Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange, Inc. Relating to Fee Changes, 6060-6061 [E5-433]
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6060
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
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 inspection and copying in
the Commission’s Public Reference
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of FICC and on FICC’s Web site
at https://www.ficc.com. 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–FICC–
2005–04 and should be submitted on or
before February 25, 2005.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–430 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51103; File No. SR–ISE–
2005–04]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
International Securities Exchange, Inc.
Relating to Fee Changes
January 28, 2005.
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 January 7,
2005, the International Securities
Exchange, Inc. (‘‘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 ISE. The ISE
has designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the ISE under
Section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal 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 Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees to provide that the
payment for order flow fee shall not
apply to market makers when executing
against Public Customer Orders entered
into the Exchange’s Price Improvement
Mechanism (‘‘PIM’’). The text of the
proposed rule change is available on the
ISE’s Web site (https://
www.iseoptions.com), at the principal
office of the 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
ISE included statements concerning the
purpose of and basis for its proposal and
discussed any comments it had received
regarding the proposal. The text of these
statements may be examined at the
places specified in Item IV below. The
ISE 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 ISE states that the purpose of this
proposed rule change is to amend the
ISE Schedule of Fees to provide that the
payment for order flow fee shall not
apply to market makers when executing
against Public Customer Orders entered
into the Exchange’s PIM. According to
the ISE, the Exchange’s PIM, the rules
for which were recently approved by the
Commission,5 will permit an Electronic
Access Member (‘‘EAM’’) to seek price
improvement for its Public Customer
Orders in amounts smaller than the
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 See Securities Exchange Act Release No. 50819
(December 8, 2004), 69 FR 75093 (December 15,
2004) (SR–ISE–2003–06).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
PO 00000
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will 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 ISE neither solicited nor received
written comments with respect to the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 Accordingly, the proposal
will take effect upon filing with the
Commission. At any time within 60
days of the filing of the 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,
3 15
4 17
8 17
standard nickel and dime trading
increments. The PIM grants an EAM a
preference at the best price for trading
against at least a portion of its order, but
allows other members to compete for
that order by providing price
improvement. The ISE states that,
because market makers will be
providing price improvement to Public
Customer Orders when trading in the
PIM, the Exchange will also not charge
market makers a payment for order flow
fee on these trades. Thus, the Exchange
proposes to exempt PIM executions
from the $.55 per contract payment for
order flow fee charged to market
markers when executing against Public
Customer Orders.
Frm 00098
Fmt 4703
Sfmt 4703
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
7 15
E:\FR\FM\04FEN1.SGM
04FEN1
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
or otherwise in furtherance of the
purposes of the Act.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–433 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–51092; File No. SR–NASD–
2004–159]
• 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–2005–04 on the subject
line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change To Allow NASD
To Review on a Pilot Basis Denial of
Access Complaints Related to the
Alternative Display Facility
Paper Comments
January 28, 2005.
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–ISE–2005–04. 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 inspection and copying in
the Commission’s Public Reference
Room. 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–2005–04 and should be
submitted on or before February 25,
2005.
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
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
22, 2004, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASD. On
January 11, 2005, NASD filed
Amendment No. 1 to the proposed rule
change.3 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to establish on a
pilot basis new NASD Rule 4400A,
which would give NASD the authority
to receive and review complaints
against an NASD Market Participant 4
alleging denial of direct or indirect
access of the NASD Market Participant’s
quotations in the Alternative Display
Facility (‘‘ADF’’) that the NASD Market
Participant is required to provide
pursuant to NASD Rule 4300A. In
addition, proposed NASD Rule 4400A
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange clarified the
scope of authority granted to the NASD and the
Market Regulation Committee to review denials of
access. Amendment No. 1 replaced the original
filing in its entirety.
4 See NASD Rule 4300A(d)(4) defining ‘‘NASD
Market Participant’’ as: (a) A NASD Registered
Reporting ADF Market Maker (defined in NASD
Rule 4200A(10); (b) an alternative trading system or
‘‘ATS’’; or (c) an NASD ADF Registered electronic
communication network or ‘‘ECN.’’
PO 00000
10 17
1 15
Frm 00099
Fmt 4703
Sfmt 4703
6061
would set forth the procedures and
review process for such complaints.
Finally, the proposal would delegate
authority to NASD’s Market Regulation
Committee to review denial of access
determinations rendered in accordance
with Rule 4400A. The text of the
proposed rule change is available on
NASD’s Web site (https://
www.nasd.com), at the principal offices
of NASD, 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,
NASD included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. NASD 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
Background
On July 24, 2002, the Commission
approved SR–NASD 2002–97, which
authorizes NASD to operate the ADF on
a pilot basis for nine months.5 NASD
subsequently filed for immediate
effectiveness proposed rule changes to
extend the pilot, the most recent until
July 26, 2005.6 The ADF is a quotation
collection, trade comparison, and trade
reporting facility developed by NASD in
accordance with the Commission’s
SuperMontage Approval Order 7 and in
conjunction with Nasdaq’s proposal to
register as a national securities
exchange.8
Under the pilot, the ADF provides
NASD Market Participants the ability to
post quotations in Nasdaq securities and
provides all members that participate in
the ADF the ability to view quotations
and report transactions in Nasdaq
securities to the exclusive Securities
5 See Securities Exchange Act Release No. 46249
(July 24, 2002), 67 FR 49822 (July 31, 2002).
6 See Securities Exchange Act Release Nos. 47663
(April 10, 2003), 68 FR 19043 (April 17, 2003) (SR–
NASD–2003–67); 49131 (January 27, 2004), 69 FR
5229 (February 3, 2004) (SR–NASD–2004–12);
50601 (October 28, 2004), 69 FR 64611 (November
5, 2004) (SR–NASD–2004–160).
7 Securities Exchange Act Release No. 43863
(January 19, 2001), 66 FR 8020 (January 26, 2001)
(SR–NASD–99–53).
8 Securities Exchange Act Release No. 44396
(June 7, 2001), 66 FR 31952 (June 13, 2001) (File
No. 10–131).
E:\FR\FM\04FEN1.SGM
04FEN1
]]>Agencies
[Federal Register Volume 70, Number 23 (Friday, February 4, 2005)]
[Notices]
[Pages 6060-6061]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-433]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51103; File No. SR-ISE-2005-04]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the International Securities
Exchange, Inc. Relating to Fee Changes
January 28, 2005.
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 January 7, 2005, the International Securities Exchange, Inc.
(``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 ISE.
The ISE has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the ISE under Section
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees to provide that
the payment for order flow fee shall not apply to market makers when
executing against Public Customer Orders entered into the Exchange's
Price Improvement Mechanism (``PIM''). The text of the proposed rule
change is available on the ISE's Web site (https://www.iseoptions.com),
at the principal office of the 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 ISE included statements
concerning the purpose of and basis for its proposal and discussed any
comments it had received regarding the proposal. The text of these
statements may be examined at the places specified in Item IV below.
The ISE 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 ISE states that the purpose of this proposed rule change is to
amend the ISE Schedule of Fees to provide that the payment for order
flow fee shall not apply to market makers when executing against Public
Customer Orders entered into the Exchange's PIM. According to the ISE,
the Exchange's PIM, the rules for which were recently approved by the
Commission,\5\ will permit an Electronic Access Member (``EAM'') to
seek price improvement for its Public Customer Orders in amounts
smaller than the standard nickel and dime trading increments. The PIM
grants an EAM a preference at the best price for trading against at
least a portion of its order, but allows other members to compete for
that order by providing price improvement. The ISE states that, because
market makers will be providing price improvement to Public Customer
Orders when trading in the PIM, the Exchange will also not charge
market makers a payment for order flow fee on these trades. Thus, the
Exchange proposes to exempt PIM executions from the $.55 per contract
payment for order flow fee charged to market markers when executing
against Public Customer Orders.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 50819 (December 8,
2004), 69 FR 75093 (December 15, 2004) (SR-ISE-2003-06).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
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 ISE neither solicited nor received written comments with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and subparagraph
(f)(2) of Rule 19b-4 thereunder.\9\ Accordingly, the proposal will take
effect upon filing with the Commission. At any time within 60 days of
the filing of the 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,
[[Page 6061]]
or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2005-04 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-ISE-2005-04. 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 inspection
and copying in the Commission's Public Reference Room. 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-2005-04 and should be submitted on or before
February 25, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-433 Filed 2-3-05; 8:45 am]
BILLING CODE 8010-01-P
