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, 65195-65197 [E9-29241]
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Federal Register / Vol. 74, No. 235 / Wednesday, December 9, 2009 / Notices
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder.12 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 13 and
Rule 19b–4(f)(6)(iii) thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing.15 However,
pursuant to Rule 19b–4(f)(6)(iii),16 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow the
Exchange to extend the Penny Pilot
Program without interruption and
expand the Penny Pilot Program on the
same schedule as the other exchanges.
Accordingly, the Commission
designates the proposed rule change as
operative upon filing with the
Commission.17
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6)(iii).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
16 17 CFR 240.19b–4(f)(6)(iii).
17 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
12 17
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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–2009–74 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–NYSEAmex-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 also will 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
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
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65195
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–2009–74 and should be
submitted on or before December 30,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–29302 Filed 12–8–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61101; File No. SR–ISE–
2009–99]
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
December 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 November
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, 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) amend
its fee schedule to reflect pass through
charges of other market centers and (ii)
make technical changes to the fee
schedule. All of the changes described
herein are applicable to 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.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
1 15
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Federal Register / Vol. 74, No. 235 / Wednesday, December 9, 2009 / Notices
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.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
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 1, 2009,4 the Exchange added
new fee categories for the INET order
type. When a member routes to Nasdaq
using the INET order type and removes
liquidity on Tapes A or C, the member
incurs a fee of $0.0030 on either EDGA
or EDGX. Such situation yields Flag
‘‘L’’. The INET order type sweeps the
EDGA or EDGX book, and routes the
remainder to Nasdaq. If the order is
marketable, it removes liquidity from
the EDGA or EDGX book, as applicable,
first. If the order is non-marketable, the
order posts on Nasdaq. With regards to
a Member’s use of the INET order type
for Tapes A or C securities, Members
routing an ADV: (i) Less than 5,000,000
shares are currently charged $0.0030 per
share, as described in the schedule; (ii)
equal to or greater than 5,000,000 shares
but less than 20,000,000 shares are
currently charged $0.0027 per share;
(iii) equal to or greater than 20,000,000
shares but less than 30,000,001 shares
are currently charged $0.0026 per share;
and (iv) equal to or greater than
30,000,001 shares are currently charged
$0.0025 per share. The rates, in all
cases, are calculated for shares removed
from Nasdaq. The Exchange believes
that these tier-based rates incent
Members to sweep the EDGA or EDGX
book first and then offer a discounted
rate to Nasdaq’s rates if the remainder
of the order is routed to Nasdaq. These
discounted rates arise in part from
reduced administrative costs associated
with certain volume levels.
The Exchange proposes to amend
these fees in order to reflect changes to
4 See
Securities Exchange Act Release No. 60769
(October 2, 2009), 74 FR 51903 (October 8, 2009)
(SR–ISE–2009–68).
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15:02 Dec 08, 2009
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the actual transaction fees assessed by
away markets. Specifically, the
Exchange is proposing to amend its fee
schedule to reflect changes to Nasdaq’s
best removal tier rate. For example, on
November 1, 2009, the best removal tier
rate increased on Nasdaq from $0.0027
per share executed to $0.0028 per share
executed for Tape A & C securities.5 The
Exchange now proposes to amend its fee
schedule so that when Nasdaq’s best
removal tier rate changes, EDGA and
EDGX’s fees change as well, in lock
step. The new language is proposed to
read as follows:
Subscribers routing an average daily
volume (‘‘ADV’’): (i) Less than 5,000,000
shares will be charged $0.0030 per
share, as described in the schedule; (ii)
equal to or greater than 5,000,000 shares
but less than 20,000,000 shares will be
charged Nasdaq’s best removal tier rate
per share; (iii) equal to or greater than
20,000,000 shares but less than
30,000,001 shares will be charged
Nasdaq’s best removal tier rate—
$0.0001 per share; and (iv) equal to or
greater than 30,000,001 shares will be
charged Nasdaq’s best removal tier
rate—$0.0002 per share. The rates, in all
cases, are calculated for shares removed
from Nasdaq. (emphasis added)
For the month of December this
would equate to $0.0028 per share for
(ii), above, $0.0027 per share for (iii),
above, and $0.0026 per share for (iv), as
described above.
In addition, the Exchange proposes to
make technical changes to the fee
schedule. Effective November 1, 2009,6
the Exchange amended the meaning of
several flags. In particular, the N and W
flags are no longer used to reflect
activity outside of regular market hours.
The Exchange adopted flags 3–7 to
reflect pre- and post-market activity.
Therefore, the Exchange proposes to
correct a reference in footnote 1 to the
fee schedule to reflect this change. The
new language is proposed to read as
follows: In addition, subscribers can
also qualify for a rebate of $0.0032 per
share for all liquidity posted on EDGX
if they 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 6) 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. (emphasis added)
5 See Securities Exchange Act Release No. 60959
(November 6, 2009), 74 FR 58672 (November 13,
2009)(SR–NASDAQ–2009–096).
6 See Securities Exchange Act Release No. 60914
(November 2, 2009), 74 FR 57726 (November 9,
2009)(SR–ISE–2009–88).
PO 00000
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The changes discussed in this filing will
become operative on December 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, providing tier-based rates for
Members provide pricing incentives to
market participants that route orders to
DECN, allowing DECN to remain
competitive. This tier-based rate arises
in part from reduced administrative
costs associated with certain volume
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
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.
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
7 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 19b–4(f)(2).
8 15
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Federal Register / Vol. 74, No. 235 / Wednesday, December 9, 2009 / Notices
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:
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–ISE–2009–99 on the subject
line.
Number SR–ISE–2009–99 and should be
submitted on or before December 30,
2009.
DEPARTMENT OF STATE
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–29241 Filed 12–8–09; 8:45 am]
Review of Unused Presidential Permit:
Port of Brownsville (Texas)
International Bridges
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Delegation of Authority No. 328 ]
Re-Delegation From the Deputy
Secretary of State for Management and
Resources of the Authorities of the
Inspector General and the Assistant
Secretary for International Security
and Nonproliferation
By virtue of the authority vested in
the Secretary of State by the laws of the
United States, including 22 U.S.C.
Paper Comments
2651a, and delegated to me by
• Send paper comments in triplicate
Delegation of Authority 245–1, dated
to Elizabeth M. Murphy, Secretary,
February 13, 2009, I hereby delegate to
Securities and Exchange Commission,
the following officials, to the extent
100 F Street, NE., Washington, DC
authorized by law, all authorities vested
20549–1090.
in the specified positions, including all
All submissions should refer to File
authorities vested in the Secretary of
Number SR–ISE–2009–99. This file
State that may have been or may be
number should be included on the
delegated or re-delegated to those
subject line if e-mail is used. To help the positions:
Commission process and review your
• To Principal Deputy Assistant
comments more efficiently, please use
Secretary Vann Van Diepen, the
only one method. The Commission will authorities of the Assistant Secretary for
post all comments on the Commission’s International Security and
Internet Web site (https://www.sec.gov/
Nonproliferation.
rules/sro.shtml). Copies of the
• To Deputy Inspector General Harold
submission, all subsequent
W. Geisel, the authorities of the
amendments, all written statements
Inspector General.
with respect to the proposed rule
Any authorities covered by this
change that are filed with the
delegation may also be exercised by the
Commission, and all written
Secretary, the Deputy Secretary, and the
communications relating to the
Deputy Secretary for Management and
proposed rule change between the
Resources. Nothing in this delegation of
Commission and any person, other than authority shall be deemed to supersede
those that may be withheld from the
any existing delegation of authority,
public in accordance with the
which shall remain in full force and
provisions of 5 U.S.C. 552, will be
effect.
available for inspection and copying in
This delegation shall expire upon the
the Commission’s Public Reference
appointment and entry upon duty in
Room, 100 F Street, NE., Washington,
each specific case of an individual to
DC 20549, on official business days
serve in the respective position.
between the hours of 10 a.m. and 3 p.m.
This memorandum shall be published
Copies of the filing also will be available in the Federal Register.
for inspection and copying at the
Dated: November 24, 2009.
principal office of the ISE. All
Jacob J. Lew,
comments received will be posted
Deputy Secretary of State for Management
without change; the Commission does
and Resources, Department of State.
not edit personal identifying
[FR Doc. E9–29340 Filed 12–8–09; 8:45 am]
information from submissions. You
BILLING CODE 4710–10–P
should submit only information that
you wish to make available publicly. All
11 17 CFR 200.30–3(a)(12).
submissions should refer to File
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15:02 Dec 08, 2009
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65197
PO 00000
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[Public Notice 6834]
SUMMARY: More than 12 years ago, the
Department of State issued to the
Brownsville Navigation District, a
Presidential permit for two new
international bridges, one for vehicular
traffic and one for railroad traffic,
between Brownsville, Texas, and
Matamoros, Tamaulipas, Mexico. To
date, the permit remains unused. The
Department and other federal agencies
are currently evaluating whether to
revoke, modify, or retain as written this
long-unused permit given the change of
circumstances in the project area,
development of nearby projects,
inaction by the permittee, and apparent
lack of interest in pursuing the
corresponding projects in Mexico. The
review is not a judgment regarding
either the need for a new bridge or the
merits of the Brownsville Navigation
District’s plan, but rather represents a
recognition that the project for which
this permit was issued has gone
unimplemented longer than similar
projects and, due to the passage of time,
may no longer be viable. The
Brownsville Navigation District
provided a project status update, which
is included in the Supplementary
Information section below.
DATES: Interested members of the public
are invited to submit written comments
regarding this permit review on or
before February 8, 2010 to Mr. Stewart
Tuttle, U.S.-Mexico Border Affairs
Coordinator, via e-mail at WHA–
BorderAffairs@state.gov, or by mail at
WHA/MEX—Room 3909, Department of
State, 2201 C St., NW., Washington, DC
20520.
FOR FURTHER INFORMATION CONTACT: Mr.
Stewart Tuttle, U.S.-Mexico Border
Affairs Coordinator, via e-mail at WHA–
BorderAffairs@state.gov; by phone at
202–647–9894; or by mail at Office of
Mexican Affairs—Room 3909,
Department of State, 2201 C St., NW,
Washington, DC 20520. Information
about Presidential permits is available at
https://www.state.gov/p/wha/rt/permit/.
SUPPLEMENTARY INFORMATION: Executive
Order 11423 of August 16, 1968, as
amended, authorizes the Secretary of
State to issue Presidential permits for
the construction, connection, operation,
and maintenance of facilities crossing
the international borders of the United
States, including, but not limited to,
bridges and pipelines connecting the
United States with Canada or Mexico. In
E:\FR\FM\09DEN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 235 (Wednesday, December 9, 2009)]
[Notices]
[Pages 65195-65197]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29241]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61101; File No. SR-ISE-2009-99]
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
December 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 November 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, 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) amend its fee schedule to reflect
pass through charges of other market centers and (ii) make technical
changes to the fee schedule. All of the changes described herein are
applicable to ISE Members.
---------------------------------------------------------------------------
\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.
[[Page 65196]]
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 October 1, 2009,\4\ the Exchange added new fee categories for
the INET order type. When a member routes to Nasdaq using the INET
order type and removes liquidity on Tapes A or C, the member incurs a
fee of $0.0030 on either EDGA or EDGX. Such situation yields Flag
``L''. The INET order type sweeps the EDGA or EDGX book, and routes the
remainder to Nasdaq. If the order is marketable, it removes liquidity
from the EDGA or EDGX book, as applicable, first. If the order is non-
marketable, the order posts on Nasdaq. With regards to a Member's use
of the INET order type for Tapes A or C securities, Members routing an
ADV: (i) Less than 5,000,000 shares are currently charged $0.0030 per
share, as described in the schedule; (ii) equal to or greater than
5,000,000 shares but less than 20,000,000 shares are currently charged
$0.0027 per share; (iii) equal to or greater than 20,000,000 shares but
less than 30,000,001 shares are currently charged $0.0026 per share;
and (iv) equal to or greater than 30,000,001 shares are currently
charged $0.0025 per share. The rates, in all cases, are calculated for
shares removed from Nasdaq. The Exchange believes that these tier-based
rates incent Members to sweep the EDGA or EDGX book first and then
offer a discounted rate to Nasdaq's rates if the remainder of the order
is routed to Nasdaq. These discounted rates arise in part from reduced
administrative costs associated with certain volume levels.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 60769 (October 2,
2009), 74 FR 51903 (October 8, 2009) (SR-ISE-2009-68).
---------------------------------------------------------------------------
The Exchange proposes to amend these fees in order to reflect
changes to the actual transaction fees assessed by away markets.
Specifically, the Exchange is proposing to amend its fee schedule to
reflect changes to Nasdaq's best removal tier rate. For example, on
November 1, 2009, the best removal tier rate increased on Nasdaq from
$0.0027 per share executed to $0.0028 per share executed for Tape A & C
securities.\5\ The Exchange now proposes to amend its fee schedule so
that when Nasdaq's best removal tier rate changes, EDGA and EDGX's fees
change as well, in lock step. The new language is proposed to read as
follows:
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 60959 (November 6,
2009), 74 FR 58672 (November 13, 2009)(SR-NASDAQ-2009-096).
---------------------------------------------------------------------------
Subscribers routing an average daily volume (``ADV''): (i) Less
than 5,000,000 shares will be charged $0.0030 per share, as described
in the schedule; (ii) equal to or greater than 5,000,000 shares but
less than 20,000,000 shares will be charged Nasdaq's best removal tier
rate per share; (iii) equal to or greater than 20,000,000 shares but
less than 30,000,001 shares will be charged Nasdaq's best removal tier
rate--$0.0001 per share; and (iv) equal to or greater than 30,000,001
shares will be charged Nasdaq's best removal tier rate--$0.0002 per
share. The rates, in all cases, are calculated for shares removed from
Nasdaq. (emphasis added)
For the month of December this would equate to $0.0028 per share
for (ii), above, $0.0027 per share for (iii), above, and $0.0026 per
share for (iv), as described above.
In addition, the Exchange proposes to make technical changes to the
fee schedule. Effective November 1, 2009,\6\ the Exchange amended the
meaning of several flags. In particular, the N and W flags are no
longer used to reflect activity outside of regular market hours. The
Exchange adopted flags 3-7 to reflect pre- and post-market activity.
Therefore, the Exchange proposes to correct a reference in footnote 1
to the fee schedule to reflect this change. The new language is
proposed to read as follows: In addition, subscribers can also qualify
for a rebate of $0.0032 per share for all liquidity posted on EDGX if
they 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 6) 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. (emphasis added) The changes discussed in this filing will
become operative on December 1, 2009.
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\6\ See Securities Exchange Act Release No. 60914 (November 2,
2009), 74 FR 57726 (November 9, 2009)(SR-ISE-2009-88).
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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, providing tier-based rates for Members
provide pricing incentives to market participants that route orders to
DECN, allowing DECN to remain competitive. This tier-based rate arises
in part from reduced administrative costs associated with certain
volume 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
proposed rates are equitable in that they apply uniformly to all
Members.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \9\ and Rule 19b-4(f)(2) \10\ thereunder. At any
time within 60 days
[[Page 65197]]
of the filing of such proposed rule change, the Commission may
summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
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-2009-99 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-2009-99. 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-2009-99 and should be
submitted on or before December 30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29241 Filed 12-8-09; 8:45 am]
BILLING CODE 8011-01-P
