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, 19437-19439 [2010-8538]
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Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Notices
procedures and practices.6 Nasdaq
proposed to amend the NASDAQ
OMX’s By-Laws to codify the majority
voting standard for uncontested
elections contained in the Corporate
Governance Guidelines; contested
elections would remain subject to the
plurality standard.
For uncontested elections, Nasdaq
proposed to amend Article IV, Section
4.4 of the NASDAQ OMX By-Laws to
impose a majority voting standard,
instead of the plurality voting standard,
that would require directors to be
elected by the holders of a majority of
the votes cast at any meeting for the
election of directors at which a quorum
is present. However, because a director
holds office until his or her successor is
duly elected and qualified, any
incumbent director-nominee who fails
to receive the requisite vote would not
automatically cease to be a director.
Instead, NASDAQ OMX would have
such director continue as a ‘‘holdover
director’’ until such director’s death,
resignation or removal, or until his or
her successor is duly elected and
qualified. To this end, the proposal also
includes a provision that would require
any incumbent nominee, as a condition
to his or her nomination for election, to
submit in writing an irrevocable
resignation, the effectiveness of which
would be conditioned upon the
director’s failure to receive the requisite
vote in any uncontested election and the
Board’s acceptance of the resignation.
The resignation would be considered by
the Nominating & Governance
Committee and acted upon by the Board
in the same manner as a resignation
tendered under current rules.7
Acceptance of that resignation by the
Board would be in accordance with the
policies and procedures adopted by the
Board for such purpose.8
After careful review, 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.9 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(1) of the Act,10 which requires an
exchange to be so organized and have
the capacity to carry out the purposes of
the Act and to comply and to enforce
compliance by its members and persons
associated with its members with the
Act. The Commission also finds that the
proposed rule change is consistent with
Section 6(b)(5) of the Act,11 which
requires that the rules of the exchange
be designed, among other things, to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The Commission believes that the
proposed rule change to amend the
NASDAQ OMX By-Laws to adopt a
majority vote standard for uncontested
elections is consistent with the Act. The
Commission believes that the proposed
rule change is designed to allow the
members of NASDAQ OMX’s Board of
Directors to be elected in a manner that
closely reflects the desires of its
shareholders, while also providing a
process for addressing the circumstance
when a director fails to receive a
majority of votes in an uncontested
election.12 The Commission notes that
Nasdaq explained that the process for
contested elections is to remain
unchanged because if a majority voting
standard were to apply in a contested
election, the likelihood of a ‘‘failed
election’’ (i.e., a situation in which no
director receives the requisite vote)
would be more pronounced.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NASDAQ–
2010–025), as modified by Amendment
No. 1, be, and it hereby is, approved.
19437
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61866; File No. SR–ISE–
2010–31]
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
April 7, 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 April 6,
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.
srobinson on DSKHWCL6B1PROD with NOTICES
proposed rule change incorporates a
modified version of the election procedures and
practices contained in the NASDAQ OMX
Corporate Governance Guidelines.
7 See NASDAQ OMX By-Law Article IV, Section
4.5.
8 In the Notice, Nasdaq stated that NASDAQ
OMX’s policies and procedures pertaining to the
acceptance of the resignation of its directors are
specified in By-Law Article IV, Section 4.4, and that
there are no additional policies and procedures
other than the provisions in the By-Laws. See
Notice, supra note 3.
9 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Nov<24>2008
17:27 Apr 13, 2010
Jkt 220001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2010–8469 Filed 4–13–10; 8:45 am]
6 The
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item III below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
BILLING CODE 8011–01–P
10 15
U.S.C. 78(b)(1).
U.S.C. 78f(b)(5).
12 The Commission notes that Nasdaq represented
that the proposed change would not affect
NASDAQ OMX’s general election requirements,
specifically the voting limitations contained in
NASDAQ OMX’s certificate of incorporation. The
Commission also notes that Nasdaq represented that
if NASDAQ OMX seeks to further amend its ByLaws with respect to director elections, including
the adoption of any policies and procedure with
respect to such elections, it will file a proposed rule
change with the Commission.
13 17 CFR 200.30–3(a)(12).
11 15
PO 00000
Frm 00091
Fmt 4703
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1 15
2 17
E:\FR\FM\14APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
14APN1
19438
Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
srobinson on DSKHWCL6B1PROD with NOTICES
1. Purpose
DECN, a facility of ISE, operates two
trading platforms, EDGX and EDGA.3
The changes made pursuant to SR–ISE–
2010–29 became operative on April 5,
2010. On April 5, 2010, the ISE filed for
immediate effectiveness a proposed rule
change to amend Direct Edge ECN’s
(‘‘DECN’’) fee schedule for ISE
Members 4 to: (i) Eliminate a rebate on
EDGX for securities priced less than $1;
and (ii) to lower the removal rate on
EDGX for securities priced less than $1.5
The changes made pursuant to SR–ISE–
2010–29 became operative on April 5,
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–
2010–29, 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 April 5, 2010. ISE
represents that this proposal will ensure
3 This fee filing relates to the trading facility
operated by ISE and not EDGA Exchange, Inc. and
EDGX Exchange, Inc. Direct Edge ECN LLC (EDGA
and EDGX) will cease to operate in its capacity as
an electronic communications network following
the commencement of operations of EDGA
Exchange, Inc. and EDGX Exchange, Inc. as national
securities exchanges.
4 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
5 In SR–ISE–2010–29, the Exchange made the
following changes to the fee schedule: (i)
Eliminated the current rebate for adding liquidity
on EDGX of 0.15% of the total dollar value of the
transaction (number of shares multiplied by price)
for securities priced less than $1.00; and (ii)
lowered the removal rate on EDGX for removing
liquidity in securities priced less than $1.00 from
.30% of the total dollar value of the transaction to
0.10% of the total dollar value of the transaction.
This was done because: (i) There was not an
appropriate relationship between the size of the
rebate offered and the minimum trading increment
for securities priced less than $1.00; and (2) the
Exchange sought to incentivize the removal of
liquidity from EDGX in securities priced less than
$1.00.
VerDate Nov<24>2008
17:27 Apr 13, 2010
Jkt 220001
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 April 5, 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,6
in general, and furthers the objectives of
Section 6(b)(4),7 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–2010–31 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.
6 15
7 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00092
Fmt 4703
Sfmt 4703
All submissions should refer to File
Number SR–ISE–2010–31. 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,8 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–2010–31 and should be
submitted on or before May 5, 2010.
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.9 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(4) 10 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–
8 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.
9 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(4).
E:\FR\FM\14APN1.SGM
14APN1
Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Notices
2010–29 (the ‘‘Member Fee Filing’’). The
fee changes made pursuant to the
Member Fee Filing became operative on
April 5, 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 April 5, 2010, will allow
DECN to pass through the revised
rebates and fees to the non-ISE member
subscribers for which it acts as 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.11
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 April 5, 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,12 that the
proposed rule change (SR–ISE–2010–31)
be, and hereby is, approved on an
accelerated basis.
srobinson on DSKHWCL6B1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8538 Filed 4–13–10; 8:45 am]
BILLING CODE 8011–01–P
13 17
[Release No. 34–61859; File No. SR–CBOE–
2010–018]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Proposed Rule
Change, as Modified by Amendment
No. 1 Thereto, To List and Trade CBOE
Gold ETF Volatility Index Options
April 7, 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 March 18,
2010, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On March
22, 2010, CBOE filed Amendment No. 1
to the proposed rule change.3 The
Commission is publishing this notice, as
amended, 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
CBOE proposes to amend certain of its
rules to provide for the listing and
trading of options that overlie the CBOE
Gold ETF Volatility Index (‘‘GVZ’’),
which will be cash-settled and will have
European-style exercise. The text of the
rule proposal is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary and at the
Commission.
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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, CBOE made technical,
non-substantive corrections to the rule text.
11 Id.
12 15
SECURITIES AND EXCHANGE
COMMISSION
2 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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17:27 Apr 13, 2010
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19439
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to permit the Exchange to list
and trade cash-settled, European-style
options on the CBOE Gold ETF
Volatility Index (‘‘GVZ’’).
Index Design and Calculation:
The calculation of GVZ is based on
the VIX methodology applied to options
on the SPDR Gold Trust (‘‘GLD’’). The
index was introduced by CBOE on
August 1, 2008 and has been
disseminated in real-time on every
trading day since that time.4
GVZ is an up-to-the-minute market
estimate of the expected volatility of
GLD calculated by using real-time bid/
ask quotes of CBOE listed GLD options.
GVZ uses nearby and second nearby
options with at least 8 days left to
expiration and then weights them to
yield a constant, 30-day measure of the
expected (implied) volatility.
For each contract month, CBOE will
determine the at-the-money strike price.
The Exchange will then select the atthe-money and out-of-the money series
with non-zero bid prices and determine
the midpoint of the bid-ask quote for
each of these series. The midpoint quote
of each series is then weighted so that
the further away that series is from the
at-the-money strike, the less weight that
is accorded to the quote. Then, to
compute the index level, CBOE will
calculate a volatility measure for the
nearby options and then for the second
nearby options. This is done using the
weighted mid-point of the prevailing
bid-ask quotes for all included option
series with the same expiration date.
These volatility measures are then
interpolated to arrive at a single,
constant 30-day measure of volatility.5
CBOE will compute values for GVZ
underlying option series on a real-time
basis throughout each trading day, from
8:30 a.m. until 3 p.m. (CT). GVZ levels
will be calculated by CBOE and
disseminated at 15-second intervals to
major market data vendors.
Options Trading:
GVZ options will be quoted in index
points and fractions and one point will
equal $100. The minimum tick size for
series trading below $3 will be 0.05
($5.00) and above $3 will be 0.10
4 CBOE maintains a micro-site for GVZ options at:
https://www.cboe.com/gvz. See proposed
amendment to Rule 24.9(a)(3).
5 See proposed amendment to Interpretation and
Policy .01 to Rule 24.1 (designating the Exchange
as the reporting authority for GVZ).
E:\FR\FM\14APN1.SGM
14APN1
]]>Agencies
[Federal Register Volume 75, Number 71 (Wednesday, April 14, 2010)]
[Notices]
[Pages 19437-19439]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8538]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61866; File No. SR-ISE-2010-31]
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
April 7, 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 April 6, 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.
[[Page 19438]]
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.\3\ The changes made pursuant to SR-ISE-2010-29 became operative
on April 5, 2010. On April 5, 2010, the ISE filed for immediate
effectiveness a proposed rule change to amend Direct Edge ECN's
(``DECN'') fee schedule for ISE Members \4\ to: (i) Eliminate a rebate
on EDGX for securities priced less than $1; and (ii) to lower the
removal rate on EDGX for securities priced less than $1.\5\ The changes
made pursuant to SR-ISE-2010-29 became operative on April 5, 2010.
---------------------------------------------------------------------------
\3\ This fee filing relates to the trading facility operated by
ISE and not EDGA Exchange, Inc. and EDGX Exchange, Inc. Direct Edge
ECN LLC (EDGA and EDGX) will cease to operate in its capacity as an
electronic communications network following the commencement of
operations of EDGA Exchange, Inc. and EDGX Exchange, Inc. as
national securities exchanges.
\4\ References to ISE Members in this filing refer to DECN
Subscribers who are ISE Members.
\5\ In SR-ISE-2010-29, the Exchange made the following changes
to the fee schedule: (i) Eliminated the current rebate for adding
liquidity on EDGX of 0.15% of the total dollar value of the
transaction (number of shares multiplied by price) for securities
priced less than $1.00; and (ii) lowered the removal rate on EDGX
for removing liquidity in securities priced less than $1.00 from
.30% of the total dollar value of the transaction to 0.10% of the
total dollar value of the transaction. This was done because: (i)
There was not an appropriate relationship between the size of the
rebate offered and the minimum trading increment for securities
priced less than $1.00; and (2) the Exchange sought to incentivize
the removal of liquidity from EDGX in securities priced less than
$1.00.
---------------------------------------------------------------------------
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-2010-29, 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 April 5, 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 April 5, 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,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ 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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\6\ 15 U.S.C. 78f.
\7\ 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-2010-31 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-2010-31. 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,\8\ 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-2010-31 and should be
submitted on or before May 5, 2010.
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\8\ 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.\9\
Specifically, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) \10\ 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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\9\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
\10\ 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-
[[Page 19439]]
2010-29 (the ``Member Fee Filing''). The fee changes made pursuant to
the Member Fee Filing became operative on April 5, 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
April 5, 2010, will allow DECN to pass through the revised rebates and
fees to the non-ISE member subscribers for which it acts as 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.\11\
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\11\ 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 April 5, 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,\12\ that the proposed rule change (SR-ISE-2010-31) be, and hereby
is, approved on an accelerated basis.
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\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8538 Filed 4-13-10; 8:45 am]
BILLING CODE 8011-01-P
