2009–46] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Extending Until 

October 1, 2009 the Six-Month Pilot 

Program Which Established a New 

Class of NYSE Market Participants 

Referred to as ‘‘Supplemental Liquidity 

Providers’’ and Is Designated as 

Exchange Rule 107B 

May 6, 2009. 

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 April 30, 

2009, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 extend 

until October 1, 2009, the six-month 

pilot program (‘‘Pilot’’ or ‘‘program’’) 

which established a new class of NYSE 

market participants referred to as 

‘‘Supplemental Liquidity Providers’’ 

(‘‘SLPs’’) and is designated as Exchange 

Rule 107B. The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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 those 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. 


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