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, 40249-40250 [E9-19186]
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Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 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–NYSE–2009–74 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,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2009–74. 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 will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–NYSE–
2009–74 and should be submitted on or
before September 1, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–19119 Filed 8–10–09; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60442; File No. SR–ISE–
2009–57]
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
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’’)
the proposed rule change as described
in Items I, II, and III below, which items
have been prepared by the selfregulatory 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
Direct Edge ECN’s (‘‘DECN’’) fee
schedule for ISE Members 3 to (i) create
a new tier, called the Full Sweep Tier,
to provide a rebate for ISE Members that
use ROUT orders that meet a volume
theshold for amount of liquidity added
on EDGX and to (ii) adopt new fees and
rebates.
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.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
BILLING CODE 8010–01–P
2 17
13 17
CFR 200.30–3(a)(12).
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40249
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 1, 2009,4 the Exchange adopted a
new Ultra Tier Rebate, as defined below,
whereby ISE Members are 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 rebate described
above is referred to as an ‘‘Ultra Tier
Rebate’’ on the DECN fee schedule.
The Exchange is now proposing to
establish an additional tier called the
Full Sweep Tier, whereby 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’’).5 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.
The Exchange also proposes to adopt
additional fees and rebates. First, the
Exchange proposes to adopt 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 will be made to the fee
schedule to yield an ‘‘M’’ flag to account
4 See Securities and Exchange Act Release No.
60232 (July 2, 2009), 74 FR 33309 (July 10, 2009)
(SR–ISE–2009–43).
5 DECN currently operates a program known as
the ‘‘Enhanced Liquidity Provider’’ (‘‘ELP’’)
program on its two trading platforms, EDGX and
EDGA, pursuant to which parties entering orders
into DECN can elect to display their marketable
orders to designated liquidity providers before the
order is routed or cancelled.
E:\FR\FM\11AUN1.SGM
11AUN1
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
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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
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]]>Agencies
[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Notices]
[Pages 40249-40250]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19186]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60442; File No. SR-ISE-2009-57]
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
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'') 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 (i) create a new tier, called the Full
Sweep Tier, to provide a rebate for ISE Members that use ROUT orders
that meet a volume theshold for amount of liquidity added on EDGX and
to (ii) adopt new fees and rebates.
---------------------------------------------------------------------------
\3\ References to ISE Members in this filing refer to DECN
Subscribers who are ISE Members.
---------------------------------------------------------------------------
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.
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. On July 1, 2009,\4\ the Exchange adopted a new Ultra Tier Rebate,
as defined below, whereby ISE Members are 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 rebate
described above is referred to as an ``Ultra Tier Rebate'' on the DECN
fee schedule.
---------------------------------------------------------------------------
\4\ See Securities and Exchange Act Release No. 60232 (July 2,
2009), 74 FR 33309 (July 10, 2009) (SR-ISE-2009-43).
---------------------------------------------------------------------------
The Exchange is now proposing to establish an additional tier
called the Full Sweep Tier, whereby 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'').\5\ 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\ DECN currently operates a program known as the ``Enhanced
Liquidity Provider'' (``ELP'') program on its two trading platforms,
EDGX and EDGA, pursuant to which parties entering orders into DECN
can elect to display their marketable orders to designated liquidity
providers before the order is routed or cancelled.
---------------------------------------------------------------------------
The Exchange also proposes to adopt additional fees and rebates.
First, the Exchange proposes to adopt 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 will be made
to the fee schedule to yield an ``M'' flag to account
[[Page 40250]]
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.''
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 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. 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2009-57 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\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19186 Filed 8-10-09; 8:45 am]
BILLING CODE 8010-01-P
