Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes for Transactions in Options on Three Narrow-Based Indexes, 5096-5097 [E6-1176]
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5096
Federal Register / Vol. 71, No. 20 / Tuesday, January 31, 2006 / Notices
CBOE–2005–89), as amended, is
approved.
proposed_rule_changes.asp) and at the
Commission’s Public Reference Room.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Nancy M. Morris,
Secretary.
[FR Doc. E6–1166 Filed 1–30–06; 8:45 am]
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 proposal.
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.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53173; File No. SR–ISE–
2006–03]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes for
Transactions in Options on Three
Narrow-Based Indexes
January 24, 2006.
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 5,
2006, 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 a selfregulatory organization pursuant to
Section 19(b)(3)(A)(iii) 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.
hsrobinson on PROD1PC70 with NOTICES
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 establish fees for
transactions in options on three narrowbased indexes: the ISE–B&S Water Index
(‘‘HHO’’), the ISE–CCM Alternative
Energy Index (‘‘POW’’) and the ISE–
CCM Nanotechnology Index (‘‘TNY’’).
The text of the proposed rule change is
available at the Exchange, at the
Exchange’s Web site https://
www.iseoptions.com/legal/
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(2).
1 15
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15:34 Jan 30, 2006
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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 adopt
an execution fee and a comparison fee
for all transactions in options on HHO,
POW and TNY.5 These fees will be
charged only to Exchange members. The
amount of the execution fee and
comparison fee for products covered by
this filing shall be $0.15 and $0.03,
respectively, for all Public Customer
and Firm Proprietary orders. The
amount of the execution fee and
comparison fee for all Market Maker
orders shall be equal to the execution
fee and comparison fee currently
charged by the Exchange for Market
Maker transactions in equity options.6
The Exchange believes the proposed
rule change will further its goal of
introducing new products to the
marketplace that are competitively
priced.
Additionally, the Exchange has
entered into separate development
agreements with Cronus Capital Markets
and Boenning & Scattergood, Inc., in
connection with the development,
listing and trading of options on POW
and TNY and HHO, respectively. As
with certain other licensed options, the
Exchange is adopting a fee of $0.05 per
contract for trading in these options to
defray the licensing costs. The Exchange
believes charging the participants that
trade this instrument is the most
5 The Exchange states that the HHO, POW and
TNY meet the standards of ISE Rule 2002(b), which
allows the Exchange to begin trading these products
by filing Form 19b–4(e) at least five business days
after commencement of trading these new products
pursuant to Rule 19b–4(e) of the Act, 17 CFR
240.19b–4(e).
6 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 side.
PO 00000
Frm 00048
Fmt 4703
Sfmt 4703
equitable means of recovering the costs
of the license. However, because of
competitive pressures in the industry,
the Exchange proposes to exclude
Public Customer Orders 7 from this
surcharge fee. Accordingly, this
surcharge fee will only be charged to
Exchange members with respect to nonPublic Customer Orders (e.g., Market
Maker and Firm Proprietary orders) and
shall apply to Linkage Orders 8 under a
pilot program that is set to expire on
July 31, 2006.9 Further, since options on
HHO, POW and TNY are not multiplylisted, the Payment for Order Flow fee
shall not apply.
2. Statutory Basis
The Exchange states that the basis
under the Act for this proposed rule
change is the requirement under Section
6(b)(4) 10 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 will 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 neither solicited
nor received comments on the proposed
rule change. The ISE 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
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,11 and
paragraph (f)(2) of Rule 19b–4
thereunder 12 because it establishes or
changes a due, fee, or other charge. At
any time within 60 days of the filing of
the proposed rule change, the
7 Public Customer Order is defined in Exchange
Rule 100(a)(33) as an order for the account of a
Public Customer. Public Customer is defined in
Exchange Rule 100(a)(32) as a person that is not a
broker or dealer in securities.
8 See Exchange Rule 1900.
9 See Securities Exchange Act Release No. 52168
(July 29, 2005), 70 FR 45454–01 (August 5, 2005),
SR–ISE–2005–32 (extending the expiration date for
this pilot program from July 31, 2005 to July 31,
2006).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
E:\FR\FM\31JAN1.SGM
31JAN1
Federal Register / Vol. 71, No. 20 / Tuesday, January 31, 2006 / Notices
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.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–1176 Filed 1–30–06; 8:45 am]
BILLING CODE 8010–01–P
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 rulecomments@sec.gov. Please include File
Number SR–ISE–2006–03 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53149; File No. SR–NASD–
2006–003]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Guidance
Regarding Firms’ Obligations Under
NASD Rule 2111 Regarding Market
Order Protection
January 19, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on January 6,
to Nancy M. Morris, Secretary,
2006, the National Association of
Securities and Exchange Commission,
Securities Dealers, Inc. (‘‘NASD’’) filed
100 F Street, NE., Washington, DC
with the Securities and Exchange
20549–9303.
Commission (‘‘Commission’’) the
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–ISE–2006–03. This file
have been prepared by NASD. NASD
number should be included on the
subject line if e-mail is used. To help the has designated the proposed rule change
as ‘‘constituting a stated policy,
Commission process and review your
practice, or interpretation with respect
comments more efficiently, please use
only one method. The Commission will to the meaning, administration, or
post all comments on the Commission’s enforcement of an existing rule’’ under
Section 19(b)(3)(A)(i) of the Act 3 and
Internet Web site (https://www.sec.gov/
Rule 19b–4(f)(1) thereunder,4 which
rules/sro.shtml). Copies of the
renders the proposal effective upon
submission, all subsequent
filing with the Commission. The
amendments, all written statements
Commission is publishing this notice to
with respect to the proposed rule
solicit comments on the proposed rule
change that are filed with the
change from interested persons.
Commission, and all written
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Statement of the Terms of Substance of
Commission and any person, other than
the Proposed Rule Change
those that may be withheld from the
public in accordance with the
NASD is filing with the Commission
provisions of 5 U.S.C. 552, will be
Notice to Members (‘‘NTM’’) 06–03,
available for inspection and copying in
which provides guidance regarding the
the Commission’s Public Reference
application of new NASD Rule 2111
Room. Copies of such filing also will be prohibiting members from trading ahead
available for inspection and copying at
of customer market orders under certain
the ISE. All comments received will be
circumstances.
posted without change; the Commission
No changes to the text of NASD rules
does not edit personal identifying
are required by this proposed rule
information from submissions. You
change.
should submit only information that
you wish to make available publicly. All
13 17 CFR 200.30–3(a)(12).
submissions should refer to File
1 15 U.S.C. 78s(b)(1).
Number SR–ISE–2006–03 and should be
2 17 CFR 240.19b–4.
submitted on or before February 21,
3 15 U.S.C. 78s(b)(3)(A)(i).
2006.
4 17 CFR 240.19b–4(f)(1).
hsrobinson on PROD1PC70 with NOTICES
Paper Comments
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PO 00000
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Fmt 4703
Sfmt 4703
5097
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. The text of these statements
may be examined at the places specified
in Item IV below. 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
On August 9, 2005, the Commission
approved new NASD Rule 2111,
Trading Ahead of Customer Market
Orders, which, among other things,
prohibits a firm that accepts and holds
a customer market order from trading
for its own account at prices that would
satisfy the customer market order,
unless the firm immediately thereafter
executes the customer market order.5
On October 10, 2005, NASD issued
NTM 05–69 informing firms of
Commission approval of new Rule 2111
and the January 9, 2006 effective date of
the new rule.6 NTM 05–69 also informed
firms that NASD would be publishing a
separate NTM providing guidance
regarding the application of Rule 2111.
In NTM 06–03, NASD staff is, among
other things, publishing questions and
answers regarding the application of the
new rule to assist members in their
implementation.
NASD is filing the proposed rule
change for immediate effectiveness as a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of NASD. The compliance
date of the proposed rule change will be
January 9, 2006, which will coincide
with the compliance date for Rule 2111.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act, which
requires, among other things, that NASD
rules be designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest. NASD
5 See Securities Exchange Act Release No. 52226
(August 9, 2005), 70 FR 48219 (August 16, 2005)
(SR–NASD–2004–045).
6 See NASD NTM 05–69 (October 2005).
E:\FR\FM\31JAN1.SGM
31JAN1
]]>Agencies
[Federal Register Volume 71, Number 20 (Tuesday, January 31, 2006)]
[Notices]
[Pages 5096-5097]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1176]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53173; File No. SR-ISE-2006-03]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes for Transactions in Options on Three
Narrow-Based Indexes
January 24, 2006.
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 5, 2006, 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 a self-regulatory organization
pursuant to Section 19(b)(3)(A)(iii) 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)(iii).
\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 proposes to amend its Schedule of Fees to establish fees
for transactions in options on three narrow-based indexes: the ISE-B&S
Water Index (``HHO''), the ISE-CCM Alternative Energy Index (``POW'')
and the ISE-CCM Nanotechnology Index (``TNY''). The text of the
proposed rule change is available at the Exchange, at the Exchange's
Web site https://www.iseoptions.com/legal/proposed_rule_changes.asp)
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 proposal. 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 is proposing to adopt an execution fee and a
comparison fee for all transactions in options on HHO, POW and TNY.\5\
These fees will be charged only to Exchange members. The amount of the
execution fee and comparison fee for products covered by this filing
shall be $0.15 and $0.03, respectively, for all Public Customer and
Firm Proprietary orders. The amount of the execution fee and comparison
fee for all Market Maker orders shall be equal to the execution fee and
comparison fee currently charged by the Exchange for Market Maker
transactions in equity options.\6\ The Exchange believes the proposed
rule change will further its goal of introducing new products to the
marketplace that are competitively priced.
---------------------------------------------------------------------------
\5\ The Exchange states that the HHO, POW and TNY meet the
standards of ISE Rule 2002(b), which allows the Exchange to begin
trading these products by filing Form 19b-4(e) at least five
business days after commencement of trading these new products
pursuant to Rule 19b-4(e) of the Act, 17 CFR 240.19b-4(e).
\6\ 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 side.
---------------------------------------------------------------------------
Additionally, the Exchange has entered into separate development
agreements with Cronus Capital Markets and Boenning & Scattergood,
Inc., in connection with the development, listing and trading of
options on POW and TNY and HHO, respectively. As with certain other
licensed options, the Exchange is adopting a fee of $0.05 per contract
for trading in these options to defray the licensing costs. The
Exchange believes charging the participants that trade this instrument
is the most equitable means of recovering the costs of the license.
However, because of competitive pressures in the industry, the Exchange
proposes to exclude Public Customer Orders \7\ 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 \8\
under a pilot program that is set to expire on July 31, 2006.\9\
Further, since options on HHO, POW and TNY are not multiply-listed, the
Payment for Order Flow fee shall not apply.
---------------------------------------------------------------------------
\7\ Public Customer Order is defined in Exchange Rule 100(a)(33)
as an order for the account of a Public Customer. Public Customer is
defined in Exchange Rule 100(a)(32) as a person that is not a broker
or dealer in securities.
\8\ See Exchange Rule 1900.
\9\ See Securities Exchange Act Release No. 52168 (July 29,
2005), 70 FR 45454-01 (August 5, 2005), SR-ISE-2005-32 (extending
the expiration date for this pilot program from July 31, 2005 to
July 31, 2006).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange states that the basis under the Act for this proposed
rule change is the requirement under Section 6(b)(4) \10\ that an
exchange have an 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)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change will 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 neither solicited nor received comments on the
proposed rule change. The ISE 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
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,\11\ and paragraph (f)(2) of Rule
19b-4 thereunder \12\ because it establishes or changes a due, fee, or
other charge. At any time within 60 days of the filing of the proposed
rule change, the
[[Page 5097]]
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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-2006-03 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-2006-03. 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 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-2006-03
and should be submitted on or before February 21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-1176 Filed 1-30-06; 8:45 am]
BILLING CODE 8010-01-P
