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, 51855-51856 [E5-4731]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Notices
order approves the proposed rule
change, as amended.
II. Description of the Proposal
Currently, an EAM may not use the
ISE’s facilitation mechanism to facilitate
a complex order. The ISE proposes to
amend ISE Rule 716(d) to allow EAMs
to use the facilitation mechanism to
facilitate complex orders. Under the
proposal, each leg of the complex order
must be for at least 50 contracts. After
an EAM enters a complex order into the
facilitation mechanism, ISE members
will be able to enter at net prices
indications at which they would be
willing to participate in the facilitation
of the order. Complex orders entered
into the facilitation mechanism will be
executed pursuant to ISE Rule 716(d)(4),
and the priority rules for complex
orders in ISE Rule 722(b)(2) will apply.5
If a complex order entered into the
facilitation mechanism could receive an
improved net price from bids and offers
for the individual legs of the order in
the ISE’s auction market, then the
complex order will be executed at the
better net price.
III. Discussion
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.6 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,7 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Commission believes that the
proposal could facilitate the execution
of complex orders. The Commission
notes that the priority rules in ISE Rule
722(b)(2) will apply to complex orders
5 ISE Rule 722(b)(2) provides, in part, that a
complex order may be executed at a total credit or
debit price with another ISE member without giving
priority to established bids or offers in the market
that are not better than the bids or offers comprising
such net debit or credit, provided that if any of the
established bids or offers consists of a public
customer limit order, the price of at least one leg
of the complex order must trade at a price that is
better than the corresponding bid or offer in the
marketplace.
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
VerDate Aug<18>2005
16:33 Aug 30, 2005
Jkt 205001
entered into the facilitation mechanism.
In addition, if bids and offers in the
ISE’s auction market for the individual
legs of the complex order being
facilitated could produce a better net
price for the order, then the complex
order will receive an execution at the
better net price.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–ISE–2004–
33), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4730 Filed 8–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52330; File No. SR–ISE–
2005–38]
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
August 24, 2005.
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 August 1,
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. On
August 22, 2005, ISE filed Amendment
No. 1 to the proposed rule change.3 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,4 and
Rule 19b–4(f)(2) thereunder,5 which
renders the proposal effective upon
8 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 made changes to the filing,
including Exhibit 5 (ISE’s Schedule of Fees), to
correct the names of the indexes: iShares Russell
2000(r) Index is the iShares Russell 2000(r) Index
Fund and the full and proper name of the Lehman
Brothers 20+ year Treasury Bond Index is the
iShares Lehman Brothers 20+ year Treasury Bond
Index ETF, and to remove references to the ISE
Integrated Gas and Services Index (PMP).
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
9 17
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
51855
filing with the Commission. 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
The ISE is proposing to amend its
Schedule of Fees to establish fees for
transactions in options on five products:
The iShares Russell 2000(r) Index Fund,
the Semiconductor HOLDRs Trust, the
Oil Service HOLDRs Trust, the Energy
Select Sector SPDR Fund, and the
iShares Lehman Brothers 20+ year
Treasury Bond Index ETF. The text of
the proposed rule change, as amended,
is available on the ISE’s Web site (https://
www.iseoptions.com/legal/
proposed_rule_changes.asp), 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, 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 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 Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on five products:
the iShares Russell 2000 Index Fund
(‘‘IWM’’), the Semiconductor HOLDRs
Trust (‘‘SMH’’), the Oil Service HOLDRs
Trust (‘‘OIH’’), the Energy Select Sector
SPDR Fund (‘‘XLE’’), and the iShares
Lehman Brothers 20+ year Treasury
Bond Index ETF (‘‘TLT’’).6 Specifically,
the Exchange is proposing to adopt an
execution fee and a comparison fee for
transactions by Public Customers 7 in
options on IWM, SMH, OIH, XLE, and
TLT.8 The Exchange currently charges
an execution fee and a comparison fee
6 The ISE represents that all five products are
‘‘Fund Shares,’’ as defined by ISE Rule 502(h).
7 ISE Rule 100(32) defines ‘‘Public Customer’’ as
a person that is not a broker or dealer in securities.
8 The ISE represents that these fees will be
charged only to Exchange members.
E:\FR\FM\31AUN1.SGM
31AUN1
51856
Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Notices
only for transactions by NonCustomers 9 in options on IWM, SMH,
OIH, XLE, and TLT. The amount of the
execution fee and comparison fee for the
products covered by this filing shall be
the same for all order types on the
Exchange—that is, orders for Public
Customers and Non-Customers (which
include Market Makers and Firm
Proprietary)—and shall be equal to the
execution fee and comparison fee,
respectively, that are currently charged
by the Exchange for transactions by
Non-Customers in equity options.10
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b)(4) of the
Act,11 which requires that an exchange
have an 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 believes that the
proposed rule change, as amended, 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
Because the foregoing rule change, as
amended, establishes or changes a due,
fee, or other charge imposed by the
Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(2) 13
thereunder. At any time within 60 days
of the filing of such 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
9 ISE Rule 100(22) defines ‘‘Non-Customer’’ as a
person or entity that is broker or dealer in
securities.
10 The execution fee is currently between $.21
and $.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $.03 per contract per
side.
11 15 U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 19b–4(f)(2).
VerDate Aug<18>2005
16:33 Aug 30, 2005
Jkt 205001
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:
Electronic Comments
• 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
No. SR–ISE–2005–38 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–2005–38. 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 such 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
14 The effective date of the original proposed rule
is August 1, 2005. The effective date of Amendment
No. 1 is August 22, 2005. For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
August 22, 2005, the date on which the ISE
submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
submissions should refer to File
Number SR–ISE–2005–38 and should be
submitted on or before September 21,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4731 Filed 8–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52331; File No. SR–ISE–
2004–16]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Order Granting Approval of Proposed
Rule Change and Amendment No. 1
Thereto Establishing a Directed Order
Process
August 24, 2005.
On May 20, 2004, the International
Securities Exchange, Inc. (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt new ISE Rule 811 to allow
Exchange market makers to receive
Public Customer Orders directed to
them from Electronic Access Members
(‘‘EAMs’’) through the Exchange’s
system (‘‘Directed Orders’’). On April
26, 2005, the ISE filed Amendment No.
1 to the proposed rule change.3 The
proposed rule change, as modified by
Amendment No. 1, was published for
comment in the Federal Register on
June 20, 2005.4 The Commission
received no comments on the proposed
rule change.
Under ISE’s proposal, a market maker
that wishes to accept Directed Orders
must systemically indicate that it
wishes to receive Directed Orders each
day, must be willing to accept Directed
Orders from all EAMs, may receive
Directed Orders only through the
Exchange’s system, and may not reject
Directed Orders. A market maker
receiving a Directed Order (‘‘Directed
Market Maker’’) would have to, within
three seconds of receipt of the order,
either submit the Directed Order to the
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 replaced and superseded the
original filing in its entirety.
4 Securities Exchange Act Release No. 51835
(June 13, 2005), 70 FR 35479.
1 15
E:\FR\FM\31AUN1.SGM
31AUN1
]]>Agencies
[Federal Register Volume 70, Number 168 (Wednesday, August 31, 2005)]
[Notices]
[Pages 51855-51856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4731]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52330; File No. SR-ISE-2005-38]
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
August 24, 2005.
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 August 1, 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.
On August 22, 2005, ISE filed Amendment No. 1 to the proposed rule
change.\3\ 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,\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\ Amendment No. 1 made changes to the filing, including
Exhibit 5 (ISE's Schedule of Fees), to correct the names of the
indexes: iShares Russell 2000(r) Index is the iShares Russell
2000(r) Index Fund and the full and proper name of the Lehman
Brothers 20+ year Treasury Bond Index is the iShares Lehman Brothers
20+ year Treasury Bond Index ETF, and to remove references to the
ISE Integrated Gas and Services Index (PMP).
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 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 establish
fees for transactions in options on five products: The iShares Russell
2000(r) Index Fund, the Semiconductor HOLDRs Trust, the Oil Service
HOLDRs Trust, the Energy Select Sector SPDR[reg] Fund, and the iShares
Lehman Brothers 20+ year Treasury Bond Index ETF. The text of the
proposed rule change, as amended, is available on the ISE's Web site
(https://www.iseoptions.com/legal/proposed_rule_changes.asp), 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, 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 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 Exchange is proposing to amend its Schedule of Fees to
establish fees for transactions in options on five products: the
iShares Russell 2000 Index Fund (``IWM''), the Semiconductor HOLDRs
Trust (``SMH''), the Oil Service HOLDRs Trust (``OIH''), the Energy
Select Sector SPDR Fund (``XLE''), and the iShares Lehman Brothers 20+
year Treasury Bond Index ETF (``TLT'').\6\ Specifically, the Exchange
is proposing to adopt an execution fee and a comparison fee for
transactions by Public Customers \7\ in options on IWM, SMH, OIH, XLE,
and TLT.\8\ The Exchange currently charges an execution fee and a
comparison fee
[[Page 51856]]
only for transactions by Non-Customers \9\ in options on IWM, SMH, OIH,
XLE, and TLT. The amount of the execution fee and comparison fee for
the products covered by this filing shall be the same for all order
types on the Exchange--that is, orders for Public Customers and Non-
Customers (which include Market Makers and Firm Proprietary)--and shall
be equal to the execution fee and comparison fee, respectively, that
are currently charged by the Exchange for transactions by Non-Customers
in equity options.\10\
---------------------------------------------------------------------------
\6\ The ISE represents that all five products are ``Fund
Shares,'' as defined by ISE Rule 502(h).
\7\ ISE Rule 100(32) defines ``Public Customer'' as a person
that is not a broker or dealer in securities.
\8\ The ISE represents that these fees will be charged only to
Exchange members.
\9\ ISE Rule 100(22) defines ``Non-Customer'' as a person or
entity that is broker or dealer in securities.
\10\ The execution fee is currently between $.21 and $.12 per
contract side, depending on the Exchange Average Daily Volume, and
the comparison fee is currently $.03 per contract per side.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b)(4) of the Act,\11\ which requires that an
exchange have an equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change, as amended,
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
Because the foregoing rule change, as amended, establishes or
changes a due, fee, or other charge imposed by the Exchange, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and
Rule 19b-4(f)(2) \13\ thereunder. At any time within 60 days of the
filing of such 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).
\13\ 17 CFR 19b-4(f)(2).
\14\ The effective date of the original proposed rule is August
1, 2005. The effective date of Amendment No. 1 is August 22, 2005.
For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on August 22, 2005, the date on which the ISE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2005-38 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-2005-38. 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 such
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-2005-38 and should be submitted on or before
September 21, 2005.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4731 Filed 8-30-05; 8:45 am]
BILLING CODE 8010-01-P
