Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend ISE Rule 803 To Provide for a Back-Up Primary Market Maker, 4949-4951 [E6-1087]

Download as PDF Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any inappropriate burden on competition 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 No written comments were either solicited or received. 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 8 and Rule 19b–4(f)(2) 9 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. 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. 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: cprice-sewell on PROD1PC66 with NOTICES 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 Number SR–CBOE–2006–06 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, 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). Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–CBOE–2006–06. 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 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. Copies of such filing also will be available for inspection and copying at the principal office of the CBOE. 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–CBOE–2006–06 and should be submitted on or before February 21, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–1089 Filed 1–27–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53164; File No. SR–ISE– 2005–50] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend ISE Rule 803 To Provide for a Back-Up Primary Market Maker January 20, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 4949 notice is hereby given that on October 14, 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 ISE. On January 12, 2006, the Exchange 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 The Exchange is proposing to amend ISE Rule 803 to provide for a Back-Up Primary Market Maker and to correct an inconsistency in the Exchange’s Rules. The text of the proposed rule change, as amended, is available on the ISE’s Web site (http://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 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 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 proposes to enhance the ISE System to allow Competitive Market Makers that are also Primary Market Maker members on the Exchange to voluntarily act as Back-Up Primary Market Makers when the appointed Primary Market Maker experiences technical difficulties that interrupt its participation in the market. According to the Exchange, the ISE System will automatically switch a Competitive Market Maker quoting in the options series to act as a Back-Up Primary Market Maker when the appointed Primary Market Maker stops quoting. The ISE believes that this will reduce 6 15 7 15 VerDate Aug<31>2005 14:07 Jan 27, 2006 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Jkt 208001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 3 Amendment No. 1, which replaced the original filing in its entirety, made technical and clarifying changes to the proposed rule change. E:\FR\FM\30JAN1.SGM 30JAN1 4950 Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices cprice-sewell on PROD1PC66 with NOTICES the number of non-firm quotes or ‘‘fast market’’ states disseminated by the ISE and allow for virtually seamless trading even when a Primary Market Maker experiences difficulties that cause it to remove its quotes from the market. Under the proposal, only Competitive Market Maker members that are also Primary Market Makers on the Exchange will be eligible to be designated as a Back-Up Primary Market Maker because these members already have systems built to assume all of the responsibilities of a Primary Market Maker on the Exchange, such as handling customer orders when the away market has a better price.4 The ISE System will automatically switch back to the appointed Primary Market Maker when it re-establishes its quotes in the series, but the Back-Up Primary Market Maker will continue to be responsible for any outstanding unexecuted orders it is handling. A Back-Up Primary Market Maker assumes all of the responsibilities and privileges of a Primary Market Maker under the ISE Rules with respect to any series in which the appointed Primary Market Maker fails to have a quote in the ISE System.5 The Exchange also proposes to correct an inconsistency in its rules. In April 2004, the Exchange received approval of a rule change that allowed it to disseminate a quotation for less than ten contracts.6 Because the options intermarket linkage plan and the Exchange’s rules continued to require the Exchange to guarantee that the Firm Customer Quote Size (‘‘FCQS’’) and Firm Principal Quote Size (‘‘FPQS’’) would be at least 10 contracts, ISE Rule 803(c)(1) was amended to provide that the Primary Market Maker had the obligation to buy or sell the number of contracts necessary to provide an execution of at least 10 contracts to incoming linkage orders when the Exchange’s disseminated market quotation was for less than 10 contracts. In August 2004, the intermarket linkage plan was amended to provide that the 10 contract minimum FCQS and FPQS does not apply when the Exchange is disseminating a quotation 4 If there is more than one eligible member quoting in the series, the ISE System will automatically switch to the member with the largest offer in the series. 5 A Competitive Market Maker does not become subject to the requirement in ISE Rule 804(e)(1) to enter continuous quotations in all of the series of all of the options classes to which it is appointed, as opposed to only 60% of the options classes under ISE Rule 804(e)(2), by acting as a Back-Up Primary Market Maker. 6 See Exchange Act Release No. 49602 (April 22, 2004), 69 FR 23841 (April 30, 2004) (the ‘‘Real Size Filing’’). VerDate Aug<31>2005 14:07 Jan 27, 2006 Jkt 208001 of fewer than 10 contracts.7 In October 2004, the Exchange, and all of the other options exchanges, received approval for changes to their linkage rules to implement this change to the intermarket linkage plan.8 Accordingly, the Primary Market Maker no longer is required to guarantee a minimum of 10 contracts to an incoming linkage order when the Exchange’s disseminated market quotation is for less than 10 contracts. However, the Exchange neglected to remove the language in ISE Rule 803(c)(1) at the time the changes to the linkage rules were approved, thereby creating an apparent inconsistency in the ISE Rules. The Exchange now proposes to delete the language in ISE Rule 803(c)(1) as a purely non-substantive clean-up to the ISE Rules. 2. Statutory Basis The Exchange believes that the proposed rule change, as amended, is consistent with section 6(b) of the Act,9 in general, and furthers the objectives of section 6(b)(5) of the Act 10 in particular because it is designed 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 in that it enhances the Exchange’s ability to disseminate firm quotes and removes an inconsistency from its rules. B. Self-Regulatory Organization’s Statement on Burden on Competition The ISE does not believe that the proposed rule change, as amended, 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 Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 7 See Exchange Act Release No. 50211 (Aug. 18, 2004), 69 FR 52050 (Aug. 24, 2004). 8 See Exchange Act Release Nos. 50562 (Oct. 19, 2004), 69 FR 62925 (Oct. 28, 2004) and 50587 (Oct. 25, 2004), 69 FR 63417 (Nov. 1, 2004). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: (a) By order approve such proposed rule change, as amended, or (b) Institute proceedings to determine whether the proposed rule change, as amended, should be disapproved. 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 at http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2005–50 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–ISE–2005–50. 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. 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 E:\FR\FM\30JAN1.SGM 30JAN1 Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices Number SR–ISE–2005–50 and should be submitted by February 21, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–1087 Filed 1–27–06; 8:45 am] (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53151; File No. SR–OCC– 2005–21] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Allocations Processing January 19, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on December 13, 2004, The Options Clearing Corporation (‘‘OCC’’) 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 primarily by OCC. OCC filed the proposed rule change pursuant to section 19(b)(3)(A) of the Act 2 whereby the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. cprice-sewell on PROD1PC66 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change adopts new Rule 405, Allocations, to govern the processing of post-trade allocation instructions for commodity contracts that are subject to the exclusive jurisdiction of the Commodity Futures Trading Commission (‘‘CFTC’’) that are submitted by clearing members through a new system OCC plans to install in January 2006. The rule change also makes conforming by-law and rule changes, including the addition of certain new definitions. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC included statements concerning the purpose of and basis for the 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 VerDate Aug<31>2005 14:07 Jan 27, 2006 Jkt 208001 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. OCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of such statements.3 OCC’s new allocation system will permit the allocation of positions in securities options, security futures, commodity futures, and options on futures. In order to permit use of the allocation system, when installed, for commodity contracts cleared by OCC that are subject to the exclusive jurisdiction of the CFTC, OCC is filing the proposed rule change under section 19(b)(3)(A) for immediate effectiveness. However, new Rule 405 includes Interpretation and Policy .02 which states that the system may not be used for securities options or security futures until the Commission has issued an approval order with respect to Rule 405. OCC filed a separate proposed rule change under section 19(b)(2), File No. SR–OCC–2005–22, that would adopt Rule 405 for use in allocating positions in contracts subject to the Commission’s jurisdiction.4 OCC plans to provide clearing members with a centralized system for processing allocation or ‘‘give-up’’ instructions across all exchanges for which OCC provides clearing services. Allocations are post-trade instructions entered by one clearing member (i.e., an authorized ‘‘executing’’ or ‘‘giving-up’’ clearing member) that direct a transaction or position to the account of another clearing member (i.e., the ‘‘carrying’’ or ‘‘given-up’’ clearing member). OCC’s centralized system will enhance OCC’s service offerings and will provide efficiencies to clearing members. Post-trade allocations of securities options are currently processed through OCC’s Clearing Member Trade Assignment (‘‘CMTA’’) functionality, which normally causes a transaction to automatically be moved into an account of the carrying clearing member so long as the executing and carrying clearing members have an effective CMTA arrangement registered with OCC for the exchange submitting the matching trade 3 The Commission has modified parts of these statements. 4 If the Commission approves proposed rule change SR–OCC–2005–22, OCC would delete Interpretation and Policy .02. PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 4951 information for that transaction.5 Once Rule 405 is approved by the Commission for purposes of allocating positions in securities options, clearing members will be able to elect either to continue to use the existing CMTA system or to use the new allocation system for securities options. For most commodity futures cleared through OCC, post-trade allocations are currently processed through The Clearing Corporation’s (‘‘CCorp’’) ‘‘giveup’’ system, which requires the givenup clearing member to affirmatively accept a transaction.6 OCC’s allocation system will enable clearing members to process futures ‘‘give-ups’’ without going through the CCorp system. New Rule 405 will govern the processing of allocation instructions and will operate as follows. Transactions will first clear in the designated account of the giving-up clearing member. Instructions to allocate positions may be submitted either through an exchange’s system for providing matching trade information to OCC or through OCC’s clearing system, ENCORE. In either case, if the given-up and giving-up clearing members are parties to an allocation agreement that has been registered with OCC, OCC will automatically allocate the positions resulting from an allocation instruction to a designated account of the given-up clearing member without further action by the clearing members.7 If the clearing members are not parties to a registered allocation agreement, OCC will not effect the allocation instruction until the given-up clearing member gives OCC notice of its affirmative acceptance of the allocated positions. (In contrast, the CMTA system does not allow for acceptance of allocated positions without a registered CMTA agreement.) If the given-up clearing member does not give OCC notice of such acceptance by an OCC-specified deadline, the allocation instruction will not be processed, and the positions will remain in the account of the giving-up clearing member, which will remain obligated on those positions. A given-up clearing member will be responsible for appropriately allocated positions. Given-up positions are moved to the given-up clearing member’s account at the premium price in the case of options or at the contract price in the case of futures at which the positions were established by the executing clearing member. Positions 5 See OCC Rule 403. OCC Rule 404. 7 Unlike CMTAs, clearing members will not be required to register their allocation arrangement by exchange. 6 See E:\FR\FM\30JAN1.SGM 30JAN1

Agencies

[Federal Register Volume 71, Number 19 (Monday, January 30, 2006)]
[Notices]
[Pages 4949-4951]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1087]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53164; File No. SR-ISE-2005-50]


Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 
Thereto, To Amend ISE Rule 803 To Provide for a Back-Up Primary Market 
Maker

January 20, 2006.
    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 October 14, 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 ISE. 
On January 12, 2006, the Exchange 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which replaced the original filing in its 
entirety, made technical and clarifying changes to the proposed rule 
change.
---------------------------------------------------------------------------

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

    The Exchange is proposing to amend ISE Rule 803 to provide for a 
Back-Up Primary Market Maker and to correct an inconsistency in the 
Exchange's Rules. The text of the proposed rule change, as amended, is 
available on the ISE's Web site (http://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 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 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 proposes to enhance the ISE System to allow 
Competitive Market Makers that are also Primary Market Maker members on 
the Exchange to voluntarily act as Back-Up Primary Market Makers when 
the appointed Primary Market Maker experiences technical difficulties 
that interrupt its participation in the market. According to the 
Exchange, the ISE System will automatically switch a Competitive Market 
Maker quoting in the options series to act as a Back-Up Primary Market 
Maker when the appointed Primary Market Maker stops quoting. The ISE 
believes that this will reduce

[[Page 4950]]

the number of non-firm quotes or ``fast market'' states disseminated by 
the ISE and allow for virtually seamless trading even when a Primary 
Market Maker experiences difficulties that cause it to remove its 
quotes from the market.
    Under the proposal, only Competitive Market Maker members that are 
also Primary Market Makers on the Exchange will be eligible to be 
designated as a Back-Up Primary Market Maker because these members 
already have systems built to assume all of the responsibilities of a 
Primary Market Maker on the Exchange, such as handling customer orders 
when the away market has a better price.\4\ The ISE System will 
automatically switch back to the appointed Primary Market Maker when it 
re-establishes its quotes in the series, but the Back-Up Primary Market 
Maker will continue to be responsible for any outstanding unexecuted 
orders it is handling. A Back-Up Primary Market Maker assumes all of 
the responsibilities and privileges of a Primary Market Maker under the 
ISE Rules with respect to any series in which the appointed Primary 
Market Maker fails to have a quote in the ISE System.\5\
---------------------------------------------------------------------------

    \4\ If there is more than one eligible member quoting in the 
series, the ISE System will automatically switch to the member with 
the largest offer in the series.
    \5\ A Competitive Market Maker does not become subject to the 
requirement in ISE Rule 804(e)(1) to enter continuous quotations in 
all of the series of all of the options classes to which it is 
appointed, as opposed to only 60% of the options classes under ISE 
Rule 804(e)(2), by acting as a Back-Up Primary Market Maker.
---------------------------------------------------------------------------

    The Exchange also proposes to correct an inconsistency in its 
rules. In April 2004, the Exchange received approval of a rule change 
that allowed it to disseminate a quotation for less than ten 
contracts.\6\ Because the options intermarket linkage plan and the 
Exchange's rules continued to require the Exchange to guarantee that 
the Firm Customer Quote Size (``FCQS'') and Firm Principal Quote Size 
(``FPQS'') would be at least 10 contracts, ISE Rule 803(c)(1) was 
amended to provide that the Primary Market Maker had the obligation to 
buy or sell the number of contracts necessary to provide an execution 
of at least 10 contracts to incoming linkage orders when the Exchange's 
disseminated market quotation was for less than 10 contracts.
---------------------------------------------------------------------------

    \6\ See Exchange Act Release No. 49602 (April 22, 2004), 69 FR 
23841 (April 30, 2004) (the ``Real Size Filing'').
---------------------------------------------------------------------------

    In August 2004, the intermarket linkage plan was amended to provide 
that the 10 contract minimum FCQS and FPQS does not apply when the 
Exchange is disseminating a quotation of fewer than 10 contracts.\7\ In 
October 2004, the Exchange, and all of the other options exchanges, 
received approval for changes to their linkage rules to implement this 
change to the intermarket linkage plan.\8\ Accordingly, the Primary 
Market Maker no longer is required to guarantee a minimum of 10 
contracts to an incoming linkage order when the Exchange's disseminated 
market quotation is for less than 10 contracts. However, the Exchange 
neglected to remove the language in ISE Rule 803(c)(1) at the time the 
changes to the linkage rules were approved, thereby creating an 
apparent inconsistency in the ISE Rules. The Exchange now proposes to 
delete the language in ISE Rule 803(c)(1) as a purely non-substantive 
clean-up to the ISE Rules.
---------------------------------------------------------------------------

    \7\ See Exchange Act Release No. 50211 (Aug. 18, 2004), 69 FR 
52050 (Aug. 24, 2004).
    \8\ See Exchange Act Release Nos. 50562 (Oct. 19, 2004), 69 FR 
62925 (Oct. 28, 2004) and 50587 (Oct. 25, 2004), 69 FR 63417 (Nov. 
1, 2004).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with section 6(b) of the Act,\9\ in general, and furthers 
the objectives of section 6(b)(5) of the Act \10\ in particular because 
it is designed 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 in that it enhances the Exchange's 
ability to disseminate firm quotes and removes an inconsistency from 
its rules.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The ISE does not believe that the proposed rule change, as amended, 
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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (a) By order approve such proposed rule change, as amended, or
    (b) Institute proceedings to determine whether the proposed rule 
change, as amended, should be disapproved.

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 at http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-ISE-2005-50 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

All submissions should refer to File Number SR-ISE-2005-50. 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. 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

[[Page 4951]]

Number SR-ISE-2005-50 and should be submitted by February 21, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-1087 Filed 1-27-06; 8:45 am]
BILLING CODE 8010-01-P