Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Quoting Obligations of Second Market Competitive Market Makers, 16247-16249 [E9-8066]
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Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
from functioning as market makers. The
proposed rule change was published for
comment in the Federal Register on
February 26, 2009.3 The Commission
received no comments on the proposal.
This order approves the proposal.
dwashington3 on PROD1PC60 with NOTICES
II. Description of the Proposal
The Exchange proposes to amend
Rule 6.8C, Prohibition Against Members
Functioning as Market Makers, to
eliminate certain of its restrictions. Rule
6.8C currently provides that a member,
acting either as principal or agent, may
neither enter nor permit the entry of
orders into the Exchange’s electronic
order routing system if (i) the orders are
limit orders for the account or accounts
of the same beneficial owner(s); and (ii)
the limit orders are entered in such a
manner that the beneficial owner(s)
effectively is operating as a market
maker by holding itself out as willing to
buy and sell such securities on a regular
or continuous basis. The Exchange
proposes that these restrictions be
amended to apply only to customer
orders (i.e., non-broker-dealer orders)
that are not Voluntary Professional
orders.4 The restrictions would no
longer be applicable to instances where
a member is acting as principal on its
own behalf or is acting as agent on
behalf of other broker-dealer orders or
Voluntary Professional orders. The
Exchange noted that it is retaining the
restriction for customers who are not
Voluntary Professionals because such
customers have priority at any price
over the bids and offers of market
makers, other broker-dealers, and
Voluntary Professionals.
In addition, in those instances where
its restrictions are applicable, Rule 6.8C
currently provides that, in determining
whether a beneficial owner effectively is
operating as a market maker, the
Exchange will consider, among other
things, the simultaneous or near
simultaneous entry of limit orders to
buy and sell the same security, the entry
of multiple limit orders at different
prices in the same security, and the
multiple acquisition and liquidation of
3 See Securities Exchange Act Release No. 59425
(February 19, 2009), 74 FR 8829.
4 The term ‘‘Voluntary Professional’’ is defined in
CBOE’s rules as any person or entity that is not a
broker or dealer in securities that elects, in writing,
to be treated in the same manner as a broker or
dealer in securities for purposes of specified rules
relating to priority in the execution of orders, and
for cancellation fee calculation purposes. See Rule
1.1(fff) and Securities Exchange Act Release No.
58327 (August 7, 2008), 73 FR 47988 (August 15,
2008) (SR–CBOE–2008–09). As part of this
proposed rule change, the Exchange is proposing to
amend Rule 1.1(fff) to provide that a Voluntary
Professional will be treated in the same manner as
a broker or dealer in securities for purposes of Rule
6.8C.
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15:28 Apr 08, 2009
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positions in the security during the
same day. The Exchange proposes to
remove the last condition pertaining to
the multiple acquisition and liquidation
of positions from its list of factors used
for determining whether a beneficial
owner is operating as a market maker.
The Exchange noted that this activity no
longer should be considered as a factor
in determining whether a beneficial
owner is effectively acting as a market
maker.
III. Discussion
After careful review, 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 5 and, in particular,
the requirements of Section 6 of the
Act.6 Specifically, the Commission finds
that the proposal is consistent with
Section 6(b)(5) of the Act,7 in that the
proposal has been designed to promote
just and equitable principles of trade,
and to protect investors and the public
interest.
The Commission believes that it is
consistent with the Act for an options
exchange not to prohibit a user of its
market from operating as a market
maker without registering as such. The
Commission previously approved rules
at other options exchanges that do not
impose such a prohibition,8 or impose
such a prohibition on customers only.9
The Commission notes that while the
Exchange will continue to prohibit
5 The Commission has considered the proposed
rule change’s impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
8 See Securities Exchange Act Release No. 57478
(March 12, 2008), 73 FR 14521 (March 18, 2008)
(approving rules governing the trading of options on
the NASDAQ Options Market).
9 See Securities Exchange Act Release No. 59472
(February 27, 2009), 74 FR 9843 (March 6, 2009)
(approval of rules for the trading of listed options
on NYSEAlternext).
The Commission notes that any entity that acts
as ‘‘dealer,’’ as defined in Section 3(a)(5) of the Act,
15 U.S.C. 78c(a)(5), would be required to register
with the Commission under Section 15 of the Act,
15 U.S.C. 78o, and the rules and regulations
thereunder, or qualify for any exception or
exemption from registration. Activity that may
cause a person to be deemed a dealer includes
‘‘ ‘quoting a market in or publishing quotes for
securities (other than quotes on one side of the
market on a quotations system generally available
to non-broker-dealers, such as a retail screen broker
for government securities).’ ’’ See Definitions of
Terms in and Specific Exemptions for Banks,
Savings Associations, and Savings Banks Under
Sections 3(a)(4) and 3(a)(5) of the Securities
Exchange Act of 1934, Securities Exchange Act
Release No. 47364, 68 FR 8686, 8689, note 26
(February 24, 2003) (quoting OTC Derivatives
Dealers, Securities Exchange Act Release No. 40594
(October 23, 1998), 63 FR 59362, 59370, note 61
(November 3, 1998)).
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16247
customers who are not Voluntary
Professionals from operating as market
makers, those customers will continue
to have priority over the bids and offers
of market makers, other broker-dealers,
and Voluntary Professionals.
The Commission also believes that the
Exchange’s proposal to remove the
condition pertaining to the multiple
acquisition and liquidation of positions
from its list of factors used for
determining whether a beneficial owner
is operating as a market maker is
consistent with the Act. The
Commission believes that the remaining
factors are sufficient to enable the
Exchange to determine whether a user
of its market is operating as a market
maker.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–CBOE–2009–
09) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–8002 Filed 4–8–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59701; File No. SR–ISE–
2009–15]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Quoting
Obligations of Second Market
Competitive Market Makers
April 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 March 25,
2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange 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.
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 17
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16248
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to amend the
quoting obligations of Second Market
Competitive Market Makers. The text of
the proposed rule change is as follows,
with deletions in [brackets] and
additions in italics:
Rule 904. Market Maker Quotes and
Orders
(a) Quotes. Except as provided below,
all of the requirements of Rules 803,
804, and 805 related to quoting
obligations of Primary Market Makers
and Competitive Market Makers apply
to SMPMMs and SMCMMs respectively.
For purposes of the Rules, SMCMMs are
considered appointed to all of the
options classes listed in the Second
Market.
(1) SMCMMs are not required to make
markets in a minimum number of
options classes in the Second Market.
SMCMMs may choose whether to make
markets in one or more options classes
traded in the Second Market on a daily
basis.
(2) If an SMCMM chooses to make
markets in one or more options classes
in the Second Market, it must
[participate in the opening rotation and]
make markets and enter into any
resulting transactions on a continuous
basis in all of the series of the options
class until the close of trading that day.
Further, SMCMMs may [not] initiate
quoting in an additional number of
options classes intraday, up to the
number of options classes for which
they participated in the opening
rotation on that day.
(b) No Change.
*
*
*
*
*
dwashington3 on PROD1PC60 with NOTICES
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.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
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15:28 Apr 08, 2009
Jkt 217001
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 amend the quoting
obligations of Second Market
Competitive Market Makers
(‘‘SMCMMs’’). Pursuant to Commission
approval, ISE currently lists for trading
a number of low-volume options classes
that qualify for listing under its Rule
502 in a ‘‘Second Market.’’ 3 Among
other things, the Second Market has
allowed the Exchange to provide an
opportunity for additional members to
provide liquidity as market makers.
Specifically, the Second Market trading
rules allow SMCMMs to choose whether
to make markets in one or more options
classes on a daily basis. Under the
current rules, if a SMCMM chooses to
make markets in an options class, it
must participate in the opening rotation
and continue to quote all of the series
of the options class through the close
that day. Further, SMCMMs are not
allowed to initiate quoting in an options
class intraday.
The Exchange proposes to amend its
Second Market rules as follows: (1)
Permit SMCMMs to quote in a greater
number of options classes intraday, and
(2) relax the requirement that SMCMMs
must participate in the opening rotation
in the options class that it chooses to
make a market in on a specific day.
With this proposed rule change,
SMCMMs may initiate quoting in an
options class intraday. However, the
number of options classes in which a
SMCMM may initiate quoting shall be
limited to a number equal to the number
of classes in which the SMCMM
participated in the opening rotation on
that day. For example, if a SMCMM
participates in the opening rotation for
30 options classes, it may initiate
quoting intraday in an additional 30
classes. Once an SMCMM starts quoting,
it will continue to be required to quote
all of the series through the remainder
of the day.
The Exchange believes that relaxing
the obligation for SMCMMs to
participate in the opening and
permitting this class of market makers to
quote in a greater number of options
classes intraday will encourage
additional SMCMM participation and
add liquidity to these low-volume
options classes.
3 See Securities Exchange Act Release No. 54580
(October 6, 2006), 71 FR 60781 (October 16, 2006)
(SR–ISE–2006–40).
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder and, in particular, the
requirements of section 6(b) of the Act.
Specifically, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(5) requirements that the
rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. In particular, the
proposed rule change is designed to
attract additional liquidity in lowvolume options classes by providing for
open access to market makers.
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
This proposed rule change does not
significantly affect the protection of
investors or the public interest, does not
impose any significant burden on
competition, and, by its terms, 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
Exchange provided 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
the proposed rule change as required by
Rule 19b–4(f)(6).4 The proposed
amendment to ISE Rule 904 will allow
SMCMMs to quote in a greater number
of options classes intraday and thus
provide additional liquidity in the low4 17
E:\FR\FM\09APN1.SGM
CFR 240.19b–4(f)(6).
09APN1
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices
volume options classes that trade in the
Exchange’s Second Market. Further, no
other exchange requires its market
makers to participate in the opening
rotation in 100% of the series in options
classes in which it makes a market. For
the foregoing reasons, this rule filing
qualifies for immediate effectiveness as
a ‘‘non-controversial’’ rule change under
paragraph (f)(6) of Rule 19b–4 of the
Act, as it does not raise any new, unique
or substantive issues, and is beneficial
for competitive purposes and to
promote a free and open market for the
benefit of investors.
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:
dwashington3 on PROD1PC60 with NOTICES
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
Number SR–ISE–2009–15 on the subject
line.
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–ISE–
2009–15 and should be submitted on or
before April 30, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–8066 Filed 4–8–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59697; File No. SR–Phlx–
2009–23]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing of a Proposed Rule Change and
Amendment No. 1 Thereto To Amend
the By-Laws, Rules and Option Floor
Procedure Advices of NASDAQ OMX
PHLX, Inc.
April 2, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on March 13,
• Send paper comments in triplicate
2009, NASDAQ OMX PHLX, Inc.
to Elizabeth M. Murphy, Secretary,
(‘‘Phlx’’ or the ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–ISE–2009–15. This file
have been prepared by the Exchange.
number should be included on the
On March 25, 2009, Phlx filed
subject line if e-mail is used. To help the
Amendment No. 1 to the proposed rule
Commission process and review your
change. The Commission is publishing
comments more efficiently, please use
this notice to solicit comments on the
only one method. The Commission will
proposed rule change, as amended, from
post all comments on the Commission’s
interested persons.
Internet Web site (https://www.sec.gov/
I. Self-Regulatory Organization’s
rules/sro.shtml). Copies of the
Statement of the Terms of Substance of
submission, all subsequent
the Proposed Rule Change
amendments, all written statements
with respect to the proposed rule
The Exchange proposes to amend its
change that are filed with the
By-Laws, Rules of the Board of
Commission, and all written
Governors and Options Rules (the two
communications relating to the
sets of rules are together known as the
proposed rule change between the
Commission and any person, other than
5 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
those that may be withheld from the
2 17 CFR 240.19b–4.
public in accordance with the
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15:28 Apr 08, 2009
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16249
‘‘Rules’’), and Option Floor Procedure
Advices (‘‘OFPAs’’ or ‘‘Advices’’) 3 to
make changes to certain standing
committees and processes of the
Exchange. Specifically, the Exchange
proposes to eliminate: (a) The
Admissions Committee; (b) the Options
Allocation, Evaluation and Securities
Committee; (c) the Options Committee;
(d) the Foreign Currency Options
Committee; and (e) the Weekly Bulletin.
Additionally, the Exchange proposes to:
(a) make the Finance Committee
optional; (b) change the structure of the
Business Conduct Committee and
eliminate reference to the Hearing
Officer; and (c) authorize action in the
event of an emergency or extraordinary
market conditions.4
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, 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
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.
3 OFPAs are discussed in Rule 970, which sets
forth the criteria for the imposition of a fine (not
to exceed $5,000) on any member, member
organization, or any partner, officer, director or
person employed by or associated with any member
or member organization, for any violation of an
OFPA, which violation the Exchange determined is
minor in nature (known as the ‘‘Minor Rule Plan’’).
Such a fine would be imposed in lieu of
commencing a ‘‘disciplinary proceeding’’ as that
term is used in Exchange Rules 960.1–960.12, and
would be subject to Rule 19d–1 under the Act.
4 Certain changes proposed in the present filing
may be affected by SR–Phlx–2009–17, which is
pending. See Securities Exchange Act Release No.
59538 (March 9, 2009), 74 FR 11152 (March 16,
2009). We would amend the present filing if
necessary upon approval of SR–Phlx–2009–17.
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]]>Agencies
[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Notices]
[Pages 16247-16249]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-8066]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59701; File No. SR-ISE-2009-15]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Quoting Obligations of Second Market Competitive
Market Makers
April 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 March 25, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
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.
---------------------------------------------------------------------------
[[Page 16248]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE proposes to amend the quoting obligations of Second Market
Competitive Market Makers. The text of the proposed rule change is as
follows, with deletions in [brackets] and additions in italics:
Rule 904. Market Maker Quotes and Orders
(a) Quotes. Except as provided below, all of the requirements of
Rules 803, 804, and 805 related to quoting obligations of Primary
Market Makers and Competitive Market Makers apply to SMPMMs and SMCMMs
respectively. For purposes of the Rules, SMCMMs are considered
appointed to all of the options classes listed in the Second Market.
(1) SMCMMs are not required to make markets in a minimum number of
options classes in the Second Market. SMCMMs may choose whether to make
markets in one or more options classes traded in the Second Market on a
daily basis.
(2) If an SMCMM chooses to make markets in one or more options
classes in the Second Market, it must [participate in the opening
rotation and] make markets and enter into any resulting transactions on
a continuous basis in all of the series of the options class until the
close of trading that day. Further, SMCMMs may [not] initiate quoting
in an additional number of options classes intraday, up to the number
of options classes for which they participated in the opening rotation
on that day.
(b) No Change.
* * * * *
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. 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 purpose of the proposed rule change is to amend the quoting
obligations of Second Market Competitive Market Makers (``SMCMMs'').
Pursuant to Commission approval, ISE currently lists for trading a
number of low-volume options classes that qualify for listing under its
Rule 502 in a ``Second Market.'' \3\ Among other things, the Second
Market has allowed the Exchange to provide an opportunity for
additional members to provide liquidity as market makers. Specifically,
the Second Market trading rules allow SMCMMs to choose whether to make
markets in one or more options classes on a daily basis. Under the
current rules, if a SMCMM chooses to make markets in an options class,
it must participate in the opening rotation and continue to quote all
of the series of the options class through the close that day. Further,
SMCMMs are not allowed to initiate quoting in an options class
intraday.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 54580 (October 6,
2006), 71 FR 60781 (October 16, 2006) (SR-ISE-2006-40).
---------------------------------------------------------------------------
The Exchange proposes to amend its Second Market rules as follows:
(1) Permit SMCMMs to quote in a greater number of options classes
intraday, and (2) relax the requirement that SMCMMs must participate in
the opening rotation in the options class that it chooses to make a
market in on a specific day. With this proposed rule change, SMCMMs may
initiate quoting in an options class intraday. However, the number of
options classes in which a SMCMM may initiate quoting shall be limited
to a number equal to the number of classes in which the SMCMM
participated in the opening rotation on that day. For example, if a
SMCMM participates in the opening rotation for 30 options classes, it
may initiate quoting intraday in an additional 30 classes. Once an
SMCMM starts quoting, it will continue to be required to quote all of
the series through the remainder of the day.
The Exchange believes that relaxing the obligation for SMCMMs to
participate in the opening and permitting this class of market makers
to quote in a greater number of options classes intraday will encourage
additional SMCMM participation and add liquidity to these low-volume
options classes.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder and, in particular, the requirements of section
6(b) of the Act. Specifically, the Exchange believes the proposed rule
change is consistent with Section 6(b)(5) requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and perfect the mechanism for a free and open market and
a national market system, and, in general, to protect investors and the
public interest. In particular, the proposed rule change is designed to
attract additional liquidity in low-volume options classes by providing
for open access to market makers.
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
This proposed rule change does not significantly affect the
protection of investors or the public interest, does not impose any
significant burden on competition, and, by its terms, 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 Exchange provided 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 the
proposed rule change as required by Rule 19b-4(f)(6).\4\ The proposed
amendment to ISE Rule 904 will allow SMCMMs to quote in a greater
number of options classes intraday and thus provide additional
liquidity in the low-
[[Page 16249]]
volume options classes that trade in the Exchange's Second Market.
Further, no other exchange requires its market makers to participate in
the opening rotation in 100% of the series in options classes in which
it makes a market. For the foregoing reasons, this rule filing
qualifies for immediate effectiveness as a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 of the Act, as it does not
raise any new, unique or substantive issues, and is beneficial for
competitive purposes and to promote a free and open market for the
benefit of investors.
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\4\ 17 CFR 240.19b-4(f)(6).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2009-15 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-2009-15. 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, 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-
2009-15 and should be submitted on or before April 30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-8066 Filed 4-8-09; 8:45 am]
BILLING CODE 8010-01-P
