Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Competitive Market Maker Inactivity Fees, 7098-7100 [E6-1838]
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7098
Federal Register / Vol. 71, No. 28 / Friday, February 10, 2006 / Notices
Hybrid 2.0 classes, and Non-Hybrid and
Non-Hybrid 2.0 classes. The CBOE
represents that this modification makes
no substantive changes to the CBOE’s
existing rules relating to permissible
bid/ask differentials during the opening
rotation.17 New CBOE Rule
8.7(b)(4)(C)(i), which allows the bid/ask
differential for in-the-money series
trading on Hybrid and Hybrid 2.0 to be
as wide as the quote width on the
primary market or, for index options, as
wide as the quote width calculated by
the CBOE or its agent, is consistent with
renumbered CBOE Rule 8.7(b)(iv)(A), as
discussed above, and with current ISE
Rule 803(b)(4)(i).18 New CBOE Rule
8.7(b)(4)(C)(ii), allowing the CBOE to
establish quote width differentials other
than the $5 width provided in CBOE
Rule 8.7(b)(4)(C) for Hybrid and Hybrid
2.0 classes, is consistent with current
CBOE Rule 8.7(b)(iv) and with ISE Rule
803(b)(4).19 In addition, new CBOE Rule
8.7(b)(4)(C) makes clear that the $5 bid/
ask differential provided in that rule
applies to both Hybrid and Hybrid 2.0
option classes. For these reasons, the
Commission designates that the
proposed rule change become operative
as of the date of the filing of the
proposal.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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:
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
also note 9, supra.
Rule 803(b)(4)(i) provides that the bid/ask
differential for in-the-money series may be as wide
as the quotation on the primary market of the
underlying security.
19 Current CBOE Rule 8.7(b)(iv), which applies to
trading in open outcry, allows the CBOE to
establish bid/ask differentials other than those
provided in CBOE Rule 8.7(b)(iv) for one or more
options series. Similarly, ISE Rule 803(b)(4) allows
the ISE to establish bid/ask differentials other than
those specified in ISE Rule 803(b)(4) for one or
more options series.
Number SR–CBOE–2006–12 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
20549–1090.
All submissions should refer to File No.
SR–CBOE–2006–12. This file number
should be included on the subject line
if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the Exchange. 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 No.
SR–CBOE–2006–12 and should be
submitted on or before March 3, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.20
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–1837 Filed 2–9–06; 8:45 am]
BILLING CODE 8010–01–P
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Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Competitive Market Maker
Inactivity Fees
February 3, 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
23, 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. On
January 31, 2006, the Exchange 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
a self-regulatory organization pursuant
to 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.
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 change its
Competitive Market Maker (‘‘CMM’’)
Inactivity Fee. The text of the proposed
rule change is available at the Exchange,
at the Commission’s Public Reference
Room and at the Exchange’s Web site:
https://www.iseoptions.com/legal/
proposed_rule_changes.asp).
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, the ISE corrected an error
in Exhibit 5 of the original rule filing by eliminating
certain inadvertent underlining. For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change the Commission considers the period
to commence on January 31, 2006, the date on
which the ISE filed Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
2 17
18 ISE
15:10 Feb 09, 2006
[Release No. 34–53223; File No. SR–ISE–
2006–06]
1 15
17 See
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COMMISSION
20 17
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Federal Register / Vol. 71, No. 28 / Friday, February 10, 2006 / Notices
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
rmajette on PROD1PC67 with NOTICES1
Currently, the ISE charges the owner 6
of a CMM membership an Inactivity Fee
of $25,000 a month if the owner does
not: (i) Itself operate the CMM
membership, (ii) lease the CMM
membership to another member which
operates the CMM membership, or (iii)
avail itself to one of the exemptions
specifically authorized in the Notes to
the CMM Inactivity Fee on the Schedule
of Fees. The CMM Inactivity Fee was
adopted by the Exchange 7 at a time
when there was significant demand for
CMM memberships and some owners
were holding onto inactive
memberships. The purpose of the CMM
Inactivity Fee was to encourage the
timely operation of the memberships to
promote greater trading activity on the
Exchange.
The Exchange believes the
circumstances that lead to the
enactment of the CMM Inactivity Fee no
longer exist to the same degree that they
did in 2002. For one thing, the ISE has
created additional CMM memberships
to ease demand.8 The Exchange has also
changed its minimum quoting
requirements, allowing CMMs to quote
6 The Note to the CMM Inactivity Fee on the
Schedule of Fees provides that the fee applies to the
owner of the CMM membership, unless the inactive
CMM membership is subject to a lease that was
approved by the Exchange prior to the effective date
of the fee, in which case the fee would apply to the
lessee.
7 See Securities Exchange Act Release No. 46272
(July 26, 2002), 67 FR 50497 (August 2, 2002) (SR–
ISE–2002–11).
8 See Securities Exchange Act Release Nos. 47289
(January 30, 2003), 68 FR 5947 (February 3, 2003)
(SR–ISE–2002–28) (approving a proposed rule
change to increase CMM memberships from 100 to
130); 49195 (February 5, 2004), 69 FR 7061
(February 12, 2004) (SR–ISE–2003–38) (approving a
proposed rule change to increase CMM
memberships from 130 to 160).
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15:10 Feb 09, 2006
Jkt 208001
wide markets.9 Thus, a new owner of a
CMM membership can avoid the CMM
Inactivity Fee by continuing to
‘‘operate’’ it by quoting $5-wide
markets, enabling it to ‘‘ramp up’’ its
quoting at a reasonable pace.
Nevertheless, ISE believes that a CMM
Inactivity Fee continues to serve a
purpose by encouraging the operation of
CMM memberships generally, and
prefers to retain the fee. At the same
time, the Exchange believes that the
amount of the fee—$25,000 a month per
membership—is now too high in light of
the changed circumstances, imposing an
unreasonable burden on firms that hold
multiple memberships. Therefore, the
Exchange proposes to reduce the
amount of the fee to $5,000 a month per
membership, with a cap of $25,000 on
a per-firm basis, i.e., a firm that owns
five or more inactive CMMs would pay
a maximum CMM Inactivity Fee of
$25,000 per month.
Also, as a matter of ‘‘housekeeping,’’
the Exchange proposes to delete certain
language in the Notes to the CMM
Inactivity Fee relating to assessing the
fee to the lessee if the CMM
membership was subject to a lease that
was approved prior to the effective date
of the fee. All such leases have
terminated, so there is no longer a need
to retain that exception.
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.
9 See Securities Exchange Act Release No. 50015
(July 14, 2004), 69 FR 43872 (July 22, 2004) (SR–
ISE–2003–22).
10 15 U.S.C. 78f(b)(4).
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7099
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
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, 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
Number SR–ISE–2006–06 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
20549–1090.
All submissions should refer to File
Number SR–ISE–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 (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
11 15
12 17
E:\FR\FM\10FEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10FEN1
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Federal Register / Vol. 71, No. 28 / Friday, February 10, 2006 / Notices
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–2006–06 and should be
submitted on or before March 3, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–1838 Filed 2–9–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53233; File No. SR–NASD–
2006–019]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish Uniform
Order Warning and Rejection
Parameters for the Nasdaq Market
Center
February 6, 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 February
3, 2006, 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’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by Nasdaq.
Nasdaq filed the proposed rule change
as a ‘‘non-controversial’’ rule change
under Rule 19b–4(f)(6) under the Act,3
which rendered 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.
rmajette on PROD1PC67 with NOTICES1
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to establish uniform
order warning and rejection parameters
for the Nasdaq Market Center. Nasdaq
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
15:10 Feb 09, 2006
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq 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
Nasdaq is proposing the
establishment of uniform warning and
rejection parameters for orders that, at
the time of entry, cross the best bid/offer
in the Nasdaq Market Center. Under the
proposal, the Nasdaq Market Center
would provide a warning message 4 to
market participants that enter an order
that is 10% or more away from the
Nasdaq inside, while orders that at the
time of entry are 20% or more away
from the inside would be rejected by the
system. For orders priced less than
$1.00, Nasdaq is proposing to
implement specific penny-based
warning and rejection parameters of
$0.10 and $0.20 respectively. Market
orders would not be subject to any price
validation, and these warning and
rejection parameters would apply
regardless of the method used by the
participant to enter the quote/order into
the Nasdaq Market Center (e.g., FIX,
QIX, CTCI or the New Nasdaq
Workstation). These warning/rejection
parameters are summarized below:
Price
Warning
(percentage/
amount)
Less than $1
$1–$999,999
$.10 ..............
10% ..............
Reject
(percentage/
amount)
$.20
20%
The warning and rejection parameters
proposed here will be in effect from 8
4 This warning message may be overridden by the
entering party, in which case the order will be
allowed entry into the system and processed in the
normal course.
1 15
VerDate Aug<31>2005
would like to implement the proposed
rule change on February 6, 2006. The
text of the proposed rule change is
available on the NASD’s Web site,
https://www.nasd.com, at the NASD’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
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a.m. through 4 p.m. eastern time and
key off the best bid/offer prices within
the Nasdaq Market Center at the time of
order-entry. Orders entered for
participation in Nasdaq’s opening and
closing cross processes will not be
subject to the proposed warning and
rejection parameters.
Nasdaq is establishing these
parameters in an attempt to mitigate the
negative market-wide impacts resulting
from the entry of mis-priced orders,
especially in cases of large system
malfunctions resulting in the
submission of numerous mis-priced
orders into the public market in a very
short time span. Nasdaq believes that its
proposal continues to allow vigorous
price discovery near the inside market
while protecting the integrity of the
market from distortions created by the
submission of abnormally priced orders.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with Section
15A of the Act,5 in general, and Section
15A(b)(6) 6 of the Act, in particular, in
that it is 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq 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
Nasdaq has neither solicited nor
received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days after the date of
filing, or such shorter time as the
Commission may designate, if
consistent with the protection of
5 15
6 15
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U.S.C. 78o–3.
U.S.C. 78o–3(b)(6).
10FEN1
]]>Agencies
[Federal Register Volume 71, Number 28 (Friday, February 10, 2006)]
[Notices]
[Pages 7098-7100]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1838]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53223; File No. SR-ISE-2006-06]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto Relating to Competitive Market Maker
Inactivity Fees
February 3, 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 23, 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.
On January 31, 2006, the Exchange 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 a self-
regulatory organization pursuant to 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the ISE corrected an error in Exhibit 5
of the original rule filing by eliminating certain inadvertent
underlining. For purposes of calculating the 60-day period within
which the Commission may summarily abrogate the proposed rule change
the Commission considers the period to commence on January 31, 2006,
the date on which the ISE filed Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\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 is proposing to amend its Schedule of Fees to change its
Competitive Market Maker (``CMM'') Inactivity Fee. The text of the
proposed rule change is available at the Exchange, at the Commission's
Public Reference Room and at the Exchange's Web site: https://
www.iseoptions.com/legal/proposed_rule_changes.asp).
[[Page 7099]]
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
Currently, the ISE charges the owner \6\ of a CMM membership an
Inactivity Fee of $25,000 a month if the owner does not: (i) Itself
operate the CMM membership, (ii) lease the CMM membership to another
member which operates the CMM membership, or (iii) avail itself to one
of the exemptions specifically authorized in the Notes to the CMM
Inactivity Fee on the Schedule of Fees. The CMM Inactivity Fee was
adopted by the Exchange \7\ at a time when there was significant demand
for CMM memberships and some owners were holding onto inactive
memberships. The purpose of the CMM Inactivity Fee was to encourage the
timely operation of the memberships to promote greater trading activity
on the Exchange.
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\6\ The Note to the CMM Inactivity Fee on the Schedule of Fees
provides that the fee applies to the owner of the CMM membership,
unless the inactive CMM membership is subject to a lease that was
approved by the Exchange prior to the effective date of the fee, in
which case the fee would apply to the lessee.
\7\ See Securities Exchange Act Release No. 46272 (July 26,
2002), 67 FR 50497 (August 2, 2002) (SR-ISE-2002-11).
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The Exchange believes the circumstances that lead to the enactment
of the CMM Inactivity Fee no longer exist to the same degree that they
did in 2002. For one thing, the ISE has created additional CMM
memberships to ease demand.\8\ The Exchange has also changed its
minimum quoting requirements, allowing CMMs to quote wide markets.\9\
Thus, a new owner of a CMM membership can avoid the CMM Inactivity Fee
by continuing to ``operate'' it by quoting $5-wide markets, enabling it
to ``ramp up'' its quoting at a reasonable pace. Nevertheless, ISE
believes that a CMM Inactivity Fee continues to serve a purpose by
encouraging the operation of CMM memberships generally, and prefers to
retain the fee. At the same time, the Exchange believes that the amount
of the fee--$25,000 a month per membership--is now too high in light of
the changed circumstances, imposing an unreasonable burden on firms
that hold multiple memberships. Therefore, the Exchange proposes to
reduce the amount of the fee to $5,000 a month per membership, with a
cap of $25,000 on a per-firm basis, i.e., a firm that owns five or more
inactive CMMs would pay a maximum CMM Inactivity Fee of $25,000 per
month.
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\8\ See Securities Exchange Act Release Nos. 47289 (January 30,
2003), 68 FR 5947 (February 3, 2003) (SR-ISE-2002-28) (approving a
proposed rule change to increase CMM memberships from 100 to 130);
49195 (February 5, 2004), 69 FR 7061 (February 12, 2004) (SR-ISE-
2003-38) (approving a proposed rule change to increase CMM
memberships from 130 to 160).
\9\ See Securities Exchange Act Release No. 50015 (July 14,
2004), 69 FR 43872 (July 22, 2004) (SR-ISE-2003-22).
---------------------------------------------------------------------------
Also, as a matter of ``housekeeping,'' the Exchange proposes to
delete certain language in the Notes to the CMM Inactivity Fee relating
to assessing the fee to the lessee if the CMM membership was subject to
a lease that was approved prior to the effective date of the fee. All
such leases have terminated, so there is no longer a need to retain
that exception.
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 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.
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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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 Number SR-ISE-2006-06 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 20549-1090.
All submissions should refer to File Number SR-ISE-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 (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
[[Page 7100]]
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-2006-06 and should be submitted on or before March 3, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-1838 Filed 2-9-06; 8:45 am]
BILLING CODE 8010-01-P
