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, 39313-39314 [2010-16668]
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Federal Register / Vol. 75, No. 130 / Thursday, July 8, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–16669 Filed 7–7–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62430; File No. SR–ISE–
2010–69]
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
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
July 1, 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 June 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
solicit comments on the proposed rule
change from interested persons.
srobinson on DSKHWCL6B1PROD with NOTICES
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)
eliminate a trading volume threshold
found in footnote 4 to the fee schedule
and (ii) add clarifying material to
explain how certain volume thresholds
will be adjusted during the month of
July 2010. 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, on the
Commission’s Internet Web site at
https://www.sec.gov, at ISE, and at the
Commission’s Public Reference Room.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 References to ISE Members in this filing refer to
DECN Subscribers who are ISE Members.
1 15
VerDate Mar<15>2010
17:09 Jul 07, 2010
Jkt 220001
I. 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.
1. Purpose
DECN, a facility of ISE, operates two
trading platforms, EDGX and EDGA.4
The EDGA and EDGX Exchanges 5
expect to begin operating as national
securities exchanges on July 2, 2010.
Following the launch date there will be
a two-week phase-in period during
which securities currently trading on
DECN will be moved from DECN to
EDGA and EDGX Exchanges. Once a
symbol is migrated from DECN to EDGA
and EDGX Exchanges, it will no longer
be available for trading on DECN and
will only be available for trading on the
EDGA and EDGX Exchanges. Once the
EDGA and EDGX Exchanges begin
trading their first security, they will
thus operate in conjunction with DECN
until all symbols are fully migrated.
As a result of the phased migration of
symbols from DECN to EDGA and EDGX
Exchanges, three volume thresholds will
need to be adjusted for the month of
July 2010 only to reflect the portion of
the volume that occurs on DECN during
the month. The Exchange is proposing
to place clarifying language about how
these rebates are calculated in footnote
numbers 1 and 2 to the DECN fee
schedule. First, the removal rate on
EDGA (a rebate of $0.0002 per share) is
currently contingent on the attributed
MPID adding (including hidden) and/or
routing a minimum average daily share
volume, measured monthly, of 50,000
shares on EDGA. Any attributed MPID
not meeting the aforementioned
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.
5 See SR–EDGA–2010–04 and SR–EDGX–2010–04
for EDGA and EDGX Exchange fee schedules.
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
39313
minimum will be charged $0.0030 per
share for removing liquidity from EDGA
(0.20% of dollar value for stocks priced
less than $1.00). However, the Exchange
is proposing that for the month of July
2010 only, the 50,000 average daily
volume threshold will be multiplied by
a fraction, the numerator of which shall
be the sum of the daily consolidated
volumes for each DECN-traded symbol
for all days that such symbol is traded
on the DECN during the month of July
and the denominator of which shall be
the monthly consolidated volume for all
DECN-traded symbols during the month
of July.
Secondly, Members can qualify for a
rebate of $0.0032 per share for all
liquidity posted on EDGX if they add or
route at least 5,000,000 shares of average
daily volume prior to 9:30 a.m. or after
4 p.m. (includes all flags except 6) AND
add a minimum of 50,000,000 shares of
average daily volume on EDGX in total,
including during both market hours and
pre- and post-trading hours. The
Exchange is proposing that for the
month of July 2010 only, these average
daily volume thresholds (5,000,000 and
50,000,000), will be multiplied by a
fraction, the numerator of which shall
be the sum of the daily consolidated
volumes for each DECN-traded symbol
for all days that such symbol is traded
on the DECN during the month of July
and the denominator of which shall be
the monthly consolidated volume for all
DECN-traded symbols during the month
of July.
Third, the rebate for adding hidden
orders is currently contingent upon
Members adding greater than 1,000,000
shares on a daily basis, measured
monthly. Members not meeting this
minimum will be charged $0.0030 per
share. For the month of July 2010 only,
the 1,000,000 monthly share volume
threshold will be multiplied by a
fraction, the numerator of which shall
be the sum of the daily consolidated
volumes for each DECN-traded symbol
for all days that such symbol is traded
on the DECN during the month of July
and the denominator of which shall be
the monthly consolidated volume for all
DECN-traded symbols during the month
of July.
Finally, the Exchange is proposing to
eliminate the trading volume threshold
found in footnote 4 of the DECN fee
schedule relating to Flags E and 5.
Currently, the lower rate of $0.000025
per share is contingent upon meeting a
1,000,000 share volume threshold on a
daily basis, measured monthly. The
Exchange proposes to eliminate the
1,000,000 share threshold in footnote 4
to the fee schedule and add
‘‘intentionally omitted’’ to the footnote
E:\FR\FM\08JYN1.SGM
08JYN1
39314
Federal Register / Vol. 75, No. 130 / Thursday, July 8, 2010 / Notices
in order to keep the current footnote
numbering intact. The Exchange
believes that the elimination of such
threshold will enable it to avoid having
to adjust the threshold calculation for
the month of July 2010. This will result
in an administratively easier process for
both the Exchange and Members during
the migration of symbols from DECN to
EDGA and EDGX Exchanges.
The changes discussed in this filing
will become operative on July 1, 2010.
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, as 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. ISE
notes that DECN operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee levels at a particular venue to be
excessive. The proposed rule change
reflects a competitive pricing structure
designed to incent market participants
to direct their order flow to DECN. ISE
believes the fees and credits remain
competitive with those charged by other
venues and therefore continue to be
reasonable and equitably allocated to
those members that opt to direct orders
to DECN rather than competing venues.
The ISE also believes that the proposed
rates are equitable in that they apply
uniformly to all Members.
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
srobinson on DSKHWCL6B1PROD with NOTICES
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.
II. Date of Effectiveness of the Proposed
Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 8 and Rule 19b–4(f)(2) 9
thereunder. At any time within 60 days
of the filing of such proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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–2010–69 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–2010–69. 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–2010–69 and should be
submitted on or before July 29, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–16668 Filed 7–7–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62421; File No. SR–OCC–
2010–08]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Additional Underlying Interests for
Commodity Futures and Commodity
Options Available to ELX Futures, L.P.
for Clearing and Settlement Services
June 30, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 notice
is hereby given that on June 16, 2010,
the Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared primarily by OCC. OCC filed
the proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 2 and
Rule 19b–4(f)(4) thereunder 3 so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The proposed rule change consists of
adding Schedule C–1 to the Agreement
for Clearing and Settlement Services
(‘‘Agreement’’) dated December 5, 2008,
between the Options Clearing
Corporation (‘‘OCC’’) and ELX Futures
L.P. (‘‘ELX’’).
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
1 15
6 15
7 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
VerDate Mar<15>2010
17:09 Jul 07, 2010
8 15
9 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(3)(A). [sic]
CFR 19b–4(f)(2).
Frm 00114
Fmt 4703
Sfmt 4703
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08JYN1
]]>Agencies
[Federal Register Volume 75, Number 130 (Thursday, July 8, 2010)]
[Notices]
[Pages 39313-39314]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-16668]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62430; File No. SR-ISE-2010-69]
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
July 1, 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 June 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 self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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) eliminate a trading volume
threshold found in footnote 4 to the fee schedule and (ii) add
clarifying material to explain how certain volume thresholds will be
adjusted during the month of July 2010. All of the changes described
herein are applicable to ISE Members.
---------------------------------------------------------------------------
\3\ References to ISE Members in this filing refer to DECN
Subscribers who are 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.
I. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
DECN, a facility of ISE, operates two trading platforms, EDGX and
EDGA.\4\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
The EDGA and EDGX Exchanges \5\ expect to begin operating as
national securities exchanges on July 2, 2010. Following the launch
date there will be a two-week phase-in period during which securities
currently trading on DECN will be moved from DECN to EDGA and EDGX
Exchanges. Once a symbol is migrated from DECN to EDGA and EDGX
Exchanges, it will no longer be available for trading on DECN and will
only be available for trading on the EDGA and EDGX Exchanges. Once the
EDGA and EDGX Exchanges begin trading their first security, they will
thus operate in conjunction with DECN until all symbols are fully
migrated.
---------------------------------------------------------------------------
\5\ See SR-EDGA-2010-04 and SR-EDGX-2010-04 for EDGA and EDGX
Exchange fee schedules.
---------------------------------------------------------------------------
As a result of the phased migration of symbols from DECN to EDGA
and EDGX Exchanges, three volume thresholds will need to be adjusted
for the month of July 2010 only to reflect the portion of the volume
that occurs on DECN during the month. The Exchange is proposing to
place clarifying language about how these rebates are calculated in
footnote numbers 1 and 2 to the DECN fee schedule. First, the removal
rate on EDGA (a rebate of $0.0002 per share) is currently contingent on
the attributed MPID adding (including hidden) and/or routing a minimum
average daily share volume, measured monthly, of 50,000 shares on EDGA.
Any attributed MPID not meeting the aforementioned minimum will be
charged $0.0030 per share for removing liquidity from EDGA (0.20% of
dollar value for stocks priced less than $1.00). However, the Exchange
is proposing that for the month of July 2010 only, the 50,000 average
daily volume threshold will be multiplied by a fraction, the numerator
of which shall be the sum of the daily consolidated volumes for each
DECN-traded symbol for all days that such symbol is traded on the DECN
during the month of July and the denominator of which shall be the
monthly consolidated volume for all DECN-traded symbols during the
month of July.
Secondly, Members can qualify for a rebate of $0.0032 per share for
all liquidity posted on EDGX if they add or route at least 5,000,000
shares of average daily volume prior to 9:30 a.m. or after 4 p.m.
(includes all flags except 6) AND add a minimum of 50,000,000 shares of
average daily volume on EDGX in total, including during both market
hours and pre- and post-trading hours. The Exchange is proposing that
for the month of July 2010 only, these average daily volume thresholds
(5,000,000 and 50,000,000), will be multiplied by a fraction, the
numerator of which shall be the sum of the daily consolidated volumes
for each DECN-traded symbol for all days that such symbol is traded on
the DECN during the month of July and the denominator of which shall be
the monthly consolidated volume for all DECN-traded symbols during the
month of July.
Third, the rebate for adding hidden orders is currently contingent
upon Members adding greater than 1,000,000 shares on a daily basis,
measured monthly. Members not meeting this minimum will be charged
$0.0030 per share. For the month of July 2010 only, the 1,000,000
monthly share volume threshold will be multiplied by a fraction, the
numerator of which shall be the sum of the daily consolidated volumes
for each DECN-traded symbol for all days that such symbol is traded on
the DECN during the month of July and the denominator of which shall be
the monthly consolidated volume for all DECN-traded symbols during the
month of July.
Finally, the Exchange is proposing to eliminate the trading volume
threshold found in footnote 4 of the DECN fee schedule relating to
Flags E and 5. Currently, the lower rate of $0.000025 per share is
contingent upon meeting a 1,000,000 share volume threshold on a daily
basis, measured monthly. The Exchange proposes to eliminate the
1,000,000 share threshold in footnote 4 to the fee schedule and add
``intentionally omitted'' to the footnote
[[Page 39314]]
in order to keep the current footnote numbering intact. The Exchange
believes that the elimination of such threshold will enable it to avoid
having to adjust the threshold calculation for the month of July 2010.
This will result in an administratively easier process for both the
Exchange and Members during the migration of symbols from DECN to EDGA
and EDGX Exchanges.
The changes discussed in this filing will become operative on July
1, 2010.
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, as 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. ISE notes that DECN operates in a highly competitive market
in which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive.
The proposed rule change reflects a competitive pricing structure
designed to incent market participants to direct their order flow to
DECN. ISE believes the fees and credits remain competitive with those
charged by other venues and therefore continue to be reasonable and
equitably allocated to those members that opt to direct orders to DECN
rather than competing venues. The ISE also believes that the proposed
rates are equitable in that they apply uniformly to all Members.
---------------------------------------------------------------------------
\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.
II. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder. At any
time within 60 days of the filing of such proposed rule change, the
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A). [sic]
\9\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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-2010-69 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-2010-69. 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-2010-69 and should be
submitted on or before July 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-16668 Filed 7-7-10; 8:45 am]
BILLING CODE 8010-01-P
