[Federal Register Volume 74, Number 109 (Tuesday, June 9, 2009)]
[Notices]
[Pages 27371-27373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-13403]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60031; File No. SR-ISE-2009-29]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by International Securities 
Exchange, LLC Relating to Amending the Direct Edge ECN Fee Schedule To 
Expand the Applicability of the Super Tier Rebate to All Securities 
Priced at or Above $1.00 and To Increase the Take Fee

June 3, 2009.
    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 29, 2009, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 apply the Super Tier Rebates, as 
defined below, to all securities priced at or above $1.00 that add 
liquidity on EDGX and to raise the fee charged to orders that remove 
liquidity on EDGX. All of the changes

[[Page 27372]]

described herein are applicable to ISE Members.
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    \3\ References to ISE Members in this filing refer to DECN 
Subscribers who are ISE Members.
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    The text of the proposed rule change is available on the Exchange's 
Internet Web site at http://www.ise.com, at the principal office of the 
Exchange, 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 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. Currently, DECN's fee schedule includes a per share rebate in 
securities reported to Tape A and Tape C of $0.003 per share for ISE 
Members that add liquidity on EDGX if the ISE Member satisfies any of 
the following three criteria on a daily basis, measured monthly: (i) 
Adding 40,000,000 shares or more on either EDGX, EDGA or EDGX and EDGA 
combined; (ii) adding 20,000,000 shares or more on either EDGX, EDGA or 
EDGX and EDGA combined and routing 20,000,000 shares or more through 
EDGA; or (iii) adding 10,000,000 shares or more of liquidity to EDGX, 
so long as added liquidity on EDGX is at least 5,000,000 shares greater 
than the previous calendar month. The rebate described above is 
referred to as a ``Super Tier Rebate'' on the DECN fee schedule. 
Currently, ISE Members that add liquidity in Tape A and Tape C 
securities and don't meet the Super Tier criteria, as set forth above, 
receive a rebate of $0.0025 for such orders.
    The Exchange is now proposing to expand the applicability of the 
aforementioned Super Tier Rebate during the month of June by 
eliminating the need to meet the ``Super Tier'' criteria described 
above for Tape A and Tape C securities and rebating $0.003 to all 
orders that add liquidity on EDGX. The Exchange is increasing this 
rebate to maintain a competitive rate. This fee change will become 
operative on June 1, 2009.
    In an effort to offset the cost of increasing the rebate for orders 
that add liquidity on EDGX, the Exchange is proposing to increase the 
fee for orders that remove liquidity on EDGX from $0.0026 to $0.0028. 
This fee change will become operative on June 1, 2009.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\4\ in general, and 
furthers the objectives of Section 6(b)(4),\5\ 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, expanding the applicability of the Super 
Tier Rebate and offering pricing incentives to market participants who 
route orders to DECN allows DECN to remain competitive. 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 
incentivize 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.
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    \4\ 15 U.S.C. 78f.
    \5\ 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. 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 \6\ and Rule 19b-4(f)(2) \7\ 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml; or
     Send an e-mail to [email protected]. Please include 
File No. SR-ISE-2009-29 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-2009-29. 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 Commissions Internet Web site (http://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 inspection and copying in the 
Commission's Public Reference Room, 100 F Street, NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. Copies of such filing also will be available for inspection and 
copying at the principal office of the 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

[[Page 27373]]

submissions should refer to File Number SR-ISE-2009-29 and should be 
submitted on or before June 30, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-13403 Filed 6-8-09; 8:45 am]
BILLING CODE 8010-01-P