Subject: File No. SR-ISE-2009-32
From: Gerald Schneider

June 25, 2009

SEC
June 25, 2009
Gerald Schneider
Chicago, Illinois

To whom it may concern:

If the SEC was worried about customers getting good prices they should start looking at different segments of the NMS, one example is customer orders on the opening of exchanges, customers are given terrible fills on market orders,etc on the opening, 3 seconds later the real market is sometimes 20 cents to 70 cents better. Also, there should be mechanisms to prevent stale markets from being received to the market place. I will be filing a suit against a member of FINRA soon regarding this fraud. There are no systems or procedures available to protect customers, but there are plenty of measures to protect exchanges and member firms.

If you want more liquidity, have the ISE, CBOE and PHS eliminate cancels on penny options. How about you eliminate payment for order flow. How does anyone think this is legal. Seems like bribes to me. Looks like Rep. Conyers wife from Michigan is going to jail for taking bribes, how is this any different. Why is there no transparency? Why do the futures exchanges charge no cancels and offer SPAN margin for all customers. Why do exchanges and members receive more advantages than customers?

Should customers only put in orders to fill or can they not try to get better prices related to volatility by leaving standing orders. he reason why the clearing firms do not fight the ISE, CBOE & PHS is because they make so much money off our order flow, otherwise they would have blocked all of these anti-competitive & collusion practices by the CBOE & ISE. It is truly outstanding how MONEY affects policy with the SEC. These firms should not get paid extra for order flow. The payment for order policy only increases fraud.

I would extend the current penny program for another two years. Then make the decision to expand to all options to pennies or convert the entire penny program back to nickels and dimes.