Self-Regulatory Organizations; International Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Fee Changes, 10088-10090 [E6-2751]
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10088
Federal Register / Vol. 71, No. 39 / Tuesday, February 28, 2006 / Notices
6(b)(5) of the Act,11 which requires,
among other things, that the rules of a
• Use the Commission’s Internet
national securities exchange be
comment form (https://www.sec.gov/
designed to prevent fraudulent and
rules/sro.shtml); or
manipulative acts and practices, to
• Send an e-mail to rulepromote just and equitable principles of
comments@sec.gov. Please include File
trade, to remove impediments to and
Number SR–CBOE–2006–08 on the
perfect the mechanism of a free and
subject line.
open market and a national market
system and, in general, to protect
Paper Comments
investors and the public interest.
• Send paper comments in triplicate
The Commission believes that CBOE’s
to Nancy M. Morris, Secretary,
proposal to revise the methodology for
Securities and Exchange Commission,
determining the expiration dates for
100 F Street, NE., Washington, DC
options on certain volatility-based
20549–1090.
indexes so that such options expire on
All submissions should refer to File
the ‘‘Wednesday that is thirty days prior
Number SR–CBOE–2006–08. This file
to the third Friday of the calendar
number should be included on the
month immediately following the
subject line if e-mail is used. To help the expiring month’’ is appropriate. As
Commission process and review your
noted by CBOE above, this revised
comments more efficiently, please use
approach will provide consistency in
only one method. The Commission will the expiration of options on all volatility
post all comments on the Commission’s indexes by ensuring that every volatility
Internet Web site (https://www.sec.gov/
index option will expire exactly thirty
rules/sro.shtml). Copies of the
days prior to the date on which the
submission, all subsequent
index that the volatility index is based,
amendments, all written statements
rather than the prior approach under
with respect to the proposed rule
which such options would not expire
change that are filed with the
exactly thirty days prior to the
Commission, and all written
expiration of the options on the index
communications relating to the
on which that volatility index is based
proposed rule change between the
in four of the months in any rolling
Commission and any person, other than twelve-month period.
those that may be withheld from the
The Exchange has requested
public in accordance with the
accelerated approval of the proposed
provisions of 5 U.S.C. 552, will be
rule change.12 The Commission finds
available for inspection and copying in
good cause for approving the proposed
the Commission’s Public Reference
rule change prior to the 30th day after
Room. Copies of such filing also will be
the date of publication of the notice of
available for inspection and copying at
filing in the Federal Register. The
the principal office of the CBOE. All
proposal is intended to ensure
comments received will be posted
consistency in expiration dates for
without change; the Commission does
options on all volatility indexes
not edit personal identifying
approved for listing and trading on
information from submissions. You
CBOE with the expiration of the options
should submit only information that
on the underlying indexes. The
you wish to make available publicly. All
Commission does not believe that the
submissions should refer to File
Exchange’s proposal raises any novel
Number SR–CBOE–2006–08 and should
regulatory issues. Therefore, the
be submitted on or before March 21,
Commission finds good cause,
2006.
consistent with Section 19(b)(2) of the
Act,13 to approve the proposed rule
IV. Commission’s Findings and Order
change, as amended, on an accelerated
Granting Accelerated Approval of the
basis.
Proposed Rule Change
wwhite on PROD1PC65 with NOTICES
Electronic Comments
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.10 In particular, the
Commission finds that the proposed
rule change is consistent with Section
10 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,14 that the
proposed rule change (SR–CBOE–2006–
11 15
U.S.C. 78f(b)(5).
conversation between James Flynn,
Attorney, CBOE, and Florence Harmon, Senior
Special Counsel, and Geoffrey Pemble, Special
Counsel, Division of Market Regulation,
Commission, on February 9, 2006.
13 15 U.S.C. 78s(b)(2).
14 Id.
12 Telephone
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08) is hereby approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Nancy M. Morris,
Secretary.
[FR Doc. E6–2767 Filed 2–27–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53329; File No. SR–ISE–
2006–05]
Self-Regulatory Organizations;
International Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Fee Changes
February 16, 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
20, 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 ISE. On February
9, 2006, ISE submitted Amendment No.
1 to the proposed rule change.3 ISE has
designated the proposed rule change as
one establishing or changing a due, fee,
or other charge, pursuant to Section
19(b)(3)(A)(ii) of the Act4 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
ISE is proposing to amend its
Schedule of Fees to establish fees for
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange revised its
Schedule of Fees to clarify ambiguities and correct
misstatements therein, and discussed those changes
in the purpose section of the proposal. Specifically,
in Amendment No. 1, the Exchange removed the
misstatement that a $0.10 surcharge is applied to all
Premium Products (as defined herein) and instead
provided a list of the specific Premium Products
that are subject to the surcharge. Amendment No.
1 also clarified that the fee pilot program expiring
on July 31, 2006 applies exclusively to Linkage
orders.
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
1 15
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Federal Register / Vol. 71, No. 39 / Tuesday, February 28, 2006 / Notices
transactions in options on 11 Premium
Products6. The proposed rule change, as
amended, also seeks to make certain
technical and clarifying changes to the
original filing as well as to clean up the
Schedule of Fees to eliminate confusion
regarding fees charged by the Exchange.
The text of the proposed rule change
is available on ISE’s Web site at
https://www.iseoptions.com, at the Office
of the Secretary at 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, as amended,
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
wwhite on PROD1PC65 with NOTICES
1. Purpose
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the following
Premium Products: iShares Dow Jones
U.S. Real Estate Index Fund (‘‘IYR’’),7
iShares MSCI Japan Index Fund
(‘‘EWJ’’),8 Biotech HOLDRS (‘‘BBH’’),
6 ‘‘Premium Products’’ are defined in the
Schedule of Fees as the products enumerated
therein.
7 iShares is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a wholly owned
subsidiary of Barclays Bank PLC. ‘‘Dow Jones’’ and
‘‘Dow Jones U.S. Real Estate Index Fund’’ are
servicemarks of Dow Jones & Company, Inc. (‘‘Dow
Jones’’) and have been licensed for use for certain
purposes by BGI. All other trademarks and
servicemarks are the property of their respective
owners. The Dow Jones U.S. Real Estate Index Fund
(‘‘IYR’’) is not sponsored, endorsed, issued, sold or
promoted by Dow Jones. No company has licensed
or authorized ISE to (i) engage in the creation,
listing, provision of a market for trading, marketing,
and promotion of options on IYR or (ii) to use and
refer to any trademark of BGI or Dow Jones in
connection with the listing, provision of a market
for trading, marketing, and promotion of options on
IYR or with making disclosures concerning options
on IYR under any applicable Federal or state laws,
rules or regulations, and do not sponsor, endorse,
or promote such activity by ISE. ISE is not affiliated
in any manner with any of the companies above.
8 iShares(r) is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a wholly owned
subsidiary of Barclays Bank PLC. ‘‘MSCI Japan
Index’’ is a servicemark of Morgan Stanley Capital
International (‘‘MSCI’’) and has been licensed for
use for certain purposes by BGI. All other
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17:06 Feb 27, 2006
Jkt 208001
Internet HOLDRS (‘‘HHH’’),
Pharmaceutical HOLDRS (‘‘PPH’’),
Regional Bank HOLDRS (‘‘RKH’’), Retail
HOLDRS (‘‘RTH’’), Software HOLDRS
(‘‘SWH’’), Enterra Energy Trust
(‘‘EENC’’), Fording Canadian Coal Trust
(‘‘FDG’’), and Enerplus Resources Fund
(‘‘ERF’’). Specifically, the Exchange is
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on IYR, EWJ, BBH, HHH, PPH,
RKH, RTH, SWH, EENC, FDG, and
ERF.9 The amount of the execution fee
and comparison fee for products
covered by this filing would be $0.15
and $0.03 per contract, respectively, for
all Public Customer Orders10 and Firm
Proprietary orders. The amount of the
execution fee and comparison fee for all
Market Maker transactions would be
equal to the execution fee and
comparison fee currently charged by the
Exchange for Market Maker transactions
in equity options11. The Exchange
believes the proposed rule change will
further the Exchange’s goal of
introducing new products to the
marketplace that are competitively
priced. Additionally, the Exchange
proposes to remove NYC, NY and XLU
from the list of Premium Products on
the Schedule of Fees. These products
have been delisted and no longer trade
on the Exchange.
Furthermore, the proposed rule
change makes certain technical and
clarifying changes to ISE’s Schedule of
Fees. Specifically, under the Execution
Fees section of the Schedule of Fees, the
Exchange seeks to replace the general
reference to a surcharge for options on
Premium Products with a list of the
specific Premium Products for which
there is a surcharge charged by the
trademarks and servicemarks are the property of
their respective owners. The MSCI Japan Index
Fund (‘‘EWJ’’) is not sponsored, endorsed, issued,
sold or promoted by MSCI. No company has
licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on EWJ or (ii)
to use and refer to any trademark of BGI or MSCI
in connection with the listing, provision of a market
for trading, marketing, and promotion of options on
EWJ or with making disclosures concerning options
on EWJ under any applicable Federal or state laws,
rules or regulations, and do not sponsor, endorse,
or promote such activity by ISE. ISE is not affiliated
in any manner with any of the companies above.
9 These fees will be charged to Exchange
members. Under a pilot program that is set to expire
on July 31, 2006, these fees will also be charged to
Linkage Orders (as defined in ISE Rule 1900).
10 Public Customer Order is defined in ISE Rule
100(a)(33) as an order for the account of a Public
Customer. Public Customer is defined in ISE Rule
100(a)(32) as a person that is not a broker or dealer
in securities.
11 The execution fee is currently between $0.21
and $0.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $0.03 per contract side.
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10089
Exchange.12 Also, under the Execution
Fees section of the Schedule of Fees, for
purposes of eliminating ambiguity and
confusion, the Exchange proposes to
move the parenthetical regarding the
Linkage pilot program under ‘‘Firm
Proprietary’’ to the Notes section.
2. Statutory Basis
The Exchange believes that the
statutory basis for the proposal is the
requirement under Section 6(b)(4) of the
Act13 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
ISE does not believe 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, as amended.
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
The foregoing rule change, as
amended, has become effective pursuant
to Section 19(b)(3)(A)(ii) of the Act 14
and subparagraph (f)(2) of Rule 19b–4
thereunder 15 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.16
12 Prior to this proposed rule change, the
Exchange’s Schedule of Fees improperly reflected
that all Premium Products were subject to a
surcharge of $0.10 per contract/side.
13 15 U.S.C. 78f(b)(4).
14 15 U.S.C. 78s(b)(3)(A)(ii).
15 17 CFR 240.19b–4(f)(2).
16 The effective date of the original proposed rule
change is January 20, 2006, the date of the original
filing, and the effective date of Amendment No. 1
is February 9, 2006, the filing date of the
amendment. For purposes of calculating the 60-day
abrogation period within which the Commission
may summarily abrogate the proposed rule change,
as amended, under Section 19(b)(3)(C) of the Act,
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Federal Register / Vol. 71, No. 39 / Tuesday, February 28, 2006 / Notices
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:
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2006–05 on the subject
line.
Paper Comments
wwhite on PROD1PC65 with NOTICES
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Nancy M. Morris,
Secretary.
[FR Doc. E6–2751 Filed 2–27–06; 8:45 am]
• 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–2006–05. 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 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–2006–05 and should be
submitted on or before March 21, 2006.
[Release No. 34–53333; File No. SR–NASD–
2006–011]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
Principal Pre-Use Approval of Member
Correspondence to 25 or More Existing
Retail Customers Within a 30 CalendarDay Period
February 17, 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
27, 2006, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASD. On
February 13, 2006, NASD 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
NASD is proposing to amend NASD
Rule 2211 to require principal pre-use
approval of member correspondence to
25 or more existing retail customers
within a 30 calendar-day period. Below
is the text of the proposed rule change.
Proposed new language is italicized;
proposed deletions are in [brackets].
2211. Institutional Sales Material and
Correspondence
(a) No Change.
(b) Approval and Recordkeeping
(1) Registered Principal Approval
(A) Correspondence. Correspondence
need not be approved by a registered
principal prior to use, [but] unless such
17 17
the Commission considers the period to commence
on February 9, 2006, the date on which the
Exchange submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
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17:06 Feb 27, 2006
Jkt 208001
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 to SR–NASD–2006–011
replaced and superseded the original rule filing
filed on January 27, 2006 in its entirety.
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correspondence is distributed to 25 or
more existing retail customers within
any 30 calendar-day period and is not
solely and exclusively clerical or
ministerial in nature. All
correspondence is subject to the
supervision and review requirements of
Rule 3010(d).
(B) No Change.
(2) No Change.
(c) through (e) No Change.
*
*
*
*
*
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
Definition of ‘‘Correspondence’’
In 2003, the SEC approved as part of
NASD’s modernization of its advertising
rules the creation of new Rule 2211,
which included an amended definition
of ‘‘correspondence.’’ The amended
definition of correspondence includes
any written letter or electronic mail
message distributed by a firm to one or
more of its existing retail customers and
to fewer than 25 prospective retail
customers within a 30 calendar-day
period.4 Previously, ‘‘correspondence’’
included any written or electronic
communication prepared for delivery to
a single current or prospective
customer, and not for dissemination to
multiple customers or the general
public.
The definition of correspondence is
significant in several respects. Firms
generally are not required to have a
registered principal approve
correspondence prior to use, nor are
they required to file correspondence
with the NASD Advertising Regulation
4 NASD has clarified that, for purposes of its rules
governing member communications with the
public, NASD views instant messaging in the same
manner in which it views traditional electronic
mail messages. Accordingly, instant messaging may
qualify as correspondence or sales literature,
depending upon the facts and circumstances. See
Notice to Members 03–33 (July 2003).
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]]>Agencies
[Federal Register Volume 71, Number 39 (Tuesday, February 28, 2006)]
[Notices]
[Pages 10088-10090]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2751]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53329; File No. SR-ISE-2006-05]
Self-Regulatory Organizations; International Stock Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change and Amendment No. 1 Thereto Relating to Fee Changes
February 16, 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 20, 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 ISE. On
February 9, 2006, ISE submitted Amendment No. 1 to the proposed rule
change.\3\ ISE has designated the proposed rule change as one
establishing or changing a due, fee, or other charge, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange revised its Schedule of
Fees to clarify ambiguities and correct misstatements therein, and
discussed those changes in the purpose section of the proposal.
Specifically, in Amendment No. 1, the Exchange removed the
misstatement that a $0.10 surcharge is applied to all Premium
Products (as defined herein) and instead provided a list of the
specific Premium Products that are subject to the surcharge.
Amendment No. 1 also clarified that the fee pilot program expiring
on July 31, 2006 applies exclusively to Linkage orders.
\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
ISE is proposing to amend its Schedule of Fees to establish fees
for
[[Page 10089]]
transactions in options on 11 Premium Products\6\. The proposed rule
change, as amended, also seeks to make certain technical and clarifying
changes to the original filing as well as to clean up the Schedule of
Fees to eliminate confusion regarding fees charged by the Exchange.
---------------------------------------------------------------------------
\6\ ``Premium Products'' are defined in the Schedule of Fees as
the products enumerated therein.
---------------------------------------------------------------------------
The text of the proposed rule change is available on ISE's Web site
at https://www.iseoptions.com, at the Office of the Secretary at 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, as
amended, 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 amend its Schedule of Fees to
establish fees for transactions in options on the following Premium
Products: iShares Dow Jones U.S. Real Estate Index Fund (``IYR''),\7\
iShares MSCI Japan Index Fund (``EWJ''),\8\ Biotech HOLDRS (``BBH''),
Internet HOLDRS (``HHH''), Pharmaceutical HOLDRS (``PPH''), Regional
Bank HOLDRS (``RKH''), Retail HOLDRS (``RTH''), Software HOLDRS
(``SWH''), Enterra Energy Trust (``EENC''), Fording Canadian Coal Trust
(``FDG''), and Enerplus Resources Fund (``ERF''). Specifically, the
Exchange is proposing to adopt an execution fee and a comparison fee
for all transactions in options on IYR, EWJ, BBH, HHH, PPH, RKH, RTH,
SWH, EENC, FDG, and ERF.\9\ The amount of the execution fee and
comparison fee for products covered by this filing would be $0.15 and
$0.03 per contract, respectively, for all Public Customer Orders\10\
and Firm Proprietary orders. The amount of the execution fee and
comparison fee for all Market Maker transactions would be equal to the
execution fee and comparison fee currently charged by the Exchange for
Market Maker transactions in equity options\11\. The Exchange believes
the proposed rule change will further the Exchange's goal of
introducing new products to the marketplace that are competitively
priced. Additionally, the Exchange proposes to remove NYC, NY and XLU
from the list of Premium Products on the Schedule of Fees. These
products have been delisted and no longer trade on the Exchange.
---------------------------------------------------------------------------
\7\ iShares[reg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays
Bank PLC. ``Dow Jones'' and ``Dow Jones U.S. Real Estate Index
Fund'' are servicemarks of Dow Jones & Company, Inc. (``Dow Jones'')
and have been licensed for use for certain purposes by BGI. All
other trademarks and servicemarks are the property of their
respective owners. The Dow Jones U.S. Real Estate Index Fund
(``IYR'') is not sponsored, endorsed, issued, sold or promoted by
Dow Jones. No company has licensed or authorized ISE to (i) engage
in the creation, listing, provision of a market for trading,
marketing, and promotion of options on IYR or (ii) to use and refer
to any trademark of BGI or Dow Jones in connection with the listing,
provision of a market for trading, marketing, and promotion of
options on IYR or with making disclosures concerning options on IYR
under any applicable Federal or state laws, rules or regulations,
and do not sponsor, endorse, or promote such activity by ISE. ISE is
not affiliated in any manner with any of the companies above.
\8\ iShares(r) is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays
Bank PLC. ``MSCI Japan Index'' is a servicemark of Morgan Stanley
Capital International (``MSCI'') and has been licensed for use for
certain purposes by BGI. All other trademarks and servicemarks are
the property of their respective owners. The MSCI Japan Index Fund
(``EWJ'') is not sponsored, endorsed, issued, sold or promoted by
MSCI. No company has licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading, marketing, and
promotion of options on EWJ or (ii) to use and refer to any
trademark of BGI or MSCI in connection with the listing, provision
of a market for trading, marketing, and promotion of options on EWJ
or with making disclosures concerning options on EWJ under any
applicable Federal or state laws, rules or regulations, and do not
sponsor, endorse, or promote such activity by ISE. ISE is not
affiliated in any manner with any of the companies above.
\9\ These fees will be charged to Exchange members. Under a
pilot program that is set to expire on July 31, 2006, these fees
will also be charged to Linkage Orders (as defined in ISE Rule
1900).
\10\ Public Customer Order is defined in ISE Rule 100(a)(33) as
an order for the account of a Public Customer. Public Customer is
defined in ISE Rule 100(a)(32) as a person that is not a broker or
dealer in securities.
\11\ The execution fee is currently between $0.21 and $0.12 per
contract side, depending on the Exchange Average Daily Volume, and
the comparison fee is currently $0.03 per contract side.
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Furthermore, the proposed rule change makes certain technical and
clarifying changes to ISE's Schedule of Fees. Specifically, under the
Execution Fees section of the Schedule of Fees, the Exchange seeks to
replace the general reference to a surcharge for options on Premium
Products with a list of the specific Premium Products for which there
is a surcharge charged by the Exchange.\12\ Also, under the Execution
Fees section of the Schedule of Fees, for purposes of eliminating
ambiguity and confusion, the Exchange proposes to move the
parenthetical regarding the Linkage pilot program under ``Firm
Proprietary'' to the Notes section.
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\12\ Prior to this proposed rule change, the Exchange's Schedule
of Fees improperly reflected that all Premium Products were subject
to a surcharge of $0.10 per contract/side.
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2. Statutory Basis
The Exchange believes that the statutory basis for the proposal is
the requirement under Section 6(b)(4) of the Act\13\ that an exchange
have an equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities.
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\13\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
ISE does not believe 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, as amended. 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
The foregoing rule change, as amended, has become effective
pursuant to Section 19(b)(3)(A)(ii) of the Act \14\ and subparagraph
(f)(2) of Rule 19b-4 thereunder \15\ 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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 17 CFR 240.19b-4(f)(2).
\16\ The effective date of the original proposed rule change is
January 20, 2006, the date of the original filing, and the effective
date of Amendment No. 1 is February 9, 2006, the filing date of the
amendment. For purposes of calculating the 60-day abrogation period
within which the Commission may summarily abrogate the proposed rule
change, as amended, under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on February 9, 2006, the
date on which the Exchange submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
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[[Page 10090]]
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-2006-05 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-2006-05. 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 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-2006-05 and should be submitted on or before March 21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
Nancy M. Morris,
Secretary.
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\17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-2751 Filed 2-27-06; 8:45 am]
BILLING CODE 8010-01-P
