Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 66190-66191 [E9-29647]

Download as PDF 66190 Federal Register / Vol. 74, No. 238 / Monday, December 14, 2009 / Notices 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: BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–BX–2009–080. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. mstockstill on DSKH9S0YB1PROD with NOTICES For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–29649 Filed 12–11–09; 8:45 am] [Release No. 34–61131; File No. SR–ISE– 2009–101] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes December 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 November 24, 2009, the International Securities All submissions should refer to File Exchange, LLC (the ‘‘Exchange’’ or the Number SR–BX–2009–080. This file ‘‘ISE’’) filed with the Securities and number should be included on the Exchange Commission (‘‘Commission’’) subject line if e-mail is used. To help the the proposed rule change, as described in Items I, II, and III below, which items Commission process and review your have been prepared by the selfcomments more efficiently, please use only one method. The Commission will regulatory organization. The post all comments on the Commission’s Commission is publishing this notice to solicit comments on the proposed rule Internet Web site (https://www.sec.gov/ change from interested persons. rules/sro.shtml). Copies of the submission, all subsequent I. Self-Regulatory Organization’s amendments, all written statements Statement of the Terms of Substance of with respect to the proposed rule the Proposed Rule Change change that are filed with the The ISE is proposing to amend its Commission, and all written Schedule of Fees regarding its communications relating to the Competitive Market Maker (‘‘CMM’’) proposed rule change between the Inactivity Fee. The text of the proposed Commission and any person, other than rule change is available on the those that may be withheld from the Exchange’s Web site (https:// public in accordance with the www.ise.com), on the Commission’s provisions of 5 U.S.C. 552, will be Web site at https://www.sec.gov, at the available for inspection and copying in principal office of the Exchange, and at the Commission’s Public Reference the Commission’s Public Reference Room. Room, 100 F Street, NE., Washington, DC 20549, on official business days II. Self-Regulatory Organization’s between the hours of 10 a.m. and 3 p.m. Statement of the Purpose of, and Copies of such filing also will be Statutory Basis for, the Proposed Rule available for inspection and copying at Change the principal office of the Exchange. All In its filing with the Commission, the comments received will be posted self-regulatory organization included without change; the Commission does statements concerning the purpose of, not edit personal identifying and basis for, the proposed rule change information from submissions. You and discussed any comments it received should submit only information that on the proposed rule change. The text you wish to make available publicly. All of these statements may be examined at submissions should refer to File the places specified in Item IV below. Number SR–BX–2009–080 and should The self-regulatory organization has be submitted on or before January 4, 11 17 CFR 200.30–3(a)(12). 2010. 1 15 2 17 VerDate Nov<24>2008 17:54 Dec 11, 2009 Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00107 Fmt 4703 Sfmt 4703 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 ISE proposes to amend its Schedule of Fees regarding its CMM Inactivity Fee. Specifically, the Exchange proposes to amend its current CMM Inactivity Fee for any member who is not currently a market maker and acquires one or more CMM Trading Right by providing the Exchange the ability to waive this fee for up to three full calendar months. ISE currently charges the owner 3 of a CMM membership an Inactivity Fee of $25,000 a month per trading right if the owner does not (i) itself operate the CMM membership, (ii) lease the CMM trading right to another member which operates the CMM membership, or (iii) avail itself to one of the exemptions specifically authorized in the Notes to the CMM Inactivity Fee on the Schedule of Fees. The purpose of the CMM Inactivity Fee has always been to promote greater trading activity on the Exchange. The Exchange believes that anything short of full utilization of its trading rights has adverse consequences. Not only does the Exchange lose fee revenues that these trading rights would generate, the ISE market place loses liquidity that additional market making would provide. The Exchange, however, also recognizes that firms, and in particular firms that are new members of the Exchange, need time to ramp up their operations to the point where they are able to efficiently operate as a market maker. Under the Exchange’s current fee schedule, a new market maker would be subject to an inactivity fee of $25,000 per Trading Right per month if that market maker is not able to commence operations immediately after purchasing the Trading Rights. The Exchange believes assessing this fee is a strong disincentive for any new member to acquire Trading Rights and become a market maker on the Exchange. Thus, the Exchange proposes to amend its current CMM Inactivity Fee with respect to any member who acquires one or more CMM Trading Right by providing the Exchange the ability to waive this fee for up to three 3 The Note to the CMM Inactivity Fee on the Schedule of Fees provides that the fee applies to the owner of the CMM membership, unless the inactive CMM membership is subject to a lease that was approved by the Exchange prior to the effective date of the fee, in which case the fee would apply to the lessee. E:\FR\FM\14DEN1.SGM 14DEN1 66191 Federal Register / Vol. 74, No. 238 / Monday, December 14, 2009 / Notices full calendar months. The waiver, which would be granted by an Exchange official designated by the Exchange’s Board of Directors, would only apply if the member purchasing the Trading Rights is not currently an ISE market maker and needs additional time to commence its operations on the Exchange as a market maker. The Exchange believes granting the waiver will provide new market makers sufficient time to become operationally ready. This proposed fee change will be operative on December 1, 2009. 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 recoup lost revenue and encourage the timely operation of its CMM Trading Rights. 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. mstockstill on DSKH9S0YB1PROD with 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. 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 4 and Rule 19b–4(f)(2) 5 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 proposal is consistent with the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2009–101 on the subject line. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 2330 and IM–2330 To Reflect Changes to Corresponding FINRA Rule Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securitiesand Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–ISE–2009–101. 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 changes 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 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 No. SR–ISE–2009–101 and should be submitted on or before January 4, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–29647 Filed 12–11–09; 8:45 am] BILLING CODE 8011–01–P 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 19b–4(f)(2). VerDate Nov<24>2008 17:54 Dec 11, 2009 6 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00108 Fmt 4703 Sfmt 4703 [Release No. 34–61128; File No. SR– NASDAQ–2009–106] December 8, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 4, 2009, The NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) 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 Exchange. The Exchange has designated the proposed rule change as constituting a non-controversial rule change under Rule 19b–4(f)(6) under the Act,3 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 Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),4 and Rule 19b–4 thereunder,5 the NASDAQ Stock Market LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to amend NASDAQ Rule 2330 and IM–2330 to reflect recent changes to a corresponding rule of the Financial Industry Regulatory Authority (‘‘FINRA’’). The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are in brackets: NASDAQ Stock Market Rules * * * * * 2150. Customers’ Securities or Funds (a) Nasdaq Members and persons associated with a member shall comply with FINRA Rule 2150 as if such Rule were part of Nasdaq’s Rules. (b) Nothing in FINRA Rule 2150, as applied to Nasdaq members and their 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 15 U.S.C. 78s(b)(1). 5 17 CFR 240.19b–4. 2 17 E:\FR\FM\14DEN1.SGM 14DEN1

Agencies

[Federal Register Volume 74, Number 238 (Monday, December 14, 2009)]
[Notices]
[Pages 66190-66191]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29647]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61131; File No. SR-ISE-2009-101]


 Self-Regulatory Organizations; International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fee Changes

December 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 November 24, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees regarding its 
Competitive Market Maker (``CMM'') Inactivity Fee. The text of the 
proposed rule change is available on the Exchange's Web site (https://www.ise.com), on the Commission's Web site at https://www.sec.gov, 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
    ISE proposes to amend its Schedule of Fees regarding its CMM 
Inactivity Fee. Specifically, the Exchange proposes to amend its 
current CMM Inactivity Fee for any member who is not currently a market 
maker and acquires one or more CMM Trading Right by providing the 
Exchange the ability to waive this fee for up to three full calendar 
months.
    ISE currently charges the owner \3\ of a CMM membership an 
Inactivity Fee of $25,000 a month per trading right if the owner does 
not (i) itself operate the CMM membership, (ii) lease the CMM trading 
right to another member which operates the CMM membership, or (iii) 
avail itself to one of the exemptions specifically authorized in the 
Notes to the CMM Inactivity Fee on the Schedule of Fees.
---------------------------------------------------------------------------

    \3\ The Note to the CMM Inactivity Fee on the Schedule of Fees 
provides that the fee applies to the owner of the CMM membership, 
unless the inactive CMM membership is subject to a lease that was 
approved by the Exchange prior to the effective date of the fee, in 
which case the fee would apply to the lessee.
---------------------------------------------------------------------------

    The purpose of the CMM Inactivity Fee has always been to promote 
greater trading activity on the Exchange. The Exchange believes that 
anything short of full utilization of its trading rights has adverse 
consequences. Not only does the Exchange lose fee revenues that these 
trading rights would generate, the ISE market place loses liquidity 
that additional market making would provide. The Exchange, however, 
also recognizes that firms, and in particular firms that are new 
members of the Exchange, need time to ramp up their operations to the 
point where they are able to efficiently operate as a market maker. 
Under the Exchange's current fee schedule, a new market maker would be 
subject to an inactivity fee of $25,000 per Trading Right per month if 
that market maker is not able to commence operations immediately after 
purchasing the Trading Rights. The Exchange believes assessing this fee 
is a strong disincentive for any new member to acquire Trading Rights 
and become a market maker on the Exchange.
    Thus, the Exchange proposes to amend its current CMM Inactivity Fee 
with respect to any member who acquires one or more CMM Trading Right 
by providing the Exchange the ability to waive this fee for up to three

[[Page 66191]]

full calendar months. The waiver, which would be granted by an Exchange 
official designated by the Exchange's Board of Directors, would only 
apply if the member purchasing the Trading Rights is not currently an 
ISE market maker and needs additional time to commence its operations 
on the Exchange as a market maker. The Exchange believes granting the 
waiver will provide new market makers sufficient time to become 
operationally ready.
    This proposed fee change will be operative on December 1, 2009.
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 recoup lost revenue and encourage the timely operation of 
its CMM Trading Rights.

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 \4\ and Rule 19b-4(f)(2) \5\ 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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-2009-101 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securitiesand Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-ISE-2009-101. 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 changes 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 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 No. SR-ISE-2009-101 and should be 
submitted on or before January 4, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29647 Filed 12-11-09; 8:45 am]
BILLING CODE 8011-01-P
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