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, 57728-57730 [E9-26879]

Download as PDF 57728 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices levels. 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. Additionally, ISE believes that the inverse pricing structure on EDGA, rebates and new flags enable the Exchange to compete effectively with other market centers. The ISE also believes that the proposed rates are equitable in that they apply uniformly to all Members. 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. mstockstill on DSKH9S0YB1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3) of the Act 8 and Rule 19b–4(f)(2) 9 thereunder. At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: U.S.C. 78s(b)(3)(A). 9 17 CFR 19b–4(f)(2). 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–2009–88 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–2009–88. 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–2009–88 and should be submitted on or before November 30, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–26880 Filed 11–6–09; 8:45 am] 16:52 Nov 06, 2009 [Release No. 34–60913; File No. SR–ISE– 2009–89] 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 November 2, 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 October 30, 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 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 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. 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. BILLING CODE 8011–01–P 8 15 VerDate Nov<24>2008 SECURITIES AND EXCHANGE COMMISSION 1 15 10 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00104 Fmt 4703 Sfmt 4703 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\09NON1.SGM 09NON1 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change applicability of the Super Tier rebate to Tape B securities; 6 and (iv) make typographical changes to the fee schedule.7 The fee changes made mstockstill on DSKH9S0YB1PROD with NOTICES 1. Purpose DECN, a facility of ISE, operates two trading platforms, EDGX and EDGA. On October 30, 2009, the ISE filed for immediate effectiveness a proposed rule change to: (i) Amend DECN’s fee schedule for ISE Members 3 to adopt new fees and rebates and associated flags; 4 (ii) amend the criteria for meeting the Ultra Tier; 5 (iii) amend the 3 References to ISE Members in this filing refer to DECN Subscribers who are ISE Members. 4 In SR–ISE–2009–88, the Exchange adopted additional fees and rebates to remain competitive with other market centers. First, the Exchange amended the fees on EDGA for adding and removing liquidity for securities priced $1 and over. Effective November 1, 2009, the Exchange rebates $0.0002 per share for removing liquidity on EDGA if the attributed MPID adds or routes a minimum average daily share volume, measured monthly, of 50,000 shares on either EDGX, EDGA, or EDGX and EDGA combined. As today, any attributed MPID not meeting the aforementioned minimum is charged $0.0030 per share for removing liquidity from EDGA. In addition, the Exchange charges $0.0002 per share for adding liquidity on EDGA unless the attributed MPID adds a minimum average daily share volume, measured monthly, of at least 50,000,000 shares on EDGA. If members meet or exceed such volume threshold, they are not charged to add liquidity on EDGA. In addition, in SR–ISE–2009–88, the Exchange made conforming changes to the flags associated with these above-described fees. Flags associated with adding liquidity on EDGA were updated to reflect the $0.0002 charge. These flags include B, V, and Y. The fees associated with Flags 3 and 4, discussed in more detail below, are also consistent with this fee structure. Flags associated with removing liquidity on EDGA were updated to reflect the $0.0002 rebate. These flags include N and W. Flag 6, discussed in more detail below, is also consistent with this fee structure. Furthermore, in SR–ISE–2009–88, the Exchange amended the fee on EDGX for adding liquidity on Tape B for securities priced $1 and over. The Exchange rebates $0.0025 per share (the same as currently exists for Tapes A & C). A conforming change was made to Flag B, which indicates liquidity added to EDGX’s book. Finally, the Exchange amended the fees on both EDGX and EDGA for securities priced less than $1. For such securities, the Exchange amended the fees for routing to be 0.30% of the total dollar value of the transaction instead of 0.29% of the dollar value of the transaction. The Exchange believes that the above-described fee changes enable DECN to compete effectively with other market centers. 5 On July 1, 2009, the Exchange adopted a new Ultra Tier Rebate 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 on 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. See Securities Exchange Act Release No. 60232 (July 2, 2009), 74 FR 33309 (July 10, 2009) (SR–ISE–2009– 43). VerDate Nov<24>2008 16:52 Nov 06, 2009 Jkt 220001 Per SR–ISE–2009–68, the Exchange amended the criteria for meeting the Ultra Tier if ISE Members (i) add or route at least 10,000,000 shares of average daily volume prior to 9:30 a.m. or after 4 p.m. (includes all flags except N and W) and add a minimum of 75,000,000 shares of average daily volume on EDGX in total, including during both market hours and pre- and post-trading hours. See Securities Exchange Act Release No. 60769 (October 2, 2009), 74 FR 51903 (October 8, 2009) (SR–ISE– 2009–68). In SR–ISE–2009–88, the Exchange also added an additional way to qualify for the Ultra Tier. Members can also qualify for a $0.0032 rebate per share for all liquidity posted on EDGX if the attributed MPID on a daily basis, measured monthly, adds a minimum of 50,000,000 shares per day to EDGX so long as the added liquidity on EDGX is at least 50,000,000 shares greater than the previous calendar month. The Exchange believes that this additional way to meet the Ultra Tier (a tier-based rate) incents Members to interact with order flow on DECN. This discount rate arises in part from reduced administrative costs associated with certain volume levels. In SR–ISE–2009–88, the Exchange added liquidity flags to reflect adding and removing liquidity during pre- and post-trading hours. When members add liquidity on Tapes A & C during the pre- and post-trading hours, they are rebated $0.0025 per share on EDGX and are charged $0.0002 per share on EDGA and this situation yields Flag 3. When members add liquidity during the pre- and post-trading hours on Tape B, they are rebated $0.0025 per share on EDGX and charged $0.0002 per share on EDGA and this situation yields Flag 4. When members cross with themselves (internalization) during the pre- and post-trading hours, they are charged $0.000025 per share on EDGX and are not charged on EDGA. This situation yields flag 5. When members remove liquidity from any Tape during the pre- and post-trading hours, they are charged $0.0028 per share on EDGX and are rebated $0.0002 on EDGA. This situation yields flag 6. Finally, for members whose orders are routed from EDGA or EDGX during the pre- and posttrading hours, they are charged $0.0030 per share. This situation yields flag 7. In addition, the rebate of $0.0002 for removing liquidity on EDGA and charge of $0.0002 for adding liquidity on EDGA is described in more detail below. The Exchange believes that this fee structure will enable it to compete effectively with other market centers that have recently introduced such pricing. 6 Additionally, in SR–ISE–2009–88, the Exchange modified the Super Tier rebate to include transactions in Tape B securities as well. Previously, the Super Tier only applied to Tapes A & C. As a result of the amendment, Members who execute transactions in Tape B securities also qualify for the Super Tier and are provided a $0.0030 rebate per share for liquidity added on EDGX if the attributed MPID 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. 7 In SR–ISE–2009–88, the Exchange made typographical changes to the fee schedule to clarify that Flags M, V, and Y are rebates for adding liquidity. For Flag M, parentheses were added to indicate that $0.0024 rebate per share is both on PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 57729 pursuant to SR–ISE–2009–88 became operative on November 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– 2009–88, 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 an effective date of November 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 November 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,8 in general, and furthers the objectives of Section 6(b)(4),9 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. EDGA and EDGX. For Flags V and Y, parentheses were added to indicate that the $0.0025 rebate per share is on EDGX. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). E:\FR\FM\09NON1.SGM 09NON1 57730 Federal Register / Vol. 74, No. 215 / Monday, November 9, 2009 / Notices 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. should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–ISE–2009–89 and should be submitted on or before November 30, 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 Interested persons are invited to rules and regulations thereunder submit written data, views, and applicable to a national securities arguments concerning the foregoing, exchange.10 Specifically, the including whether the proposed rule Commission finds that the proposed change is consistent with the Act. rule change is consistent with Section Comments may be submitted by any of 6(b)(4) 11 of the Act, which requires that the following methods: the rules of a national securities Electronic Comments exchange provide for the equitable allocation of reasonable dues, fees, and • Use the Commission’s Internet other charges among members and comment form (https://www.sec.gov/ issuers and other persons using its rules/sro.shtml); or facilities. • Send an e-mail to ruleAs described more fully above, ISE comments@sec.gov. Please include File recently amended DECN’s fee schedule No. SR–ISE–2009–89 on the subject for ISE Members to, among other things, line. adopt new fees, rebates and associated Paper Comments flags for adding and removing liquidity during pre and post hours trading, add • Send paper comments in triplicate an additional method to qualify for the to Elizabeth M. Murphy, Secretary, Ultra Tier rebate, modify the Super Tier Securities and Exchange Commission, rebate to include transactions in Tape B 100 F Street, NE., Washington, DC securities, adopt a charge for adding 20549–1090. liquidity on EDGA unless certain All submissions should refer to File volume thresholds are met, revise the Number SR–ISE–2009–89. This file fees for adding liquidity on EDGX and number should be included on the subject line if e-mail is used. To help the EDGA and made conforming changes to the flags associated with these rebates Commission process and review your and fees.12 The fee changes made comments more efficiently, please use only one method. The Commission will pursuant to the Member Fee Filing became operative on November 1, 2009. post all comments on the Commissions DECN receives rebates and is charged Internet Web site (https://www.sec.gov/ fees for transactions it executes on rules/sro.shtml). Copies of the EGDX or EDGA in its capacity as an submission, all subsequent introducing broker for its non-ISE amendments, all written statements member subscribers. with respect to the proposed rule The current proposal, which will change that are filed with the apply retroactively to November 1, Commission, and all written 2009, will allow DECN to pass through communications relating to the the revised rebates and fees to the nonproposed rule change between the Commission and any person, other than ISE member subscribers for which it acts an introducing broker. The those that may be withheld from the Commission finds that the proposal is public in accordance with the consistent with the Act because it will provisions of 5 U.S.C. 552, will be provide rebates and charge fees to nonavailable for inspection and copying in ISE member subscribers that are the Commission’s Public Reference equivalent to those established for ISE Room, 100 F Street, NE., Washington, member subscribers in the Member Fee DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Filing.13 Copies of such filing also will be 10 In approving this proposal, the Commission has available for inspection and copying at considered its impact on efficiency, competition, the principal office of the ISE. All and capital formation. 15 U.S.C. 78c(f). comments received will be posted 11 15 U.S.C. 78f(b)(4). without change; the Commission does 12 See File No. SR–ISE–2009–88 (the ‘‘Member not edit personal identifying Fee Filing’’). 13 Id. information from submissions. You mstockstill on DSKH9S0YB1PROD with NOTICES III. Solicitation of Comments VerDate Nov<24>2008 16:52 Nov 06, 2009 Jkt 220001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 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 November 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,14 that the proposed rule change (SR–ISE–2009–89) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–26879 Filed 11–6–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60911; File No. SR–NYSE– 2009–109] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Extend the Pilot Program in Relation to Certain of Its Continued Listing Standards November 2, 2009. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’),2 and Rule 19b–4 thereunder,3 notice is hereby given that, on October 30, 2009, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule 14 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 15 17 E:\FR\FM\09NON1.SGM 09NON1

Agencies

[Federal Register Volume 74, Number 215 (Monday, November 9, 2009)]
[Notices]
[Pages 57728-57730]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26879]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60913; File No. SR-ISE-2009-89]


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

November 2, 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 October 30, 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 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 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.

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.

[[Page 57729]]

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 October 30, 2009, the ISE filed for immediate effectiveness a 
proposed rule change to: (i) Amend DECN's fee schedule for ISE Members 
\3\ to adopt new fees and rebates and associated flags; \4\ (ii) amend 
the criteria for meeting the Ultra Tier; \5\ (iii) amend the 
applicability of the Super Tier rebate to Tape B securities; \6\ and 
(iv) make typographical changes to the fee schedule.\7\ The fee changes 
made pursuant to SR-ISE-2009-88 became operative on November 1, 2009.
---------------------------------------------------------------------------

    \3\ References to ISE Members in this filing refer to DECN 
Subscribers who are ISE Members.
    \4\ In SR-ISE-2009-88, the Exchange adopted additional fees and 
rebates to remain competitive with other market centers. First, the 
Exchange amended the fees on EDGA for adding and removing liquidity 
for securities priced $1 and over. Effective November 1, 2009, the 
Exchange rebates $0.0002 per share for removing liquidity on EDGA if 
the attributed MPID adds or routes a minimum average daily share 
volume, measured monthly, of 50,000 shares on either EDGX, EDGA, or 
EDGX and EDGA combined. As today, any attributed MPID not meeting 
the aforementioned minimum is charged $0.0030 per share for removing 
liquidity from EDGA. In addition, the Exchange charges $0.0002 per 
share for adding liquidity on EDGA unless the attributed MPID adds a 
minimum average daily share volume, measured monthly, of at least 
50,000,000 shares on EDGA. If members meet or exceed such volume 
threshold, they are not charged to add liquidity on EDGA.
    In addition, in SR-ISE-2009-88, the Exchange made conforming 
changes to the flags associated with these above-described fees. 
Flags associated with adding liquidity on EDGA were updated to 
reflect the $0.0002 charge. These flags include B, V, and Y. The 
fees associated with Flags 3 and 4, discussed in more detail below, 
are also consistent with this fee structure. Flags associated with 
removing liquidity on EDGA were updated to reflect the $0.0002 
rebate. These flags include N and W. Flag 6, discussed in more 
detail below, is also consistent with this fee structure.
    Furthermore, in SR-ISE-2009-88, the Exchange amended the fee on 
EDGX for adding liquidity on Tape B for securities priced $1 and 
over. The Exchange rebates $0.0025 per share (the same as currently 
exists for Tapes A & C). A conforming change was made to Flag B, 
which indicates liquidity added to EDGX's book.
    Finally, the Exchange amended the fees on both EDGX and EDGA for 
securities priced less than $1. For such securities, the Exchange 
amended the fees for routing to be 0.30% of the total dollar value 
of the transaction instead of 0.29% of the dollar value of the 
transaction.
    The Exchange believes that the above-described fee changes 
enable DECN to compete effectively with other market centers.
    \5\ On July 1, 2009, the Exchange adopted a new Ultra Tier 
Rebate 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 on 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. See Securities Exchange Act 
Release No. 60232 (July 2, 2009), 74 FR 33309 (July 10, 2009) (SR-
ISE-2009-43).
    Per SR-ISE-2009-68, the Exchange amended the criteria for 
meeting the Ultra Tier if ISE Members (i) add or route at least 
10,000,000 shares of average daily volume prior to 9:30 a.m. or 
after 4 p.m. (includes all flags except N and W) and add a minimum 
of 75,000,000 shares of average daily volume on EDGX in total, 
including during both market hours and pre- and post-trading hours. 
See Securities Exchange Act Release No. 60769 (October 2, 2009), 74 
FR 51903 (October 8, 2009) (SR-ISE-2009-68).
    In SR-ISE-2009-88, the Exchange also added an additional way to 
qualify for the Ultra Tier. Members can also qualify for a $0.0032 
rebate per share for all liquidity posted on EDGX if the attributed 
MPID on a daily basis, measured monthly, adds a minimum of 
50,000,000 shares per day to EDGX so long as the added liquidity on 
EDGX is at least 50,000,000 shares greater than the previous 
calendar month.
    The Exchange believes that this additional way to meet the Ultra 
Tier (a tier-based rate) incents Members to interact with order flow 
on DECN. This discount rate arises in part from reduced 
administrative costs associated with certain volume levels.
    In SR-ISE-2009-88, the Exchange added liquidity flags to reflect 
adding and removing liquidity during pre- and post-trading hours. 
When members add liquidity on Tapes A & C during the pre- and post-
trading hours, they are rebated $0.0025 per share on EDGX and are 
charged $0.0002 per share on EDGA and this situation yields Flag 3. 
When members add liquidity during the pre- and post-trading hours on 
Tape B, they are rebated $0.0025 per share on EDGX and charged 
$0.0002 per share on EDGA and this situation yields Flag 4. When 
members cross with themselves (internalization) during the pre- and 
post-trading hours, they are charged $0.000025 per share on EDGX and 
are not charged on EDGA. This situation yields flag 5. When members 
remove liquidity from any Tape during the pre- and post-trading 
hours, they are charged $0.0028 per share on EDGX and are rebated 
$0.0002 on EDGA. This situation yields flag 6. Finally, for members 
whose orders are routed from EDGA or EDGX during the pre- and post-
trading hours, they are charged $0.0030 per share. This situation 
yields flag 7. In addition, the rebate of $0.0002 for removing 
liquidity on EDGA and charge of $0.0002 for adding liquidity on EDGA 
is described in more detail below. The Exchange believes that this 
fee structure will enable it to compete effectively with other 
market centers that have recently introduced such pricing.
    \6\ Additionally, in SR-ISE-2009-88, the Exchange modified the 
Super Tier rebate to include transactions in Tape B securities as 
well. Previously, the Super Tier only applied to Tapes A & C. As a 
result of the amendment, Members who execute transactions in Tape B 
securities also qualify for the Super Tier and are provided a 
$0.0030 rebate per share for liquidity added on EDGX if the 
attributed MPID 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.
    \7\ In SR-ISE-2009-88, the Exchange made typographical changes 
to the fee schedule to clarify that Flags M, V, and Y are rebates 
for adding liquidity. For Flag M, parentheses were added to indicate 
that $0.0024 rebate per share is both on EDGA and EDGX. For Flags V 
and Y, parentheses were added to indicate that the $0.0025 rebate 
per share is on EDGX.
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    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-2009-88, 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 an effective date of November 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 November 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,\8\ in general, and 
furthers the objectives of Section 6(b)(4),\9\ 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).
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 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.

[[Page 57730]]

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-2009-89 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-2009-89. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commissions Internet Web site (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference 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-2009-89 and should be submitted on 
or before November 30, 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.\10\ 
Specifically, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(4) \11\ 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.
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    \10\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f(b)(4).
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    As described more fully above, ISE recently amended DECN's fee 
schedule for ISE Members to, among other things, adopt new fees, 
rebates and associated flags for adding and removing liquidity during 
pre and post hours trading, add an additional method to qualify for the 
Ultra Tier rebate, modify the Super Tier rebate to include transactions 
in Tape B securities, adopt a charge for adding liquidity on EDGA 
unless certain volume thresholds are met, revise the fees for adding 
liquidity on EDGX and EDGA and made conforming changes to the flags 
associated with these rebates and fees.\12\ The fee changes made 
pursuant to the Member Fee Filing became operative on November 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.
---------------------------------------------------------------------------

    \12\ See File No. SR-ISE-2009-88 (the ``Member Fee Filing'').
---------------------------------------------------------------------------

    The current proposal, which will apply retroactively to November 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.\13\
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    \13\ Id.
---------------------------------------------------------------------------

    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 November 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,\14\ that the proposed rule change (SR-ISE-2009-89) be, and hereby 
is, approved on an accelerated basis.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26879 Filed 11-6-09; 8:45 am]
BILLING CODE 8011-01-P
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