Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Amending the Direct Edge ECN Fee Schedule, 33309-33311 [E9-16316]
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Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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 proposed rule change is
designated by the Exchange as
establishing or changing a due, fee, or
other charge, thereby qualifying for
effectiveness on filing pursuant to
Section 19(b)(3)(A)(ii) 5 of the Act and
subparagraph (f)(2) of Rule 19b–4 6
thereunder.
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:
sroberts on DSKD5P82C1PROD 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–CBOE–2009–046 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–CBOE–2009–046. 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 such 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–CBOE–
2009–046 and should be submitted on
or before July 31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16358 Filed 7–9–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60232; File No. SR–ISE–
2009–43]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating To Amending the
Direct Edge ECN Fee Schedule
July 2, 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 June 30,
2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the ISE. The ISE
5 15
6 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
22:16 Jul 09, 2009
Jkt 217001
PO 00000
filed the proposed rule change pursuant
to Section 19(b)(3)(A) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Direct Edge ECN’s (‘‘DECN’’) fee
schedule for ISE Members 5 to: (1)
Reinstate the Super Tier Rebates, as
defined below, that will apply to ISE
Members whose transactions meet
certain volume thresholds; (2) adopt
new Ultra Tier Rebates, as defined
below, that will apply to ISE Members
whose transactions meet certain other
volume thresholds; (3) adopt a new fee;
and (4) make certain other clean-up
changes. All of the changes described
herein are applicable to ISE Members.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site at https://www.ise.com 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
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
Purpose—DECN, a facility of ISE,
operates two trading platforms, EDGX
and EDGA. During the month of June,
DECN offered a promotion whereby ISE
Members that add liquidity on EDGX
receive a rebate of $0.003 per share for
all securities priced at or above $1.00
(‘‘June Promotion’’). ISE Members that
remove liquidity on EDGX are charged
$0.0028 per share for all securities
priced at or above $1.00 and orders sent
3 15
7 17
Frm 00109
Fmt 4703
Sfmt 4703
33309
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
5 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
4 17
E:\FR\FM\10JYN1.SGM
10JYN1
sroberts on DSKD5P82C1PROD with NOTICES
33310
Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / Notices
to EDGX that subsequently get routed
out are charged $0.0029 per share for all
securities priced at or above $1.00.
The Exchange is now proposing to
amend the DECN fee schedule to
reinstate the volume thresholds
applicable to the Super Tier Rebates that
were in effect prior to the June
Promotion in an effort to maintain a
competitive rate. Accordingly, the
Exchange proposes that, as of July 1,
2009, the DECN fee schedule will
include a per share rebate in securities
reported to Tape A and Tape C of $0.003
for securities priced at or above $1.00
when ISE Members 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 ISE Members that add
liquidity in Tape A and Tape C
securities and don’t meet the Super Tier
criteria, as set forth above, receive a
rebate of $0.0025 per share for securities
that are priced at or above $1.00.
The Exchange is proposing to make
certain corresponding changes so that
the changes described above are
reflected throughout the DECN fee
schedule. Such changes consist of: (1)
Deleting the boxed text which discusses
the June Promotion; (2) deleting
language out of footnote 1 that discusses
the June Promotion; and (3) changing
the rebates associated with flags ‘‘V’’
and ‘‘Y’’ from $0.003 to $0.0025 per
share for securities priced at or above
$1.00.
Additionally, the Exchange is
proposing to adopt a new Ultra Tier
Rebate, as defined below, whereby ISE
Members will be provided a $0.0032
rebate per share for securities priced at
or above $1.00 when ISE Members add
liquidity on EDGX if the attributed
MPID satisfies one of the following
criteria on a daily basis, measured
monthly: (i) Adding 100,000,000 shares
or more on EDGX; or (ii) adding
50,000,000 shares or more of liquidity to
EDGX, so long as added liquidity on
EDGX is at least 20,000,000 shares
greater than the previous calendar
month. The liquidity required to qualify
for criterion (i) above shall be adjusted
in the event that Total Consolidated
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22:16 Jul 09, 2009
Jkt 217001
Volume (‘‘TCV’’), defined as volume
reported by all exchanges and trade
reporting facilities to the consolidated
transaction reporting plans for Tape A,
B and C securities, falls below an
average of 10,000,000,000 shares per
day (‘‘Target TCV’’) in the relevant
calendar month. In such circumstances,
the adjusted amount of liquidity
required to qualify under criterion (i)
above shall be the percentage that actual
reported TCV represents of Target TCV,
multiplied by 100,000,000. The rebate
described above is referred to as an
‘‘Ultra Tier Rebate’’ on the DECN fee
schedule. The Exchange is adopting the
Ultra Tier Rebate in an effort to increase
volume on DECN.
The Exchange is also proposing to
adopt a fee of $0.0015 per share for
securities priced at or above $1.00
anytime the ROUQ or ROUC routing
strategy is used on either EDGX or
EDGA and this routing strategy results
in an execution by an Enhanced
Liquidity Provider (‘‘ELP’’). The ROUQ
routing strategy enables ISE Members to
interact with the order book and ELPs
who elect to receive Indications of
Interest (‘‘IOIs’’) from DECN. ROUC
designated orders are multi-destination
orders that sweep the order book and
ELP destinations before any unfilled
quantity is routed to low cost
destinations. Accordingly, the Exchange
is assessing this fee for ISE Members’
utilization of these services.
The Exchange is proposing to make
certain clarifying changes to the DECN
fee schedule. First, the Exchange is
proposing to collapse two references to
EGDA fees into a single line item
because there is no need to break out the
fees by Tape as the fees are consistent
regardless of which Tape the securities
are reported on. Second, the Exchange
is adding clarifying text to specify that
orders routed to Nasdaq are assessed a
fee of $0.003 per share for securities
priced at or above $1.00 and to specify
that this charge not only applies to
orders routed to Nasdaq from EDGA, but
also applies to orders routed to Nasdaq
from EDGX.
The fee changes discussed in this
filing will become operative on July 1,
2009.
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
PO 00000
6 15
7 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00110
Fmt 4703
particular, reinstating the volume
thresholds applicable to the Super Tier
Rebates and offering an Ultra Tier
Rebate provides pricing incentives to
market participants who route orders to
DECN, allowing 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. 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
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 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:
8 15
9 17
Sfmt 4703
E:\FR\FM\10JYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
10JYN1
Federal Register / Vol. 74, No. 131 / Friday, July 10, 2009 / 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–2009–43 on the subject
line.
Paper Comments
sroberts on DSKD5P82C1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2009–43. 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. and 3 p.m.
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 publicly available. All
submissions should refer to File
Number SR–ISE–2009–43 and should be
submitted on or before July 31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16316 Filed 7–9–09; 8:45 am]
BILLING CODE 8010–01–P
10 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
22:16 Jul 09, 2009
Jkt 217001
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
28808; 812–13545]
GE Funds, et al.,; Notice of Application
July 2, 2009.
AGENCY: Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from section 15(a) of the Act and rule
18f–2 under the Act, as well as from
certain disclosure requirements.
SUMMARY OF APPLICATION: Applicants
request an order that would permit them
to enter into and materially amend
subadvisory agreements without
shareholder approval and would grant
relief from certain disclosure
requirements.
APPLICANTS: GE Funds, GE Institutional
Funds, GE Investments Funds, Inc.
(each, a ‘‘Company’’ and collectively,
the ‘‘Companies’’), and GE Asset
Management Incorporated (the
‘‘Adviser’’).
FILING DATES: The application was filed
on July 9, 2008, and amended on
November 8, 2008, May 8, 2009, and
June 29, 2009. Applicants have agreed
to file an amendment during the notice
period, the substance of which is
contained in this notice.
HEARING OR NOTIFICATION OF HEARING: An
order granting the applications will be
issued unless the Commission orders a
hearing. Interested persons may request
a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on July 27, 2009, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit or, for lawyers, a certificate of
service. Hearing requests should be state
the nature of the writer’s interest, the
reason for the request, and the issues
contested. Persons who wish to be
notified of a hearing may request
notification by writing to the
Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 205491090. Applicants, GE Asset Management
Incorporated, 3001 Summer Street,
Stamford, CT 06905.
FOR FURTHER INFORMATION CONTACT:
Christine Y. Greenlees, Senior Counsel,
at (202) 551–6879, or Mary Kay Frech,
Branch Chief, at (202) 551–6821
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
33311
(Division of Investment Management,
Office of Investment Company
Regulation).
The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Applicants’ Representations:
1. GE Funds, a Massachusetts
business trust, is registered under the
Act as an open-end management
investment company and currently
offers sixteen series, each with separate
investment objectives, policies and
restrictions (each, a ‘‘Fund’’ and
collectively, the ‘‘Funds’’). GE
Institutional Funds, a Delaware
statutory trust, is registered under the
Act as an open-end management
investment company and currently
offers nine Funds, each with separate
investment objectives, policies and
restrictions. GE Investments Funds, Inc.,
a Virginia corporation, is registered
under the Act an an open-end
management investment company and
currently offers fourteen series, each
with separate investment objectives,
policies and restrictions.1 The Adviser,
a wholly owned subsidiary of General
Electric Company, is registered as an
investment adviser under the
Investment Advisers Act of 1940
(‘‘Adviser Act’’). The Adviser serves as
investment adviser to each Fund under
an investment advisory agreement with
each Company (‘‘Advisory Agreement’’)
that has been approved by the
shareholders of each Fund and by the
board of trustees or directors of the
Companies (‘‘Board’’), including a
majority of the trustees or directors who
are not ‘‘interested persons,’’ as defined
in section 2(a)(19) of the Act, of any
Company or the Adviser (‘‘Independent
Board Members’’).
2. Under the terms of each Advisory
Agreement, the Adviser provides a Fund
with investment research, advice and
SUPPLEMENTARY INFORMATION:
1 Applicants also request relief with respect to
future Funds and any other existing or future
registered open-end management investment
company or series thereof that: (a) is advised by the
Adviser or a person controlling, controlled by, or
under common control with the Adviser (included
in the term ‘‘Adviser’’); (b) uses the investment
management structure described in the application;
and (c) complies with the terms and conditions of
the application (included in the term ‘‘Funds’’). The
only existing registered open-end management
companies that currently intend to rely on the
requested order are named as applicants. If the
name of any Fund contains the name of a
Subadviser (as defined below), the name of the
Adviser will precede the name of the Subadviser.
E:\FR\FM\10JYN1.SGM
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Agencies
[Federal Register Volume 74, Number 131 (Friday, July 10, 2009)]
[Notices]
[Pages 33309-33311]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16316]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60232; File No. SR-ISE-2009-43]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating To Amending the Direct Edge ECN Fee Schedule
July 2, 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 June 30, 2009, the International Securities Exchange, LLC (the
``Exchange'' or ``ISE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the ISE.
The ISE filed the proposed rule change pursuant to Section 19(b)(3)(A)
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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 \5\ to: (1) Reinstate the Super Tier Rebates,
as defined below, that will apply to ISE Members whose transactions
meet certain volume thresholds; (2) adopt new Ultra Tier Rebates, as
defined below, that will apply to ISE Members whose transactions meet
certain other volume thresholds; (3) adopt a new fee; and (4) make
certain other clean-up changes. All of the changes described herein are
applicable to ISE Members.
---------------------------------------------------------------------------
\5\ 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 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 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
Purpose--DECN, a facility of ISE, operates two trading platforms,
EDGX and EDGA. During the month of June, DECN offered a promotion
whereby ISE Members that add liquidity on EDGX receive a rebate of
$0.003 per share for all securities priced at or above $1.00 (``June
Promotion''). ISE Members that remove liquidity on EDGX are charged
$0.0028 per share for all securities priced at or above $1.00 and
orders sent
[[Page 33310]]
to EDGX that subsequently get routed out are charged $0.0029 per share
for all securities priced at or above $1.00.
The Exchange is now proposing to amend the DECN fee schedule to
reinstate the volume thresholds applicable to the Super Tier Rebates
that were in effect prior to the June Promotion in an effort to
maintain a competitive rate. Accordingly, the Exchange proposes that,
as of July 1, 2009, the DECN fee schedule will include a per share
rebate in securities reported to Tape A and Tape C of $0.003 for
securities priced at or above $1.00 when ISE Members 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 ISE Members that
add liquidity in Tape A and Tape C securities and don't meet the Super
Tier criteria, as set forth above, receive a rebate of $0.0025 per
share for securities that are priced at or above $1.00.
The Exchange is proposing to make certain corresponding changes so
that the changes described above are reflected throughout the DECN fee
schedule. Such changes consist of: (1) Deleting the boxed text which
discusses the June Promotion; (2) deleting language out of footnote 1
that discusses the June Promotion; and (3) changing the rebates
associated with flags ``V'' and ``Y'' from $0.003 to $0.0025 per share
for securities priced at or above $1.00.
Additionally, the Exchange is proposing to adopt a new Ultra Tier
Rebate, as defined below, whereby ISE Members will be provided a
$0.0032 rebate per share for securities priced at or above $1.00 when
ISE Members add liquidity on EDGX if the attributed MPID satisfies one
of the following criteria on a daily basis, measured monthly: (i)
Adding 100,000,000 shares or more on EDGX; or (ii) adding 50,000,000
shares or more of liquidity to EDGX, so long as added liquidity on EDGX
is at least 20,000,000 shares greater than the previous calendar month.
The liquidity required to qualify for criterion (i) above shall be
adjusted in the event that Total Consolidated Volume (``TCV''), defined
as volume reported by all exchanges and trade reporting facilities to
the consolidated transaction reporting plans for Tape A, B and C
securities, falls below an average of 10,000,000,000 shares per day
(``Target TCV'') in the relevant calendar month. In such circumstances,
the adjusted amount of liquidity required to qualify under criterion
(i) above shall be the percentage that actual reported TCV represents
of Target TCV, multiplied by 100,000,000. The rebate described above is
referred to as an ``Ultra Tier Rebate'' on the DECN fee schedule. The
Exchange is adopting the Ultra Tier Rebate in an effort to increase
volume on DECN.
The Exchange is also proposing to adopt a fee of $0.0015 per share
for securities priced at or above $1.00 anytime the ROUQ or ROUC
routing strategy is used on either EDGX or EDGA and this routing
strategy results in an execution by an Enhanced Liquidity Provider
(``ELP''). The ROUQ routing strategy enables ISE Members to interact
with the order book and ELPs who elect to receive Indications of
Interest (``IOIs'') from DECN. ROUC designated orders are multi-
destination orders that sweep the order book and ELP destinations
before any unfilled quantity is routed to low cost destinations.
Accordingly, the Exchange is assessing this fee for ISE Members'
utilization of these services.
The Exchange is proposing to make certain clarifying changes to the
DECN fee schedule. First, the Exchange is proposing to collapse two
references to EGDA fees into a single line item because there is no
need to break out the fees by Tape as the fees are consistent
regardless of which Tape the securities are reported on. Second, the
Exchange is adding clarifying text to specify that orders routed to
Nasdaq are assessed a fee of $0.003 per share for securities priced at
or above $1.00 and to specify that this charge not only applies to
orders routed to Nasdaq from EDGA, but also applies to orders routed to
Nasdaq from EDGX.
The fee changes discussed in this filing will become operative on
July 1, 2009.
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, reinstating the volume
thresholds applicable to the Super Tier Rebates and offering an Ultra
Tier Rebate provides pricing incentives to market participants who
route orders to DECN, allowing 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. 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)(A) 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:
[[Page 33311]]
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-2009-43 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2009-43. 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. and 3 p.m. 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 publicly available. All
submissions should refer to File Number SR-ISE-2009-43 and should be
submitted on or before July 31, 2009.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16316 Filed 7-9-09; 8:45 am]
BILLING CODE 8010-01-P