Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, by the International Securities Exchange, LLC Relating to Amending the Direct Edge ECN Fee Schedule To Increase the Super Tier Rebate in Securities Reported To Tape A and Tape C, 22783-22785 [E9-11230]
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Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices
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 rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–43 on the
subject line.
Paper Comments
pwalker on PROD1PC71 with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11228 Filed 5–13–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59888; File No. SR–ISE–
2009–23]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change, as Modified
by Amendment No. 1, by the
International Securities Exchange, LLC
Relating to Amending the Direct Edge
ECN Fee Schedule To Increase the
Super Tier Rebate in Securities
Reported To Tape A and Tape C
May 7, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on May 1,
Number SR–NYSE–2009–43. This file
2009, the International Securities
number should be included on the
Exchange, LLC (the ‘‘Exchange’’ or the
subject line if e-mail is used. To help the
‘‘ISE’’) filed with the Securities and
Commission process and review your
Exchange Commission (‘‘Commission’’)
comments more efficiently, please use
the proposed rule change as described
only one method. The Commission will in Items I, II, and III below, which items
post all comments on the Commission’s have been prepared by the selfInternet Web site (https://www.sec.gov/
regulatory organization. The
rules/sro.shtml). Copies of the
Commission is publishing this notice to
submission, all subsequent
solicit comments on the proposed rule
amendments, all written statements
change from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
The Exchange proposes to amend
proposed rule change between the
Commission and any person, other than Direct Edge ECN’s (‘‘DECN’’) fee
schedule for ISE Members 3 to raise the
those that may be withheld from the
Super Tier Rebates, as defined below,
public in accordance with the
for securities reported to Tape A and
provisions of 5 U.S.C. 552, will be
Tape C and to make certain other
available for inspection and copying in
clarifying changes. All of the changes
the Commission’s Public Reference
described herein are applicable to ISE
Room, 100 F Street, NE., Washington,
Members.
DC 20549, on official business days
The text of the proposed rule change
between the hours of 10 a.m. and 3 p.m. is available on the Exchange’s Internet
Copies of such filing also will be
Web site at https://www.ise.com.
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of NYSE. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
In its filing with the Commission, the
information from submissions. You
self-regulatory organization included
should submit only information that
you wish to make available publicly. All statements concerning the purpose of,
submissions should refer to File
10 17 CFR 200.30–3(a)(12).
Number SR–NYSE–2009–43 and should
1 15 U.S.C. 78s(b)(1).
be submitted on or before June 4, 2009.
2 17 CFR 240.19b–4.
3 References
to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
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17:37 May 13, 2009
Jkt 217001
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
22783
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
DECN, a facility of ISE, operates two
trading platforms, EDGX and EDGA.
Currently, DECNs’ fee schedule includes
a per share rebate in securities reported
to Tape A and Tape C of $0.0029 per
share for ISE Members that add liquidity
on EDGX if the ISE Member satisfies any
of the following three criteria on a daily
basis, measured monthly: (i) Adding
40,000,000 shares or more on either
EDGX, EDGA or EDGX and EDGA
combined; (ii) adding 20,000,000 shares
or more on either EDGX, EDGA or EDGX
and EDGA combined and routing
20,000,000 shares or more through
EDGA; or (iii) adding 10,000,000 shares
or more of liquidity to EDGX, so long as
added liquidity on EDGX is at least
5,000,000 shares greater than the
previous calendar month. The rebate
described above is referred to as a
‘‘Super Tier Rebate’’ on the DECN fee
schedule.
The Exchange is now proposing to
raise the aforementioned Super Tier
Rebate from $0.0029 to $0.003 per share.
The Exchange is raising this rebate to
maintain a competitive rate. This fee
change will become operative on May 1,
2009.
In an effort to increase volume on
EDGA, DECN currently offers volume
discounts for ISE Members who route
20,000,000 shares or more on a daily
basis, measured monthly, to Nasdaq
through EDGA using order types that are
solely eligible for routing to Nasdaq.
Such orders are currently charged at
$0.0025 per share with respect to EDGA
routed volume. ISE Members routing
30,000,000 shares per day are charged
$0.0024 per share with respect to EDGA
routed volume. Recently, Nasdaq has
amended its pricing by increasing its fee
for orders that remove liquidity by
$0.0004.4 Accordingly, the Exchange is
now proposing to amend the DECN
volume discounts that apply to ISE
Members by increasing each volume
discount fee by $0.0004, which will
4 See Securities and Exchange Commission
Release No. 59843 (April 29, 2009), 74 FR 21046
(May 6, 2009) (SR–NASDAQ–2009–035).
E:\FR\FM\14MYN1.SGM
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pwalker on PROD1PC71 with NOTICES
22784
Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices
change the fee to $0.0029 per share and
$0.0028 per share, respectively.
On April 1, 2009, the Exchange
amended the DECN fee schedule to
reduce the rebate from $0.0035 per
share 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 by ISE Members.5 In
connection with this amendment, a
portion of the corresponding footnote on
the DECN fee schedule should have
been deleted, but such deletion was
overlooked at the time of the filing. The
relevant portion of the footnote states
‘‘In the event that Direct Edge offers a
rebate higher than $0.0029 per share for
subscribers who do not meet the criteria
for the Super Tier, then those who meet
the aforementioned criteria will receive
the higher rebate.’’ The Exchange
proposes to delete this language as
Direct Edge is no longer offering this
incentive.
The Exchange is also proposing to
make certain clarifying changes to
DECN’s fee schedule. DECN’s fee
schedule includes a description of
liquidity flags and associated fees. Flag
D is appended to orders that are routed
to and executed on the New York Stock
Exchange (‘‘NYSE’’). Such orders are
charged a fee on the NYSE because the
order is removing liquidity. The fee
assessed to this order is then passed
back to the ISE Member that originated
the order. The Exchange is now
proposing to amend the description of
Flag D to include, not just orders that
are routed to NYSE, but also orders that
are re-routed to NYSE. Meaning, the
order that originates at DECN may get
routed to another market center for
execution, but that market center may
re-route the order to NYSE, where the
order ultimately receives an execution
that results in a removal of liquidity. In
this circumstance, the fee assessed to
the order will still be passed back to the
ISE Member that originated the order as
if such order was originally routed to
NYSE.
Finally, the Exchange is proposing to
delete a portion of a footnote on DECN’s
fee schedule that provides for a lower
charge to ISE Memers [sic] whose orders
in securities that are reported to Tape A
and Tape C first get routed to Nasdaq
Stock Market (‘‘Nasdaq’’) and then get
re-routed by Nasdaq. In this
circumstance, the ISE Member would be
charged a fee of $0.0026 per share for
removing liquidity in Tape A and Tape
C securities regardless of where the
order ultimately gets executed and
5 See Securities and Exchange Commission
Release Nos. 59692 (April 2, 2009), 74 FR 16024
(April 8, 2009) (SR–ISE–2009–17).
VerDate Nov<24>2008
17:37 May 13, 2009
Jkt 217001
regardless of what the executing market
center charges Nasdaq. Whereas, orders
that get routed to any other market
center and then re-routed by that market
center get charged a fee of $0.003 per
share when the order removes liquidity.
The Exchange is now proposing to
delete the portion of the footnote that
provides for this exception because
Nasdaq has raised their [sic] fee to
$0.003 per share for all orders that get
routed to Nasdaq and then re-routed by
Nasdaq.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 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, raising the Super Tier Rebate
in Tape A and Tape C securities and
offering pricing incentives to market
participants who route orders to DECN
allows DECN to remain competitive. ISE
notes that DECN operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee levels at a particular venue to be
excessive. The proposed rule change
reflects a competitive pricing structure
designed to incentivize market
participants to direct their order flow to
DECN. Additionally, the Exchange is
proposing to make certain clean-up and
clarifying changes to the DECN fee
schedule to assist ISE Members in
understanding the charges that are
applicable when using its facilities. ISE
believes the fees and credits remain
competitive with those charged by other
venues and therefore continue to be
reasonable and equitably allocated to
those members that opt to direct orders
to DECN rather than competing venues.
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
6 15
7 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00059
Fmt 4703
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 8 and Rule 19b–4(f)(2) 9
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:
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–2009–23 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–2009–23. 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 Commissions
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
8 15
9 17
Sfmt 4703
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
E:\FR\FM\14MYN1.SGM
14MYN1
Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices
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–2009–23 and should be
submitted by June 4, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11230 Filed 5–13–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59883; File No. SR–
NYSEAmex–2009–16]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Amex LLC Making Certain
Amendments to Its Price List
May 7, 2009.
pwalker on PROD1PC71 with NOTICES
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 30,
2009, NYSE Amex LLC (‘‘NYSE Amex’’
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. 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 its
price list to (i) clarify that nonelectronic agency transactions of less
than 10,000 shares between floor
brokers in the crowd are not subject to
any transaction fee, (ii) clarify that
brokers are charged a discounted fee of
$0.0005 per share for Discretionary eQuotes and verbal agency interest when
taking liquidity from the Exchange, and
(iii) to remove references to the payment
of rebates applicable to the period prior
to the implementation of the Capital
10 17
CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Nov<24>2008
17:37 May 13, 2009
Jkt 217001
Commitment Schedule that are no
longer relevant. The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, and www.nyse.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 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
The Exchange proposes to modify the
2009 NYSE Amex Price List to clarify
that non-electronic agency transactions
of less than 10,000 shares between floor
brokers in the crowd are not subject to
any transaction fee. The 2009 NYSE
Amex Price List does not currently
reference any fee for these transactions
and the Exchange treats them the same
as non-electronic agency transactions of
more than 10,000 shares, which are free
of charge. The amended 2009 NYSE
Amex Price List will state that any nonelectronic agency transaction between
brokers in the crowd is free of charge,
regardless of size.
The current NYSE Amex price list
does not state a fee policy with respect
to Discretionary e-Quotes and orders
submitted by floor brokers as verbal
agency interest. The Exchange’s current
practice with respect to such orders is
to charge the floor broker $0.0005 per
share or, in the case of securities with
a trading price of less than $1.00, the
lesser of (i) $0.0005 per share or (ii)
0.25% of the dollar value of the
transaction. The current NYSE Amex
Price List does not state this fee policy.
The Exchange is amending its price list
to specifically state this policy.
Footnote 5 in the current 2009 NYSE
Amex Price List states that Designated
Market Makers receive rebates under
several circumstances when providing
liquidity on non-displayed interest
using the Capital Commitment
Schedule, or, prior to the
implementation of the Capital
Commitment Schedule, using the
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
22785
following message activities: price
improvement, size improvement (PRIN
FILL), matching away market quotes. As
the Capital Commitment Schedule has
been implemented, the text dealing with
the payment of rebates in the period
prior to its implementation is no longer
relevant and the Exchange proposes to
delete it.
The subheading ‘‘Transactions in
Securities with a Per Share Price Above
$1.00’’ is modified to clarify that it
applies to all transactions in securities
with a price equal to or greater than
$1.00. It will now read as follows:
‘‘Transactions in Securities with a Per
Share Price of $1.00 or more.’’
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,3
in general, and Section 6(b)(4) of the
Act,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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 5 of the Act and
subparagraph (f)(2) of Rule 19b–4 6
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
Amex.
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.
3 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
5 15 U.S.C. 78s(b)(3)(A).
6 17 CFR 240.19b–4(f)(2).
4 15
E:\FR\FM\14MYN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 92 (Thursday, May 14, 2009)]
[Notices]
[Pages 22783-22785]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-11230]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59888; File No. SR-ISE-2009-23]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1,
by the International Securities Exchange, LLC Relating to Amending the
Direct Edge ECN Fee Schedule To Increase the Super Tier Rebate in
Securities Reported To Tape A and Tape C
May 7, 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 May 1, 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 \3\ to raise the Super Tier Rebates, as
defined below, for securities reported to Tape A and Tape C and to make
certain other clarifying changes. All of the changes described herein
are applicable to ISE Members.
---------------------------------------------------------------------------
\3\ References to ISE Members in this filing refer to DECN
Subscribers who are ISE Members.
---------------------------------------------------------------------------
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. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
DECN, a facility of ISE, operates two trading platforms, EDGX and
EDGA. Currently, DECNs' fee schedule includes a per share rebate in
securities reported to Tape A and Tape C of $0.0029 per share for ISE
Members that add liquidity on EDGX if the ISE Member satisfies any of
the following three criteria on a daily basis, measured monthly: (i)
Adding 40,000,000 shares or more on either EDGX, EDGA or EDGX and EDGA
combined; (ii) adding 20,000,000 shares or more on either EDGX, EDGA or
EDGX and EDGA combined and routing 20,000,000 shares or more through
EDGA; or (iii) adding 10,000,000 shares or more of liquidity to EDGX,
so long as added liquidity on EDGX is at least 5,000,000 shares greater
than the previous calendar month. The rebate described above is
referred to as a ``Super Tier Rebate'' on the DECN fee schedule.
The Exchange is now proposing to raise the aforementioned Super
Tier Rebate from $0.0029 to $0.003 per share. The Exchange is raising
this rebate to maintain a competitive rate. This fee change will become
operative on May 1, 2009.
In an effort to increase volume on EDGA, DECN currently offers
volume discounts for ISE Members who route 20,000,000 shares or more on
a daily basis, measured monthly, to Nasdaq through EDGA using order
types that are solely eligible for routing to Nasdaq. Such orders are
currently charged at $0.0025 per share with respect to EDGA routed
volume. ISE Members routing 30,000,000 shares per day are charged
$0.0024 per share with respect to EDGA routed volume. Recently, Nasdaq
has amended its pricing by increasing its fee for orders that remove
liquidity by $0.0004.\4\ Accordingly, the Exchange is now proposing to
amend the DECN volume discounts that apply to ISE Members by increasing
each volume discount fee by $0.0004, which will
[[Page 22784]]
change the fee to $0.0029 per share and $0.0028 per share,
respectively.
---------------------------------------------------------------------------
\4\ See Securities and Exchange Commission Release No. 59843
(April 29, 2009), 74 FR 21046 (May 6, 2009) (SR-NASDAQ-2009-035).
---------------------------------------------------------------------------
On April 1, 2009, the Exchange amended the DECN fee schedule to
reduce the rebate from $0.0035 per share 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 by ISE Members.\5\ In connection with this
amendment, a portion of the corresponding footnote on the DECN fee
schedule should have been deleted, but such deletion was overlooked at
the time of the filing. The relevant portion of the footnote states
``In the event that Direct Edge offers a rebate higher than $0.0029 per
share for subscribers who do not meet the criteria for the Super Tier,
then those who meet the aforementioned criteria will receive the higher
rebate.'' The Exchange proposes to delete this language as Direct Edge
is no longer offering this incentive.
---------------------------------------------------------------------------
\5\ See Securities and Exchange Commission Release Nos. 59692
(April 2, 2009), 74 FR 16024 (April 8, 2009) (SR-ISE-2009-17).
---------------------------------------------------------------------------
The Exchange is also proposing to make certain clarifying changes
to DECN's fee schedule. DECN's fee schedule includes a description of
liquidity flags and associated fees. Flag D is appended to orders that
are routed to and executed on the New York Stock Exchange (``NYSE'').
Such orders are charged a fee on the NYSE because the order is removing
liquidity. The fee assessed to this order is then passed back to the
ISE Member that originated the order. The Exchange is now proposing to
amend the description of Flag D to include, not just orders that are
routed to NYSE, but also orders that are re-routed to NYSE. Meaning,
the order that originates at DECN may get routed to another market
center for execution, but that market center may re-route the order to
NYSE, where the order ultimately receives an execution that results in
a removal of liquidity. In this circumstance, the fee assessed to the
order will still be passed back to the ISE Member that originated the
order as if such order was originally routed to NYSE.
Finally, the Exchange is proposing to delete a portion of a
footnote on DECN's fee schedule that provides for a lower charge to ISE
Memers [sic] whose orders in securities that are reported to Tape A and
Tape C first get routed to Nasdaq Stock Market (``Nasdaq'') and then
get re-routed by Nasdaq. In this circumstance, the ISE Member would be
charged a fee of $0.0026 per share for removing liquidity in Tape A and
Tape C securities regardless of where the order ultimately gets
executed and regardless of what the executing market center charges
Nasdaq. Whereas, orders that get routed to any other market center and
then re-routed by that market center get charged a fee of $0.003 per
share when the order removes liquidity. The Exchange is now proposing
to delete the portion of the footnote that provides for this exception
because Nasdaq has raised their [sic] fee to $0.003 per share for all
orders that get routed to Nasdaq and then re-routed by Nasdaq.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ 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, raising the Super Tier Rebate in Tape A
and Tape C securities and offering pricing incentives to market
participants who route orders to DECN allows DECN to remain
competitive. ISE notes that DECN operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive. The proposed rule change reflects a competitive pricing
structure designed to incentivize market participants to direct their
order flow to DECN. Additionally, the Exchange is proposing to make
certain clean-up and clarifying changes to the DECN fee schedule to
assist ISE Members in understanding the charges that are applicable
when using its facilities. ISE believes the fees and credits remain
competitive with those charged by other venues and therefore continue
to be reasonable and equitably allocated to those members that opt to
direct orders to DECN rather than competing venues.
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\6\ 15 U.S.C. 78f.
\7\ 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 \8\ and Rule 19b-4(f)(2) \9\ 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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 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 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-2009-23 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-2009-23. 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 Commissions 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
[[Page 22785]]
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-2009-23 and should be submitted by
June 4, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11230 Filed 5-13-09; 8:45 am]
BILLING CODE 8010-01-P
