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, 32528-32529 [2010-13767]
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<![CDATA[
32528
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–13766 Filed 6–7–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62206; File No. SR–ISE–
2010–56]
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
June 2, 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 May 28,
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.
emcdonald on DSK2BSOYB1PROD with NOTICES
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, on the
Commission’s Internet Web site at
https://www.sec.gov, at ISE, and at the
Commission’s Public Reference Room.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:31 Jun 07, 2010
Jkt 220001
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.3
On May xx, [sic] 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 pass through charges from
other market centers.5 The changes
made pursuant to SR–ISE–2010–55
became operative on June 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 charges were changed
pursuant to SR–ISE–2010–55, DECN
wishes to make corresponding changes
to the amounts it passes through to non3 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 On June 1, 2010, in SR–ISE–2010–55, the
Exchange increased the ‘‘Q’’ flag from $0.0018 to
$0.0020 per share to more closely reflect the costs
of removing liquidity from the NYSE. By way of
background, on May 1, 2010, in SR–ISE–2010–37,
the Exchange amended the fees for orders that
either route or re-route to the NYSE in response to
an increase in NYSE’s fee for removing liquidity to
$0.0021 per share (from $0.0018 per share). As part
of that amendment, the ‘‘Q’’ flag, which denotes an
order type (ROUC) that routes to the NYSE, was
increased from $0.0015 per share to $0.0018 per
share on EDGA and EDGX to reflect the increase.
See Securities Exchange Act Release No. 62050
(May 6, 2010), 75 FR 27029 (May 13, 2010) (SR–
ISE–2010–37).
PO 00000
Frm 00174
Fmt 4703
Sfmt 4703
ISE Member subscribers of DECN for
which it acts as introducing broker. As
a result, the per share amounts that nonISE 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 June 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 be
charged equivalent amounts and that
the imposition of such amounts will
begin on the same June 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,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
6 15
7 15
E:\FR\FM\08JNN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
08JNN1
32529
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–ISE–2010–56 on the subject
line.
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using its
facilities.
As described more fully above, ISE
Paper Comments
recently amended DECN’s fee schedule
• Send paper comments in triplicate
for ISE Members pursuant to SR–ISE–
to Elizabeth M. Murphy, Secretary,
2010–55 (the ‘‘Member Fee Filing’’). The
Securities and Exchange Commission,
fee change made pursuant to the
100 F Street, NE., Washington, DC
Member Fee Filing became operative on
20549–1090.
June 1, 2010. DECN receives rebates and
All submissions should refer to File
is charged fees for transactions it
Number SR–ISE–2010–56. This file
executes on EGDX or EDGA in its
number should be included on the
capacity as an introducing broker for its
subject line if e-mail is used. To help the
non-ISE member subscribers. The
Commission process and review your
current proposal, which will apply
comments more efficiently, please use
beginning on June 1, 2010, will allow
only one method. The Commission will
DECN to pass through the revised fee to
post all comments on the Commission’s
the non-ISE member subscribers for
Internet Web site (https://www.sec.gov/
which it acts an introducing broker. The
rules/sro.shtml). Copies of the
Commission finds that the proposal is
submission, all subsequent
consistent with the Act because it will
amendments, all written statements
charge fees to non-ISE member
with respect to the proposed rule
subscribers that are equivalent to those
change that are filed with the
established for ISE member subscribers
Commission, and all written
in the Member Fee Filing.
communications relating to the
ISE has requested that the
proposed rule change between the
Commission and any person, other than Commission find good cause for
approving the proposed rule change
those that may be withheld from the
prior to the thirtieth day after
public in accordance with the
publication of notice of filing thereof in
provisions of 5 U.S.C. 552, will be
the Federal Register. As discussed
available for Web site viewing and
above, the proposal will allow DECN to
printing in the Commission’s Public
pass through to non-ISE member
Reference Room, 100 F Street, NE.,
subscribers the revised fee established
Washington, DC 20549, on official
for ISE member subscribers in the
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also Member Fee Filing, resulting in
equivalent fees for ISE member and nonwill be available for inspection and
member subscribers. In addition,
copying at the principal office of the
because the proposal will apply the
ISE. All comments received will be
posted without change; the Commission revised fee beginning on June 1, 2010,
the revised fees will have the same
does not edit personal identifying
effective date, thereby promoting
information from submissions. You
consistency in the DECN’s fee schedule.
should submit only information that
you wish to make available publicly. All Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
submissions should refer to File
Number SR–ISE–2010–56 and should be of the Act, for approving the proposed
rule change prior to the thirtieth day
submitted on or before June 29, 2010.
after the date of publication of notice of
IV. Commission’s Findings and Order
filing thereof in the Federal Register.
Granting Accelerated Approval of
Proposed Rule Change
V. Conclusion
The Commission finds that the
It is therefore ordered, pursuant to
proposed rule change is consistent with
Section 19(b)(2) of the Act,10 that the
the requirements of the Act and the
proposed rule change (SR–ISE–2010–56)
rules and regulations thereunder
is approved on an accelerated basis.
applicable to a national securities
8 Specifically, the
For the Commission, by the Division of
exchange.
Trading and Markets, pursuant to delegated
Commission finds that the proposed
authority.11
rule change is consistent with Section
Florence E. Harmon,
6(b)(4) 9 of the Act, which requires that
the rules of a national securities
Deputy Secretary.
exchange provide for the equitable
[FR Doc. 2010–13767 Filed 6–7–10; 8:45 am]
8 In approving this proposal, the Commission has
considered its impact on efficiency, competition,
and capital formation. 15 U.S.C 78c(f).
9 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
16:31 Jun 07, 2010
Jkt 220001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62209; File No. SR–
NYSEArca–2010–42]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Rule 6.82
June 2, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on May 18,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 6.82 by revising the minimum
financial requirements of Lead Market
Makers. The text of the proposed rule
change is below. Proposed new
language is italicized; proposed
deletions are in brackets:
Rules of NYSE Arca, Inc.
*
*
*
*
(a)–(b) No Change
(c) Obligations of Lead Market
Makers:
Each LMM must meet the following
obligations:
(1)–(11) No Change
(12) Maintain a cash or liquid asset
position of at least $1,000,000.
[$350,000, plus $25,000 for each issue
over 8 issues that has been allocated to
the LMM.] In the event that two or more
LMMs are associated with each other
and deal for the same LMM account,
this requirement will apply to such
LMMs collectively, rather than to each
LMM individually;
(13)–(14) No Change
(d)–(h) No Change
*
*
*
*
*
BILLING CODE 8011–01–P
1 15
10 15
U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00175
Fmt 4703
Sfmt 4703
*
Rule 6.82. Lead Market Makers
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\08JNN1.SGM
08JNN1
]]>Agencies
[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32528-32529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13767]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62206; File No. SR-ISE-2010-56]
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
June 2, 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 May 28, 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, on the Commission's Internet
Web site at https://www.sec.gov, at ISE, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item 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.\3\ On May xx, [sic] 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 pass through charges
from other market centers.\5\ The changes made pursuant to SR-ISE-2010-
55 became operative on June 1, 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\ On June 1, 2010, in SR-ISE-2010-55, the Exchange increased
the ``Q'' flag from $0.0018 to $0.0020 per share to more closely
reflect the costs of removing liquidity from the NYSE. By way of
background, on May 1, 2010, in SR-ISE-2010-37, the Exchange amended
the fees for orders that either route or re-route to the NYSE in
response to an increase in NYSE's fee for removing liquidity to
$0.0021 per share (from $0.0018 per share). As part of that
amendment, the ``Q'' flag, which denotes an order type (ROUC) that
routes to the NYSE, was increased from $0.0015 per share to $0.0018
per share on EDGA and EDGX to reflect the increase. See Securities
Exchange Act Release No. 62050 (May 6, 2010), 75 FR 27029 (May 13,
2010) (SR-ISE-2010-37).
---------------------------------------------------------------------------
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 charges were changed pursuant to SR-ISE-
2010-55, 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 June 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 be charged
equivalent amounts and that the imposition of such amounts will begin
on the same June 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,\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).
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
[[Page 32529]]
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2010-56 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-2010-56. 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 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-2010-56 and should be
submitted on or before June 29, 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.\8\
Specifically, the Commission finds that the proposed rule change is
consistent with Section 6(b)(4) \9\ 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.
---------------------------------------------------------------------------
\8\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C 78c(f).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
As described more fully above, ISE recently amended DECN's fee
schedule for ISE Members pursuant to SR-ISE-2010-55 (the ``Member Fee
Filing''). The fee change made pursuant to the Member Fee Filing became
operative on June 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 beginning on June 1, 2010, will allow DECN
to pass through the revised fee 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 charge fees to non-
ISE member subscribers that are equivalent to those established for ISE
member subscribers in the Member Fee Filing.
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 fee established for ISE member subscribers in
the Member Fee Filing, resulting in equivalent fees for ISE member and
non-member subscribers. In addition, because the proposal will apply
the revised fee beginning on June 1, 2010, the revised 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,\10\ that the proposed rule change (SR-ISE-2010-56) is approved on
an accelerated basis.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13767 Filed 6-7-10; 8:45 am]
BILLING CODE 8011-01-P
