36792 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

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). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give the Commission 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 met this requirement. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11See Item 7 of SR–NASDAQ–2009–066. See e.g., 

Boston Options Exchange Rules Chapter V, Sec. 

16(b)(iii), Chicago Board Options Exchange Rule 

6.14, and NYSE Arca Rule 6.76A. 

12For 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. 78c(f). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. The 

Exchange believes that it will provide 

greater opportunities for investors to 

receive executions on the NOM System 

so as to enhance the efficiency of order 

handling, and also provides Users the 

opportunity to match prices at other 

markets. 

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 proposed rule change: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 

days after the date of the 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) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 9 normally does not become 

operative for 30 days after the date of its 

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 has 

requested that the Commission waive 

the 30-day operative delay. The 

Exchange asserts that waiver of the 

operative delay is appropriate in order 

to allow the Exchange to remain 

competitive with other options 

exchanges, which have a substantially 

similar functionality to that being 

proposed.11 On this basis, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates that the 

proposed rule change become operative 

immediately.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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–2009–066 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–2009–066. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of the 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 Number SR– 

NASDAQ–2009–066 and should be 

submitted on or before August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17636 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60333; File No. SR–ISE– 

2009–52] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to the Extension of 

the Price Improvement Mechanism 

Pilot Program 

July 17, 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 July 13, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the ISE. The ISE 

has designated the proposed rule change 

as a ‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A) of the 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36793 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release Nos. 50819 

(December 8, 2004), 69 FR 75093 (December 15, 

2004) (Approving the PIM Pilot (the ‘‘Approval 

Order’’)); 52027 (July 13, 2005), 70 FR 41804 (July 

20, 2005) Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change Relating to 

a One-Year Pilot Extension for the Price 

Improvement Mechanism); 54146 (July 14, 2006), 

71 FR 41490 (July 21, 2006) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to a One-Year Pilot Extension Until July 

18, 2007 for the Price Improvement Mechanism); 

56106 (July 19, 2007), 72 FR 40914 (July 25, 2007) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to a One-Week 

Extension for the Price Improvement Mechanism 

Pilot Program); and 56156 (July 27, 2007), 72 FR 

43305 (August 3, 2007) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Relating to an Extension for the Price Improvement 

Mechanism Pilot Program). 6See Securities Exchange Act Release No. 58197 

(July 18, 2008), 73 FR 43810 (July 28, 2008) (Notice 

of Filing and Immediate Effectiveness of Proposed 

Rule Change Relating to the Extension of the Price 

Improvement Mechanism Pilot Program). 

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 

Commission deems this requirement to have been 

met. 

9 Id. 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposed rule change 

effective upon filing with the 

Commission. 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 is proposing to extend 

two pilot programs related to its Price 

Improvement Mechanism (‘‘PIM’’). The 

text of the proposed rule amendment is 

as follows, with proposed deletions in 

[brackets], and proposed additions in 

italics: 

Rule 723. Price Improvement 

Mechanism for Crossing Transactions 

* * * * * 

Supplementary Material to Rule 723 

.01–.02 No Change. 

.03 Initially, and for at least a Pilot 

Period expiring on July 17, 2010 [July 

18, 2009], there will be no minimum 

size requirements for orders to be 

eligible for the Price Improvement 

Mechanism. During the Pilot Period, the 

Exchange will submit certain data, 

periodically as required by the 

Commission, to provide supporting 

evidence that, among other things, there 

is meaningful competition for all size 

orders within the Price Improvement 

Mechanism, that there is significant 

price improvement for all orders 

executed through the Price 

Improvement Mechanism, and that 

there is an active and liquid market 

functioning on the Exchange outside of 

the Price Improvement Mechanism. Any 

data which is submitted to the 

Commission will be provided on a 

confidential basis. 

.04 No Change. 

.05 Paragraphs (c)(5), (d)(5) and 

(d)(6) will be effective for a Pilot Period 

expiring on July 17, 2010 [July 18, 

2009]. During the Pilot Period, the 

Exchange will submit certain data 

relating to the frequency with which the 

exposure period is terminated by 

unrelated orders. Any data which is 

submitted to the Commission will be 

provided on a confidential basis. 

.06–.07 No Change. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of 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 

The Exchange currently has two pilot 

programs related to its PIM.5 The 

current pilot period provided in 

paragraphs .03 and .05 of the 

Supplementary Material to Rule 723 is 

set to expire on July 18, 2009.6

Paragraph .03 provides that there is no 

minimum size requirement for orders to 

be eligible for the Price Improvement 

Mechanism. Paragraph .05 concerns the 

termination of the exposure period by 

unrelated orders. In accordance with the 

Approval Order, the Exchange has 

continually submitted certain data in 

support of extending the current pilot 

programs. The Exchange proposes to 

extend these pilot programs in their 

present form, through July 17, 2010, to 

give the Exchange and the Commission 

additional time to evaluate the effects of 

these pilot programs before requesting 

permanent approval of the rules. To aid 

the Commission in its evaluation of the 

PIM Functionality, ISE will also 

continue to provide additional PIMrelated data as requested by the 

Commission. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change 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. Since 

the Price Improvement Mechanism has 

been operating for a relatively short 

period of time, the Exchange believes it 

is appropriate to extend the pilot 

periods to provide the Exchange and 

Commission more data upon which to 

evaluate the rules. 

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 written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change, as amended: (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 Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 


srobinson on DSKHWCL6B1PROD with NOTICES
36794 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 Id. 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(2). 

6See Securities and Exchange Act Release No. 

60191 (June 30, 2009), 74 FR 32660 (July 8, 

2009)(Notice of Filing and Immediate Effectiveness 

for NYSEArca–2009–58). 

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 

ISE requests that the Commission waive 

the 30-day operative delay, as specified 

in Rule 19b–4(f)(6)(iii),11 which would 

make the rule change operative upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver will allow the pilot 

periods to continue without 

interruption.12 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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 

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–ISE–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–ISE–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 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 

Number SR–ISE–2009–52 and should be 

submitted on or before August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17634 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60322; File No. SR– 

NYSEArca–2009–68] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing the 

Schedule of Fees and Charges for 

Exchange Services 

July 16, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 10, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. NYSE Arca filed the 

proposal pursuant to Section 

19(b)(3)(A) 4 of the Act and Rule 19b– 

4(f)(2) 5 thereunder. 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 amend the 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

While changes to the Schedule pursuant 

to this proposal will be effective upon 

filing, the changes will become 

operative on July 13, 2009. A copy of 

this filing 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 

On June 30, 2009 the Exchange filed 

with the Commission a rule change 

adding four new Self Trade Prevention 

(‘‘STP’’) Modifiers.6 The new STP 

functionality allows Equity Trading 

Permit (‘‘ETP’’) Holders entering orders 

into the system to elect to prevent those 

orders from executing against other 

orders entered into the System by the 

same ETP Holder. Pursuant to this 

proposal the Exchange seeks to add to 

the Schedule a credit and fee for orders 

returned to an ETP Holder using the 

STP Modifiers. 

ETP Holders entering an incoming 

order with either the STP Cancel Both 

(‘‘STPC’’) or the STP Decrement and 

Cancel (‘‘STPD’’) Modifier will be 

charged $0.0030 per share for orders 


srobinson on DSKHWCL6B1PROD with NOTICES