Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Fee for ISE Market Maker Orders Sent to the Exchange by Electronic Access Members

Wed. October 21, 2009; Posted: 10:17 AM

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act") *1 and Rule 19b-4 thereunder, *2 notice is hereby given that on October 1, 2009, International Securities Exchange, LLC ("ISE" or "Exchange") 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 Exchange. 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).[END FOOTNOTE]

*2 17 CFR 240.19b-4.[END FOOTNOTE]

[Page Number 54112]

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The ISE proposes to adopt a fee for ISE market maker orders sent to the Exchange by Electronic Access Members ("EAMs"). The text of the proposed rule change is available on the Exchange's Web site (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 Exchange 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 Exchange 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

The purpose of this proposed rule change is to adopt a fee for ISE market maker orders sent to the Exchange by EAMs. Specifically, the Exchange proposes to adopt a fee of $0.20 per contract for such orders. Market maker orders sent to the Exchange by EAMs are currently charged per the Exchange's market maker sliding scale. Market maker orders sent by EAMs, however, are essentially broker-dealer orders and thus should be billed at the rate the Exchange currently charges for broker-dealer orders. The Exchange treats broker-dealer orders as Firm Proprietary orders for the purpose of the Exchange's fee schedule and charges a fee of $0.20 per contract. ISE proposes to implement this fee change on October 1, 2009.

2. Statutory Basis

The basis under the Securities Exchange Act of 1934 (the "Exchange Act") for this proposed rule change is the requirement under Section 6(b)(4) that an exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. In particular, the proposed fee change will align fees charged by the Exchange for market maker orders sent by EAMs with the fees charged by the Exchange for broker-dealer orders.

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 *3 and Rule 19b-4(f)(2) *4 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.

*3 15 U.S.C. 78s(b)(3)(A) [sic].[END FOOTNOTE]

*4 17 CFR 19b-4(f)(2).[END FOOTNOTE]

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 rule-comments@sec.gov. Please include File Number SR- ISE-2009-76 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-2009-76. 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 inspection and copying in the Commission's Public Reference Room, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. 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 No. SR-ISE-2009-76 and should be submitted on or before November 12, 2009.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. *5

*5 17 CFR 200.30-3(a)(12).[END FOOTNOTE]

Florence E. Harmon,

Deputy Secretary.

[FR Doc. E9-25201 Filed 10-20-09; 8:45 am]

BILLING CODE 8010-01-P

Vol. 74, No. 202

[Release No. 34-60817; File No. SR-ISE-2009-76]

Notices

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