Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Fee Changes, 33022-33024 [E6-8807]
Download as PDF
33022
Federal Register / Vol. 71, No. 109 / Wednesday, June 7, 2006 / Notices
introducing new products to the
marketplace that are competitively
priced.
Additionally, the Exchange proposes
to remove SWH (Software HOLDRS)
from the list of Premium Products on
the Schedule of Fees. SWH has been
delisted from ISE and no longer trades
on the Exchange.
2. Statutory Basis
The Exchange believes that the basis
under the Act for this proposed rule
change is the requirement under section
6(b)(4) of the Act 12 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, 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. 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
Because the foregoing rule change, as
amended, establishes or changes a due,
fee, or other charge imposed by the
Exchange, it has become effective
pursuant to section 19(b)(3) of the Act 13
and Rule 19b–4(f)(2) 14 thereunder. At
any time within 60 days of the filing of
such amended 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. 15
12 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A).
14 17 CFR 19b–4(f)(2).
15 The effective date of the original proposed rule
is April 26, 2006. The effective date of Amendment
No. 1 is May 18, 2006. For purposes of calculating
the 60-day period within which the Commission
may summarily abrogate the proposed rule change
under section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
May 18, 2006, the date on which the ISE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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13 15
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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 rulecomments@sec.gov. Please include File
No. SR–ISE–2006–22 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53914; File No. SR–ISE–
2006–25]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Fee Changes
May 31, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on May 5,
2006, the International Securities
• Send paper comments in triplicate
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
filed with the Securities and Exchange
Station Place, 100 F Street, NE.,
Commission (‘‘Commission’’) the
Washington, DC 20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–ISE–2006–22. This file
have been prepared by the ISE. On May
number should be included on the
23, 2006, ISE filed Amendment No. 1 to
subject line if e-mail is used. To help the the proposed rule change.3 The ISE has
Commission process and review your
designated this proposal as one
comments more efficiently, please use
establishing or changing a due, fee, or
only one method. The Commission will other charge imposed by the ISE under
post all comments on the Commission’s section 19(b)(3)(A)(ii) of the Act,4 and
Internet Web site (https://www.sec.gov/
Rule 19b–4(f)(2) thereunder,5 which
rules/sro.shtml). Copies of the
renders the proposal effective upon
submission, all subsequent
filing with the Commission. The
amendments, all written statements
Commission is publishing this notice to
with respect to the proposed rule
solicit comments on the proposed rule
change that are filed with the
change, as amended, from interested
Commission, and all written
persons.
communications relating to the
proposed rule change between the
I. Self-Regulatory Organization’s
Commission and any person, other than Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
The ISE is proposing to amend its
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
Schedule of Fees to establish fees for
the Commission’s Public Reference
transactions in options on two Premium
Room. Copies of such filing also will be Products.6 The text of the proposed rule
available for inspection and copying at
change, as amended, is available on the
the principal office of the ISE. All
ISE’s Web site (https://
comments received will be posted
www.iseoptions.com/legal/
without change; the Commission does
proposed_rule_changes.asp), at the
not edit personal identifying
principal office of the ISE, and at the
information from submissions. You
Commission’s Public Reference Room.
should submit only information that
you wish to make available publicly. All
1 15 U.S.C. 78s(b)(1).
submissions should refer to File
2 17 CFR 240.19b–4.
Number SR–ISE–2006–22 and should be
3 Amendment No. 1 added clarifying language to
submitted on or before June 28, 2006.
the purpose section of the filing regarding fees
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8806 Filed 6–6–06; 8:45 am]
BILLING CODE 8010–01–P
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00110
Fmt 4703
Sfmt 4703
charged to non-ISE Market Makers for transactions
in options on the Premium Products and made a
technical change to the text of Exhibit 5 (ISE’s
Schedule of Fees) correcting the symbol for the
Mini FTSE 100 Index from UKZ to UKX. The
correction to Exhibit 5 does not affect the fees
covered by this filing.
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
6 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
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Federal Register / Vol. 71, No. 109 / Wednesday, June 7, 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 proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The ISE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
rwilkins on PROD1PC63 with NOTICES
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the following
two Premium Products: Mini FTSE 100
Index (‘‘UKX’’) and Mini FTSE 250
Index (‘‘FTZ’’).7 Specifically, the
Exchange is proposing to adopt an
execution fee and a comparison fee for
all transactions in options on UKX and
FTZ.8 The amount of the execution fee
and comparison fee for products
covered by this filing shall be $0.15 and
$0.03 per contract, respectively, for all
Public Customer Orders 9 and Firm
Proprietary orders. The amount of the
execution fee and comparison fee for all
ISE Market Maker transactions and all
non-ISE Market Maker transactions shall
be equal to the execution fee and
comparison fee currently charged by the
Exchange for ISE Market Maker
transactions and non-ISE Market Maker
transactions in equity options.10 All of
the applicable fees covered by this filing
are identical to fees charged by the
Exchange for all other Premium
Products. The Exchange believes the
proposed rule change will further the
Exchange’s goal of introducing new
7 See Securities Exchange Act Release No. 53484
(March 14, 2006), 71 FR 14268 (March 21, 2006)
(SR-ISE–2005–25) (order approving the trading of
options on full and reduced values of the FTSE 100
Index and FTSE 250 Index, including Long-Term
Options).
8 The Exchange represents that these fees will be
only 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).
9 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.
10 Telephone conversation between Samir Patel,
Assistant General Counsel, ISE, and Richard Holley,
Special Counsel, Division of Market Regulation,
Commission, on May 31, 2006.
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17:54 Jun 06, 2006
Jkt 208001
products to the marketplace that are
competitively priced.
Additionally, the Exchange has
entered into a license agreement with
FTSE International Limited in
connection with the listing and trading
of options on UKX and FTZ. As with
certain other licensed options, the
Exchange is adopting a fee of ten (10)
cents per contract for trading in these
options to defray the licensing costs.
The Exchange believes charging the
participants that trade this instrument is
the most equitable means of recovering
the costs of the license. However,
because of competitive pressures in the
industry, the Exchange proposes to
exclude Public Customer Orders from
this surcharge fee. Accordingly, this
surcharge fee will only be charged to
Exchange members with respect to nonPublic Customer Orders (e.g., ISE
Market Maker, non-ISE Market Maker &
Firm Proprietary orders) and shall apply
to Linkage Orders 11 under a pilot
program that is set to expire on July 31,
2006. Further, since options on UKX
and FTZ are not multiply-listed, the
Payment for Order Flow fee shall not
apply.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with section 6(b)(4) of the
Act,12 which requires 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 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. 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 has become
effective pursuant to section 19(b)(3)(A)
11 See
12 15
PO 00000
ISE Rule 1900.
U.S.C. 78f(b)(4).
Frm 00111
Fmt 4703
Sfmt 4703
33023
of the Act 13 and Rule 19b–4(f)(2) 14
thereunder because it changes a fee
imposed by the Exchange. At any time
within 60 days of the filing of such
amended 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.15
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
No. SR–ISE–2006–25 on the subject
line.
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.
All submissions should refer to File
Number SR–ISE–2006–25. 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
13 15
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
15 The effective date of the original proposed rule
is May 5, 2006. The effective date of Amendment
No. 1 is May 23, 2006. For purposes of calculating
the 60-day period within which the Commission
may summarily abrogate the proposed rule change
under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
May 23, 2006, the date on which the ISE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
14 17
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33024
Federal Register / Vol. 71, No. 109 / Wednesday, June 7, 2006 / Notices
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–2006–25 and should be
submitted on or before June 28, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8807 Filed 6–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53913; File No. SR–
NASDAQ–2006–008]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
The NASDAQ Stock Market LLC To
Require Securities Be Eligible for a
Direct Registration System
May 31, 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 April 27,
2006, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which items
have been prepared primarily by
Nasdaq. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to require securities
to be eligible for a Direct Registration
System (‘‘DRS’’).3 The text of the
proposed rule change is below.
Proposed new language is in italics, and
proposed deletions are in brackets.4
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Nasdaq refers to a Direct Registration System as
a Direct Registration Program. For purposes of
clarity and consistency with other related filings
referred to below, the term Direct Registration
System or DRS will be used in place of Direct
Registration Program or DRP in this notice.
4 Changes are marked to the rules of The
NASDAQ Stock Market LLC found at https://
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1 15
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Jkt 208001
Rule 4350. Qualitative Listing
Requirements for Nasdaq Issuers
Except for Limited Partnerships
(a)–(k) No change.
(l) Direct Registration Program
(1) All securities initially listing on
Nasdaq on or after January 1, 2007,
must be eligible for a Direct Registration
Program operated by a clearing agency
registered under Section 17A of the
Exchange Act. This provision does not
extend to: (i) additional classes of
securities of companies which already
have securities listed on Nasdaq; (ii)
companies which immediately prior to
such listing had securities listed on
another registered securities exchange
in the U.S.; or, (iii) non-equity securities
which are book-entry-only.
(2) On and after January 1, 2008, all
securities listed on Nasdaq (except nonequity securities which are book-entryonly) must be eligible for a Direct
Registration Program operated by a
clearing agency registered under Section
17A of the Exchange Act.
(3) If an issuer establishes or
maintains a Direct Registration Program
for its shareholders, the issuer shall,
directly or through its transfer agent,
participate in an electronic link with a
[securities depository] clearing agency
registered under Section 17A of the
Exchange Act to facilitate the electronic
transfer of securities held pursuant to
such program.
(m)–(n) 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,
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 these statements.5
www.nasdaqtrader.com. These rules will become
effective when Nasdaq fulfills certain conditions
and commences operations as a national securities
exchange, which became effective April 17, 2006,
but has not yet been published. See Exchange Act
Release No. 53128 (January 13, 2006), 71 FR 3550
(January 23, 2006) [File No. 10–131]. Nasdaq
modified the title to Rule 4350. This filing reflects
the revised title.
5 The Commission has modified portions of the
text of the summaries prepared by the Nasdaq.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq Rule 4350(l) currently allows
an issuer to establish a DRS for its
shareholders provided the issuer,
directly or through its transfer agent,
participates in an electronic link with a
clearing agency registered under Section
17A of the Exchange Act. DRS permits
an investor’s ownership position to be
recorded and maintained in book-entry
form on the records of the issuer or its
transfer agent. Because ownership
positions are recorded in book-entry
form, investors receive an account
statement from the issuer or its transfer
agent as evidence of ownership instead
of receiving a physical certificate.
Brokerage firms and transfer agents are
linked through an electronic system
administered by The Depository Trust
Company (‘‘DTC’’) thereby permitting
securities positions to be electronically
transferred between a broker-dealer and
a transfer agent without the need to
transfer for physical certificates.6
Nasdaq believes that DRS will be an
important step in reducing the use of
physical certificates which will
facilitate efficiencies and reduced risks
in securities transactions and could
eventually lead to lower costs for issuers
and investors.7 As such, to encourage
the use of DRS, Nasdaq is proposing to
amend its rules to require that all listed
securities be eligible to participate in
DRS.8 While this proposed rule change
would require that issuers’ securities be
eligible for DRS, it would not require
issuers to participate in DRS and would
6 Currently, the only registered clearing agency
operating a DRS is DTC. For a description of DRS
and the DRS facilities administered by DTC, see
Securities Exchange Act Release Nos. 37931
(November 7, 1996), 61 FR 58600 (November 15,
1996), [File No. SR–DTC–96–15] (order granting
approval to establish DRS) and 41862 (September
10, 1999), 64 FR 51162 (September 21, 1999), [File
No. SR–DTC–99–16] (order approving
implementation of the Profile Modification System).
7 In March 2004, the Commission published a
concept release that discussed, among other things,
whether more should be done to reduce the use of
physical certificates by individual investors. The
Commission noted that the use of physical
certificates increases the costs and risks of clearing
and settling securities transactions, costs that most
often are ultimately born by investors. Securities
Exchange Act Release 8398 (March 11, 2004), 69 FR
12922 (March 18, 2004) [File No. S7–13–04]
(Securities Transaction Settlement concept release).
8 The New York Stock Exchange LLC and the
American Stock Exchange LLC have also filed
proposed rule changes with the Commission that
would require certain listed companies securities
DRS eligible. Securities Exchange Act Release Nos.
53912 (May 31, 2006) [File No. SR–NYSE–2006–29]
and 53911 (May 31, 2006) [File No. SR–Amex–
2006–40].
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Agencies
[Federal Register Volume 71, Number 109 (Wednesday, June 7, 2006)]
[Notices]
[Pages 33022-33024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8807]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53914; File No. SR-ISE-2006-25]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto Relating to Fee Changes
May 31, 2006.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 5, 2006, the International Securities Exchange, Inc.
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the ISE.
On May 23, 2006, ISE 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 the ISE under 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\ Amendment No. 1 added clarifying language to the purpose
section of the filing regarding fees charged to non-ISE Market
Makers for transactions in options on the Premium Products and made
a technical change to the text of Exhibit 5 (ISE's Schedule of Fees)
correcting the symbol for the Mini FTSE 100 Index from UKZ to UKX.
The correction to Exhibit 5 does not affect the fees covered by this
filing.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees to establish
fees for transactions in options on two Premium Products.\6\ The text
of the proposed rule change, as amended, is available on the ISE's Web
site (https://www.iseoptions.com/legal/proposed_rule_changes.asp), at
the principal office of the ISE, and at the Commission's Public
Reference Room.
---------------------------------------------------------------------------
\6\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
---------------------------------------------------------------------------
[[Page 33023]]
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 proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The ISE has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend its Schedule of Fees to
establish fees for transactions in options on the following two Premium
Products: Mini FTSE 100 Index (``UKX'') and Mini FTSE 250 Index
(``FTZ'').\7\ Specifically, the Exchange is proposing to adopt an
execution fee and a comparison fee for all transactions in options on
UKX and FTZ.\8\ The amount of the execution fee and comparison fee for
products covered by this filing shall be $0.15 and $0.03 per contract,
respectively, for all Public Customer Orders \9\ and Firm Proprietary
orders. The amount of the execution fee and comparison fee for all ISE
Market Maker transactions and all non-ISE Market Maker transactions
shall be equal to the execution fee and comparison fee currently
charged by the Exchange for ISE Market Maker transactions and non-ISE
Market Maker transactions in equity options.\10\ All of the applicable
fees covered by this filing are identical to fees charged by the
Exchange for all other Premium Products. The Exchange believes the
proposed rule change will further the Exchange's goal of introducing
new products to the marketplace that are competitively priced.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 53484 (March 14,
2006), 71 FR 14268 (March 21, 2006) (SR-ISE-2005-25) (order
approving the trading of options on full and reduced values of the
FTSE 100 Index and FTSE 250 Index, including Long-Term Options).
\8\ The Exchange represents that these fees will be only 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).
\9\ 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.
\10\ Telephone conversation between Samir Patel, Assistant
General Counsel, ISE, and Richard Holley, Special Counsel, Division
of Market Regulation, Commission, on May 31, 2006.
---------------------------------------------------------------------------
Additionally, the Exchange has entered into a license agreement
with FTSE International Limited in connection with the listing and
trading of options on UKX and FTZ. As with certain other licensed
options, the Exchange is adopting a fee of ten (10) cents per contract
for trading in these options to defray the licensing costs. The
Exchange believes charging the participants that trade this instrument
is the most equitable means of recovering the costs of the license.
However, because of competitive pressures in the industry, the Exchange
proposes to exclude Public Customer Orders from this surcharge fee.
Accordingly, this surcharge fee will only be charged to Exchange
members with respect to non-Public Customer Orders (e.g., ISE Market
Maker, non-ISE Market Maker & Firm Proprietary orders) and shall apply
to Linkage Orders \11\ under a pilot program that is set to expire on
July 31, 2006. Further, since options on UKX and FTZ are not multiply-
listed, the Payment for Order Flow fee shall not apply.
---------------------------------------------------------------------------
\11\ See ISE Rule 1900.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with section 6(b)(4) of the Act,\12\ which requires 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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\12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change 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. 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 has become effective pursuant to section
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(2) \14\ thereunder
because it changes a fee imposed by the Exchange. At any time within 60
days of the filing of such amended 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.\15\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 19b-4(f)(2).
\15\ The effective date of the original proposed rule is May 5,
2006. The effective date of Amendment No. 1 is May 23, 2006. For
purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on May 23, 2006, the date on which the ISE 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, 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 No. SR-ISE-2006-25 on the subject line.
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.
All submissions should refer to File Number SR-ISE-2006-25. 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
[[Page 33024]]
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-
2006-25 and should be submitted on or before June 28, 2006.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-8807 Filed 6-6-06; 8:45 am]
BILLING CODE 8010-01-P