Federal Register / Vol. 74, No. 109 / Tuesday, June 9, 2009 / Notices 27373 

8 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 SR–ISE–2009–29. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

submissions should refer to File 

Number SR–ISE–2009–29 and should be 

submitted on or before June 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13403 Filed 6–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60030; File No. SR–ISE– 

2009–31] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Order 

Granting Accelerated Approval to a 

Proposed Rule Change Relating to the 

Amounts That Direct Edge ECN, in Its 

Capacity as an Introducing Broker for 

Non-ISE Members, Passes Through to 

Such Non-ISE Members 

June 3, 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 June 1, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change. The proposed 

rule change is described in Items I and 

II below, which Items have been 

prepared by ISE. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons, and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

amounts that Direct Edge ECN 

(‘‘DECN’’), in its capacity as an 

introducing broker for non-ISE 

Members, passes through to such nonISE Members. 

The text of the proposed rule change 

is available on the Exchange’s Internet 

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

principal office of the Exchange, 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 these statements may be examined at 

the places specified in Item III 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. On 

May 29, 2009, the ISE filed for 

immediate effectiveness a proposed rule 

change to amend DECN’s fee schedule 

for ISE Members 3 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.4 In 

SR–ISE–2009–29, the Exchange also 

increased the fee for orders that remove 

liquidity on EDGX from $0.0026 to 

$0.0028. The fee changes made pursuant 

to SR–ISE–2009–29 became operative 

on June 1, 2009. 

In its capacity as a member of ISE, 

DECN currently serves as an introducing 

broker for the non-ISE Member 

subscribers of DECN to access EDGX 

and EDGA. DECN, as an ISE Member 

and introducing broker, receives rebates 

and is assessed charges from DECN for 

transactions it executes on EDGX or 

EDGA in its capacity as introducing 

broker for non-ISE Members. Since the 

amounts of such rebates and charges 

were changed pursuant to SR–ISE– 

2009–29, DECN wishes to make 

corresponding changes to the amounts it 

passes through to non-ISE Member 

subscribers of DECN for which it acts as 

introducing broker. As a result, the per 

share amounts that non-ISE Member 

subscribers receive and are charged will 

be the same as the amounts that ISE 

Members receive and are charged. 

ISE is seeking accelerated approval of 

this proposed rule change, as well as a 

retroactive effective date of June 1, 2009. 

ISE represents that this proposal will 

ensure that both ISE Members and nonISE Members (by virtue of the passthrough described above) will in effect 

receive and be charged equivalent 

amounts and that the imposition of such 

amounts will begin on the same June 1, 

2009 start date. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,5

in general, and furthers the objectives of 

Section 6(b)(4),6 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, this proposal will ensure that 

dues, fees and other charges imposed on 

ISE Members are equitably allocated to 

both ISE Members and non-ISE 

Members (by virtue of the pass-through 

described above). 

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–2009–31 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. 

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