Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ISE Rule 1100(g) “Exercise of Options Contracts”, 13643-13645 [E6-3788]
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
2. Statutory Basis
Electronic Comments
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5) of the Act,6 in particular,
in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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 by
ensuring that Exchange participants,
like participants in other markets, are
prohibited from engaging in the practice
of trade shredding.
• 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–CHX–2006–03 on the
subject line.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition.
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
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 self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
wwhite on PROD1PC61 with 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 is consistent with the Act.
Comments may be submitted by any of
the following methods:
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
15:48 Mar 15, 2006
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53439; File No. SR–ISE–
2006–11]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to ISE Rule 1100(g)
‘‘Exercise of Options Contracts’’
March 7, 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
All submissions should refer to File
13, 2006, the International Securities
Number SR–CHX–2006–03. This file
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
number should be included on the
filed with the Securities and Exchange
subject line if e-mail is used. To help the
Commission (‘‘Commission’’) the
Commission process and review your
proposed rule change as described in
comments more efficiently, please use
Items I and II below, which Items have
only one method. The Commission will been prepared by the Exchange. On
post all comments on the Commission’s March 3, 2006, the ISE filed
Internet Web site (https://www.sec.gov/
Amendment No. 1 to the proposed rule
rules/sro.shtml). Copies of the
change.3 The ISE filed the proposal as
submission, all subsequent
a ‘‘non-controversial’’ proposed rule
amendments, all written statements
change pursuant to section 19(b)(3)(A)
with respect to the proposed rule
of the Act 4 and Rule 19b–4(f)(6)
change that are filed with the
thereunder,5 which renders it effective
Commission, and all written
upon filing with the Commission. The
Commission is publishing this notice to
communications relating to the
solicit comments on the proposed rule
proposed rule change between the
Commission and any person, other than change, as amended, from interested
persons.
those that may be withheld from the
public in accordance with the
I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
Statement of the Terms of Substance of
available for inspection and copying in
the Proposed Rule Change
the Commission’s Public Reference
The ISE, pursuant to section 19(b)(1)
Room. Copies of such filing also will be
of the Act 6 and Rule 19b–4 thereunder,7
available for inspection and copying at
proposes to amend ISE Rule 1100(g)
the principal offices of CHX. All
‘‘Exercise of Options Contracts’’ to add
comments received will be posted
two additional minutes within which
without change; the Commission does
one may deliver a contrary exercise
not edit personal identifying
advice (‘‘CEA’’) 8 or an Advice Cancel to
information from submissions. You
the Exchange. The proposal is intended
should submit only information that
to conform ISE Rule 1100(g) to a recent
you wish to make available publicly. All change in the closing time for equity
submissions should refer to File
options and narrow-based index options
Number SR–CHX–2006–03 and should
be submitted on or before April 6, 2006.
1 15 U.S.C. 78s(b)(1).
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Nancy M. Morris,
Secretary.
[FR Doc. E6–3806 Filed 3–15–06; 8:45 am]
BILLING CODE 8010–01–P
7 17
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CFR 200.30–3(a)(12).
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2 17
CFR 240.19b–4.
No. 1 clarified that the Exchange is
requesting that the Commission waive the 5-day
pre-filing notice requirement and the 30-day
operative delay period and made certain other
minor clarifying changes.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
6 15 U.S.C. 78s(b)(1).
7 17 CFR 240.19b–4.
8 A CEA is a communication either to not exercise
an option that would be automatically exercised
pursuant to the Options Clearing Corporation’s
(‘‘OCC’’) Exercise-by-Exception (‘‘Ex-by-Ex’’)
procedure, or to exercise an option that would not
be automatically exercised pursuant to the OCC’s
Ex-by-Ex procedure.
3 Amendment
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
from 4:02 p.m. to 4 p.m. (EST).9 The text
of the proposed rule change is available
on the ISE’s Web site (https://
www.iseoptions.com), at the ISE’s
principal office, 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
proposal. 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
wwhite on PROD1PC61 with NOTICES
The purpose of the proposed
amendment to ISE Rule 1100(g) is to
change the time for delivering a CEA or
Advice Cancel to conform to the new
trading hours for equity options and
narrow-based index options.
The Exchange recently submitted a
proposed rule change to amend ISE Rule
700 to modify the close of the normal
trading hours in options on individual
stocks and options on narrow-based
indexes from 4:02 p.m. to 4 p.m.
(EST).10 However, that filing did not
address the change that is the subject of
the instant filing. Specifically, the
Exchange proposes to amend ISE Rule
1100(g) in order for the rule to be
consistent with respect to the new hours
of trading in equity options and narrowbased index options. Accordingly, the
Exchange is proposing to change all
references to 28 minutes in ISE Rule
1100(g) to 30 minutes to reflect the 2
minutes change in the closing time for
options on individual stocks and
options on narrow-based indexes.
According to the Exchange, the
proposed rule change, as amended, is
based on a proposed rule change
submitted by the Pacific Exchange, Inc.,
9 See Securities Exchange Act Release No. 53248
(February 7, 2006), 71 FR 8015 (February 15, 2006)
(approving SR–ISE–2005–58, which amended ISE
Rule 700, so that equity options and narrow-based
index options may trade until 4 p.m. instead of 4:02
p.m. (EST)).
10 See Securities Exchange Act Release No. 53248
(February 7, 2006), 71 FR 8015 (February 15, 2006)
(order granting accelerated approval of SR–ISE–
2005–58).
VerDate Aug<31>2005
15:48 Mar 15, 2006
Jkt 208001
which was recently approved by the
Commission.11
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with section 6(b) of the Act 12
in general, and furthers the objectives of
section 6(b)(5) of the Act 13 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
The ISE has neither solicited nor
received comments on the proposed
rule change, as amended.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, the
proposed rule change, as amended, has
become effective pursuant to section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30-days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
ISE has asked the Commission to waive
11 See Securities Exchange Act Release No. 53249
(February 7, 2006), 71 FR 8035 (February 15, 2006)
(order granting accelerated approval of SR–PCX–
2005–138).
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6).
16 Id.
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the 30-day operative delay and the 5day pre-filing requirement. The
Commission believes that waiving the
30-day operative delay and the 5-day
pre-filing requirement is consistent with
the protection of investors and the
public interest because such waiver will
allow the ISE to immediately clarify its
rule and conform it to the industry-wide
close of trading times now in effect.
Accelerating the operative date will
allow for a more efficient and effective
market operation by offering clarity and
internal consistency with existing ISE
rules. For these reasons, the
Commission designates the proposed
rule change, as amended, as effective
and operative immediately upon filing
with the Commission.17
At any time within 60-days after the
filing of the amended 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.18
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–2006–11 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–2006–11. This file
number should be included on the
17 For the purposes only of waiving the 30-day
operative date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
18 The effective date of the original proposed rule
change is February 13, 2006 and the effective date
of the amendment is March 3, 2006. For purposes
of calculating the 60-day 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 March 3, 2006, the date on which the
Exchange submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the ISE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2006–11 and should be
submitted on or before April 6, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E6–3788 Filed 3–15–06; 8:45 am]
3 17
BILLING CODE 8010–01–P
[Release No. 34–53428; File No. 4–514]
Self-Regulatory Organizations; Notice
of Filing of Proposed Minor Rule
Violation Plan by The Nasdaq Stock
Market LLC
wwhite on PROD1PC61 with NOTICES
March 7, 2006.
Pursuant to Section 19(d)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19d–1(c)(2)
thereunder,2 notice is hereby given that
on February 22, 2006, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) copies of a
proposed minor rule violation plan
(‘‘MRVP’’) specifying those uncontested
minor rule violations with sanctions not
exceeding $2,500 which would not be
subject to the provisions of Rule 19d–
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(d)(1).
2 17 CFR 240.19d–1(c)(2).
1 15
15:48 Mar 15, 2006
CFR 240.19d–1(c)(1).
Commission adopted amendments to
paragraph (c) of Rule 19d–1 to allow self-regulatory
organizations (‘‘SROs’’) to submit for Commission
approval plans for the abbreviated reporting of
minor disciplinary infractions. See Exchange Act
Release No. 21013 (June 1, 1984), 49 FR 23828 (June
8, 1984). Any disciplinary action taken by an SRO
against any person for violation of a rule of the SRO
which has been designated as a minor rule violation
pursuant to such a plan filed with the Commission
shall not be considered ‘‘final’’ for purposes of
Section 19(d)(1) of the Act if the sanction imposed
consists of a fine not exceeding $2,500 and the
sanctioned person has not sought an adjudication,
including a hearing, or otherwise exhausted his
administrative remedies.
5 On January 13, 2006, the Commission approved
Nasdaq’s application for registration as a national
securities exchange, including the rules governing
the Nasdaq exchange. Exchange Act Release No.
53128, 71 FR 3550 (January 23, 2006). In the
approval order, the Commission noted that Nasdaq
Rule 9216(b) and IM–9216 provided for the
imposition of fines for minor rule violations
pursuant to a minor rule violation plan.
Accordingly, the Commission noted that as a
condition to the operation of the Nasdaq Exchange,
Nasdaq must file a minor rule violation plan with
the Commission.
6 Consistent with Nasdaq’s rules, Nasdaq noted in
its submission to the Commission that the
Department of Enforcement, the Department of
Market Regulation, and the Office of Disciplinary
Affairs will be comprised of NASD Regulation, Inc.
(‘‘NASDR’’) staff acting on behalf of Nasdaq
pursuant to Nasdaq’s contractual arrangement with
4 The
SECURITIES AND EXCHANGE
COMMISSION
VerDate Aug<31>2005
1(c)(1) under the Act3 requiring that a
self-regulatory organization promptly
file notice with the Commission of any
final disciplinary action taken with
respect to any person or organization.4
In accordance with paragraph (c)(2) of
Rule 19d–1 of the Act, Nasdaq proposes
to designate certain specified rule
violations as minor rule violations, and
requests that it be relieved of the
reporting requirements regarding such
violations, provided it gives notice of
such violations to the Commission on a
quarterly basis. Nasdaq proposes to
include in its proposed MRVP the
policies and procedures currently
included in Nasdaq Rule 9216(b)
(‘‘Procedure for Violations Under Plan
Pursuant to SEC Rule 19d–1(c)(2)’’) and
the rule violations currently included in
Nasdaq Rule IM–9216 (‘‘Violations
Appropriate for Disposition Under Plan
Pursuant to SEC Rule 19d–1(c)(2)’’).5
According to Nasdaq’s proposed
MRVP, under Rule 9216(b) and IM–
9216, Nasdaq or the Nasdaq Review
Counsel may impose a fine (not to
exceed $2,500) and/or a censure on a
member or an associated person with
respect to any rule listed in IM–9216. If
the person against whom the fine or
censure is imposed does not dispute the
violation, the Department of
Enforcement or the Department of
Market Regulation may prepare and
request that such person execute a
minor rule violation plan letter.6 In such
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13645
a letter, the member or associated
person accepts a finding of violation,
consents to the imposition of sanctions,
and agrees to waive the right to a
hearing before a Hearing Panel (or, if
applicable, an Extended Hearing Panel),
any right of appeal to the Nasdaq
Review Council, the Commission, or the
courts, and any other challenge to the
validity of the letter. The letter will
describe the act or practice engaged in
or omitted, the rule, regulation, or
statutory provision violated, and the
sanction or sanctions to be imposed.7
If a member or associated person
executes a minor rule violation plan
letter, the letter shall be submitted to the
Nasdaq Review Council. The Office of
Disciplinary Affairs may accept such
letter or refer it to the Nasdaq Review
Council for acceptance or rejection.
Similarly, the Review Subcommittee of
the Nasdaq Review Council may accept
or reject such letter or refer it to the
Nasdaq Review Council for acceptance
or rejection. If the letter is rejected,
Nasdaq may take any other appropriate
disciplinary action with respect to the
alleged violation or violations.
Nasdaq proposed that the quarterly
report of actions taken on minor rule
violations under Rule 9216(b) and IM–
9216 would list for each violation:
Nasdaq’s internal file number for the
case, the name of the individual and/or
organization, the nature of the violation,
the specific rule provision violated, the
sanction imposed, the number of times
the rule violation has occurred and the
date of disposition.8
The following Nasdaq rule violations
currently are included in Rule 9216(b)
and IM–9216: Rules 2210, 2211, IM–
2210–1 and 2210–4 (Communications
with the public); Rule 3360 (Failure to
timely file reports of short positions on
Form NS–1); Rule 3110 (Failure to keep
and preserve books, accounts, records,
memoranda, and correspondence in
conformance with all applicable laws,
rules, regulations and statements of
policy promulgated thereunder, and
with the Rules of Nasdaq); Rule 8211
(Failure to submit trading data as
requested); Rule 1013 (Failure to timely
submit amendments to Form BD); Rule
1031 (Failure to timely submit
amendments to Form U4); Rule 1031
(Failure to timely submit amendments
to Form U5); Rule 1120 (Failure to
comply with the Firm Element of the
continuing education requirements);
NASDR. See Nasdaq Rule 9001 and Nasdaq Rule
9120(f), (g) and (x).
7 Nasdaq attached a sample form of a minor rule
violation letter with its submission to the
Commission.
8 Nasdaq attached a sample form of the quarterly
report with its submission to the Commission.
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]]>Agencies
[Federal Register Volume 71, Number 51 (Thursday, March 16, 2006)]
[Notices]
[Pages 13643-13645]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3788]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53439; File No. SR-ISE-2006-11]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to ISE Rule 1100(g) ``Exercise of Options Contracts''
March 7, 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 13, 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 and II below, which Items have been prepared by the Exchange.
On March 3, 2006, the ISE filed Amendment No. 1 to the proposed rule
change.\3\ The ISE filed the proposal as a ``non-controversial''
proposed rule change pursuant to section 19(b)(3)(A) of the Act \4\ and
Rule 19b-4(f)(6) thereunder,\5\ which renders it 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\ Amendment No. 1 clarified that the Exchange is requesting
that the Commission waive the 5-day pre-filing notice requirement
and the 30-day operative delay period and made certain other minor
clarifying changes.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE, pursuant to section 19(b)(1) of the Act \6\ and Rule 19b-4
thereunder,\7\ proposes to amend ISE Rule 1100(g) ``Exercise of Options
Contracts'' to add two additional minutes within which one may deliver
a contrary exercise advice (``CEA'') \8\ or an Advice Cancel to the
Exchange. The proposal is intended to conform ISE Rule 1100(g) to a
recent change in the closing time for equity options and narrow-based
index options
[[Page 13644]]
from 4:02 p.m. to 4 p.m. (EST).\9\ The text of the proposed rule change
is available on the ISE's Web site (https://www.iseoptions.com), at the
ISE's principal office, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(1).
\7\ 17 CFR 240.19b-4.
\8\ A CEA is a communication either to not exercise an option
that would be automatically exercised pursuant to the Options
Clearing Corporation's (``OCC'') Exercise-by-Exception (``Ex-by-
Ex'') procedure, or to exercise an option that would not be
automatically exercised pursuant to the OCC's Ex-by-Ex procedure.
\9\ See Securities Exchange Act Release No. 53248 (February 7,
2006), 71 FR 8015 (February 15, 2006) (approving SR-ISE-2005-58,
which amended ISE Rule 700, so that equity options and narrow-based
index options may trade until 4 p.m. instead of 4:02 p.m. (EST)).
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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 proposal. 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 purpose of the proposed amendment to ISE Rule 1100(g) is to
change the time for delivering a CEA or Advice Cancel to conform to the
new trading hours for equity options and narrow-based index options.
The Exchange recently submitted a proposed rule change to amend ISE
Rule 700 to modify the close of the normal trading hours in options on
individual stocks and options on narrow-based indexes from 4:02 p.m. to
4 p.m. (EST).\10\ However, that filing did not address the change that
is the subject of the instant filing. Specifically, the Exchange
proposes to amend ISE Rule 1100(g) in order for the rule to be
consistent with respect to the new hours of trading in equity options
and narrow-based index options. Accordingly, the Exchange is proposing
to change all references to 28 minutes in ISE Rule 1100(g) to 30
minutes to reflect the 2 minutes change in the closing time for options
on individual stocks and options on narrow-based indexes. According to
the Exchange, the proposed rule change, as amended, is based on a
proposed rule change submitted by the Pacific Exchange, Inc., which was
recently approved by the Commission.\11\
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\10\ See Securities Exchange Act Release No. 53248 (February 7,
2006), 71 FR 8015 (February 15, 2006) (order granting accelerated
approval of SR-ISE-2005-58).
\11\ See Securities Exchange Act Release No. 53249 (February 7,
2006), 71 FR 8035 (February 15, 2006) (order granting accelerated
approval of SR-PCX-2005-138).
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2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with section 6(b) of the Act \12\ in general, and furthers
the objectives of section 6(b)(5) of the Act \13\ 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
The ISE has neither solicited nor received comments on the proposed
rule change, as amended.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date on which it was filed, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change, as amended, has become effective
pursuant to section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6)
thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30-days after the date of filing.
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The ISE has asked the Commission to
waive the 30-day operative delay and the 5-day pre-filing requirement.
The Commission believes that waiving the 30-day operative delay and the
5-day pre-filing requirement is consistent with the protection of
investors and the public interest because such waiver will allow the
ISE to immediately clarify its rule and conform it to the industry-wide
close of trading times now in effect. Accelerating the operative date
will allow for a more efficient and effective market operation by
offering clarity and internal consistency with existing ISE rules. For
these reasons, the Commission designates the proposed rule change, as
amended, as effective and operative immediately upon filing with the
Commission.\17\
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\16\ Id.
\17\ For the purposes only of waiving the 30-day operative date
of 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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At any time within 60-days after the filing of the amended 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.\18\
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\18\ The effective date of the original proposed rule change is
February 13, 2006 and the effective date of the amendment is March
3, 2006. For purposes of calculating the 60-day 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 March 3, 2006, the date on which
the Exchange submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 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-2006-11 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-2006-11. This file
number should be included on the
[[Page 13645]]
subject line if e-mail is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's Internet Web site
(https://www.sec.gov/rules/sro.shtml). Copies of the submission, all
subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room. Copies of such filing also will be available for
inspection and copying at the principal office of the ISE. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2006-11 and should be
submitted on or before April 6, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-3788 Filed 3-15-06; 8:45 am]
BILLING CODE 8010-01-P
