Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 18416-18418 [E9-9203]
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18416
Federal Register / Vol. 74, No. 76 / Wednesday, April 22, 2009 / Notices
safeguarding of funds or securities in
DTC’s custody and control or for which
it is responsible because it allows for a
more efficient processing of P&I
withdrawals and SPP returns.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
DTC has not solicited or received
written comments relating to the
proposed rule change. DTC will notify
the Commission of any written
comments it receives.
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)(iii) of the Act 13 and Rule
19b–4(f)(4) 14 thereunder because it
effects a change in an existing service of
a registered clearing agency that does
not adversely affect the safeguarding of
securities and funds in the custody or
control of the clearing agency or for
which it is responsible and does not
significantly affect the respective rights
or obligations of the clearing agency or
persons using the service. 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:
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 No.
SR–DTC–2009–08. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. to 3 p.m.
Copies of such filing also will be
available for inspection and copying at
DTC’s principal office and on DTC’s
Web site at https://www.dtc.org/impNtc/
mor/. 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–DTC–2009–
08 and should be submitted on or before
May 13, 2009.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–9239 Filed 4–21–09; 8:45 am]
BILLING CODE 8010–01–P
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 rulecomment@sec.gov. Please include File
No. SR–DTC–2009–08 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59777; File No. SR–ISE–
2009–20]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
April 16, 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 April 14,
2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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. 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 ISE is proposing to amend its
Schedule of Fees to establish fees for
transactions in options on 3 Premium
Products.3 The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.ise.com), at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, 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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
2 17
13 15
14 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
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15:31 Apr 21, 2009
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 74, No. 76 / Wednesday, April 22, 2009 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
dwashington3 on PROD1PC60 with NOTICES
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the ProShares
Ultra Silver ETF (‘‘AGQ’’), the Direxion
Emerging Markets Bull 3x Shares
(‘‘EDC’’) and the Direxion Emerging
Markets Bear 3x Shares (‘‘EDZ’’).4 The
Exchange represents that AGQ, EDC and
EDZ are eligible for options trading
because they constitute ‘‘ExchangeTraded Fund Shares,’’ as defined by ISE
Rule 502(h).
All of the applicable fees covered by
this filing are identical to fees charged
by the Exchange for all other Premium
Products. Specifically, the Exchange is
proposing to adopt an execution fee for
all transactions in options on AGQ, EDC
and EDZ.5 The amount of the execution
fee for products covered by this filing
shall be $0.18 per contract for all Public
Customer Orders 6 and $0.20 per
contract for all Firm Proprietary orders.
The amount of the execution fee for all
ISE Market Maker transactions shall be
equal to the execution fee currently
charged by the Exchange for ISE Market
4 The MSCI Emerging Markets IndexSM is a
service mark of Morgan Stanley Capital
International Inc. (‘‘MSCI’’) and has been licensed
for use by Direxion Shares ETF Trust. All other
trademarks and service marks are the property of
their respective owners. The Direxion Emerging
Markets Bull 3x Shares (‘‘EDC’’) and the Direxion
Emerging Markets Bear 3x Shares (‘‘EDZ’’) are not
sponsored, endorsed, issued, sold or promoted by
MSCI, any of its affiliates, any of its information
providers or any other third party involved in, or
related to, compiling, computing or creating the
MSCI Emerging Markets Index. MSCI has not
licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on EDC and
EDZ or (ii) to use and refer to any of their
trademarks or service marks in connection with the
listing, provision of a market for trading, marketing,
and promotion of options on EDC and EDZ or with
making disclosures concerning options on EDC and
EDZ under any applicable Federal or State laws,
rules or regulations. MSCI does not sponsor,
endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE.
5 These fees will be charged only to Exchange
members. Under a pilot program that is set to expire
on July 31, 2009, these fees will also be charged to
Linkage Principal Orders (‘‘Linkage P Orders’’) and
Linkage Principal Acting as Agent Orders (‘‘Linkage
P/A Orders’’). The amount of the execution fee
charged by the Exchange for Linkage P Orders and
Linkage P/A Orders is $0.27 per contract side and
$0.18 per contract side, respectively. See Securities
Exchange Act Release No. 58143 (July 11, 2008), 73
FR 41388 (July 18, 2008) (SR–ISE–2008–52).
6 Public Customer Order is defined in Exchange
Rule 100(a)(39) as an order for the account of a
Public Customer. Public Customer is defined in
Exchange Rule 100(a)(38) as a person or entity that
is not a broker or dealer in securities.
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15:31 Apr 21, 2009
Jkt 217001
Maker transactions in equity options.7
Finally, the amount of the execution fee
for all non-ISE Market Maker
transactions shall be $0.45 per contract.8
Further, since options on AGQ, EDC and
EDZ are multiply-listed, the Exchange’s
Payment for Order Flow fee shall apply
to all these products. The Exchange
believes the proposed rule change will
further the Exchange’s goal of
introducing new products to the
marketplace that are competitively
priced.
Further, as a matter of housekeeping,
the Exchange proposes to remove FTZ
from the surcharge fee line item on its
Schedule of fees.9
18417
the Act 12 and Rule 19b–4(f)(2)13
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.
2. Statutory Basis
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,10
in general, and furthers the objectives of
Section 6(b)(4),11 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.
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–2009–20 on the subject
line.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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 No.
SR–ISE–2009–20. 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 changes 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 ISE. All
comments received will be posted
without change; the Commission does
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) of
7 The Exchange applies a sliding scale, between
$0.01 and $0.18 per contract side, based on the
number of contracts an ISE market maker trades in
a month.
8 The amount of the execution fee for non-ISE
Market Maker transactions executed in the
Exchange’s Facilitation and Solicitation
Mechanisms is $0.20 per contract.
9 FTZ was previously delisted and no longer
trades on the Exchange. Pursuant to SR–ISE–2008–
07, filed on January 14, 2008, the Exchange
removed FTZ from its Customer (Premium
Products) line item and from its Payment for Order
Flow line item on its fee schedule. In that filing,
the Exchange, however, inadvertently failed to
remove FTZ from its surcharge fee line item on its
fee schedule.
10 15 U.S.C. 78f.
11 15 U.S.C. 78f(b)(4).
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12 15
13 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
22APN1
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Federal Register / Vol. 74, No. 76 / Wednesday, April 22, 2009 / Notices
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–ISE–2009–20 and should be
submitted on or before May 13, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–9203 Filed 4–21–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59773; File Nos. SR–BX–
2009–019, SR–NASDAQ–2009–032, SR–
Phlx–2009–31]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; the NASDAQ
Stock Market LLC; NASDAQ OMX
PHLX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Changes To Amend the
Certificate of Incorporation of the
NASDAQ OMX Group, Inc.
April 15, 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 April 2,
2009, NASDAQ OMX BX, Inc. (‘‘BX’’),
the NASDAQ Stock Market LLC
(‘‘NASDAQ Exchange’’) and NASDAQ
OMX PHLX, Inc. (‘‘Phlx’’) (collectively,
the ‘‘NASDAQ OMX Exchange
Subsidiaries’’) 3 filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
changes as described in Items I, II, and
III below, which Items have been
substantially prepared by the NASDAQ
OMX Exchange Subsidiaries. The
Commission is publishing this notice to
solicit comments on the proposed rule
changes from interested persons.
I. Self-Regulatory Organizations’
Statement of the Terms of Substance of
the Proposed Rule Changes
The NASDAQ OMX Exchange
Subsidiaries are filing the proposed rule
changes with regard to proposed
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Commission notes that on April 2, 2009,
substantially similar filings also were submitted by
Boston Stock Exchange Clearing Corporation
(‘‘BSECC’’) (SR–BSECC–2009–003) and Stock
Clearing Corporation of Philadelphia (‘‘SCCP’’) (SR–
SCCP–2009–02), the clearing corporation
subsidiaries of NASDAQ OMX Group, Inc.
(‘‘NASDAQ OMX’’).
dwashington3 on PROD1PC60 with NOTICES
1 15
VerDate Nov<24>2008
15:31 Apr 21, 2009
Jkt 217001
changes to the Restated Certificate of
Incorporation (the ‘‘Certificate’’) of their
parent corporation, NASDAQ OMX. The
proposed rule changes will be
implemented as soon as practicable
following filing with the Commission.
The text of the proposed rule changes is
available at https://
www.cchwallstreet.com/nasdaqomx/,
https://www.nasdaqtrader.com/
Trader.aspx?id=BSEIERules2009, and
https://www.nasdaqtrader.com/
Micro.aspx?id=PhlxApproved
Rulefilings, respectively, and at the
respective NASDAQ OMX Exchange
Subsidiary’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
In their filings with the Commission,
each of the NASDAQ OMX Exchange
Subsidiaries included statements
concerning the purpose of and basis for
its proposed rule change and discussed
any comments it received on its
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. Each
of the NASDAQ OMX Exchange
Subsidiaries has prepared summaries,
set forth in Sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
1. Purpose
NASDAQ OMX is proposing to make
amendments to its Certificate. As
provided in Articles XI and XII of the
NASDAQ OMX By-Laws, proposed
amendments to the Certificate are to be
reviewed by the Board of Directors of
each self-regulatory subsidiary of
NASDAQ OMX, and if any such
proposed amendment must, under
Section 19 of the Act and the rules
promulgated thereunder, be filed with,
or filed with and approved by, the
Commission before such amendment
may be effective, then such amendment
shall not be effective until filed with, or
filed with and approved by, the
Commission, as the case may be. The
governing boards of BX, the NASDAQ
Exchange, Phlx, BSECC, and SCCP have
each reviewed the proposed change and
determined that it should be filed with
the Commission.4 The changes to the
4 BX, the NASDAQ Exchange, Phlx, BSECC, and
SCCP have each submitted its respective filing
pursuant to Section 19(b)(3)(A)(iii) of the Act, 15
U.S.C. 78s(b)(3)(A)(iii).
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
Certificate are limited in scope, and
under Delaware law, they do not require
approval by the stockholders of
NASDAQ OMX.
Specifically, NASDAQ OMX is
proposing to restate, without
amendment, its Certificate. The
Certificate is composed of a previous
Restated Certificate of Incorporation
adopted in 2003, and numerous
subsequent amendments, which, under
Delaware law, are adopted as
freestanding documents. However,
Delaware law allows the various
documents comprising a certificate of
incorporation to be consolidated into a
single restated certificate upon approval
of a corporation’s board of directors.
The change will assist interested
persons, including NASDAQ OMX
stockholders and Commission staff, in
reading the Certificate without having to
review multiple documents. The
restated Certificate reflects the deletion
of both the Certificate of Designations,
Preferences and Rights of Series D
Preferred Stock and the Certificate of
Elimination that was recently filed with
respect to it.5 Since the latter
component of the Certificate cancels the
former, they are both deleted from the
restated Certificate.
2. Statutory Basis
The NASDAQ OMX Exchange
Subsidiaries believe that their respective
proposed rule changes are consistent
with the provisions of Section 6 of the
Act,6 in general, and with Sections
6(b)(1) and (b)(5) of the Act,7 in
particular, in that the proposal enables
the NASDAQ OMX Exchange
Subsidiaries to be so organized as to
have the capacity to be able to carry out
the purposes of the Act and to comply
with and enforce compliance by
members and persons associated with
members with provisions of the Act, the
rules and regulations thereunder, and
self-regulatory organization rules, and is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
5 Securities Exchange Act Release No. 59460
(February 26, 2009), 74 FR 9841 (March 6, 2009)
(SR–NASDAQ–2009–010, SR–BX–2009–009, SR–
Phlx–2009–14); Securities Exchange Act Release
No. 59496 (March 3, 2009), 74 FR 10626 (March 11,
2009) (SR–BSECC–2009–01); Securities Exchange
Act Release No. 59494 (March 3, 2009), 74 FR
10642 (March 11, 2009) (SR–SCCP–2009–01).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(1), (b)(5).
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Agencies
[Federal Register Volume 74, Number 76 (Wednesday, April 22, 2009)]
[Notices]
[Pages 18416-18418]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9203]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59777; File No. SR-ISE-2009-20]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
April 16, 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 April 14, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') 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. 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 ISE is proposing to amend its Schedule of Fees to establish
fees for transactions in options on 3 Premium Products.\3\ The text of
the proposed rule change is available on the Exchange's Web site
(https://www.ise.com), at the principal office of the Exchange, and at
the Commission's Public Reference Room.
---------------------------------------------------------------------------
\3\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
---------------------------------------------------------------------------
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.
[[Page 18417]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend its Schedule of Fees to
establish fees for transactions in options on the ProShares Ultra
Silver ETF (``AGQ''), the Direxion Emerging Markets Bull 3x Shares
(``EDC'') and the Direxion Emerging Markets Bear 3x Shares
(``EDZ'').\4\ The Exchange represents that AGQ, EDC and EDZ are
eligible for options trading because they constitute ``Exchange-Traded
Fund Shares,'' as defined by ISE Rule 502(h).
---------------------------------------------------------------------------
\4\ The MSCI Emerging Markets Index\SM\ is a service mark of
Morgan Stanley Capital International Inc. (``MSCI'') and has been
licensed for use by Direxion Shares ETF Trust. All other trademarks
and service marks are the property of their respective owners. The
Direxion Emerging Markets Bull 3x Shares (``EDC'') and the Direxion
Emerging Markets Bear 3x Shares (``EDZ'') are not sponsored,
endorsed, issued, sold or promoted by MSCI, any of its affiliates,
any of its information providers or any other third party involved
in, or related to, compiling, computing or creating the MSCI
Emerging Markets Index. MSCI has not licensed or authorized ISE to
(i) engage in the creation, listing, provision of a market for
trading, marketing, and promotion of options on EDC and EDZ or (ii)
to use and refer to any of their trademarks or service marks in
connection with the listing, provision of a market for trading,
marketing, and promotion of options on EDC and EDZ or with making
disclosures concerning options on EDC and EDZ under any applicable
Federal or State laws, rules or regulations. MSCI does not sponsor,
endorse, or promote such activity by ISE and is not affiliated in
any manner with ISE.
---------------------------------------------------------------------------
All of the applicable fees covered by this filing are identical to
fees charged by the Exchange for all other Premium Products.
Specifically, the Exchange is proposing to adopt an execution fee for
all transactions in options on AGQ, EDC and EDZ.\5\ The amount of the
execution fee for products covered by this filing shall be $0.18 per
contract for all Public Customer Orders \6\ and $0.20 per contract for
all Firm Proprietary orders. The amount of the execution fee for all
ISE Market Maker transactions shall be equal to the execution fee
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\7\ Finally, the amount of the execution fee for all
non-ISE Market Maker transactions shall be $0.45 per contract.\8\
Further, since options on AGQ, EDC and EDZ are multiply-listed, the
Exchange's Payment for Order Flow fee shall apply to all these
products. The Exchange believes the proposed rule change will further
the Exchange's goal of introducing new products to the marketplace that
are competitively priced.
---------------------------------------------------------------------------
\5\ These fees will be charged only to Exchange members. Under a
pilot program that is set to expire on July 31, 2009, these fees
will also be charged to Linkage Principal Orders (``Linkage P
Orders'') and Linkage Principal Acting as Agent Orders (``Linkage P/
A Orders''). The amount of the execution fee charged by the Exchange
for Linkage P Orders and Linkage P/A Orders is $0.27 per contract
side and $0.18 per contract side, respectively. See Securities
Exchange Act Release No. 58143 (July 11, 2008), 73 FR 41388 (July
18, 2008) (SR-ISE-2008-52).
\6\ Public Customer Order is defined in Exchange Rule 100(a)(39)
as an order for the account of a Public Customer. Public Customer is
defined in Exchange Rule 100(a)(38) as a person or entity that is
not a broker or dealer in securities.
\7\ The Exchange applies a sliding scale, between $0.01 and
$0.18 per contract side, based on the number of contracts an ISE
market maker trades in a month.
\8\ The amount of the execution fee for non-ISE Market Maker
transactions executed in the Exchange's Facilitation and
Solicitation Mechanisms is $0.20 per contract.
---------------------------------------------------------------------------
Further, as a matter of housekeeping, the Exchange proposes to
remove FTZ from the surcharge fee line item on its Schedule of fees.\9\
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\9\ FTZ was previously delisted and no longer trades on the
Exchange. Pursuant to SR-ISE-2008-07, filed on January 14, 2008, the
Exchange removed FTZ from its Customer (Premium Products) line item
and from its Payment for Order Flow line item on its fee schedule.
In that filing, the Exchange, however, inadvertently failed to
remove FTZ from its surcharge fee line item on its fee schedule.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\10\ in general, and
furthers the objectives of Section 6(b)(4),\11\ 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.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(4).
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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) of the Act \12\ and Rule 19b-4(f)(2)\13\ 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.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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-2009-20 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 No. SR-ISE-2009-20. 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 changes 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 ISE. All comments
received will be posted without change; the Commission does
[[Page 18418]]
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-ISE-2009-20 and should be
submitted on or before May 13, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
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\14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-9203 Filed 4-21-09; 8:45 am]
BILLING CODE 8010-01-P