Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Rule 1406, Regulatory Cooperation, 45875-45876 [E6-13006]

Download as PDF Federal Register / Vol. 71, No. 154 / Thursday, August 10, 2006 / Notices Room. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–ISE–2006–45 and should be submitted on or before August 31, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.34 Nancy M. Morris, Secretary. [FR Doc. E6–13005 Filed 8–9–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54270; File No. SR–ISE– 2006–34] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Rule 1406, Regulatory Cooperation August 3, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 31, 2006, the International Securities Exchange, Inc. (‘‘Exchange’’ or ‘‘ISE’’) 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 July 7, 2006, ISE filed Amendment No. 1 to the proposed rule change. The Exchange filed the proposed rule change as a ‘‘non-controversial’’ rule change under Rule 19b–4(f)(6) under the Act,3 which rendered the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. rwilkins on PROD1PC61 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend ISE Rule 1406, Regulatory Cooperation, to CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 15 VerDate Aug<31>2005 21:27 Aug 09, 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 Exchange 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 Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. BILLING CODE 8010–01–P 34 17 clarify that the Exchange may contract with another self-regulatory organization (‘‘SRO’’) for the performance of certain regulatory functions. The text of the proposed rule change is available on ISE’s Web site, https://www.iseoptions.com, at ISE’s Office of the Secretary, and at the Commission’s Public Reference Room. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose ISE Rule 1406 allows the Exchange to enter into agreements with domestic and foreign SROs, associations and contract markets and the regulators of such markets for the exchange of information and other regulatory purposes. The Exchange proposes to amend ISE Rule 1406 to specify that the Exchange may contract with another SRO for the performance of certain of ISE’s regulatory functions.4 ISE states that such regulatory services agreements could enhance ISE’s ability to carry out its regulatory obligations under the Act. This rule change would have immediate applicability with respect to a regulatory services agreement (‘‘RSA’’) between ISE, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), and other options markets participating in the Options Regulatory Surveillance Authority national market system plan (‘‘ORSA’’). ISE has determined that to best discharge its SRO responsibilities, it will contract with CBOE, which is subject to Commission oversight pursuant to sections 6 and 19 of the Act,5 for CBOE to provide certain regulatory services to ISE, as set forth in 4 The Exchange states that the proposed rule change is identical to rule changes recently adopted by other options markets. See, e.g., Securities Exchange Act Release No. 53832 (May 18, 2006), 71 FR 30007 (May 24, 2006) (SR–CBOE–2006–46). 5 15 U.S.C. 78f and 15 U.S.C. 78s. PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 45875 the ORSA RSA. In performing services under the ORSA RSA, CBOE will be operating pursuant to the statutory SRO responsibilities of ISE under Sections 6 and 19, as well as performing for itself its own SRO responsibilities. According to the proposed rule change, ISE remains an SRO registered under Section 6 of the Act 6 under any agreement for regulatory services with another SRO and, therefore, continues to have statutory authority and responsibility for enforcing compliance by its members, and persons associated with its members, with the Act, the rules thereunder, and the rules of the Exchange. The proposed rule change specifically states that any action taken by another SRO, or its employees or authorized agents, operating on behalf of ISE pursuant to a regulatory services agreement with ISE, will be deemed an action taken by ISE. Under any agreement for regulatory services with another SRO, ISE retains ultimate responsibility for performance of its SRO duties, and the proposed rule change states that ISE shall retain ultimate legal responsibility for, and control of, its SRO responsibilities. 2. Statutory Basis The Exchange believes that the proposed rule change furthers the objectives of section 6(b)(5) of the Act,7 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. In particular, the proposal specifies in the Exchange’s rules that the Exchange may enter into regulatory services agreements, which the ISE believes could enhance the Exchange’s regulatory program. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 6 15 7 15 E:\FR\FM\10AUN1.SGM U.S.C. 78f. U.S.C. 78f(b)(5). 10AUN1 45876 Federal Register / Vol. 71, No. 154 / Thursday, August 10, 2006 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others 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: The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of filing, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 8 and subparagraph (f)(6) of Rule 19b–4 thereunder.9 The Exchange has requested that the Commission waive the 30-day operative delay period for ‘‘non-controversial’’ proposals and make the proposed rule change effective and operative upon filing. The Commission hereby grants the request. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. In this regard, the Commission believes that the proposal should be implemented without delay because of its immediate applicability with respect to the RSA among ISE, CBOE and the other ORSA participants.10 For this reason, the Commission designates the proposal to be effective and operative upon filing with the Commission. 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 the furtherance of the purposes of the Act.11 8 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10 The Commission notes that the proposed rule change is based on a similar rule of the Boston Stock Exchange, Inc. See Securities Exchange Act Release No. 53436 (March 7, 2006), 71 FR 13194 (March 14, 2006) (SR–BSE–2006–08). 11 See 15 U.S.C. 78s(b)(3)(C). 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 July 7, 2006, the date on which the Exchange submitted Amendment No. 1. rwilkins on PROD1PC61 with NOTICES 9 17 VerDate Aug<31>2005 21:27 Aug 09, 2006 Jkt 208001 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–2006–34 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54271; File No. SR– NASDAQ–2006–027] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Date for Compliance With Regulation NMS August 3, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 2, Paper Comments 2006, The NASDAQ Stock Market LLC • Send paper comments in triplicate (‘‘Nasdaq’’) filed with the Securities and to Nancy M. Morris, Secretary, Exchange Commission (‘‘Commission’’) Securities and Exchange Commission, the proposed rule change as described 100 F Street, NE., Washington, DC in Items I and II below, which Items 20549–1090. have been prepared by Nasdaq. Nasdaq All submissions should refer to File has filed the proposal pursuant to Number SR–ISE–2006–34. This file Section 19(b)(3)(A) of the Act 3 and Rule number should be included on the 4 subject line if e-mail is used. To help the 19b–4(f)(6) thereunder, which renders the proposal effective upon filing with Commission process and review your the Commission. The Commission is comments more efficiently, please use only one method. The Commission will publishing this notice to solicit post all comments on the Commission’s comments on the proposed rule change from interested persons. Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule change that are filed with the Nasdaq proposes to modify the date Commission, and all written upon which its execution systems communications relating to the would be in compliance with proposed rule change between the Regulation NMS under the Act Commission and any person, other than (‘‘Regulation NMS’’). The text of the those that may be withheld from the proposed rule change is available on public in accordance with the Nasdaq’s Web site at https:// provisions of 5 U.S.C. 552, will be www.nasdaq.com, at the principal office available for inspection and copying in of Nasdaq, and at the Commission’s the Commission’s Public Reference Public Reference Room. Room. Copies of such filing also will be II. Self-Regulatory Organization’s available for inspection and copying at the principal office of the Exchange. All Statement of the Purpose of, and Statutory Basis for, the Proposed Rule comments received will be posted Change without change; the Commission does not edit personal identifying In its filing with the Commission, information from submissions. You Nasdaq included statements concerning should submit only information that the purpose of and basis for the you wish to make available publicly. All proposed rule change and discussed any submissions should refer to File Number SR–ISE–2006–34 and should be comments it received on the proposed submitted on or before August 31, 2006. rule change. The text of these statements may be examined at the places specified For the Commission, by the Division of in Item IV below. Nasdaq has prepared Market Regulation, pursuant to delegated summaries, set forth in sections A, B, authority.12 and C below, of the most significant Nancy M. Morris, aspects of such statements. Secretary. [FR Doc. E6–13006 Filed 8–9–06; 8:45 am] BILLING CODE 8010–01–P 12 17 PO 00000 Fmt 4703 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 2 17 CFR 200.30–3(a)(12). Frm 00112 1 15 Sfmt 4703 E:\FR\FM\10AUN1.SGM 10AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 154 (Thursday, August 10, 2006)]
[Notices]
[Pages 45875-45876]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13006]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54270; File No. SR-ISE-2006-34]


Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendment No. 1 Thereto Relating to Rule 1406, Regulatory 
Cooperation

August 3, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 31, 2006, the International Securities Exchange, Inc. 
(``Exchange'' or ``ISE'') 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 July 7, 2006, ISE filed Amendment No. 1 to the proposed rule change. 
The Exchange filed the proposed rule change as a ``non-controversial'' 
rule change under Rule 19b-4(f)(6) under the Act,\3\ which rendered the 
proposal effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend ISE Rule 1406, Regulatory 
Cooperation, to clarify that the Exchange may contract with another 
self-regulatory organization (``SRO'') for the performance of certain 
regulatory functions. The text of the proposed rule change is available 
on ISE's Web site, https://www.iseoptions.com, at ISE's Office of the 
Secretary, 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 proposed rule change. 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
    ISE Rule 1406 allows the Exchange to enter into agreements with 
domestic and foreign SROs, associations and contract markets and the 
regulators of such markets for the exchange of information and other 
regulatory purposes. The Exchange proposes to amend ISE Rule 1406 to 
specify that the Exchange may contract with another SRO for the 
performance of certain of ISE's regulatory functions.\4\ ISE states 
that such regulatory services agreements could enhance ISE's ability to 
carry out its regulatory obligations under the Act.
---------------------------------------------------------------------------

    \4\ The Exchange states that the proposed rule change is 
identical to rule changes recently adopted by other options markets. 
See, e.g., Securities Exchange Act Release No. 53832 (May 18, 2006), 
71 FR 30007 (May 24, 2006) (SR-CBOE-2006-46).
---------------------------------------------------------------------------

    This rule change would have immediate applicability with respect to 
a regulatory services agreement (``RSA'') between ISE, the Chicago 
Board Options Exchange, Incorporated (``CBOE''), and other options 
markets participating in the Options Regulatory Surveillance Authority 
national market system plan (``ORSA''). ISE has determined that to best 
discharge its SRO responsibilities, it will contract with CBOE, which 
is subject to Commission oversight pursuant to sections 6 and 19 of the 
Act,\5\ for CBOE to provide certain regulatory services to ISE, as set 
forth in the ORSA RSA. In performing services under the ORSA RSA, CBOE 
will be operating pursuant to the statutory SRO responsibilities of ISE 
under Sections 6 and 19, as well as performing for itself its own SRO 
responsibilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f and 15 U.S.C. 78s.
---------------------------------------------------------------------------

    According to the proposed rule change, ISE remains an SRO 
registered under Section 6 of the Act \6\ under any agreement for 
regulatory services with another SRO and, therefore, continues to have 
statutory authority and responsibility for enforcing compliance by its 
members, and persons associated with its members, with the Act, the 
rules thereunder, and the rules of the Exchange. The proposed rule 
change specifically states that any action taken by another SRO, or its 
employees or authorized agents, operating on behalf of ISE pursuant to 
a regulatory services agreement with ISE, will be deemed an action 
taken by ISE. Under any agreement for regulatory services with another 
SRO, ISE retains ultimate responsibility for performance of its SRO 
duties, and the proposed rule change states that ISE shall retain 
ultimate legal responsibility for, and control of, its SRO 
responsibilities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change furthers the 
objectives of section 6(b)(5) of the Act,\7\ 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. In particular, the proposal 
specifies in the Exchange's rules that the Exchange may enter into 
regulatory services agreements, which the ISE believes could enhance 
the Exchange's regulatory program.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

[[Page 45876]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change: (i) Does not significantly affect 
the protection of investors or the public interest; (ii) does not 
impose any significant burden on competition; and (iii) by its terms, 
does not become operative for 30 days after the date of filing, or such 
shorter time as the Commission may designate, if consistent with the 
protection of investors and the public interest, the proposed rule 
change has become effective pursuant to section 19(b)(3)(A) of the Act 
\8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ The Exchange 
has requested that the Commission waive the 30-day operative delay 
period for ``non-controversial'' proposals and make the proposed rule 
change effective and operative upon filing. The Commission hereby 
grants the request. The Commission believes that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. In this regard, the Commission believes that the 
proposal should be implemented without delay because of its immediate 
applicability with respect to the RSA among ISE, CBOE and the other 
ORSA participants.\10\ For this reason, the Commission designates the 
proposal to be effective and operative upon filing with the Commission.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ The Commission notes that the proposed rule change is based 
on a similar rule of the Boston Stock Exchange, Inc. See Securities 
Exchange Act Release No. 53436 (March 7, 2006), 71 FR 13194 (March 
14, 2006) (SR-BSE-2006-08).
---------------------------------------------------------------------------

    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 the furtherance of the purposes of the Act.\11\
---------------------------------------------------------------------------

    \11\ See 15 U.S.C. 78s(b)(3)(C). 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 July 7, 
2006, the date on which the Exchange submitted Amendment No. 1.
---------------------------------------------------------------------------

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-2006-34 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-2006-34. 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 Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-ISE-2006-34 and should be submitted on or before August 
31, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-13006 Filed 8-9-06; 8:45 am]
BILLING CODE 8010-01-P

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