22618 Federal Register / Vol. 74, No. 91 / Wednesday, May 13, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3The Commission notes that on May 5, 2009, ISE 

filed a separate proposed rule change (File No. SR– 

ISE–2009–26) to clarify the newly defined ‘‘Singly 

Listed Indexes’’ by listing on its fee schedule the 

applicable ticker symbol for each such index. In 

addition, that proposal reverts back to identifying 

by ticker symbols those products to which the 

Exchange’s Payment for Order Flow fee does not 

apply and it proposes to adopt a fee for ‘‘Singly 

Listed ETFs’’ and identify those products by their 

ticker symbol. 

4See Securities Exchange Act Release No. 57129 

(January 10, 2008), 73 FR 2963 (January 16, 2008). 

5See Securities Exchange Act Release No. 58671 

(September 29, 2008), 73 FR 

57722 (October 3, 2008). 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 19b–4(f)(2). [sic] 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59882; File No. SR–ISE– 

2009–21] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by 

International Securities Exchange, LLC 

Relating To Changes to the Fee 

Schedule 

May 7, 2009. 

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 April 27, 

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 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 to eliminate 

customer fees in Premium Products that 

are multiply listed, retire a pilot 

program capping fees for use of the 

Exchange’s Facilitation Mechanism and 

eliminate a volume-based fee rebate for 

Electronic Access Members. The text of 

the proposed rule change is available on 

the Exchange’s Internet Web site at 

http://www.ise.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 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 

Purpose—The purpose of this 

proposed rule change is to eliminate 

customer fees in multiply listed 

Premium Products, retire a pilot 

program capping fees for use of the 

Exchange’s Facilitation Mechanism and 

eliminate a volume-based fee rebate for 

Electronic Access Members. These 

changes will be operative on May 1, 

2009. 

First, ISE currently charges $0.18 per 

contract for customer transactions in 

Premium Products. Generally, Premium 

Products are options on exchangetraded funds (‘‘ETFs’’) and index 

options. For competitive reasons, the 

Exchange historically has waived most 

customer transaction fees and now 

proposes to do the same for all Premium 

Products that are multiply listed. The 

Exchange will continue to charge $0.18 

per contract for all index options that 

are listed only on ISE and for all of the 

Exchange’s foreign currency options. 

ISE believes this fee change will align 

its pricing to better compete with other 

exchanges in these products. As a result 

of this change, the Exchange will no 

longer publish a list of Premium 

Products on its Schedule of Fees.3

Second, pursuant to a pilot program, 

ISE currently offers a fee discount for 

certain orders of 7,500 contracts or more 

that are executed in the Exchange’s 

Facilitation Mechanism.4 Specifically, 

ISE waives (1) the execution fee on 

incremental volume above 7,500 

contracts for Firm Proprietary orders, 

Non-ISE Market Maker orders, Customer 

orders in Premium Products, and 

Customer orders in Second Market 

options. The objective of this pilot 

program was to encourage members to 

use the Exchange’s Facilitation 

Mechanism. The Exchange has 

determined to retire this pilot program. 

Finally, on October 1, 2008, ISE 

adopted a sliding scale-based fee credit 

that rewards Electronic Access Members 

for the total amount of order flow sent 

to the Exchange.5 The sliding scale 

applies to all customer and firm 

proprietary orders in all products and is 

calculated on a member firm basis, and 

applies to non-discounted volume only, 

that is, it does not apply to orders 

previously discounted by other pricing 

incentives established by the Exchange. 

The objective of this fee rebate program 

was to attract order flow to the 

Exchange. Upon a careful review, the 

ISE believes that eliminating fees for 

customer transactions in multiply listed 

Premium Products will better attract 

order flow to the Exchange. 

(b) Basis—The Exchange believes that 

the proposed rule change is consistent 

with the objectives of Section 6 of the 

Act,6 in general, and furthers the 

objectives of Section 6(b)(4),7 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. In particular, the fee 

changes proposed by this filing will 

allow the Exchange to better compete 

with other exchanges and better attract 

order flow to ISE. 

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 

the Act 8 and Rule 19b–4(f)(2) 9

thereunder. At any time within 60 days 

of the filing of such 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. 

Federal Register / Vol. 74, No. 91 / Wednesday, May 13, 2009 / Notices 22619 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 59807 

(Apr. 21, 2009); 74 FR 19251 (Apr. 28, 2009). 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal 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–2009–21 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–2009–21. 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 changes 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–2009–21 and should be 

submitted on or before June 3, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11169 Filed 5–12–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59879; File No. SR– 

NASDAQ–2009–041] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ 

Market Center and NASDAQ Options 

Market 

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 May 1, 

2009, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or the ‘‘Exchange’’) 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 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 to modify pricing 

for NASDAQ members using the Nasdaq 

Market Center. This proposed rule 

change, which is effective upon filing, 

will become operative on May 1, 2009. 

The text of the proposed rule change is 

available at http://nasdaqomx.cchwall

street.com/, at NASDAQ’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, 

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 modifying the price of 

trading equities and options on 

NASDAQ in several ways. First, 

NASDAQ is increasing the rebate for 

providing liquidity in equities traded on 

NASDAQ for members that actively 

trade both equities and options on 

NASDAQ. Currently, NASDAQ offers 

rebates of $0.0020 to $0.00295 per share 

for all members that provide liquidity in 

equities traded on NASDAQ depending 

on the volume of liquidity provided in 

equities. 

Effective May 1, 2009, a member firm 

that accesses liquidity of more than 

200,000 contracts per day from The 

NASDAQ Options Market (‘‘NOM’’) and 

provides average daily volume of 

liquidity exceeding 25 million shares 

per day in the NASDAQ equities 

market, will be credited a rebate of 

$0.0029 for providing liquidity in 

securities listed on NASDAQ or the 

New York Stock Exchange (‘‘NYSE’’) or 

on other exchanges. A member that 

provides 25 million shares of liquidity 

per day in equities and does not have 

the requisite options participation 

receives a rebate of $0.0025 per share. 

Second, also effective May 1, 2009, 

member firms will have the opportunity 

to earn a waiver of applicable fees 

charged for executing Mid-point Pegged 

orders (as defined in Nasdaq Rule 

4751(f)(4)). Firms can earn this fee 

waiver by providing average daily 

volume of liquidity through the Nasdaq 

Market Center in all securities during 

the month of more than 125 million 

shares. 

Third, NASDAQ is implementing 

pricing for the routing strategy set forth 

in Nasdaq Rule 4758(a)(1)(A)(i), as set 

forth in SR–NASDAQ–2009–036.3

Specifically, NASDAQ modified Rule 

4758, Order Routing, to provide market 

participants with the option of entering 

orders that do not check the Nasdaq 

Market Center book prior to routing. 

Market participants using that routing 

strategy for all securities will be 

assessed a fee of $0.0005 per share 

executed for orders that execute on 

venues other than in the NYSE or 

NASDAQ OMX BX. For securities that 

utilize this strategy and that execute on