[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32526-32528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13766]



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SECURITIES AND EXCHANGE COMMISSION



[Release No. 34-62207; File No. SR-ISE-2010-55]




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



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, 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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[[Page 32527]]



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 pass through rebates/fees from other 

market centers. All of the changes 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, on the Commission's Internet 

Web site at http://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 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\

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    \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.

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    On May 1, 2010,\5\ 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. To more closely reflect the costs of removing liquidity from 

the NYSE, the ``Q'' flag is now proposed to be further increased from 

$0.0018 to $0.0020 per share.

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    \5\ See Securities Exchange Act Release No. 62050 (May 6, 2010), 

75 FR 27029 (May 13, 2010) (SR-ISE-2010-37).

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    The changes discussed in this filing will become operative on June 

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.

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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. 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.

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    \8\ 15 U.S.C. 78s(b)(3)(A). [sic]

    \9\ 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 Number SR-ISE-2010-55 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-2010-55. 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 (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 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-2010-55 and should be 

submitted on or before June 29, 2010.





[[Page 32528]]





    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\10\

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    \10\ 17 CFR 200.30-3(a)(12).

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Florence E. Harmon,

Deputy Secretary.

[FR Doc. 2010-13766 Filed 6-7-10; 8:45 am]

BILLING CODE 8011-01-P