Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange, LLC Relating to Amending the Direct Edge ECN Fee Schedule Applicable to International Securities Exchange Members, 16024-16025 [E9-7976]
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Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Currently, the Exchange’s Schedule of
Fees for equity transactions includes a
rebate of $0.0035 per share for orders
that add liquidity in securities priced at
or above $1.00 (excluding both order
delivery and MidPoint Match orders)
that are reported to Tape B. The
Exchange is now proposing to lower
that rebate from $0.0035 to $0.003 per
share for orders that add liquidity in
securities priced at or above $1.00
(excluding both order delivery and
MidPoint Match orders) that are
reported to Tape B. The Exchange is
lowering this rebate in an effort to keep
its pricing competitive with other
exchanges. The aforementioned fee
change will become operative on April
1, 2009.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,3
in general, and furthers the objectives of
Section 6(b)(4),4 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, lowering the rebate in Tape
B securities will allow the ISE’s pricing
to remain competitive with other
exchanges.
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.
rwilkins on PROD1PC63 with NOTICES
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 5 and Rule 19b–4(f)(2) 6
3 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
5 15 U.S.C. 78s(b)(3)(A).
6 17 CFR 19b–4(f)(2).
4 15
VerDate Nov<24>2008
17:05 Apr 07, 2009
Jkt 217001
thereunder. 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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7975 Filed 4–7–09; 8:45 am]
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:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2009–16 on the subject
line.
BILLING CODE 8010–01–P
[Release No. 34–59692; File No. SR–ISE–
2009–17]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
International Securities Exchange, LLC
Relating to Amending the Direct Edge
ECN Fee Schedule Applicable to
International Securities Exchange
Members
April 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 March 27,
Paper Comments
2009, the International Securities
• Send paper comments in triplicate
Exchange, LLC (the ‘‘Exchange’’ or the
to Elizabeth M. Murphy, Secretary,
‘‘ISE’’) filed with the Securities and
Securities and Exchange Commission,
Exchange Commission (‘‘Commission’’)
100 F Street, NE., Washington, DC
the proposed rule change as described
20549–1090.
in Items I, II, and III below, which items
All submissions should refer to File
have been prepared by the selfNumber SR–ISE–2009–16. This file
regulatory organization. The
number should be included on the
Commission is publishing this notice to
subject line if e-mail is used. To help the
solicit comments on the proposed rule
Commission process and review your
change from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commissions
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
The Exchange proposes to amend
submission, all subsequent
Direct Edge ECN’s (‘‘DECN’’) fee
amendments, all written statements
schedule for ISE Members to lower the
with respect to the proposed rule
rebate for orders that add liquidity on
change that are filed with the
EDGX in securities priced at or above
Commission, and all written
$1.00 that are reported to Tape B. The
communications relating to the
text of the proposed rule change is
proposed rule change between the
available on the Exchange’s Internet
Commission and any person, other than Web site at https://www.ise.com.
those that may be withheld from the
II. Self-Regulatory Organization’s
public in accordance with the
Statement of the Purpose of, and
provisions of 5 U.S.C. 552, will be
Statutory Basis for, the Proposed Rule
available for inspection and copying in
Change
the Commission’s Public Reference
Room. Copies of such filing also will be
In its filing with the Commission, the
available for inspection and copying at
self-regulatory organization included
the principal office of the ISE. All
statements concerning the purpose of,
comments received will be posted
and basis for, the proposed rule change
without change; the Commission does
and discussed any comments it received
not edit personal identifying
on the proposed rule change. The text
information from submissions. You
of these statements may be examined at
should submit only information that
the places specified in Item IV below.
you wish to make available publicly. All
submissions should refer to File
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
Number SR–ISE–2009–16 and should be
2 17 CFR 240.19b–4.
submitted by April 29, 2009.
PO 00000
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08APN1
Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices
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
On December 23, 2008, the ISE closed
a transaction whereby, among other
things, ISE Stock Exchange, LLC (‘‘ISE
Stock Exchange’’), a Delaware limited
liability company, merged with and into
Maple Merger Sub, LLC (‘‘Maple Merger
Sub’’), a Delaware limited liability
company and a wholly owned
subsidiary of Direct Edge Holdings LLC
(‘‘Direct Edge’’), with Maple Merger Sub
being the surviving entity.3 As part of
the same transaction, ISE Holdings
purchased equity interests in Direct
Edge such that subsequent to
completing the transaction, ISE
Holdings owns a 31.54% equity interest
in Direct Edge. Following the closing of
the transaction, the Commission
deemed DECN to be a facility of the ISE,
which would require ISE to file rules for
DECN. However, the Commission
granted ISE a temporary exemption from
the rule filing requirements imposed by
Section 19(b) of the Act, provided that
ISE and DECN comply with certain
conditions, including but not limited to,
requiring ISE to file a proposed rule
change if DECN’s fee schedule is sought
to be modified.4
Currently, DECN’s fee schedule
includes a rebate for ISE Members of
$0.0035 per share for orders that add
liquidity on EDGX in securities priced
at or above $1.00 that are reported to
Tape B. The Exchange is now proposing
to lower that rebate from $0.0035 to
$0.003 per share for orders that add
liquidity on EDGX in securities priced
at or above $1.00 that are reported to
Tape B. The Exchange is lowering this
rebate to keep its pricing consistent with
the ISE Stock Exchange’s Schedule of
Fees. The aforementioned fee change
will become operative on April 1, 2009.
rwilkins on PROD1PC63 with NOTICES
3 See
Securities and Exchange Commission
Release No. 34–59135 (December 22, 2008), 73 FR
79954 (December 30, 2008)(SR–ISE–2008–85)
(Order approving a proposed rule change, as
modified by Amendment No. 1, to purchase by
International Securities Exchange Holdings, Inc. of
an ownership interest in Direct Edge).
4 The Commission notes that this exemption was
granted, subject to certain conditions, to ISE with
respect to DE ECN only, to allow DECN to operate
as a facility of ISE without being subject to the rule
filing requirements of Section 19(b) of the Act for
a temporary period. See Exchange Act Release No.
59133 (December 22, 2008), 73 FR 79940 (December
30, 2009) (Order granting application for a
temporary conditional exemption pursuant to
Section 36(a) of the Act).
VerDate Nov<24>2008
17:05 Apr 07, 2009
Jkt 217001
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, lowering the rebate in Tape
B securities will allow DECN’s rebate to
match the rebate provided on the ISE
Stock Exchange.
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(2) 8
thereunder. 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:
No. SR–ISE–2009–17 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–2009–17. 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 (https://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. 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–2009–17 and should be
submitted by April 29, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7976 Filed 4–7–09; 8:45 am]
BILLING CODE 8010–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
U.S.C. 78f.
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 19b–4(f)(2).
5 15
6 15
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9 17
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16025
E:\FR\FM\08APN1.SGM
CFR 200.30–3(a)(12).
08APN1
]]>Agencies
[Federal Register Volume 74, Number 66 (Wednesday, April 8, 2009)]
[Notices]
[Pages 16024-16025]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7976]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59692; File No. SR-ISE-2009-17]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the International Securities
Exchange, LLC Relating to Amending the Direct Edge ECN Fee Schedule
Applicable to International Securities Exchange Members
April 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 March 27, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') 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 self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Direct Edge ECN's (``DECN'') fee
schedule for ISE Members to lower the rebate for orders that add
liquidity on EDGX in securities priced at or above $1.00 that are
reported to Tape B. The text of the proposed rule change is available
on the Exchange's Internet Web site at https://www.ise.com.
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 IV below.
[[Page 16025]]
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
On December 23, 2008, the ISE closed a transaction whereby, among
other things, ISE Stock Exchange, LLC (``ISE Stock Exchange''), a
Delaware limited liability company, merged with and into Maple Merger
Sub, LLC (``Maple Merger Sub''), a Delaware limited liability company
and a wholly owned subsidiary of Direct Edge Holdings LLC (``Direct
Edge''), with Maple Merger Sub being the surviving entity.\3\ As part
of the same transaction, ISE Holdings purchased equity interests in
Direct Edge such that subsequent to completing the transaction, ISE
Holdings owns a 31.54% equity interest in Direct Edge. Following the
closing of the transaction, the Commission deemed DECN to be a facility
of the ISE, which would require ISE to file rules for DECN. However,
the Commission granted ISE a temporary exemption from the rule filing
requirements imposed by Section 19(b) of the Act, provided that ISE and
DECN comply with certain conditions, including but not limited to,
requiring ISE to file a proposed rule change if DECN's fee schedule is
sought to be modified.\4\
---------------------------------------------------------------------------
\3\ See Securities and Exchange Commission Release No. 34-59135
(December 22, 2008), 73 FR 79954 (December 30, 2008)(SR-ISE-2008-85)
(Order approving a proposed rule change, as modified by Amendment
No. 1, to purchase by International Securities Exchange Holdings,
Inc. of an ownership interest in Direct Edge).
\4\ The Commission notes that this exemption was granted,
subject to certain conditions, to ISE with respect to DE ECN only,
to allow DECN to operate as a facility of ISE without being subject
to the rule filing requirements of Section 19(b) of the Act for a
temporary period. See Exchange Act Release No. 59133 (December 22,
2008), 73 FR 79940 (December 30, 2009) (Order granting application
for a temporary conditional exemption pursuant to Section 36(a) of
the Act).
---------------------------------------------------------------------------
Currently, DECN's fee schedule includes a rebate for ISE Members of
$0.0035 per share for orders that add liquidity on EDGX in securities
priced at or above $1.00 that are reported to Tape B. The Exchange is
now proposing to lower that rebate from $0.0035 to $0.003 per share for
orders that add liquidity on EDGX in securities priced at or above
$1.00 that are reported to Tape B. The Exchange is lowering this rebate
to keep its pricing consistent with the ISE Stock Exchange's Schedule
of Fees. The aforementioned fee change will become operative on April
1, 2009.
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, lowering the rebate in Tape B securities
will allow DECN's rebate to match the rebate provided on the ISE Stock
Exchange.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(2) \8\ thereunder. 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2009-17 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-2009-17. 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 (https://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. 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-2009-17 and should be submitted by April 29, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7976 Filed 4-7-09; 8:45 am]
BILLING CODE 8010-01-P
