Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to the Amounts That Direct Edge ECN, in Its Capacity as an Introducing Broker for Non-ISE Members, Passes Through to Such Non-ISE Members, 40250-40252 [E9-19185]

Download as PDF 40250 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices for this fee. Conversely, for liquidity that is routed through either EDGA or EDGX and removes liquidity from LavaFlow, ISE members will be charged $0.0029 per share for securities priced at or above $1.00. Such situation will yield a flag of ‘‘U.’’ However, if an ISE member posts an average of 50,000 shares or more using a ROLF routing strategy, yielding flag M, then such ISE member’s fee, when removing liquidity from LavaFlow, will decrease to $0.0022 per share and yield flag U. Finally, the Exchange proposes to rebate $0.0025 per share for securities priced at or above $1.00 when ISE members add liquidity on EDGX via an EDGA-originated ROUC routing strategy.6 Such situation will yield liquidity Flag ‘‘P.’’ The fee changes discussed in this filing will become operative on August 1, 2009. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,7 in general, and furthers the objectives of Section 6(b)(4),8 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, adopting the Full Sweep 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 incent 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. sroberts on DSKD5P82C1PROD with NOTICES 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. 6 ROUC designated orders are multi-destination orders that sweep the internal order book and ELP destinations before any unfilled quantity is routed to low cost destinations. 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 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 9 and Rule 19b–4(f)(2) 10 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 Number SR–ISE–2009–57 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–2009–57. 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 the 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–2009–57 and should be submitted on or before September 1, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–19186 Filed 8–10–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60443; File No. SR–ISE– 2009–58] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to the Amounts That Direct Edge ECN, in Its Capacity as an Introducing Broker for Non-ISE Members, Passes Through to Such Non-ISE Members August 5, 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 July 31, 2009, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I and II below, which Items have been prepared by ISE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons, and is 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 19b–4(f)(2). PO 00000 Frm 00096 Fmt 4703 1 15 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices approving the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify the amounts that Direct Edge ECN (‘‘DECN’’), in its capacity as an introducing broker for non-ISE Members, passes through to such nonISE 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 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 III 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 2. Statutory Basis 1. Purpose sroberts on DSKD5P82C1PROD with NOTICES DECN, a facility of ISE, operates two trading platforms, EDGX and EDGA. On July 31, 2009, the ISE filed for immediate effectiveness a proposed rule change to: (i) Amend DECN’s fee schedule for ISE Members 3 to create a new tier, called the Full Sweep Tier, which provides a rebate for ISE Members that use ROUT orders that meet a volume threshold for amount of liquidity added on EDGX; 4 and (ii) 3 References to ISE Members in this filing refer to DECN Subscribers who are ISE Members. 4 In SR–ISE–2009–57, the Exchange created a new tier, effective August 1, 2009, called the Full Sweep Tier in which ISE Members are provided a $0.0035 rebate per share for securities priced at or above $1.00 when ISE Members add liquidity on EDGX if the attributed MPID use of the ROUT order type adds 50,000,000 shares or more of liquidity to EDGX on a daily basis, measured monthly. A ROUT order type that is sent to EDGX is an order type that does a full sweep of the EDGX book, before being exposed to Enhanced Liquidity Providers (‘‘ELPs’’). This order type will then route to away market centers if there is additional unexecuted liquidity. This order type is primarily used for agency orders, especially retail order flow. The rebate is designed to encourage the use of this particular type of liquidity. VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 adopt new fees and rebates.5 The fee changes made pursuant to SR–ISE– 2009–57 became operative on August 1, 2009. In its capacity as a member of ISE, DECN currently serves as an introducing broker for the non-ISE Member subscribers of DECN to access EDGX and EDGA. DECN, as an ISE Member and introducing broker, receives rebates and is assessed charges from DECN for transactions it executes on EDGX or EDGA in its capacity as introducing broker for non-ISE Members. Since the amounts of such rebates and charges were changed pursuant to SR–ISE– 2009–57, DECN wishes to make corresponding changes to the amounts it passes through to non-ISE Member subscribers of DECN for which it acts as introducing broker. As a result, the per share amounts that non-ISE Member subscribers receive and are charged will be the same as the amounts that ISE Members receive and are charged. ISE is seeking accelerated approval of this proposed rule change, as well as a retroactive effective date of August 1, 2009. ISE represents that this proposal will ensure that both ISE Members and non-ISE Members (by virtue of the passthrough described above) will in effect receive and be charged equivalent amounts and that the imposition of such amounts will begin on the same August 1, 2009 start date. 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 5 In SR–ISE–2009–57, the Exchange also adopted additional fees and rebates. First, the Exchange adopted a fee of $0.0024 per share for securities priced at or above $1.00 which add liquidity to LavaFlow ECN (‘‘LavaFlow’’) and are routed from either EDGX or EDGA. Such a strategy is deemed a ROLF routing strategy, which is a destination specific routing strategy that will first sweep the EDGA or EDGX order book before being delivered to LavaFlow. A conforming amendment was made to the fee schedule to yield an ‘‘M’’ flag to account for this fee. Conversely, for liquidity that is routed through either EDGA or EDGX and removes liquidity from LavaFlow, the Exchange adopted a fee for ISE members of $0.0029 per share for securities priced at or above $1.00. Such situation will yield a flag of ‘‘U.’’ However, if an ISE member posts an average of 50,000 shares or more using a ROLF routing strategy, yielding flag M, then such ISE member’s fee, when removing liquidity from LavaFlow, will decrease to $0.0022 per share and yield flag U. Finally, the Exchange established a rebate of $0.0025 per share for securities priced at or above $1.00 when ISE members add liquidity on EDGX via an EDGA-originated ROUC routing strategy. ROUC designated orders are multidestination orders that sweep the internal order book and ELP destinations before any unfilled quantity is routed to low cost destinations. Such situation will yield liquidity Flag ‘‘P.’’ 6 15 U.S.C. 78f. PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 40251 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, this proposal will ensure that dues, fees and other charges imposed on ISE Members are equitably allocated to both ISE Members and non-ISE Members (by virtue of the pass-through described above). 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. 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–2009–58 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–2009–58. 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 7 15 E:\FR\FM\11AUN1.SGM U.S.C. 78f(b)(4). 11AUN1 40252 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Notices sroberts on DSKD5P82C1PROD with NOTICES 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 available publicly. All submissions should refer to File Number SR–ISE–2009–58 and should be submitted on or before September 1, 2009. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.8 Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) 9 of the Act, which requires that the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using its facilities. As described more fully above, ISE recently amended DECN’s fee schedule for ISE Members to, among other things, adopt a new Full Sweep Tier Rebate and adopt new fees and rebates in connection with the use of the ROLF and ROUC routing strategies.10 The fee changes made pursuant to the Member Fee Filing became operative on August 1, 2009. DECN receives rebates and is charged fees for transactions it executes on EGDX or EDGA in its capacity as an introducing broker for its non-ISE member subscribers. The current proposal, which will apply retroactively to August 1, 2009, will allow DECN to pass through the revised rebates and fees to the non-ISE 8 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(4). 10 See File No. SR–ISE–2009–57 (the ‘‘Member Fee Filing’’). VerDate Nov<24>2008 20:51 Aug 10, 2009 Jkt 217001 member subscribers for which it acts an introducing broker. The Commission finds that the proposal is consistent with the Act because it will provide rebates and charge fees to non-ISE member subscribers that are equivalent to those established for ISE member subscribers in the Member Fee Filing.11 ISE has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of notice of filing thereof in the Federal Register. As discussed above, the proposal will allow DECN to pass through to non-ISE member subscribers the revised rebate and fees established for ISE member subscribers in the Member Fee Filing, resulting in equivalent rebates and fees for ISE member and non-member subscribers. In addition, because the proposal will apply the revised rebates and fees retroactively to August 1, 2009, the revised rebates and fees will have the same effective date, thereby promoting consistency in the DECN’s fee schedule. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act, for approving the proposed rule change prior to the thirtieth day after the date of publication of notice of filing thereof in the Federal Register. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,12 that the proposed rule change (SR–ISE–2009–58) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–19185 Filed 8–10–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60436; File No. SR–NYSE– 2009–77] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Modify Certain Equity Transaction Fees and Rebates August 5, 2009. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the 11 Id. U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). ‘‘Act’’),2 and Rule 19b–4 thereunder,3 notice is hereby given that on July 30, 2009, New York Stock Exchange LLC (the ‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule changes as described in Items I, II and III below, which items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule changes from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make a number of changes to its schedule of equity transaction fees and rebates, with effect from August 1, 2009. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.nyse.com), at the Exchange’s Office of the Secretary, 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 NYSE has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to make a number of changes to its schedule of equity transaction fees, with effect from August 1, 2009. The following are the proposed changes: • The Exchange is introducing a new pricing tier of $0.0017 per share when taking liquidity from the NYSE for member organizations which have an average daily trading volume (‘‘ADV’’) on the NYSE in the applicable month of at least 130 million shares, including (i) providing liquidity of an ADV of at least 30 million shares and (ii) an ADV of at least 15 million shares total in market at-the-close (‘‘MOC’’) and limit at-the- 12 15 13 17 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 2 15 3 17 E:\FR\FM\11AUN1.SGM U.S.C. 78a et seq. CFR 240.19b–4. 11AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Notices]
[Pages 40250-40252]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19185]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60443; File No. SR-ISE-2009-58]

Self-Regulatory Organizations; International Securities
Exchange, LLC; Notice of Filing and Order Granting Accelerated Approval
to a Proposed Rule Change Relating to the Amounts That Direct Edge ECN,
in Its Capacity as an Introducing Broker for Non-ISE Members, Passes
Through to Such Non-ISE Members

August 5, 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 July 31, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change as described in
Items I and II below, which Items have been prepared by ISE. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons, and is

[[Page 40251]]

approving the proposal on an accelerated basis.
---------------------------------------------------------------------------

\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 modify the amounts that Direct Edge ECN
(``DECN''), in its capacity as an introducing broker for non-ISE
Members, passes through to such non-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 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 III 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. On July 31, 2009, the ISE filed for immediate effectiveness a
proposed rule change to: (i) Amend DECN's fee schedule for ISE Members
\3\ to create a new tier, called the Full Sweep Tier, which provides a
rebate for ISE Members that use ROUT orders that meet a volume
threshold for amount of liquidity added on EDGX; \4\ and (ii) adopt new
fees and rebates.\5\ The fee changes made pursuant to SR-ISE-2009-57
became operative on August 1, 2009.
---------------------------------------------------------------------------

\3\ References to ISE Members in this filing refer to DECN
Subscribers who are ISE Members.
\4\ In SR-ISE-2009-57, the Exchange created a new tier,
effective August 1, 2009, called the Full Sweep Tier in which ISE
Members are provided a $0.0035 rebate per share for securities
priced at or above $1.00 when ISE Members add liquidity on EDGX if
the attributed MPID use of the ROUT order type adds 50,000,000
shares or more of liquidity to EDGX on a daily basis, measured
monthly. A ROUT order type that is sent to EDGX is an order type
that does a full sweep of the EDGX book, before being exposed to
Enhanced Liquidity Providers (``ELPs''). This order type will then
route to away market centers if there is additional unexecuted
liquidity. This order type is primarily used for agency orders,
especially retail order flow. The rebate is designed to encourage
the use of this particular type of liquidity.
\5\ In SR-ISE-2009-57, the Exchange also adopted additional fees
and rebates. First, the Exchange adopted a fee of $0.0024 per share
for securities priced at or above $1.00 which add liquidity to
LavaFlow ECN (``LavaFlow'') and are routed from either EDGX or EDGA.
Such a strategy is deemed a ROLF routing strategy, which is a
destination specific routing strategy that will first sweep the EDGA
or EDGX order book before being delivered to LavaFlow. A conforming
amendment was made to the fee schedule to yield an ``M'' flag to
account for this fee. Conversely, for liquidity that is routed
through either EDGA or EDGX and removes liquidity from LavaFlow, the
Exchange adopted a fee for ISE members of $0.0029 per share for
securities priced at or above $1.00. Such situation will yield a
flag of ``U.'' However, if an ISE member posts an average of 50,000
shares or more using a ROLF routing strategy, yielding flag M, then
such ISE member's fee, when removing liquidity from LavaFlow, will
decrease to $0.0022 per share and yield flag U. Finally, the
Exchange established a rebate of $0.0025 per share for securities
priced at or above $1.00 when ISE members add liquidity on EDGX via
an EDGA-originated ROUC routing strategy. ROUC designated orders are
multi- destination orders that sweep the internal order book and ELP
destinations before any unfilled quantity is routed to low cost
destinations. Such situation will yield liquidity Flag ``P.''
---------------------------------------------------------------------------

In its capacity as a member of ISE, DECN currently serves as an
introducing broker for the non-ISE Member subscribers of DECN to access
EDGX and EDGA. DECN, as an ISE Member and introducing broker, receives
rebates and is assessed charges from DECN for transactions it executes
on EDGX or EDGA in its capacity as introducing broker for non-ISE
Members. Since the amounts of such rebates and charges were changed
pursuant to SR-ISE-2009-57, DECN wishes to make corresponding changes
to the amounts it passes through to non-ISE Member subscribers of DECN
for which it acts as introducing broker. As a result, the per share
amounts that non-ISE Member subscribers receive and are charged will be
the same as the amounts that ISE Members receive and are charged.
ISE is seeking accelerated approval of this proposed rule change,
as well as a retroactive effective date of August 1, 2009. ISE
represents that this proposal will ensure that both ISE Members and
non-ISE Members (by virtue of the pass-through described above) will in
effect receive and be charged equivalent amounts and that the
imposition of such amounts will begin on the same August 1, 2009 start
date.
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, this proposal will ensure that dues,
fees and other charges imposed on ISE Members are equitably allocated
to both ISE Members and non-ISE Members (by virtue of the pass-through
described above).
---------------------------------------------------------------------------

\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

III. 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-2009-58 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-2009-58. 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

[[Page 40252]]

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 available publicly. All submissions should refer to
File Number SR-ISE-2009-58 and should be submitted on or before
September 1, 2009.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\8\
Specifically, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) \9\ of the Act, which requires that the
rules of a national securities exchange provide for the equitable
allocation of reasonable dues, fees, and other charges among members
and issuers and other persons using its facilities.
---------------------------------------------------------------------------

\8\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

As described more fully above, ISE recently amended DECN's fee
schedule for ISE Members to, among other things, adopt a new Full Sweep
Tier Rebate and adopt new fees and rebates in connection with the use
of the ROLF and ROUC routing strategies.\10\ The fee changes made
pursuant to the Member Fee Filing became operative on August 1, 2009.
DECN receives rebates and is charged fees for transactions it executes
on EGDX or EDGA in its capacity as an introducing broker for its non-
ISE member subscribers.
---------------------------------------------------------------------------

\10\ See File No. SR-ISE-2009-57 (the ``Member Fee Filing'').
---------------------------------------------------------------------------

The current proposal, which will apply retroactively to August 1,
2009, will allow DECN to pass through the revised rebates and fees to
the non-ISE member subscribers for which it acts an introducing broker.
The Commission finds that the proposal is consistent with the Act
because it will provide rebates and charge fees to non-ISE member
subscribers that are equivalent to those established for ISE member
subscribers in the Member Fee Filing.\11\
---------------------------------------------------------------------------

\11\ Id.
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ISE has requested that the Commission find good cause for approving
the proposed rule change prior to the thirtieth day after publication
of notice of filing thereof in the Federal Register. As discussed
above, the proposal will allow DECN to pass through to non-ISE member
subscribers the revised rebate and fees established for ISE member
subscribers in the Member Fee Filing, resulting in equivalent rebates
and fees for ISE member and non-member subscribers. In addition,
because the proposal will apply the revised rebates and fees
retroactively to August 1, 2009, the revised rebates and fees will have
the same effective date, thereby promoting consistency in the DECN's
fee schedule. Accordingly, the Commission finds good cause, pursuant to
Section 19(b)(2) of the Act, for approving the proposed rule change
prior to the thirtieth day after the date of publication of notice of
filing thereof in the Federal Register.

V. Conclusion

It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-ISE-2009-58) be, and hereby
is, approved on an accelerated basis.
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\12\ 15 U.S.C. 78s(b)(2).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19185 Filed 8-10-09; 8:45 am]
BILLING CODE 8010-01-P

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