Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to PrecISE Fees, 40566-40567 [E6-11210]
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40566
Federal Register / Vol. 71, No. 136 / Monday, July 17, 2006 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2006–37 and should be
submitted on or before August 7, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–11204 Filed 7–14–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54121; File No. SR–ISE–
2006–31]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to PrecISE Fees
July 10, 2006.
rwilkins on PROD1PC63 with NOTICES
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 June 30,
2006, the International Securities
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the ISE. The ISE
has designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the ISE under
Section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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: (i) Adopt PrecISE
through VPN fees; (ii) clarify the
application of a fee waiver for PrecISE
Trade terminals; and (iii) exempt
PrecISE through VPN from Session/API
fees. The text of the proposed rule
change 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.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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17:41 Jul 14, 2006
Jkt 208001
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 purpose of this proposed rule
change is to amend the Exchange’s
Schedule of Fees to: (i) Adopt PrecISE
through VPN fees; (ii) clarify the
application of a fee waiver for PrecISE
Trade terminals; and (iii) exempt
PrecISE through VPN from Session/API
fees.
PrecISE through VPN is a new method
for connecting a PrecISE Trade terminal
to the Exchange.5 A PrecISE through
VPN connection is available to
Electronic Access Members (‘‘EAMs’’) of
the Exchange. PrecISE through VPN
consists of PrecISE, a front-end, order
entry application that was recently
rolled out by the Exchange that will
eventually replace the current CLICK
trade terminals.6 PrecISE, in addition to
a dedicated network connection, also
runs over a secure ‘‘virtual private
network’’ (i.e., ‘‘VPN’’) over the Internet.
PrecISE through VPN was designed for
EAMs that want a lower cost, lower
bandwidth connection to the Exchange
than the traditional, dedicated network
PrecISE connection. The Exchange also
envisions that EAMs will use PrecISE
through VPN as a back-up or disaster
recovery connection to the Exchange. As
a result, the Exchange is proposing to
establish a monthly fee of $250 per
terminal for PrecISE through VPN to
through VPN is similar to CLICK
through VPN, for which the Exchange has
previously adopted fees. See Securities Exchange
Act Release No. 48157 (July 10, 2003), 68 FR 42443
(July 17, 2003) (notice and immediate effectiveness
of SR–ISE–2003–14).
6 The Exchange represents that PrecISE through
VPN is merely a different means of connecting to
the trading system operated by the Exchange known
as PrecISE (i.e., it is a new means of connecting to
the Exchange’s trading system), and does not
require any changes to the Exchange’s surveillance
or communications rules.
PO 00000
5 PrecISE
Frm 00098
Fmt 4703
Sfmt 4703
offset the Exchange’s costs for
maintaining these connections.
Secondly, the Exchange recently
adopted a waiver of fees related to the
new PrecISE Trade terminals, such that
fees for the first two months of a
member’s use of PrecISE Trade
terminals are waived.7 The Exchange
proposes to clarify that the waiver shall
only apply to those members that are
concurrently using both the old CLICK
Trade terminals and the new PrecISE
Trade terminals. The purpose of the
waiver is to allow an existing member
to transition from a CLICK Trade
terminal to a PrecISE Trade terminal,
without being charged both fees. For
example, new members who only have
PrecISE Trade terminals would not be
eligible for this fee waiver.
Finally, the Exchange is proposing
that PrecISE through VPN connections
be exempt from Session/API fees. As
with CLICK through VPN, Session/API
fees will not apply for connecting to the
Exchange’s trading system through a
VPN connection.
2. Statutory Basis
The Exchanges believes that the basis
under the Act for this proposed rule
change is the requirement under Section
6(b)(4) of the Act 8 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
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
7 See Securities Exchange Act Release No. 53788
(May 11, 2006), 71 FR 28728 (May 17, 2006) (notice
and immediate effectiveness of SR–ISE–2006–19).
8 15 U.S.C. 78f(b)(4).
E:\FR\FM\17JYN1.SGM
17JYN1
Federal Register / Vol. 71, No. 136 / Monday, July 17, 2006 / Notices
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(2) 10 thereunder. At any time
within 60 days of the filing of such
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.
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2006–31 and should be
submitted on or before August 7, 2006.
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:
BILLING CODE 8010–01–P
rwilkins on PROD1PC63 with NOTICES
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–2006–31 on the subject
line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–11210 Filed 7–14–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54124; File No. SR–ISE–
2005–49]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Order Approving Proposed Rule
Change and Amendment Nos. 1 and 2
Relating to Complex Order Execution
July 11, 2006.
I. Introduction
On October 4, 2005, the International
Securities Exchange, Inc. (‘‘ISE’’ or
Paper Comments
‘‘Exchange’’) filed with the Securities
• Send paper comments in triplicate
and Exchange Commission
to Nancy M. Morris, Secretary,
(‘‘Commission’’), pursuant to Section
Securities and Exchange Commission,
19(b)(1) of the Securities Exchange Act
Station Place, 100 F Street, NE.,
of 1934 (‘‘Act’’) 1 and Rule 19b–4
Washington, DC 20549–1090.
thereunder,2 a proposed rule change to
All submissions should refer to File
amend ISE Rule 722, ‘‘Complex
Number SR–ISE–2006–31. This file
Orders,’’ to allow the legs of an optionsnumber should be included on the
only complex order to be executed in
subject line if e-mail is used. To help the penny increments. The ISE filed
Commission process and review your
Amendment Nos. 1 and 2 to the
comments more efficiently, please use
proposal on February 1, 2006, and April
only one method. The Commission will 20, 2006, respectively.3 The proposed
post all comments on the Commission’s rule change, as amended by
Internet Web site (https://www.sec.gov/
Amendment Nos. 1 and 2, was
rules/sro.shtml). Copies of the
published for comment in the Federal
submission, all subsequent
Register on June 6, 2006.4 The
amendments, all written statements
Commission received no comments
with respect to the proposed rule
regarding the proposal, as amended.
change that are filed with the
This order approves the proposed rule
Commission, and all written
change, as amended.
communications relating to the
II. Description of the Proposal
proposed rule change between the
Commission and any person, other than
ISE Rule 722(b)(1) currently allows
those that may be withheld from the
the options leg(s) of a stock-option order
public in accordance with the
to be executed in one-cent increments,
provisions of 5 U.S.C. 552, will be
regardless of the minimum increment
available for inspection and copying in
otherwise applicable to the individual
the Commission’s Public Reference
options leg(s) of the order.5 The ISE
Room. Copies of such filing also will be
11 17 CFR 200.30–3(a)(12).
available for inspection and copying at
1 15 U.S.C. 78s(b)(1).
the principal office of the ISE.
2 17 CFR 240.19b–4.
All comments received will be posted
3 Amendment No. 2 replaced the initial filing and
without change; the Commission does
Amendment No. 1 in their entirety.
not edit personal identifying
4 See Securities Exchange Act Release No. 53909
information from submissions. You
(May 31, 2006), 71 FR 32617.
5 Under ISE Rule 710, ‘‘Minimum Trading
Increments,’’ the minimum trading increment is
$.05 for an options contract trading at less than
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 19b–4(f)(2).
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Fmt 4703
Sfmt 4703
40567
proposes to amend ISE Rule 722(b)(1) to
allow options-only complex orders, as
well as stock-option orders, to be
executed in one-cent increments. The
proposal retains the existing
requirement under the ISE’s rules that
allows a complex order to take priority
over established Public Customer
interest in the marketplace only if at
least one leg of the complex order trades
at a price that is better than the
corresponding bid or offer in the
marketplace by at least one minimum
trading increment, as provided in ISE
Rule 710.6
III. Discussion
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 and, in particular,
with Section 6(b)(5) of the Act,7 which
requires, among other things, that the
rules of a national securities exchange
be designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of, a free and
open market and a national market
system and, in general, to protect
investors and the public interest.8
Specifically, the Commission believes
that by allowing options-only complex
orders to be executed in one-cent
increments, the proposal may facilitate
the execution of options-only complex
orders by providing a greater number of
price points at which such orders may
be executed. As noted above, the ISE’s
rules will continue to require that at
least one leg of a complex order trade
at a price that is better than the
corresponding bid or offer in the
marketplace by at least one minimum
trading increment, as provided in ISE
Rule 710, when any of the established
bids or offers in the marketplace
consists of a Public Customer limit
order.9
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–ISE–2005–
49), as amended, is approved.
$3.00 per option and $.10 for an options contract
trading at $3.00 per option or higher.
6 See ISE Rule 722(b)(2).
7 15 U.S.C. 78f(b)(5).
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 See ISE Rule 722(b)(2).
10 15 U.S.C. 78s(b)(2).
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 71, Number 136 (Monday, July 17, 2006)]
[Notices]
[Pages 40566-40567]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11210]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54121; File No. SR-ISE-2006-31]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to PrecISE Fees
July 10, 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 June 30, 2006, the International Securities Exchange, Inc.
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the ISE.
The ISE has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the ISE under Section
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees to: (i) Adopt
PrecISE through VPN fees; (ii) clarify the application of a fee waiver
for PrecISE Trade[supreg] terminals; and (iii) exempt PrecISE through
VPN from Session/API fees. The text of the proposed rule change 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.
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 purpose of this proposed rule change is to amend the Exchange's
Schedule of Fees to: (i) Adopt PrecISE through VPN fees; (ii) clarify
the application of a fee waiver for PrecISE Trade terminals; and (iii)
exempt PrecISE through VPN from Session/API fees.
PrecISE through VPN is a new method for connecting a PrecISE Trade
terminal to the Exchange.\5\ A PrecISE through VPN connection is
available to Electronic Access Members (``EAMs'') of the Exchange.
PrecISE through VPN consists of PrecISE, a front-end, order entry
application that was recently rolled out by the Exchange that will
eventually replace the current CLICK trade terminals.\6\ PrecISE, in
addition to a dedicated network connection, also runs over a secure
``virtual private network'' (i.e., ``VPN'') over the Internet. PrecISE
through VPN was designed for EAMs that want a lower cost, lower
bandwidth connection to the Exchange than the traditional, dedicated
network PrecISE connection. The Exchange also envisions that EAMs will
use PrecISE through VPN as a back-up or disaster recovery connection to
the Exchange. As a result, the Exchange is proposing to establish a
monthly fee of $250 per terminal for PrecISE through VPN to offset the
Exchange's costs for maintaining these connections.
---------------------------------------------------------------------------
\5\ PrecISE through VPN is similar to CLICK through VPN, for
which the Exchange has previously adopted fees. See Securities
Exchange Act Release No. 48157 (July 10, 2003), 68 FR 42443 (July
17, 2003) (notice and immediate effectiveness of SR-ISE-2003-14).
\6\ The Exchange represents that PrecISE through VPN is merely a
different means of connecting to the trading system operated by the
Exchange known as PrecISE (i.e., it is a new means of connecting to
the Exchange's trading system), and does not require any changes to
the Exchange's surveillance or communications rules.
---------------------------------------------------------------------------
Secondly, the Exchange recently adopted a waiver of fees related to
the new PrecISE Trade terminals, such that fees for the first two
months of a member's use of PrecISE Trade terminals are waived.\7\ The
Exchange proposes to clarify that the waiver shall only apply to those
members that are concurrently using both the old CLICK Trade terminals
and the new PrecISE Trade terminals. The purpose of the waiver is to
allow an existing member to transition from a CLICK Trade terminal to a
PrecISE Trade terminal, without being charged both fees. For example,
new members who only have PrecISE Trade terminals would not be eligible
for this fee waiver.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 53788 (May 11,
2006), 71 FR 28728 (May 17, 2006) (notice and immediate
effectiveness of SR-ISE-2006-19).
---------------------------------------------------------------------------
Finally, the Exchange is proposing that PrecISE through VPN
connections be exempt from Session/API fees. As with CLICK through VPN,
Session/API fees will not apply for connecting to the Exchange's
trading system through a VPN connection.
2. Statutory Basis
The Exchanges believes that the basis under the Act for this
proposed rule change is the requirement under Section 6(b)(4) of the
Act \8\ that an exchange have an equitable allocation of reasonable
dues, fees and other charges among its members and other persons using
its facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change 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 establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to
[[Page 40567]]
Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(2) \10\
thereunder. At any time within 60 days of the filing of such 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2006-31 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-2006-31. 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 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-2006-31
and should be submitted on or before August 7, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-11210 Filed 7-14-06; 8:45 am]
BILLING CODE 8010-01-P
