27374 Federal Register / Vol. 74, No. 109 / Tuesday, June 9, 2009 / Notices 

7 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

8 15 U.S.C. 78f(b)(4). 

9See Securities Exchange Act Release No. 60031 

(June 3, 2009) (notice of filing and immediate 

effectiveness of File No. SR–ISE–2009–29) (the 

‘‘Member Fee Filing’’). 

10See note 9, supra. 

11 15 U.S.C. 78s(b)(2). 

12 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. 59804 

(April 21, 2009), 74 FR 19256 (April 28, 2009). 

All submissions should refer to File 

Number SR–ISE–2009–31. 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 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–2009–31 and should be 

submitted on or before June 30, 2009. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

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 

exchange.7 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4),8 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 for ISE Members to increase 

the per share rebate in securities priced 

at or above a $1.00 that are reported to 

Tape A and Tape C from $0.0025 to 

$0.003 for orders that add liquidity on 

EDGX, and also increased the fee for 

orders that remove liquidity on EDGX 

from $0.0026 to $0.0028 per share.9 The 

fee changes made pursuant to SR–ISE– 

2009–29 became operative on June 1, 

2009. DECN receives rebates and is 

charged 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 June 1, 2009, will 

allow DECN to pass through the revised 

rebates and fees to the non-ISE member 

subscribers for which it acts 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.10

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 June 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,11 that the 

proposed rule change (SR–ISE–2009–31) 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13402 Filed 6–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60026; File No. SR–BX– 

2009–020] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving Proposed Rule Change 

Regarding Market Maker Obligations 

June 2, 2009. 

On April 8, 2009, NASDAQ OMX BX, 

Inc. (‘‘Exchange’’) 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 

regarding market maker obligations. The 

proposal was published in the Federal 

Register on April 28, 2009.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

The Exchange proposes to amend 

Chapter VI, Section 6 (Market Maker 

Quotations) of the BOX Rules to change 

certain obligations of a Market Maker 

regarding the Request for Quote (‘‘RFQ’’) 

process. The proposed rule change in 

Section 6(b)(ii) clarifies that within 

three seconds of receiving an RFQ, a 

Market Maker must continuously 

maintain, without interruption, a valid 

two-sided quotation for at least thirty 

seconds. If however, during that thirty 

second time span, the quotation 

becomes invalid, the Market Maker 

must post a valid two sided quotation as 

soon as practicable, but within five 

seconds. The Exchange also proposes to 

remove Section 6(d)(ii), which provided 

that a Market Maker may be required to 

submit a single quotation or maintain 

continuous quotations in one or more 

series when called upon by an Options 

Official, if the official believes it is 

necessary to do so in the interest of a 

fair and orderly market, and replace it 

with Section 6(b)(iv). As proposed, 

Section 6(b)(iv) will provide that an 

Options Official may, in the interest of 

a fair and orderly market, call upon 

Market Makers to post a quotation in the 

same manner as if an RFQ was issued 

by an Options Participant. 

Finally, the Exchange proposes to 

amend Section 6(d) to establish market 

maker quoting standards based upon a 

percentage of time measurement. As 

proposed, the section will clarify that 

‘‘continuous quoting’’ reflects quoting 

parameters based on a daily time 

measurement and will remove 

Federal Register / Vol. 74, No. 109 / Tuesday, June 9, 2009 / Notices 27375 

4 In approving this proposed rule change, 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. 78f(b)(5). 

6 15 U.S.C. 78s(b)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The November 25, 2008 filing was Amendment 

No. 1 to the Plan. The American Stock Exchange 

LLC (the predecessor to NYSE Amex LLC) initially 

filed the Plan on June 17, 2008. 

references to series and replace them 

with class. Specifically, a Market Maker 

will be required to submit valid 

quotations on a daily basis for at least 

eighty percent (80%) of the time that a 

class is open for trading in at least 

ninety percent (90%) of its appointed 

classes. Further, on a daily basis, a 

Market Maker will be required to post 

valid quotations at least sixty percent 

(60%) of the time in each of its 

appointed classes during the time that 

the class is open for trading. The 

Exchange states that this proposed 

change should allow Market Makers to 

focus their strategy on the entire class to 

which it is appointed, rather than 

implementing a strategy utilizing each 

series within a class. At the same time, 

the proposal allows a Market Maker, if 

it chooses, to bring more liquidity to the 

more actively traded series, rather than 

focusing on series with less activity. 

After careful review, 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 exchange.4 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,5 which requires that an exchange 

have rules 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 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. The Commission 

notes that under the proposal, Market 

Maker quoting obligations will be based 

on a daily time measurement, as 

opposed to a requirement to 

continuously provide quotations in a 

specified percentage of appointed 

options. Market Makers will, however, 

still be subject to requirements on how 

often they must quote. Specifically, 

Market Makers will be required to 

submit valid quotations on a daily basis 

for at least 80% of the time that a class 

is open in 90% of their appointed 

classes and be required to post valid 

quotations at least 60% of the time in 

each of its appointed classes during the 

time that the class is open for trading. 

The Commission also notes that the 

proposal helps to clarify Market Maker 

quoting obligations in response to an 

RFQ or a request by an Options Official 

to quote in the interest of a fair and 

orderly market. The Commission 

believes these changes are consistent 

with the Act. 

Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–BX–2009– 

020) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13396 Filed 6–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60015; File No. SR– 

NYSEAmex–2009–19] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change To Adopt Rules 

To Implement the Options Order 

Protection and Locked/Crossed Market 

Plan 

June 1, 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 11, 

2009, the NYSE Amex LLC (‘‘NYSE 

Amex’’ 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 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 

The Exchange proposes to adopt rules 

to implement the Options Order 

Protection and Locked/Crossed Market 

Plan. The text of the proposed rule 

change is available on the Exchange’s 

Web site at http://www.nyse.com, at the 

Exchange’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, 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 adopt rules 

to implement the Plan. These rules will 

replace Rules 990NY through 993NY of 

the Exchange’s rules in their entirety. 

The proposed rules also will amend or 

remove various other rules to 

accommodate the Plan. 

Background to the Plan and the 

Implementing Rules 

NYSE Amex filed the current version 

of the Plan on November 25, 2008.3 The 

Plan would replace the current Plan for 

the Purpose of Creating and Operating 

an Intermarket Option Linkage (‘‘Old 

Plan’’). The Old Plan requires its 

participant exchanges to operate a 

stand-alone system or ‘‘Linkage’’ for 

sending order-flow between exchanges 

to limit trade-throughs. The Options 

Clearing Corporation (‘‘OCC’’) operates 

the Linkage system. The Linkage rules 

provide for unique types of Linkage 

orders, with a complicated set of 

requirements as to who may send such 

orders and under what conditions. 

While the Linkage largely has 

operated satisfactorily, it is under 

significant strain. When the 

Commission approved the Old Plan in 

2000, average daily volume (‘‘ADV’’) in 

the options market was approximately 

2.6 million contracts across all 

exchanges. Now the ADV has increased 

to more than 10 million contracts, 

putting added strain on the ability of 

market makers to comply with the 

complex Linkage rules. At the same 

time, the options markets have been 

moving towards quoting in pennies, and 

are quoting in pennies options 

representing over half the total industry