[Federal Register Volume 74, Number 100 (Wednesday, May 27, 2009)]
[Notices]
[Pages 25296-25297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12216]



[[Page 25296]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59943; File No. SR-ISE-2009-28]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to the Extension of a Pilot Program for Directed Orders

May 20, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder, \2\ notice 
is hereby given that on May 13, 2009, the International Securities 
Exchange, LLC (``ISE'' or ``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 ISE. The proposed rule change has been filed by the ISE as 
effecting a change in an existing order-entry or trading system 
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(5) 
thereunder,\4\ 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 7 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to extend the pilot period for the system 
change that identifies to a Directed Market Maker (``DMM'') the 
identity of the firm entering a Directed Order until November 30, 2009.

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
    On January 5, 2006, the ISE initiated a system change to identify 
to a DMM the identity of the firm entering a Directed Order. The ISE 
filed this system change on a pilot basis under Section 19(b)(3)(A) of 
the Exchange Act of 1934 (the ``Exchange Act'') and Rule 19-4(f)(5) 
thereunder \5\ so that it would be effective while the Commission 
considered a separate proposed rule change filed under Section 19(b)(2) 
of the Exchange Act to amend the ISE's rules to reflect the system 
change on a permanent basis (the ``Permanent Rule Change'').\6\ The 
current pilot expires on May 29, 2009,\7\ but the Commission has not 
yet taken action with respect to the Permanent Rule Change. 
Accordingly, the Exchange proposes to extend the pilot for an 
additional six months, until November 30, 2009, so that the system 
change will remain in effect while the Commission continues to evaluate 
the Permanent Rule Change.\8\
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    \5\ Exchange Act Release No. 53104 (Jan. 11, 2006), 71 FR 2142 
(Jan. 19, 2006) (Notice of Filing and Immediate Effectiveness of SR-
ISE-2006-02).
    \6\ Exchange Act Release No. 53103 (Jan. 11, 2006), 71 FR 3144 
(Jan. 19, 2006) (Notice of Filing of SR-ISE-2006-01).
    \7\ Exchange Act Release No. 59276 (January 22, 2009), 74 FR 
5007 (January 28, 2009) (Notice of Filing and Immediate 
Effectiveness of SR-ISE-2009-02).
    \8\ The ISE anticipated that extension of the pilot might be 
necessary and included this in the filing for the initial pilot. See 
supra note 5, at footnote 5.
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2. Statutory Basis
    The basis under the Exchange Act is found in Section 6(b)(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. Extension of the pilot 
program will allow the Exchange to continue operating under the pilot 
while the Commission considers the Permanent Rule Change.

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 Exchange 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 has become effective pursuant to Section 
19(b)(3)(A) of the Exchange Act \9\ and Rule 19b-4(f)(5) \10\ 
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 proposes of the Exchange Act.
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    \9\ 5 U.S.C. 78s(b)(3)(A).
    \10\ 7 CFR 240.19b-4(f)(5).
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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 Exchange Act. Comments may be submitted 
by any of the following methods:

Electronic Comments

    <bullet> Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an E-mail to <a href="/cdn-cgi/l/email-protection#047671686129676b6969616a7077447761672a636b72"><span class="__cf_email__" data-cfemail="7705021b125a14181a1a121903043704121459101801">[email protected]</span></a>. Please include 
File Number SR-ISE-2009-28 in the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Elizabeth Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2009-28. 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

[[Page 25297]]

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-2009-28 and should be 
submitted by June 17, 2009.
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    \11\ 7 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-12216 Filed 5-26-09; 8:45 am]
BILLING CODE 8010-01-P


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