Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Payment for Order Flow Fees, 52994-52995 [E9-24790]

Download as PDF 52994 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 7 of the Act and subparagraph (f)(2) of Rule 19b–4 8 thereunder, because it establishes a due, fee, or other charge imposed by NYSE Amex. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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–NYSEAmex–2009–66 on the subject line. mstockstill on DSKH9S0YB1PROD with NOTICES 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–NYSEAmex–2009–66. 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 Section, 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 Exchange’s principal office and on its Internet Web site at https:// www.nyse.com. 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– NYSEAmex–2009–66 and should be submitted on or before November 5, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–24738 Filed 10–14–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60801; File No. SR–ISE– 2009–70] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Payment for Order Flow Fees October 8, 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 September 29, 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 Exchange has 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f)(2). VerDate Nov<24>2008 19:13 Oct 14, 2009 1 15 Jkt 220001 PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 designated this proposal as one establishing or changing a due, fee, or other charge imposed by ISE under Section 19(b)(3)(A)(ii) 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 ISE proposes to amend its payment for order flow program. The text of the proposed rule change is available on the Exchange’s Web site (https://www.ise.com), at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange currently has a payment-for-order-flow (‘‘PFOF’’) program that helps its market makers establish PFOF arrangements with an EAM in exchange for that EAM preferencing some or all of its order flow to that market maker. This program is funded through a fee paid by Exchange market makers for each customer contract they execute, and is administered by both Primary Market Makers (‘‘PMM’’) 5 and Competitive Market Makers (‘‘CMM’’),6 depending on who the order is preferenced to. The Exchange now proposes to adopt an administrative fee to offset its costs in administering the PFOF program. Specifically, ISE proposes to assess an 3 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 5 See Securities Exchange Act Release No. 43833 (January 10, 2001), 66 FR 7822 (January 25, 2001). 6 See Securities Exchange Act Release No. 53127 (January 13, 2006), 71 FR 3582 (January 23, 2006). 4 17 E:\FR\FM\15OCN1.SGM 15OCN1 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices 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: administrative fee of 0.45% of the total amount of funds collected each month. ISE will closely monitor the amount of funds raised by this administrative fee and amend the fee in the future if necessary, so that the fee provides sufficient funds to adequately offset ISE’s costs in administering the PFOF program. The Chicago Board Options Exchange currently assesses a similar fee to administer its PFOF program. ISE proposes to implement this fee beginning on October 1, 2009. ISE is not making any other changes to its PFOF program. • 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–2009–70 on the subject line. 2. Statutory Basis The basis under the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’) for this proposed rule change is the requirement under Section 6(b)(4) that an exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. In particular, the proposed fee change will allow the Exchange to offset its costs of administering its PFOF program. 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 mstockstill on DSKH9S0YB1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–24790 Filed 10–14–09; 8:45 am] Paper Comments The foregoing rule change has become effective pursuant to Section 19(b)(3) of the Act 7 and Rule 19b–4(f)(2) 8 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 7 15 8 17 U.S.C. 78s(b)(3)(A). [sic] CFR 240.19b–4(f)(2). VerDate Nov<24>2008 19:13 Oct 14, 2009 Jkt 220001 Electronic Comments 52995 BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice 6786] Department of State Performance Review Board Members In accordance with section 4314(c)(4) of 5 United States Code, the Department of State has appointed the following • Send paper comments in triplicate individuals to the Department of State to Elizabeth M. Murphy, Secretary, Performance Review Board for career Securities and Exchange Commission, Senior Executive Service members: 100 F Street, NE., Washington, DC Joan E. Donoghue, Principal Deputy 20549–1090. Legal Adviser, Office of the Legal All submissions should refer to File Adviser, Department of State; Number SR–ISE–2009–70. This file Raymond D. Maxwell, Director, Bureau number should be included on the of Near Eastern Affairs, Department of subject line if e-mail is used. To help the State; (Outside Member); Commission process and review your James L. Millette, Deputy Assistant comments more efficiently, please use Secretary, Bureau of Resource only one method. The Commission will Management, Department of State; post all comments on the Commission’s Margaret J. Pollack, Deputy Assistant Internet Web site (https://www.sec.gov/ Secretary, Bureau of Population, rules/sro.shtml). Copies of the Refugees and Migration, Department of State; and submission, all subsequent Ruth A. Whiteside, Director, Foreign amendments, all written statements Service Institute, Department of State. with respect to the proposed rule change that are filed with the Dated: October 7, 2009. Commission, and all written Steven A. Browning, communications relating to the Acting Director General of the Foreign Service proposed rule change between the and Director of Human Resources, Commission and any person, other than Department of State. those that may be withheld from the [FR Doc. E9–24823 Filed 10–14–09; 8:45 am] public in accordance with the BILLING CODE 4710–15–P provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference DEPARTMENT OF TRANSPORTATION Room, 100 F Street, NE., Washington, Office of the Secretary 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 Notice of Applications for Certificates of Public Convenience and Necessity for inspection and copying at the and Foreign Air Carrier Permits Filed principal office of the Exchange. All Under Subpart B (Formerly Subpart Q) comments received will be posted During the Week Ending September 19, without change; the Commission does 2009 not edit personal identifying The following Applications for information from submissions. You Certificates of Public Convenience and should submit only information that you wish to make available publicly. All Necessity and Foreign Air Carrier Permits were filed under Subpart B submissions should refer to File Number SR–ISE–2009–70 and should be (formerly Subpart Q) of the Department of Transportation’s Procedural submitted on or before November 5, Regulations (See 14 CFR 301.201 et. 2009. seq.). The due date for Answers, Conforming Applications, or Motions to Modify Scope are set forth below for each application. Following the Answer 9 17 CFR 200.30–3(a)(12). period DOT may process the application PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\FR\FM\15OCN1.SGM 15OCN1

Agencies

[Federal Register Volume 74, Number 198 (Thursday, October 15, 2009)]
[Notices]
[Pages 52994-52995]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-24790]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60801; File No. SR-ISE-2009-70]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Payment for Order Flow Fees

October 8, 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 September 29, 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 Exchange has designated this 
proposal as one establishing or changing a due, fee, or other charge 
imposed by ISE under Section 19(b)(3)(A)(ii) 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to amend its payment for order flow program. The 
text of the proposed rule change is available on the Exchange's Web 
site (https://www.ise.com), at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange currently has a payment-for-order-flow (``PFOF'') 
program that helps its market makers establish PFOF arrangements with 
an EAM in exchange for that EAM preferencing some or all of its order 
flow to that market maker. This program is funded through a fee paid by 
Exchange market makers for each customer contract they execute, and is 
administered by both Primary Market Makers (``PMM'') \5\ and 
Competitive Market Makers (``CMM''),\6\ depending on who the order is 
preferenced to.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 43833 (January 10, 
2001), 66 FR 7822 (January 25, 2001).
    \6\ See Securities Exchange Act Release No. 53127 (January 13, 
2006), 71 FR 3582 (January 23, 2006).
---------------------------------------------------------------------------

    The Exchange now proposes to adopt an administrative fee to offset 
its costs in administering the PFOF program. Specifically, ISE proposes 
to assess an

[[Page 52995]]

administrative fee of 0.45% of the total amount of funds collected each 
month. ISE will closely monitor the amount of funds raised by this 
administrative fee and amend the fee in the future if necessary, so 
that the fee provides sufficient funds to adequately offset ISE's costs 
in administering the PFOF program. The Chicago Board Options Exchange 
currently assesses a similar fee to administer its PFOF program. ISE 
proposes to implement this fee beginning on October 1, 2009. ISE is not 
making any other changes to its PFOF program.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Exchange 
Act'') for this proposed rule change is the requirement under Section 
6(b)(4) that an exchange have an equitable allocation of reasonable 
dues, fees and other charges among its members and other persons using 
its facilities. In particular, the proposed fee change will allow the 
Exchange to offset its costs of administering its PFOF program.

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 \7\ and Rule 19b-4(f)(2) \8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A). [sic]
    \8\ 17 CFR 240.19b-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-2009-70 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-2009-70. 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 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-ISE-2009-70 and should be 
submitted on or before November 5, 2009.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-24790 Filed 10-14-09; 8:45 am]
BILLING CODE 8011-01-P
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