Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 33001 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6)(iii). 

10For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 6 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.7

A proposed rule change filed under 

Rule 19b–4(f)(6) 8 normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 9 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

states that the proposed rule change is 

consistent with the protection of 

investors and the public interest in that 

it would provide the ability to continue 

trading products on the Exchange that 

are traded or available on other option 

exchanges. 

The Commission believes waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the Penny Pilot Program to 

continue without interruption through 

October 31, 2009.10 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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. 

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–NASDAQ–2009–061 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–NASDAQ–2009–061. 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 Exchange. 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 No. 

SR–NASDAQ–2009–061 and should be 

submitted on or before July 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16180 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60211; File No. SR–Phlx– 

009–51] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of the Penny Pilot Program 

July 1, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 26, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II 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 extend a 

pilot (the ‘‘pilot’’) that permits certain 

options series to be quoted and traded 

in increments of $0.01. The Exchange 

proposes to extend the pilot through 

October 31, 2009. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, at the 

principal office of the Exchange, and at 


rmajette on DSK29S0YB1 with NOTICES
33002 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 

3See Securities Exchange Act Release No. 55153 

(January 23, 2007), 72 FR 4553 (January 31, 2007) 

(SR–Phlx–2006–74). In that filing, the Exchange 

also made conforming amendments to various 

Exchange rules in order to be consistent with the 

pilot. These conforming changes were also 

approved on a pilot basis. The pilot was 

subsequently extended through July 3, 2009. See 

Securities Exchange Act Release No. 59631 (March 

26, 2009), 74 FR 15022 (April 2, 2009) (SR–Phlx– 

2009–25). 

4Any additions to or deletions from the list will 

be published in an Options Trader Alert, which will 

be available on the Exchange’s Web site. 

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

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

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

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 

Exchange 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 

Exchange 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 

The purpose of the proposed rule 

change is to continue to permit 

specified options series to be quoted 

and traded in increments of $0.01 by 

extending the pilot through October 31, 

2009. 

The pilot began on January 26, 2007.3

All series in options included in the 

pilot (‘‘pilot options’’) trading at a price 

of less than $3.00 are currently quoted 

and traded in minimum increments of 

$0.01, and pilot options with a price of 

$3.00 or higher are currently quoted and 

traded in minimum increments of $0.05, 

except that options overlying the 

PowerShares QQQQ Trust (‘‘QQQQ’’) 

are quoted and traded in minimum 

increments of $0.01 for all series 

regardless of the price. A list of all pilot 

options was communicated to 

membership via Exchange circular.4

Report to the Commission 

Throughout the pilot, the Exchange 

has prepared and submitted periodic 

analytical reports (‘‘reports’’) to the 

Commission that address the impact of 

the pilot on the quality of the 

Exchange’s markets and option quote 

traffic and capacity. The Exchange will 

submit another such report not later 

than the last business day of August, 

2009, covering the period from May 1, 

2009 through July 31, 2009, and will 

submit further reports as requested by 

the Commission as the pilot continues. 

The Exchange will amend its rules 

accordingly. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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, by 

ensuring the orderly continuity of the 

pilot. 

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 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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 7 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 10 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing to ensure 

continuity of the pilot, which is 

scheduled to expire July 3, 2009. 

The Commission believes waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the pilot to continue without 

interruption through October 31, 

2009.11 Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission. 

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. 

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–Phlx–2009–51 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–Phlx–2009–51. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 


rmajette on DSK29S0YB1 with NOTICES
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 33003 

12 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. 

4 In SR–ISE–2009–43, the Exchange amended the 

DECNs’ fee schedule to include a per share rebate 

in securities reported to Tape A and Tape C of 

$0.003 for securities priced at or above $1.00 when 

ISE Members 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. 

5 In SR–ISE–2009–43, the Exchange adopted Ultra 

Tier Rebates that provide ISE Members a $0.0032 

rebate per share for securities priced at or above 

$1.00 when ISE Members add liquidity on EDGX if 

the attributed MPID satisfies one of the following 

criteria on a daily basis, measured monthly: (i) 

Adding 100,000,000 shares or more on EDGX; or (ii) 

adding 50,000,000 shares or more of liquidity to 

EDGX, so long as added liquidity on EDGX is at 

least 20,000,000 shares greater than the previous 

calendar month. The liquidity required to qualify 

for criteria (i) above shall be adjusted in the event 

that Total Consolidated Volume (‘‘TCV’’), defined 

as volume reported by all exchanges and trade 

reporting facilities to the consolidated transaction 

reporting plans for Tape A, B and C securities, falls 

below an average of 10,000,000,000 shares per day 

(‘‘Target TCV’’) in the relevant calendar month. In 

such circumstances, the adjusted amount of 

liquidity required to qualify under criteria (i) above 

shall be the percentage that actual reported TCV 

represents of Target TCV, multiplied by 

100,000,000. 

6See SR–ISE–2009–43. 

7 Id. 

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 Exchange. 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 No. 

SR–NASDAQ–2009–51 and should be 

submitted on or before July 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16179 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60233; File No. SR–ISE– 

2009–44] 

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 

July 2, 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 30, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

a proposed rule change as 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 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 

June 30, 2009, the ISE filed for 

immediate effectiveness a proposed rule 

change to amend DECN’s fee schedule 

for ISE Members 3 to: (1) Reinstate the 

Super Tier Rebates that apply to ISE 

Members whose transactions meet 

certain volume thresholds; 4 (2) adopt 

new Ultra Tier Rebates that apply to ISE 

Members whose transactions meet 

certain other volume thresholds; 5 (3) 

adopt a new fee of $0.0015 per share for 

securities priced at or above $1.00 any 

time the ROUQ or ROUC routing 

strategy is used on either EDGX or 

EDGA and this routing strategy results 

in an execution by an Enhanced 

Liquidity Provider; 6 and (4) make 

certain other clean-up changes.7 The fee 

changes made pursuant to SR–ISE– 

2009–43 became operative on July 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– 

2009–43, 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 July 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 


rmajette on DSK29S0YB1 with NOTICES