Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 22783 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3References to ISE Members in this filing refer to 

DECN Subscribers who are ISE Members. 

4See Securities and Exchange Commission 

Release No. 59843 (April 29, 2009), 74 FR 21046 

(May 6, 2009) (SR–NASDAQ–2009–035). 

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–NYSE–2009–43 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–NYSE–2009–43. 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 NYSE. 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–NYSE–2009–43 and should 

be submitted on or before June 4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11228 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59888; File No. SR–ISE– 

2009–23] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change, as Modified 

by Amendment No. 1, by the 

International Securities Exchange, LLC 

Relating to Amending the Direct Edge 

ECN Fee Schedule To Increase the 

Super Tier Rebate in Securities 

Reported To Tape A and Tape C 

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 May 1, 

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 proposes to amend 

Direct Edge ECN’s (‘‘DECN’’) fee 

schedule for ISE Members 3 to raise the 

Super Tier Rebates, as defined below, 

for securities reported to Tape A and 

Tape C and to make certain other 

clarifying changes. All of the changes 

described herein are applicable to ISE 

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 

1. Purpose 

DECN, a facility of ISE, operates two 

trading platforms, EDGX and EDGA. 

Currently, DECNs’ fee schedule includes 

a per share rebate in securities reported 

to Tape A and Tape C of $0.0029 per 

share for ISE Members that add liquidity 

on EDGX if the ISE Member satisfies any 

of the following three criteria on a daily 

basis, measured monthly: (i) Adding 

40,000,000 shares or more on either 

EDGX, EDGA or EDGX and EDGA 

combined; (ii) adding 20,000,000 shares 

or more on either EDGX, EDGA or EDGX 

and EDGA combined and routing 

20,000,000 shares or more through 

EDGA; or (iii) adding 10,000,000 shares 

or more of liquidity to EDGX, so long as 

added liquidity on EDGX is at least 

5,000,000 shares greater than the 

previous calendar month. The rebate 

described above is referred to as a 

‘‘Super Tier Rebate’’ on the DECN fee 

schedule. 

The Exchange is now proposing to 

raise the aforementioned Super Tier 

Rebate from $0.0029 to $0.003 per share. 

The Exchange is raising this rebate to 

maintain a competitive rate. This fee 

change will become operative on May 1, 

2009. 

In an effort to increase volume on 

EDGA, DECN currently offers volume 

discounts for ISE Members who route 

20,000,000 shares or more on a daily 

basis, measured monthly, to Nasdaq 

through EDGA using order types that are 

solely eligible for routing to Nasdaq. 

Such orders are currently charged at 

$0.0025 per share with respect to EDGA 

routed volume. ISE Members routing 

30,000,000 shares per day are charged 

$0.0024 per share with respect to EDGA 

routed volume. Recently, Nasdaq has 

amended its pricing by increasing its fee 

for orders that remove liquidity by 

$0.0004.4 Accordingly, the Exchange is 

now proposing to amend the DECN 

volume discounts that apply to ISE 

Members by increasing each volume 

discount fee by $0.0004, which will 


pwalker on PROD1PC71 with NOTICES
22784 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

5See Securities and Exchange Commission 

Release Nos. 59692 (April 2, 2009), 74 FR 16024 

(April 8, 2009) (SR–ISE–2009–17). 

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). 

change the fee to $0.0029 per share and 

$0.0028 per share, respectively. 

On April 1, 2009, the Exchange 

amended the DECN fee schedule to 

reduce the rebate from $0.0035 per 

share to $0.003 per share for orders that 

add liquidity on EDGX in securities 

priced at or above $1.00 that are 

reported to Tape B by ISE Members.5 In 

connection with this amendment, a 

portion of the corresponding footnote on 

the DECN fee schedule should have 

been deleted, but such deletion was 

overlooked at the time of the filing. The 

relevant portion of the footnote states 

‘‘In the event that Direct Edge offers a 

rebate higher than $0.0029 per share for 

subscribers who do not meet the criteria 

for the Super Tier, then those who meet 

the aforementioned criteria will receive 

the higher rebate.’’ The Exchange 

proposes to delete this language as 

Direct Edge is no longer offering this 

incentive. 

The Exchange is also proposing to 

make certain clarifying changes to 

DECN’s fee schedule. DECN’s fee 

schedule includes a description of 

liquidity flags and associated fees. Flag 

D is appended to orders that are routed 

to and executed on the New York Stock 

Exchange (‘‘NYSE’’). Such orders are 

charged a fee on the NYSE because the 

order is removing liquidity. The fee 

assessed to this order is then passed 

back to the ISE Member that originated 

the order. The Exchange is now 

proposing to amend the description of 

Flag D to include, not just orders that 

are routed to NYSE, but also orders that 

are re-routed to NYSE. Meaning, the 

order that originates at DECN may get 

routed to another market center for 

execution, but that market center may 

re-route the order to NYSE, where the 

order ultimately receives an execution 

that results in a removal of liquidity. In 

this circumstance, the fee assessed to 

the order will still be passed back to the 

ISE Member that originated the order as 

if such order was originally routed to 

NYSE. 

Finally, the Exchange is proposing to 

delete a portion of a footnote on DECN’s 

fee schedule that provides for a lower 

charge to ISE Memers [sic] whose orders 

in securities that are reported to Tape A 

and Tape C first get routed to Nasdaq 

Stock Market (‘‘Nasdaq’’) and then get 

re-routed by Nasdaq. In this 

circumstance, the ISE Member would be 

charged a fee of $0.0026 per share for 

removing liquidity in Tape A and Tape 

C securities regardless of where the 

order ultimately gets executed and 

regardless of what the executing market 

center charges Nasdaq. Whereas, orders 

that get routed to any other market 

center and then re-routed by that market 

center get charged a fee of $0.003 per 

share when the order removes liquidity. 

The Exchange is now proposing to 

delete the portion of the footnote that 

provides for this exception because 

Nasdaq has raised their [sic] fee to 

$0.003 per share for all orders that get 

routed to Nasdaq and then re-routed by 

Nasdaq. 

2. Statutory 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, raising the Super Tier Rebate 

in Tape A and Tape C securities and 

offering pricing incentives to market 

participants who route orders to DECN 

allows DECN to remain competitive. ISE 

notes that DECN operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to competing venues if they deem 

fee levels at a particular venue to be 

excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to incentivize market 

participants to direct their order flow to 

DECN. Additionally, the Exchange is 

proposing to make certain clean-up and 

clarifying changes to the DECN fee 

schedule to assist ISE Members in 

understanding the charges that are 

applicable when using its facilities. ISE 

believes the fees and credits remain 

competitive with those charged by other 

venues and therefore continue to be 

reasonable and equitably allocated to 

those members that opt to direct orders 

to DECN rather than competing venues. 

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. 

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–2009–23 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–2009–23. 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 Commissions 

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 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 22785 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f(b). 

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

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(2). 

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–2009–23 and should be 

submitted by June 4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11230 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59883; File No. SR– 

NYSEAmex–2009–16] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Making Certain 

Amendments to Its Price List 

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 30, 

2009, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

price list to (i) clarify that nonelectronic agency transactions of less 

than 10,000 shares between floor 

brokers in the crowd are not subject to 

any transaction fee, (ii) clarify that 

brokers are charged a discounted fee of 

$0.0005 per share for Discretionary eQuotes and verbal agency interest when 

taking liquidity from the Exchange, and 

(iii) to remove references to the payment 

of rebates applicable to the period prior 

to the implementation of the Capital 

Commitment Schedule that are no 

longer relevant. The text of the proposed 

rule change is available at the Exchange, 

the Commission’s Public Reference 

Room, and 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify the 

2009 NYSE Amex Price List to clarify 

that non-electronic agency transactions 

of less than 10,000 shares between floor 

brokers in the crowd are not subject to 

any transaction fee. The 2009 NYSE 

Amex Price List does not currently 

reference any fee for these transactions 

and the Exchange treats them the same 

as non-electronic agency transactions of 

more than 10,000 shares, which are free 

of charge. The amended 2009 NYSE 

Amex Price List will state that any nonelectronic agency transaction between 

brokers in the crowd is free of charge, 

regardless of size. 

The current NYSE Amex price list 

does not state a fee policy with respect 

to Discretionary e-Quotes and orders 

submitted by floor brokers as verbal 

agency interest. The Exchange’s current 

practice with respect to such orders is 

to charge the floor broker $0.0005 per 

share or, in the case of securities with 

a trading price of less than $1.00, the 

lesser of (i) $0.0005 per share or (ii) 

0.25% of the dollar value of the 

transaction. The current NYSE Amex 

Price List does not state this fee policy. 

The Exchange is amending its price list 

to specifically state this policy. 

Footnote 5 in the current 2009 NYSE 

Amex Price List states that Designated 

Market Makers receive rebates under 

several circumstances when providing 

liquidity on non-displayed interest 

using the Capital Commitment 

Schedule, or, prior to the 

implementation of the Capital 

Commitment Schedule, using the 

following message activities: price 

improvement, size improvement (PRIN 

FILL), matching away market quotes. As 

the Capital Commitment Schedule has 

been implemented, the text dealing with 

the payment of rebates in the period 

prior to its implementation is no longer 

relevant and the Exchange proposes to 

delete it. 

The subheading ‘‘Transactions in 

Securities with a Per Share Price Above 

$1.00’’ is modified to clarify that it 

applies to all transactions in securities 

with a price equal to or greater than 

$1.00. It will now read as follows: 

‘‘Transactions in Securities with a Per 

Share Price of $1.00 or more.’’ 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,3

in general, and Section 6(b)(4) of the 

Act,4 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 5 of the Act and 

subparagraph (f)(2) of Rule 19b–4 6

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Amex. 

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. 


pwalker on PROD1PC71 with NOTICES