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, 6782-6784 [2010-2957]

Download as PDF 6782 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices in trading volume on the Exchange and in the income derived therefrom. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will 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 Changes Received From Members, Participants or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Changes and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(B)(3)(A)(ii) [sic] of the Act 9 and subparagraph (f)(2) of Rule 19b–4 thereunder 10 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. At any time within 60 days of the filing of such 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 purpose 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–CHX–2010–03 on the subject line. sroberts on DSKD5P82C1PROD with NOTICES Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CHX–2010–03. 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 Web site viewing and printing 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 Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CHX– 2010–03 and should be submitted on or before March 3, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–2958 Filed 2–9–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61491; File No. SR–ISE– 2010–11] 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 February 4, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). VerDate Nov<24>2008 16:21 Feb 09, 2010 1 15 Jkt 220001 PO 00000 Frm 00161 Fmt 4703 Sfmt 4703 notice is hereby given that on January 29, 2010, 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 the selfregulatory organization. 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. 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 January 29, 2010, the ISE filed for immediate effectiveness a proposed rule change to amend Direct Edge ECN’s (‘‘DECN’’) fee schedule for ISE Members 3 to simplify its fee schedule by (i) re-introducing a rebate; 4 (ii) 3 References to ISE Members in this filing refer to DECN Subscribers who are ISE Members. 4 In SR–ISE–2009–68, the Exchange amended the criteria for meeting the Ultra Tier by allowing ISE Members to receive 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 posts 1% of the total consolidated volume (‘‘TCV’’) in average daily volume (‘‘ADV’’). TCV is defined as volume reported by all exchanges and trade reporting facilities to the consolidated E:\FR\FM\10FEN1.SGM 10FEN1 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices sroberts on DSKD5P82C1PROD with NOTICES adding a fee for stocks priced less than $1 that remove liquidity on EDGA; 5 (iii) eliminating certain tables on the fee schedule; 6 and (iv) making typographical and clarifying changes to the fee schedule.7 The changes made transaction reporting plans for Tape A, B, and C securities. See Securities Exchange Act Release No. 60769 (October 2, 2009), 74 FR 51903 (October 8, 2009)(SR–ISE–2009–68). In SR–ISE–2010–10, the Exchange re-introduced an Ultra Tier rebate of $0.0031 per share for competitive reasons. The Ultra Tier rebate ($0.0031 per share), which is a higher rebate than the next best rebate ($0.0029 per share) for adding liquidity on EDGX, is also more difficult to reach, as a higher volume threshold is required based on recent TCV figures. For example, 1% of the average TCV for January 2010 (8.9 billion) was approximately 89 million shares. This threshold far exceeds the criteria (no minimum share volume requirement) to meet the next best rebate of $0.0029 per share. In addition, the higher rebate also results in part from lower administrative costs associated with higher volume. 5 In SR–ISE–2010–10, the Exchange added a fee to its schedule to provide that stocks priced less than $1 will be charged 0.20% of the dollar value if they do not meet the minimum average daily share volume of 50,000 shares on EDGA to qualify for the removal rate. A conforming footnote 1 was added in the first table on the fee schedule (next to the word ‘‘Free’’) for removing liquidity in stocks less than $1.00 on EDGA. 6 In SR–ISE–2010–10, in order to further simplify its fee schedule for Members, the Exchange deleted the table on the fee schedule entitled ‘‘Fees per Share for Special Order Types’’ as the Exchange believed that the information on this schedule was repetitive of the information in the ‘‘liquidity flags and associated fees’’ table below it. As a result of this deletion, the Exchange relocated footnote numbers 4 and 5. Footnote 4 was relocated to ‘‘Flag E’’ and also added to ‘‘Flag 5’’ to clarify it. Footnote 5 was relocated to ‘‘Flag O.’’ These are the corresponding areas where these references belong. 7 Effective January 1, 2010, DECN adjusted its pricing model to be more consistent with other exchanges (even though DECN is not an exchange), by de-linking the pricing structures of DECN to eliminate pricing offers that are contingent on activity across both platforms. See Securities Exchange Act Release No. 61289 (January 5, 2010), 75 FR 1674 (January 12, 2010) (SR–ISE–2009–108). Secondly, the Exchange simplified its fee schedule in order to provide Members with greater consistency and transparency during the period that the EDGA and EDGX Exchanges are preparing to launch, when volume will be transitioning from DECN to the EDGA and EDGX Exchanges (assuming their respective Form 1 applications are approved by the Commission). On May 7, 2009, each of EDGA Exchange, Inc. and EDGX Exchange, Inc. (the ‘‘EDGA and EDGX Exchanges’’) filed their respective Form 1 applications to register as a national securities exchange (‘‘Form 1’’) pursuant to Section 6 of the Securities Exchange Act of 1934. On July 30, 2009, the Exchanges filed Amendment No. 1 to the Form 1 Application. On September 17, 2009, the Form 1 was published in the Federal Register for notice and comment. See Securities Exchange Act Release No. 60651 (September 11, 2009), 74 FR 47827 (September 17, 2009). The Exchange believes that these same goals were also advanced for the most part in SR–ISE–2010–10, which made technical and clarifying changes to DECN’s fee schedule. In SR–ISE–2009–108, to effectuate the foregoing, the Exchange deleted certain charges in footnote 1 of the fee schedule, including one whereby ISE Members were charged $0.0002 per share to add liquidity on EDGA unless the attributed MPID VerDate Nov<24>2008 16:21 Feb 09, 2010 Jkt 220001 pursuant to SR–ISE–2010–10 became operative on February 1, 2010. 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– 2010–10, 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 February 1, 2010. 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 February 1, 2010 start date. added a minimum average daily share volume, measured monthly, of at least 50,000,000 shares on EDGA. Prior to January 1, 2010, any attributed MPID meeting the aforementioned minimum was not charged to add liquidity on EDGA. Since this charge was deleted from footnote 1, in SR–ISE– 2010–10, the Exchange deleted the corresponding footnote 1 from flags B, V, Y, 3, and 4 from the EDGA column as this footnote no longer applies. In addition, in SR–ISE–2010–10, the Exchange reworded the first sentence in footnote 1 to clarify that adding can include placing hidden orders. In SR–ISE–2009–108, for securities priced less than $1, the Exchange changed the fee for adding liquidity on EDGX from free to a rebate of 0.15% of the dollar value of the transaction. In SR–ISE– 2010–10, the Exchange corrected a typographical error on its current schedule by adding parenthesis around the ‘‘0.15% of dollar value’’ to clarify that this was a rebate, and not a charge, for adding liquidity on EDGX in securities priced less than $1. In SR–ISE–2010–10, for Flag P, the Exchange corrected a typographical error on the schedule by inverting the columns that were displayed. For EDGX, flag P was corrected to read ‘‘N/A’’ and for EDGA it was corrected to read a rebate of $0.0025 per share (i.e., (0.0025)). In SR–ISE–2010–10, the Exchange also clarified Footnote 3. The second sentence of this footnote states that the ‘‘rebate for adding liquidity on the NYSE of $0.0010 per share.’’ This information was already conveyed in Flag F and was deleted in order to simplify and clarify the fee schedule. The first sentence of footnote 3 was also deleted as it is repetitive of the amended third sentence in footnote 3 (‘‘stocks prices below $1.00 on the NYSE are charged $0.0018 per share when removing liquidity.’’) As a result, on Flag J, footnote 3 was deleted as the reference no longer applies. However, footnote 3 was relocated to Flag D in order to further clarify it. PO 00000 Frm 00162 Fmt 4703 Sfmt 4703 6783 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. 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 rulecomments@sec.gov. Please include File Number SR–ISE–2010–11 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–2010–11. 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 8 15 9 15 E:\FR\FM\10FEN1.SGM U.S.C. 78f. U.S.C. 78f(b)(4). 10FEN1 6784 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission,10 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 Web site viewing and printing 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–2010–11 and should be submitted on or before March 3, 2010. sroberts on DSKD5P82C1PROD with NOTICES 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.11 Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) 12 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. As described more fully above, ISE recently amended DECN’s fee schedule for ISE Members pursuant to SR–ISE– 2010–10 (the ‘‘Member Fee Filing’’). The fee changes made pursuant to the Member Fee Filing became operative on February 1, 2010. DECN receives rebates and is charged fees for transactions it executes on EGDX or EDGA in its capacity as an introducing broker for its 10 The text of the proposed rule change is available on ISE’s Web site at https://www.ise.com, on the Commission’s Web site at https:// www.sec.gov, at ISE, and at the Commission’s Public Reference Room. 11 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C 78c(f). 12 15 U.S.C. 78f(b)(4). VerDate Nov<24>2008 16:21 Feb 09, 2010 Jkt 220001 non-ISE member subscribers. The current proposal, which will apply retroactively to February 1, 2010, 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 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 February 1, 2010, 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–2010–11) 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. 2010–2957 Filed 2–9–10; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice: 6896] Bureau of Educational and Cultural Affairs (ECA) Request for Grant Proposals: The Youth Exchange and Study (YES) Summer Academy Announcement Type: New Grant. Funding Opportunity Number: ECA/ PE/C/PY–10–27. 13 Id. 14 15 15 17 PO 00000 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). Frm 00163 Fmt 4703 Sfmt 4703 Catalog of Federal Domestic Assistance Number: 19.415. Application Deadline: March 19, 2010. Executive Summary: The Office of Citizen Exchanges, Youth Programs Division, of the Bureau of Educational and Cultural Affairs (ECA) announces an open competition for a grant for a summer academy for youth. Public and private non-profit organizations meeting the provisions described in Internal Revenue Code section 26 U.S.C. 501(c)(3), including accredited, postsecondary U.S. educational institutions, may submit proposals to provide a fourweek U.S.-based Academy in July 2010 for up to 27 teenagers. Seventeen of the participants will be foreign students from multiple countries who have already been screened and selected for an exchange program in the United States. They will be joined at the Academy by 10 American teenagers selected by the U.S. grant recipient. The Academy’s activities will focus on leadership development, critical thinking, communication skills, and community activism, in addition to exposure to U.S. culture and society through site visits and homestays with American families. I. Funding Opportunity Description Authority: Overall grant making authority for this program is contained in the Mutual Educational and Cultural Exchange Act of 1961, Public Law 87– 256, as amended, also known as the Fulbright-Hays Act. The purpose of the Act is ‘‘to enable the Government of the United States to increase mutual understanding between the people of the United States and the people of other countries * * *; to strengthen the ties which unite us with other nations by demonstrating the educational and cultural interests, developments, and achievements of the people of the United States and other nations* * *and thus to assist in the development of friendly, sympathetic and peaceful relations between the United States and the other countries of the world.’’ The funding authority for the program above is provided through legislation. Purpose: This Academy aims to foster relationships between American teenagers and teenagers from countries with significant Muslim populations to build strong linkages and an awareness of shared values, and to enable youth to face together the global challenges of the 21st Century. Through this Academy, diverse but intellectually curious students will participate in an intensive, four-week program in the United States in the summer of 2010. Participants will E:\FR\FM\10FEN1.SGM 10FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 27 (Wednesday, February 10, 2010)]
[Notices]
[Pages 6782-6784]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2957]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61491; File No. SR-ISE-2010-11]

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

February 4, 2010.
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 January 29, 2010, 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
the self-regulatory organization. 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.

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 January 29, 2010, the ISE filed for immediate effectiveness a
proposed rule change to amend Direct Edge ECN's (``DECN'') fee schedule
for ISE Members \3\ to simplify its fee schedule by (i) re-introducing
a rebate; \4\ (ii)

[[Page 6783]]

adding a fee for stocks priced less than $1 that remove liquidity on
EDGA; \5\ (iii) eliminating certain tables on the fee schedule; \6\ and
(iv) making typographical and clarifying changes to the fee
schedule.\7\ The changes made pursuant to SR-ISE-2010-10 became
operative on February 1, 2010.
---------------------------------------------------------------------------

\3\ References to ISE Members in this filing refer to DECN
Subscribers who are ISE Members.
\4\ In SR-ISE-2009-68, the Exchange amended the criteria for
meeting the Ultra Tier by allowing ISE Members to receive 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 posts 1% of the
total consolidated volume (``TCV'') in average daily volume
(``ADV''). TCV is defined as volume reported by all exchanges and
trade reporting facilities to the consolidated transaction reporting
plans for Tape A, B, and C securities. See Securities Exchange Act
Release No. 60769 (October 2, 2009), 74 FR 51903 (October 8,
2009)(SR-ISE-2009-68). In SR-ISE-2010-10, the Exchange re-introduced
an Ultra Tier rebate of $0.0031 per share for competitive reasons.
The Ultra Tier rebate ($0.0031 per share), which is a higher
rebate than the next best rebate ($0.0029 per share) for adding
liquidity on EDGX, is also more difficult to reach, as a higher
volume threshold is required based on recent TCV figures. For
example, 1% of the average TCV for January 2010 (8.9 billion) was
approximately 89 million shares.
This threshold far exceeds the criteria (no minimum share volume
requirement) to meet the next best rebate of $0.0029 per share. In
addition, the higher rebate also results in part from lower
administrative costs associated with higher volume.
\5\ In SR-ISE-2010-10, the Exchange added a fee to its schedule
to provide that stocks priced less than $1 will be charged 0.20% of
the dollar value if they do not meet the minimum average daily share
volume of 50,000 shares on EDGA to qualify for the removal rate. A
conforming footnote 1 was added in the first table on the fee
schedule (next to the word ``Free'') for removing liquidity in
stocks less than $1.00 on EDGA.
\6\ In SR-ISE-2010-10, in order to further simplify its fee
schedule for Members, the Exchange deleted the table on the fee
schedule entitled ``Fees per Share for Special Order Types'' as the
Exchange believed that the information on this schedule was
repetitive of the information in the ``liquidity flags and
associated fees'' table below it. As a result of this deletion, the
Exchange relocated footnote numbers 4 and 5. Footnote 4 was
relocated to ``Flag E'' and also added to ``Flag 5'' to clarify it.
Footnote 5 was relocated to ``Flag O.'' These are the corresponding
areas where these references belong.
\7\ Effective January 1, 2010, DECN adjusted its pricing model
to be more consistent with other exchanges (even though DECN is not
an exchange), by de-linking the pricing structures of DECN to
eliminate pricing offers that are contingent on activity across both
platforms. See Securities Exchange Act Release No. 61289 (January 5,
2010), 75 FR 1674 (January 12, 2010) (SR-ISE-2009-108). Secondly,
the Exchange simplified its fee schedule in order to provide Members
with greater consistency and transparency during the period that the
EDGA and EDGX Exchanges are preparing to launch, when volume will be
transitioning from DECN to the EDGA and EDGX Exchanges (assuming
their respective Form 1 applications are approved by the
Commission). On May 7, 2009, each of EDGA Exchange, Inc. and EDGX
Exchange, Inc. (the ``EDGA and EDGX Exchanges'') filed their
respective Form 1 applications to register as a national securities
exchange (``Form 1'') pursuant to Section 6 of the Securities
Exchange Act of 1934. On July 30, 2009, the Exchanges filed
Amendment No. 1 to the Form 1 Application. On September 17, 2009,
the Form 1 was published in the Federal Register for notice and
comment. See Securities Exchange Act Release No. 60651 (September
11, 2009), 74 FR 47827 (September 17, 2009). The Exchange believes
that these same goals were also advanced for the most part in SR-
ISE-2010-10, which made technical and clarifying changes to DECN's
fee schedule.
In SR-ISE-2009-108, to effectuate the foregoing, the Exchange
deleted certain charges in footnote 1 of the fee schedule, including
one whereby ISE Members were charged $0.0002 per share to add
liquidity on EDGA unless the attributed MPID added a minimum average
daily share volume, measured monthly, of at least 50,000,000 shares
on EDGA. Prior to January 1, 2010, any attributed MPID meeting the
aforementioned minimum was not charged to add liquidity on EDGA.
Since this charge was deleted from footnote 1, in SR-ISE-2010-10,
the Exchange deleted the corresponding footnote 1 from flags B, V,
Y, 3, and 4 from the EDGA column as this footnote no longer applies.
In addition, in SR-ISE-2010-10, the Exchange re-worded the first
sentence in footnote 1 to clarify that adding can include placing
hidden orders.
In SR-ISE-2009-108, for securities priced less than $1, the
Exchange changed the fee for adding liquidity on EDGX from free to a
rebate of 0.15% of the dollar value of the transaction. In SR-ISE-
2010-10, the Exchange corrected a typographical error on its current
schedule by adding parenthesis around the ``0.15% of dollar value''
to clarify that this was a rebate, and not a charge, for adding
liquidity on EDGX in securities priced less than $1.
In SR-ISE-2010-10, for Flag P, the Exchange corrected a
typographical error on the schedule by inverting the columns that
were displayed. For EDGX, flag P was corrected to read ``N/A'' and
for EDGA it was corrected to read a rebate of $0.0025 per share
(i.e., (0.0025)).
In SR-ISE-2010-10, the Exchange also clarified Footnote 3. The
second sentence of this footnote states that the ``rebate for adding
liquidity on the NYSE of $0.0010 per share.'' This information was
already conveyed in Flag F and was deleted in order to simplify and
clarify the fee schedule. The first sentence of footnote 3 was also
deleted as it is repetitive of the amended third sentence in
footnote 3 (``stocks prices below $1.00 on the NYSE are charged
$0.0018 per share when removing liquidity.'') As a result, on Flag
J, footnote 3 was deleted as the reference no longer applies.
However, footnote 3 was relocated to Flag D in order to further
clarify it.
---------------------------------------------------------------------------

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-2010-10, 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 February 1, 2010. 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 February 1, 2010 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).
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\8\ 15 U.S.C. 78f.
\9\ 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. 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-2010-11 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-2010-11. 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

[[Page 6784]]

post all comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission,\10\ 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 Web site viewing and printing 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-2010-11 and should be submitted on or before March
3, 2010.
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\10\ The text of the proposed rule change is available on ISE's
Web site at https://www.ise.com, on the Commission's Web site at
https://www.sec.gov, at ISE, and at the Commission's Public Reference
Room.
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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.\11\
Specifically, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) \12\ 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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\11\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C 78c(f).
\12\ 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 pursuant to SR-ISE-2010-10 (the ``Member Fee
Filing''). The fee changes made pursuant to the Member Fee Filing
became operative on February 1, 2010. 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.
The current proposal, which will apply retroactively to February 1,
2010, 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.
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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 February 1, 2010, 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-2010-11) be, and hereby
is, approved on an accelerated basis.
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\14\ 15 U.S.C. 78s(b)(2).
\15\ 17 CFR 200.30-3(a)(12).

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2957 Filed 2-9-10; 8:45 am]
BILLING CODE 8011-01-P

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