32210 Federal Register / Vol. 74, No. 128 / Tuesday, July 7, 2009 / Notices 

6 15 U.S.C. 78f(b)(5). 

7The Commission notes that the Exchange has 

represented that the proposed rule change does not 

unfairly discriminate against new Sponsors vis-a`- 

vis Sponsors who have previously listed Derivative 

Securities Products or other first time issuers of 

other securities listed on the Exchange because of 

the additional extensive time, legal and business 

resources dedicated to new Sponsors. Telephone 

call between Sharon Lawson, Senior Special 

Counsel, and Terri Evans, Division of Trading and 

Markets, Commission, and Sudhir Bhattacharyya, 

Vice President, NYSE Euronext and Laura 

Morrison, Vice President, NYSE Euronext, June 18, 

2009. 

8 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. 59935 

(May 18, 2009), 74 FR 24888 (‘‘Notice’’). 

4Member dues are $450 per month. See CBOE 

Fees Schedule, Section 10. 

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

Act, in particular, in that it does not 

unfairly discriminate against new 

Sponsors given the additional Exchange 

resources dedicated to such new 

Sponsors, such as the additional 

extensive time, legal and business 

resources required to properly advise 

novice Sponsors through the listing and 

approval process.7 The Exchange 

believes that the proposed consulting 

fee is reasonable, given the amount of 

resources dedicated by the Exchange to 

new issuers of new Derivative Securities 

Products. The Exchange believes that 

the proposed changes to the Fee 

Schedule are equitable in that they 

apply uniformly to all new issuers of 

new Derivative Securities Products. 

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 

change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NYSEArca–2009–52 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–NYSEArca–2009–52. 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 the filing will also be available 

for inspection and copying at NYSE 

Arca’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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– 

NYSEArca–2009–52 and should be 

submitted on or before July 28, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–15900 Filed 7–6–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60185; File No. SR–CBOE– 

2009–028] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting Approval 

of Proposed Rule Change Relating to 

Rebating Member Dues for Certain 

Members 

June 29, 2009. 

I. Introduction 

On May 6, 2009, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘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 to 

amend its Fee Schedule to rebate 

member dues for certain members. The 

proposed rule change was published for 

comment in the Federal Register on 

May 26, 2009.3 The Commission 

received no comments on the proposal. 

This order approves the proposed rule 

change. 

II. Description of the Proposal 

CBOE assesses dues with respect to 

every membership (unless a member is 

assessed the Hybrid Electronic Quoting 

Fee, in which case the member does not 

pay member dues).4 Under CBOE Rule 

3.17(c), the membership lease agreement 

between a lessor member and a lessee 

member designates who is responsible 

for Exchange dues, fees and other 

charges. The Exchange represents that, 

typically, leases provide that the lessee 

is responsible for dues and therefore 

lessors do not have to pay dues. 

Under the lessor compensation 

component of the Interim Trading 

Permit (‘‘ITP’’) program, the Exchange 

compensates a lessor for an ‘‘open 

lease’’ while the ITP program is active 

Federal Register / Vol. 74, No. 128 / Tuesday, July 7, 2009 / Notices 32211 

5The ITP program is a program pursuant to which 

the Exchange has the authority to issue up to 50 

ITPs. The ITP program is governed by CBOE Rule 

3.27. The lessor compensation component of the 

ITP program is described in CBOE Rule 3.27(d). An 

‘‘open lease’’ is defined in Rule 3.27(d) as a 

transferable Exchange membership available for 

lease. 

6See Securities Exchange Act Release No. 59892 

(May 8, 2009), 74 FR 22790 (May 14, 2009) (SR– 

CBOE–2009–027). 

7 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). 

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

9See supra, note 5. 

10 Id. 

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

12 17 CFR 200.30–3(a)(12). 

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

2See Securities Exchange Act Release No. 58139 

(July 10, 2008), 73 FR 41142 (July 17, 2008). 

and ITPs are outstanding.5 The goal of 

this component of the ITP program is to 

put the lessor in a similar position as if 

the lessor’s membership was leased. The 

Exchange asserts that this goal would be 

frustrated if the lessor is charged dues, 

because the lessor would be subject to 

an obligation the lessor would otherwise 

not be subject to if the lessor’s 

membership was leased. 

In a separate proposed rule change, 

the Exchange instituted a waiver of 

member dues for any month that a 

lessor member receives a payment from 

the Exchange for an open lease under 

the ITP program, effective as of May 1, 

2009.6 The Exchange now proposes to 

rebate dues to any lessor member who 

received such a payment from the 

Exchange during the period of August 1, 

2008 through April 30, 2009. 

III. Discussion 

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 proposal is 

consistent with Section 6(b)(4) of the 

Act,8 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 its facilities. 

As note above, CBOE recently 

adopted a waiver of member dues for 

any month that a lessor member 

receives a payment from the Exchange 

for an open lease under the ITP 

program, effective May 1, 2009.9 The 

current proposal will effectively allow 

CBOE to apply this same waiver 

retroactively by rebating to a lessor 

member its member dues for any month 

in which the lessor member received a 

payment from the Exchange for an open 

lease under the ITP program for the 

period August 1, 2008 through April 30, 

2009. 

The Commission believes that the 

rebate will put lessor members who 

received compensation from the 

Exchange for an open lease under the 

ITP program but who paid member dues 

since August 1, 2008 in the same 

position as those lessor members who 

are currently having their member dues 

waived pursuant to the fee waiver 

adopted as of May 1, 2009.10 The 

Commission also believes that the 

proposed rebate will further the goal of 

the Exchange’s ITP program to put the 

lessor of an ‘‘open lease’’ in the same 

position as if the lessor’s membership 

had been leased. The Commission notes 

that the Exchange represented that lease 

agreements typically provide that the 

lessee member is responsible for all 

dues and thus the lessor would 

generally not have to pay such dues. 

Accordingly, the Commission finds that 

the proposed fee rebate is consistent 

with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–CBOE–2009– 

028), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–15901 Filed 7–6–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60192; File No. SR–ISE– 

2009–42] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

June 30, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934,1 notice 

is hereby given that on June 26, 2009, 

International Securities Exchange, LLC 

(‘‘ISE’’ 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 ISE. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE is proposing to amend its 

Schedule of Fees. The text of the 

proposed rule change is available on the 

Exchange’s Web site (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, ISE 

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 ISE 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, Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the Exchange’s 

Schedule of Fees. First, ISE currently 

waives most customer transaction fees, 

with such waiver scheduled to expire 

on June 30, 2009.2 Zero customer 

transaction fees in options are part of 

the competitive pricing landscape. 

Since its inception, ISE has not charged 

fees for customer transactions for most 

products by way of a fee waiver. Despite 

having an effective rate of $0.00 per 

contract for customer transactions in 

these products, ISE’s fee schedule 

reflects a customer fee of $0.05 with a 

waiver to offset the fee. Instead of 

extending the waiver on a year-to-year 

basis, the Exchange proposes to remove 

the fee waiver language from its fee 

schedule and replace the $0.05 fee with 

$0.00 for First Market options, effective 

July 1, 2009. ISE believes this change 

will make its customer fees easier for 

market participants to understand. The 

Exchange will continue to charge $0.05 

per contract for customer transactions in 

Second Market options and proposes to 

create a new line item to reflect this. 

Second, the Exchange currently has a 

fee cap for large-size foreign currency 

(‘‘FX’’) options orders. This fee discount 

applies for orders of 5,000 contracts or 

more and waives fees on incremental