Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Fee Changes for Transactions in Options on the Standard & Poor's Depository Receipts®, 37455-37456 [E5-3384]

Download as PDF Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Notices that matches fees to costs and pays rebates to its members. Furthermore, Cantor and RCG were the only parties to submit negative comments on the proposed rule change. The Commission did not receive comments from any FICC members or potential FICC members, other than from Cantor and RCG, stating that the proposed rule change would make it too expensive for them to remain or to become a member of FICC. Accordingly, for the reasons discussed above, the Commission finds that the proposed rule change is consistent with section 17A(b)(3)(I) of the Act in that it does not impose a burden on competition not necessary or appropriate in furtherance of the purposes of the Act. VI. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act and the rules and regulations thereunder applicable. It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (File No. SR– FICC–2004–15) be and hereby is approved. For the Commission by the Division of Market Regulation, pursuant to delegated authority.16 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–3381 Filed 6–28–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51901; File No. SR–ISE– 2005–06] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Fee Changes for Transactions in Options on the Standard & Poor’s Depository Receipts June 22, 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 May 20, 2005, the International Securities Exchange, Inc. (‘‘Exchange’’ or ‘‘ISE’’) filed with the Securities and Exchange 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate jul<14>2003 17:40 Jun 28, 2005 Jkt 205001 Commission (‘‘Commission’’) the proposed rule change as described in items I, II, and III below, which items have been prepared by the Exchange. On June 15, 2005, the Exchange filed Amendment No. 1 to the proposed rule change.3 ISE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by a self-regulatory organization pursuant to section 19(b)(3)(A) of the Act,4 and Rule 19b–4(f)(2) thereunder,5 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 37455 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Schedule of Fees to adopt a $.10 per contract surcharge fee for certain transactions in options on SPDRs.6 The Exchange’s Schedule of Fees currently has in place a surcharge fee item that calls for a $.10 per contract fee for transactions in certain licensed products. The Exchange entered into a license agreement with Standard and Poor’s, a unit of McGraw-Hill Companies, Inc., authorizing the Exchange to list SPDR options. The Exchange is adopting this fee for I. Self-Regulatory Organization’s transactions in SPDR options to defray Statement of the Terms of Substance of the licensing costs. The Exchange the Proposed Rule Change believes that charging the participants The ISE proposes to amend its that trade these instruments is the most equitable means of recovering the costs Schedule of Fees to adopt a $.10 per of the license. However, because contract surcharge for certain competitive pressures in the industry transactions in options based on the have resulted in the waiver of Standard & Poor’s Depository transaction fees for Public Customers,7 Receipts, or SPDRs (‘‘SPDRs’’). The the Exchange proposes to exclude text of the proposed rule change is Public Customer Orders 8 from this available on the Exchange’s Internet Web site (http://www.iseoptions.com), at surcharge fee. Accordingly, this surcharge fee will only be charged to the Exchange’s Office of the Secretary, Exchange members with respect to nonand at the Commission’s Public Public Customer Orders (e.g., Market Reference Room. Maker and Firm Proprietary orders) and shall apply to Linkage Orders under a II. Self-Regulatory Organization’s pilot program that is set to expire on Statement of the Purpose of, and July 31, 2005.9 Statutory Basis for, the Proposed Rule Additionally, if it is concluded by the Change courts, after all avenues of appeal, that In its filing with the Commission, the no license from Standard and Poor’s Exchange included statements was required by the Exchange to list concerning the purpose of, and basis for, SPDR options, then upon any refund by the proposed rule change and discussed Standard and Poor’s, the Exchange shall any comments it received on the submit a rule filing to the Commission proposed rule change. The text of these providing for a reimbursement of the surcharge fees paid by members to the statements may be examined at the Exchange as a result of this surcharge places specified in item IV below. The fee. Exchange has prepared summaries, set forth in sections A, B, and C below, of 2. Statutory Basis the most significant aspects of such The Exchange believes that the statements. proposed rule change is consistent with section 6(b) of the Act 10 in general, and 3 In Amendment No. 1, the Exchange made nonfurthers the objectives of section 6(b)(4) substantive changes to clarify the purpose for the fee change. The effective date of the original proposed rule change is May 20, 2005, and the effective date of Amendment No. 1 is June 15, 2005. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, as amended, under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on June 15, 2005, the date on which the Exchange submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 4 15 U.S.C. 78s(b)(3)(A). 5 5 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00135 Fmt 4703 Sfmt 4703 6 The Exchange represents that these fees will be charged only to Exchange members. 7 Public Customer is defined in ISE Rule 100(a)(32) as a person that is not a broker or dealer in securities. 8 Public Customer Order is defined in ISE Rule 100(a)(33) as an order for the account of a Public Customer. 9 See ISE Rule 1900(10) (defining Linkage Orders). The surcharge fee will apply to the following Linkage Orders: Principal Acting as Agent Orders and Principal Orders. 10 15 U.S.C. 78f(b). E:\FR\FM\29JNN1.SGM 29JNN1 37456 Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Notices of the Act 11 in particular, in that it provides 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 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 with respect to this proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to section 19(b)(3)(A)(ii) of the Act 12 and Rule 19b–4(f)(2) 13 thereunder. Accordingly, the proposed rule change is effective upon filing with the Commission. At any time within 60 days of the filing of the amended 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.14 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–ISE–2005–06. 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. 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–2005–06 and should be submitted on or before July 20, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–3384 Filed 6–28–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51905; File No. SR–NASD– 2005–006] Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2005–06 on the subject line. Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendments Nos. 1 and 2 Thereto to Require Semi-Annual Financial Reporting by Foreign Private Issuers June 22, 2005. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 19b–4(f)(2). 14 See supra note 3. VerDate jul<14>2003 17:40 Jun 28, 2005 15 17 Jkt 205001 PO 00000 CFR 200.30–3(a)(12). Frm 00136 Fmt 4703 Sfmt 4703 (‘‘Act’’),1 and Rule 19b–4 thereunder, 2 notice is hereby given that on January 18, 2005, the National Association of Securities Dealers, Inc. (‘‘NASD’’), through its subsidiary, the Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by Nasdaq. Nasdaq submitted Amendment No. 1 to its proposed rule change on February 4, 2005 3 and submitted Amendment No. 2 to its proposed rule change on June 6, 2005 4. 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 the Substance of the Proposed Rule Change Nasdaq proposes to require that foreign private issuers listed on Nasdaq provide semi-annual financial information. Nasdaq will implement the proposed rule change for interim periods ending after January 1, 2006. The text of the proposed rule change is below. Proposed additions are italicized.5 4350. Qualitative Listing Requirements for Nasdaq National Market and Nasdaq SmallCap Market Issuers Except for Limited Partnerships Nasdaq shall review the issuer’s past corporate governance activities. This review may include activities taking place while the issuer is listed on Nasdaq or an exchange that imposes corporate governance requirements, as well as activities taking place after a formerly listed issuer is no longer listed on Nasdaq or an exchange that imposes corporate governance requirements. Based on such review, Nasdaq may take any appropriate action, including placing of restrictions on or additional requirements for listing, or the denial of listing of a security if Nasdaq determines that there have been violations or evasions of such corporate 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 modified the proposed rule language to require that interim financial information be published on a press release that would also be submitted on a Form 6-K. As originally proposed, the rule language required that interim financial information be submitted on a press release or on a Form 6–K. 4 Amendment No. 2 made technical corrections to the filing and replaced and superceded the original filing and Amendment No. 1 in its entirety. 5 The proposed rule change is marked to show changes to the rule text appearing in the electronic NASD Manual available at http://www.nasd.com. No pending rule filings would affect the text of this rule. 2 17 E:\FR\FM\29JNN1.SGM 29JNN1

Agencies

[Federal Register Volume 70, Number 124 (Wednesday, June 29, 2005)]
[Notices]
[Pages 37455-37456]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3384]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51901; File No. SR-ISE-2005-06]


Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendment No. 1 Thereto Relating to Fee Changes for 
Transactions in Options on the Standard & Poor's Depository 
Receipts[reg]

June 22, 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 May 20, 2005, the International Securities Exchange, Inc. 
(``Exchange'' or ``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 
Exchange. On June 15, 2005, the Exchange filed Amendment No. 1 to the 
proposed rule change.\3\ ISE has designated this proposal as one 
establishing or changing a due, fee, or other charge imposed by a self-
regulatory organization pursuant to section 19(b)(3)(A) of the Act,\4\ 
and Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change, as 
amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange made non-substantive 
changes to clarify the purpose for the fee change. The effective 
date of the original proposed rule change is May 20, 2005, and the 
effective date of Amendment No. 1 is June 15, 2005. For purposes of 
calculating the 60-day period within which the Commission may 
summarily abrogate the proposed rule change, as amended, under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on June 15, 2005, the date on which the Exchange 
submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 5 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to amend its Schedule of Fees to adopt a $.10 per 
contract surcharge for certain transactions in options based on the 
Standard & Poor's Depository Receipts[reg], or SPDRs[reg] (``SPDRs''). 
The text of the proposed rule change is available on the Exchange's 
Internet Web site (http://www.iseoptions.com), at the Exchange's Office 
of the Secretary, 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 Exchange proposes to amend its Schedule of Fees to adopt a $.10 
per contract surcharge fee for certain transactions in options on 
SPDRs.\6\
---------------------------------------------------------------------------

    \6\ The Exchange represents that these fees will be charged only 
to Exchange members.
---------------------------------------------------------------------------

    The Exchange's Schedule of Fees currently has in place a surcharge 
fee item that calls for a $.10 per contract fee for transactions in 
certain licensed products. The Exchange entered into a license 
agreement with Standard and Poor's, a unit of McGraw-Hill Companies, 
Inc., authorizing the Exchange to list SPDR options. The Exchange is 
adopting this fee for transactions in SPDR options to defray the 
licensing costs. The Exchange believes that charging the participants 
that trade these instruments is the most equitable means of recovering 
the costs of the license. However, because competitive pressures in the 
industry have resulted in the waiver of transaction fees for Public 
Customers,\7\ the Exchange proposes to exclude Public Customer Orders 
\8\ from this surcharge fee. Accordingly, this surcharge fee will only 
be charged to Exchange members with respect to non-Public Customer 
Orders (e.g., Market Maker and Firm Proprietary orders) and shall apply 
to Linkage Orders under a pilot program that is set to expire on July 
31, 2005.\9\
---------------------------------------------------------------------------

    \7\ Public Customer is defined in ISE Rule 100(a)(32) as a 
person that is not a broker or dealer in securities.
    \8\ Public Customer Order is defined in ISE Rule 100(a)(33) as 
an order for the account of a Public Customer.
    \9\ See ISE Rule 1900(10) (defining Linkage Orders). The 
surcharge fee will apply to the following Linkage Orders: Principal 
Acting as Agent Orders and Principal Orders.
---------------------------------------------------------------------------

    Additionally, if it is concluded by the courts, after all avenues 
of appeal, that no license from Standard and Poor's was required by the 
Exchange to list SPDR options, then upon any refund by Standard and 
Poor's, the Exchange shall submit a rule filing to the Commission 
providing for a reimbursement of the surcharge fees paid by members to 
the Exchange as a result of this surcharge fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \10\ in general, and furthers the 
objectives of section 6(b)(4)

[[Page 37456]]

of the Act \11\ in particular, in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and other persons using its facilities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 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 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 with respect to this proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \12\ and Rule 
19b-4(f)(2) \13\ thereunder. Accordingly, the proposed rule change is 
effective upon filing with the Commission. At any time within 60 days 
of the filing of the amended 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.\14\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 19b-4(f)(2).
    \14\ See supra note 3.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 No. SR-ISE-2005-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File Number SR-ISE-2005-06. 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. 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-2005-06 and should be submitted on or before July 
20, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-3384 Filed 6-28-05; 8:45 am]
BILLING CODE 8010-01-P