Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues, 27028-27029 [2010-11507]

Download as PDF sroberts on DSKD5P82C1PROD with NOTICES 27028 Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Notices Approved By: llllllllllll other.shtml). Comments will also be Date Submitted: lllllllllll available for Web site viewing and printing in the SEC’s Public Reference [FR Doc. 2010–11435 Filed 5–12–10; 8:45 am] Room, 100 F St., NE., Washington, DC BILLING CODE 8011–01–P 20549, on official business days between the hours of 10 a.m. and 3 p.m. SECURITIES AND EXCHANGE All comments received will be posted COMMISSION without change; we do not edit personal identifying information from your [Release No. 33–9123; File No. 265–26] submissions. You should submit only information that you wish to make COMMODITY FUTURES TRADING available publicly. COMMISSION Commodity Futures Trading Commission: Joint CFTC–SEC Advisory Committee • Written comments may be mailed to on Emerging Regulatory Issues the Commodity Futures Trading AGENCY: Securities and Exchange Commission, Three Lafayette Centre, Commission (‘‘SEC’’) and Commodity 1155 21st Street, NW., Washington, DC Futures Trading Commission (‘‘CFTC’’) 20581, attention Office of the Secretary; (each, an ‘‘Agency,’’ and collectively, transmitted by facsimile to the CFTC at ‘‘Agencies’’). (202) 418–5521; or transmitted ACTION: Notice of Federal Advisory electronically to Committee Establishment. Jointcommittee@cftc.gov. Reference should be made to ‘‘Joint CFTC–SEC SUMMARY: The Chairmen of the SEC and Advisory Committee.’’ CFTC, with the concurrence of the other FOR FURTHER INFORMATION CONTACT: SEC and CFTC Commissioners, Ronesha Butler, Special Counsel, at respectively, intend to establish the (202) 551–5629, Division of Trading and Joint CFTC–SEC Advisory Committee Markets, or Elizabeth M. Murphy, on Emerging Regulatory Issues (the Committee Management Officer, at (202) ‘‘Committee’’). 551–5400, Securities and Exchange Comments Commission, 100 F St., NE., Washington, DC 20549, or Martin Because the Agencies will jointly White, Committee Management Officer, review all comments submitted, at (202) 418–5129, Commodity Futures interested parties may send comments Trading Commission, Three Lafayette to either Agency and need not submit Centre, 1155 21st Street, NW., responses to both Agencies. Washington, DC 20581. Respondents are encouraged to use the SUPPLEMENTARY INFORMATION: In title ‘‘Joint CFTC–SEC Advisory Committee’’ to facilitate the organization accordance with the requirements of the Federal Advisory Committee Act, 5 and distribution of comments between U.S.C. App. 2, the Agencies are the Agencies. Interested parties are publishing this notice that the Chairmen invited to submit responses to: Securities and Exchange Commission: of the SEC and CFTC, with the Written comments may be submitted by concurrence of the other SEC and CFTC Commissioners, intend to establish the the following methods: Committee. The Committee’s objectives Electronic Comments and scope of activities are to conduct • Use the SEC’s Internet submission public meetings, submit reports and form (https://www.sec.gov/rules/ recommendations to the CFTC and the other.shtml); or SEC and otherwise to serve as a vehicle • Send an email to rulefor discussion and communication on comments@sec.gov. regulatory issues of mutual concern and Please include File No. 265–26 on the their effect on the CFTC’s and SEC’s subject line. statutory responsibilities. Subjects to be addressed by the Committee will Paper Comments include, but will not be limited to, • Send paper comments in triplicate identification of emerging regulatory to Elizabeth M. Murphy, Secretary, risks, assessment and quantification of Securities and Exchange Commission, the impact of such risks and their 100 F St., NE., Washington, DC 20549. implications for investors and market All submissions should refer to File No. participants, and to further the 265–26. Agencies’ efforts on regulatory harmonization. The committee will To help the SEC process and review work to develop clear and specific goals your comments more efficiently, please use only one method. The SEC staff will toward identifying and addressing post all comments on the SEC’s Internet emerging regulatory risks, protecting investors and customers, and furthering Web site (https://www.sec.gov/rules/ VerDate Mar<15>2010 15:56 May 12, 2010 Jkt 220001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 regulatory harmonization, and to recommend processes and procedures for achieving and reporting on those goals. To achieve the Committee’s goals, the Chairmen of the SEC and CFTC will appoint approximately 10–15 members. There will be two co-designated Federal officers of the committee. The Chairman of the CFTC will appoint a CFTC employee to serve as one co-designated federal officer of the committee and the Chairman of the SEC will appoint an SEC employee to serve as the other codesignated Federal officer of the committee. The co-designated federal officers jointly call all of the advisory committee’s and subcommittees’ meetings, prepare and jointly approve all meeting agendas, adjourn any meeting when they jointly determine adjournment to be in the public interest, and chair meetings when directed to do so. The co-designated Federal officers also will attend all committee and subcommittee meetings. The Chairmen of the CFTC and of the SEC shall serve as Co-Chairmen of the Committee. The Committee’s membership will be fairly balanced in terms of points of view represented and the functions to be performed. The Committee’s charter will be filed with the Senate Committee on Agriculture, Nutrition and Forestry; the House of Representatives Committee on Agriculture; the Senate Committee on Banking, Housing, and Urban Affairs; the House Committee on Financial Services, and U.S. General Services Administration Committee Management Secretariat (‘‘Secretariat’’). A copy of the charter also will be filed with the SEC, CFTC and the Library of Congress. The charter will be available for Web site viewing and printing in the Public Reference Room at the SEC’s headquarters and posted on the SEC’s Web site at https://www.sec.gov and the CFTC’s Web site at https://www.cftc.gov. The Committee will operate for two years from the date it is established unless, before the expiration of that time period, its charter is re-established or renewed in accordance with the Federal Advisory Committee Act or unless either the Chairman of the SEC or the Chairman of the CFTC determines that the Committee’s continuance is no longer in the public interest. The Committee will meet at such intervals as are necessary to carry out its functions. It is estimated that the meetings will occur six times per year. Meetings of subgroups or subcommittees of the full Committee may occur more frequently. The charter will provide that the duties of the Committee are to be solely E:\FR\FM\13MYN1.SGM 13MYN1 Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Notices advisory. Each Agency alone will make any determinations of action to be taken and policy to be expressed with respect to matters within their respective authority as to which the Committee provides advice or makes recommendations. The Chairmen of the Agencies affirm that the establishment of the Committee is necessary and in the public interest. Pursuant to 41 CFR 102–3.65(b), the Secretariat has found good cause for approving the establishment of this advisory committee prior to the fifteenth day after publication of notice of establishment in the Federal Register so that the Committee members can quickly begin to identify emerging regulatory issues and their potential impact on investors and the securities markets. The Committee will lend the CFTC and SEC expertise that ranges across the securities and futures markets. By the Securities and Exchange Commission. Dated: May 10, 2010. Elizabeth M. Murphy, Committee Management Officer. By the Commodity Futures Trading Commission. Martin White, Committee Management Officer. [FR Doc. 2010–11507 Filed 5–12–10; 8:45 am] BILLING CODE 8010–01–P; 6351–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amending the Direct Edge ECN Fee Schedule sroberts on DSKD5P82C1PROD with NOTICES May 6, 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 30, 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, II, and III below, which items have been prepared by the selfregulatory organization. The Commission is publishing this notice to 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 15:56 May 12, 2010 Jkt 220001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Direct Edge ECN’s (‘‘DECN’’) fee schedule for ISE Members 3 to (i) change the rates for routing in securities priced less than $1.00 to certain away market centers; (ii) reintroduce the rebate on securities priced less than $1.00 that add liquidity to EDGX; (iii) pass through rebates/fees from other market centers; and (iv) increase the rebate for Members meeting the Ultra Tier. All of the changes described herein are applicable to ISE Members. The text of the proposed rule change is available on the Exchange’s Internet Web site at https://www.ise.com. 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 [Release No. 34–62050; File No. SR–ISE– 2010–37] 1 15 solicit comments on the proposed rule change from interested persons. 1. Purpose DECN, a facility of ISE, operates two trading platforms, EDGX and EDGA.4 The Exchange is proposing to amend the routing rates to certain away market centers associated with the removal of liquidity from EDGA and EDGX in securities priced less than $1.00. Currently, for orders in securities priced less than $1.00 that are routed to Nasdaq BX in Tapes A & C securities and that remove liquidity, orders are charged the Exchange’s standard routing charge for securities less than $1.00 (0.30% of the total dollar value of the transaction, 3 References to ISE Members in this filing refer to DECN Subscribers who are ISE Members. 4 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. PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 27029 both on EDGA and EDGX). As a result of a decrease in fees by Nasdaq OMX when removing liquidity in securities priced less than $1.00,5 the Exchange proposes to amend its fee schedule in order to charge 0.10% of the total dollar value of the transaction (instead of 0.30%) when orders are routed to Nasdaq BX in Tapes A & C securities and remove liquidity. This is proposed to be indicated by footnote number 3 on the existing ‘‘C’’ flag. A conforming amendment has also been made to the fee schedule to append footnote number 3 to indicate an exception to the standard rate (0.30% of dollar value) for routing liquidity in securities priced less than $1.00. Additionally, the Exchange proposes to charge 0.20% of the total dollar value of the transaction when orders are routed to Nasdaq and remove liquidity in securities on all Tapes or orders are routed to Nasdaq using the INET 6 order type and remove liquidity in securities on all Tapes. This is proposed to be indicated by footnote number 3 appended to the existing ‘‘J,’’ ‘‘L,’’ and ‘‘2’’ flags. A conforming amendment has also been made to the fee schedule to append footnote number 3 to indicate an exception to the standard rate (0.30% of dollar value) for routing liquidity in securities priced less than $1.00. The Exchange believes that this rate change will seek to incentivize the removal of liquidity from EDGA and EDGX in securities priced less than $1.00 that are routed to certain away market centers. Re-Introduction of Rebate Currently, there is no rebate for adding liquidity on EDGX in securities priced less than $1.00. The Exchange is proposing to re-introduce a rebate of $0.00003 per share for orders that add liquidity to EDGX in securities priced less than $1.00. The Exchange believes that this rebate is appropriate as it represents 30% of the minimum price increment for securities priced less than $1.00 ($0.0001) and effectively aligns the rebate with access fee caps under Regulation NMS.7 5 See Nasdaq OMX Equity Trader Alert, #2010– 27 (April 19, 2010) (‘‘Firms will be charged 0.10% (i.e., 10 basis points) of the total dollar value of the transaction when removing liquidity in stocks with prices below $1.00’’). 6 The INET order type sweeps the EDGA or EDGX book and removes liquidity from Nasdaq, if the order is marketable, or posts on Nasdaq, if the order is non-marketable. 7 The Access Rule of Regulation NMS limits the fees any trading center can charge, or allow to be charged, for accessing its protected quotations, both displayed and reserve size, to no more than $0.003 per share. See Rule 610(c) of Regulation NMS, E:\FR\FM\13MYN1.SGM Continued 13MYN1

Agencies

[Federal Register Volume 75, Number 92 (Thursday, May 13, 2010)]
[Notices]
[Pages 27028-27029]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11507]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 33-9123; File No. 265-26]

COMMODITY FUTURES TRADING COMMISSION


Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues

AGENCY: Securities and Exchange Commission (``SEC'') and Commodity 
Futures Trading Commission (``CFTC'') (each, an ``Agency,'' and 
collectively, ``Agencies'').

ACTION: Notice of Federal Advisory Committee Establishment.

-----------------------------------------------------------------------

SUMMARY: The Chairmen of the SEC and CFTC, with the concurrence of the 
other SEC and CFTC Commissioners, respectively, intend to establish the 
Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues (the 
``Committee'').

Comments

    Because the Agencies will jointly review all comments submitted, 
interested parties may send comments to either Agency and need not 
submit responses to both Agencies. Respondents are encouraged to use 
the title ``Joint CFTC-SEC Advisory Committee'' to facilitate the 
organization and distribution of comments between the Agencies. 
Interested parties are invited to submit responses to:
    Securities and Exchange Commission: Written comments may be 
submitted by the following methods:

Electronic Comments

     Use the SEC's Internet submission form (https://www.sec.gov/rules/other.shtml); or
     Send an email to rule-comments@sec.gov.
    Please include File No. 265-26 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F St., NE., 
Washington, DC 20549. All submissions should refer to File No. 265-26.

To help the SEC process and review your comments more efficiently, 
please use only one method. The SEC staff will post all comments on the 
SEC's Internet Web site (https://www.sec.gov/rules/other.shtml). 
Comments will also be available for Web site viewing and printing in 
the SEC's Public Reference Room, 100 F St., NE., Washington, DC 20549, 
on official business days between the hours of 10 a.m. and 3 p.m. All 
comments received will be posted without change; we do not edit 
personal identifying information from your submissions. You should 
submit only information that you wish to make available publicly.
    Commodity Futures Trading Commission:
     Written comments may be mailed to the Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., 
Washington, DC 20581, attention Office of the Secretary; transmitted by 
facsimile to the CFTC at (202) 418-5521; or transmitted electronically 
to Jointcommittee@cftc.gov. Reference should be made to ``Joint CFTC-
SEC Advisory Committee.''

FOR FURTHER INFORMATION CONTACT: Ronesha Butler, Special Counsel, at 
(202) 551-5629, Division of Trading and Markets, or Elizabeth M. 
Murphy, Committee Management Officer, at (202) 551-5400, Securities and 
Exchange Commission, 100 F St., NE., Washington, DC 20549, or Martin 
White, Committee Management Officer, at (202) 418-5129, Commodity 
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, 
NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: In accordance with the requirements of the 
Federal Advisory Committee Act, 5 U.S.C. App. 2, the Agencies are 
publishing this notice that the Chairmen of the SEC and CFTC, with the 
concurrence of the other SEC and CFTC Commissioners, intend to 
establish the Committee. The Committee's objectives and scope of 
activities are to conduct public meetings, submit reports and 
recommendations to the CFTC and the SEC and otherwise to serve as a 
vehicle for discussion and communication on regulatory issues of mutual 
concern and their effect on the CFTC's and SEC's statutory 
responsibilities. Subjects to be addressed by the Committee will 
include, but will not be limited to, identification of emerging 
regulatory risks, assessment and quantification of the impact of such 
risks and their implications for investors and market participants, and 
to further the Agencies' efforts on regulatory harmonization. The 
committee will work to develop clear and specific goals toward 
identifying and addressing emerging regulatory risks, protecting 
investors and customers, and furthering regulatory harmonization, and 
to recommend processes and procedures for achieving and reporting on 
those goals.
    To achieve the Committee's goals, the Chairmen of the SEC and CFTC 
will appoint approximately 10-15 members. There will be two co-
designated Federal officers of the committee. The Chairman of the CFTC 
will appoint a CFTC employee to serve as one co-designated federal 
officer of the committee and the Chairman of the SEC will appoint an 
SEC employee to serve as the other co-designated Federal officer of the 
committee. The co-designated federal officers jointly call all of the 
advisory committee's and subcommittees' meetings, prepare and jointly 
approve all meeting agendas, adjourn any meeting when they jointly 
determine adjournment to be in the public interest, and chair meetings 
when directed to do so. The co-designated Federal officers also will 
attend all committee and subcommittee meetings. The Chairmen of the 
CFTC and of the SEC shall serve as Co-Chairmen of the Committee. The 
Committee's membership will be fairly balanced in terms of points of 
view represented and the functions to be performed.
    The Committee's charter will be filed with the Senate Committee on 
Agriculture, Nutrition and Forestry; the House of Representatives 
Committee on Agriculture; the Senate Committee on Banking, Housing, and 
Urban Affairs; the House Committee on Financial Services, and U.S. 
General Services Administration Committee Management Secretariat 
(``Secretariat''). A copy of the charter also will be filed with the 
SEC, CFTC and the Library of Congress. The charter will be available 
for Web site viewing and printing in the Public Reference Room at the 
SEC's headquarters and posted on the SEC's Web site at https://www.sec.gov and the CFTC's Web site at https://www.cftc.gov.
    The Committee will operate for two years from the date it is 
established unless, before the expiration of that time period, its 
charter is re-established or renewed in accordance with the Federal 
Advisory Committee Act or unless either the Chairman of the SEC or the 
Chairman of the CFTC determines that the Committee's continuance is no 
longer in the public interest.
    The Committee will meet at such intervals as are necessary to carry 
out its functions. It is estimated that the meetings will occur six 
times per year. Meetings of subgroups or subcommittees of the full 
Committee may occur more frequently.
    The charter will provide that the duties of the Committee are to be 
solely

[[Page 27029]]

advisory. Each Agency alone will make any determinations of action to 
be taken and policy to be expressed with respect to matters within 
their respective authority as to which the Committee provides advice or 
makes recommendations.
    The Chairmen of the Agencies affirm that the establishment of the 
Committee is necessary and in the public interest.
    Pursuant to 41 CFR 102-3.65(b), the Secretariat has found good 
cause for approving the establishment of this advisory committee prior 
to the fifteenth day after publication of notice of establishment in 
the Federal Register so that the Committee members can quickly begin to 
identify emerging regulatory issues and their potential impact on 
investors and the securities markets. The Committee will lend the CFTC 
and SEC expertise that ranges across the securities and futures 
markets.

    By the Securities and Exchange Commission.

    Dated: May 10, 2010.
Elizabeth M. Murphy,
Committee Management Officer.

    By the Commodity Futures Trading Commission.

Martin White,
Committee Management Officer.
[FR Doc. 2010-11507 Filed 5-12-10; 8:45 am]
BILLING CODE 8010-01-P; 6351-01-P
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