Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating To Doing Business With the Public, 53483-53485 [E6-14947]

Download as PDF Federal Register / Vol. 71, No. 175 / Monday, September 11, 2006 / Notices records will be accessible electronically from the Agencywide Documents Access and Management Systems (ADAMS) Public Electronic Reading Room on the internet at the NRC Web site, https://www.nrc.gov/readingrm.html. Persons who do not have access to ADAMS or who encounter problems in accessing the documents located in ADAMS should contact the NRC PDR Reference staff by telephone at 1–800–397–4209, or 301–415–4737 or by e-mail to pdr@nrc.gov. Dated at Rockville, Maryland, this 1st day of September 2006. For the Nuclear Regulatory Commission. Stephen J. Campbell, Project Manager, Plant Licensing Branch III– 2, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. E6–14936 Filed 9–8–06; 8:45 am] BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. rwilkins on PROD1PC61 with NOTICES Extension: Rule 27e–1 and Form N–27E–1; SEC File No. 270–486; OMB Control No. 3235– 0545. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension of the previously approved collection of information discussed below. Section 27(e) of the Investment Company Act of 1940 (‘‘Act’’) (15 U.S.C. 80a–27(e)) provides that a registered investment company issuing a periodic payment plan certificate, or any depositor or underwriter for such company, must notify in writing ‘‘each certificate holder who has missed three payments or more, within thirty days following the expiration of fifteen months after the issuance of the certificate, or, if any such holder has missed one payment or more after such period of fifteen months but prior to the expiration of eighteen months after the issuance of the certificate, at any time prior to the expiration of such eighteen month period, of his right to surrender his certificate * * * and inform the certificate holder of (A) the value of the VerDate Aug<31>2005 18:03 Sep 08, 2006 Jkt 208001 holder’s account * * *, and (B) the amount to which he is entitled * * *.’’ Section 27(e) authorizes the Commission to ‘‘make rules specifying the method, form, and contents of the notice required by this subsection.’’ Rule 27e–1 (17 CFR 270.27e–1) under the Act, entitled ‘‘Requirements for Notice to Be Mailed to Certain Purchasers of Periodic Payment Plan Certificates Sold Subject to Section 27(d) of the Act,’’ provides instructions for the delivery of the notice required by section 27(e). Rule 27e–1(f) prescribes Form N–27E– 1 (17 CFR 274.127e–1), which sets forth the language the issuing registered investment company or its depositor or underwriter must use ‘‘to inform certificate holders of their right to surrender their certificates pursuant to Section 27(d).’’ The instructions to the form require that a notice containing the language on the form be sent to certificate holders on the sender’s letterhead. The issuer is not required to file with the Commission a copy of the Form N–27E–1 notice. The Form N–27E–1 notice to certificate holders who have missed certain payments is intended to encourage certificate holders, in light of the potential for further missed payments, to weigh the anticipated costs and benefits associated with continuing to hold their certificates. The disclosure assists certificate holders in making careful and fully informed decisions about whether to continue investing in periodic payment plan certificates. The frequency with which each of these issuers or their representatives must file the Form N–27E–1 notice varies with the number of periodic payment plans sold and the number of certificate holders who miss payments. The staff spoke with representatives of a number of firms in the industry that currently have periodic payment plan accounts. Based upon these conversations, the staff estimates that 3 respondents send out an aggregate of approximately 5054 notices per year through completely automated processes. The staff further estimates that all the issuers that send Form N– 27E–1 notices use outside contractors to print and distribute the notice, and incur no hourly burden. The estimate of annual burden hours is made solely for the purposes of the Paperwork Reduction Act, and is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules and forms. Complying with the collection of information requirements of rule 27e–1 is mandatory for issuers of periodic payment plans or their depositors or PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 53483 underwriters in the event holders of plan certificates miss certain payments within eighteen months after issuance. The information provided pursuant to rule 27e–1 will be provided to third parties and, therefore, will not be kept confidential. The Commission is seeking OMB approval, because an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. General comments regarding the above information should be directed to the following persons: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or by e-mail to: David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or by e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days after this notice. Dated: September 1, 2006. Nancy M. Morris, Secretary. [FR Doc. E6–14948 Filed 9–8–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54401; File No. SR–ISE– 2006–53] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating To Doing Business With the Public September 1, 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 August 31, 2006, the International Securities Exchange, Inc. (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been prepared by the ISE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is 1 15 2 15 E:\FR\FM\11SEN1.SGM U.S.C. 78s(b)(1). U.S.C. 240.19b–4. 11SEN1 53484 Federal Register / Vol. 71, No. 175 / Monday, September 11, 2006 / Notices approving the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to adopt a rule with respect to members doing business with the public on the ISE, in anticipation of the Exchange’s entry into the trading of non-option equity securities. Below is the text of the proposed rule change. Proposed new language is in italics. * * * * * Rule 2106. Doing Business With the Public An Equity EAM that does business with the public must also be a member of the NASD. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and the 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 III 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 rwilkins on PROD1PC61 with NOTICES 1. Purpose Currently, the ISE only trades options on equity securities and indices. The purpose of this proposed rule change is to adopt a rule that incorporates provisions related to non-option equity securities to reflect ISE’s intention to begin trading non-option equity securities. Specifically, the ISE will require ISE Electronic Access Members (‘‘EAMs’’) trading equity securities on the ISE (‘‘Equity EAMs’’) who do business with the public to also be members of the NASD. As such those ISE members would be required to comply with NASD rules that govern the practices of members when doing business with the public. Among other things, these members would be obligated: • To make suitable recommendations to customers when recommending the VerDate Aug<31>2005 18:03 Sep 08, 2006 Jkt 208001 purchase, sale or exchange of any security; 3 • To be aware of possible application of SEC Rule 15g–1 through 15g–9 when a transaction involves a non-exchange listed equity security trading for less than five dollars per share; 4 • To deal fairly with customers and others; 5 • To use reasonable diligence to ascertain the best inter-dealer market for the subject security and buy or sell in such market so that the resultant price to the customer is as favorable as possible under prevailing market conditions; 6 • To segregate and identify by customers both fully paid and ‘‘excess margin’’ securities; 7 • To make proper use of a customer’s securities or funds; 8 • To send a statement of account, no less than once every calendar year, containing a description of any securities position, money balances, or account activity to each customer whose account had a security position, money balance, or account activity during the period since the last such statement was sent to the customer; 9 • To provide customers with a margin disclosure statement prior to or at the time of opening a margin account; 10 • To comply with the provisions of NASD Rule 2350 if the member accepts deposits on the premises of a financial institution; 11 • To provide a risk disclosure statement set forth in NASD Rule 2361 prior to opening a day-trading account for a customer; 12 and • To not borrow from, or lend money to, a customer unless the member complies with the provisions of NASD Rule 2370.13 2. Statutory Basis 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 the requirements of Section 6(b)(5) 14 of the Act. Section 6(b)(5) requires, among other things, that the rules of an exchange be designed to promote just and equitable principles of 3 See NASD Rules 2310, IM–2310–3 and 2315. NASD Rule IM–2310–1. 5 See NASD Rule IM–2310–2. 6 See NASD Rule 2320. 7 See NASD Rule IM–2330. 8 See NASD Rule 2330. 9 See NASD Rule 2340. 10 See NASD Rule 2341. 11 See NASD Rule 2350. 12 See NASD Rules 2360 and 2361. 13 See NASD Rule 2370. 14 5 U.S.C. 78f(b)(5). 4 See PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system, and in general, to protect investors and the public interest. Specifically, ISE believes the proposed rule change will promote just and equitable principles of trade and protect investors and the public interest by utilizing rules applicable to NASD members to provide safeguards for public investors. 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. 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 written comments from members or other interested parties. III. 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 No. SR–ISE–2006–53 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–2006–53. 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 E:\FR\FM\11SEN1.SGM 11SEN1 Federal Register / Vol. 71, No. 175 / Monday, September 11, 2006 / Notices 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–2006–53 and should be submitted on or before October 2, 2006. rwilkins on PROD1PC61 with NOTICES IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change 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.15 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 16 in that it promotes just and equitable principles of trade and protects investors and the public interest by requiring Equity EAMs that do business with the public to become NASD members. As NASD members those broker-dealers would be subject to a set of rules designed to protect investors.17 ISE has requested accelerated effectiveness of the proposed rule change. ISE has also indicated that it believes most EAMs that do business with the public are already NASD members and all Equity EAMs that do business with the public are NASD members.18 After careful consideration, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,19 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice in the Federal Register. The Commission notes ISE must have rules concerning doing 15 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 16 15 U.S.C. 78f(b)(5). 17 See, e.g., NASD Rules 2310, 2315, 2320. 2330, 2340, 2341, 2350, 2360, 2361, and 2370, as well as IM–2310 and IM–2330. 18 Telephone call between Laura Clare, Assistant General Counsel, ISE, and Haimera Workie, Special Counsel, Office of Chief Counsel, Division of Market Regulation, SEC, on August 31, 2006. 19 15 U.S.C. 78s(b)(2). VerDate Aug<31>2005 18:03 Sep 08, 2006 Jkt 208001 business with the public in place prior to ISE commencing trading in nonoption equity securities. Moreover, because most EAMs are already NASD members, the proposal would not impose additional requirements on the majority of ISE members. Therefore, granting accelerated approval would facilitate ISE’s ability to trade equity securities in a timely manner. Accordingly, the Commission finds that there is good cause, consistent with Section 6(b)(5) of the Act,20 to approve the proposal on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,21 that the proposed rule change (SR–ISE–2006–53) is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.22 Nancy M. Morris, Secretary. [FR Doc. E6–14947 Filed 9–8–06; 8:45 am] BILLING CODE 8010–01–P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration (SSA) publishes a list of information collection packages that will require clearance by the Office of Management and Budget (OMB) in compliance with Public Law 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. The information collection packages that may be included in this notice are for new information collections, approval of existing information collections, revisions to OMB-approved information collections, and extensions (no change) of OMBapproved information collections. SSA is soliciting comments on the accuracy of the agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and on ways to minimize burden on respondents, including the use of automated collection techniques or other forms of information technology. Written comments and recommendations regarding the information collection(s) should be submitted to the OMB Desk Officer and the SSA Reports Clearance Officer. The information can be mailed 20 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 22 17 CFR 200.30–3(a)(12). 21 15 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 53485 and/or faxed to the individuals at the addresses and fax numbers listed below: (OMB) Office of Management and Budget, Attn: Desk Officer for SSA, fax: 202–395–6974; (SSA) Social Security Administration, DCFAM, Attn: Reports Clearance Officer, 1333 Annex Building, 6401 Security Blvd., Baltimore, MD 21235, fax: 410–965–6400. I. The information collections listed below are pending at SSA and will be submitted to OMB within 60 days from the date of this notice. Therefore, your comments should be submitted to SSA within 60 days from the date of this publication. You can obtain copies of the collection instruments by calling the SSA Reports Clearance Officer at 410– 965–0454 or by writing to the address listed above. Blood Donor Locator Service (BDLS)— 20 CFR 401.200—0960–0501. This regulation requires requesting State agencies to provide the names and Social Security Numbers of blood donors, and a statement that the donor’s blood tested positive for Human Immunodeficiency Virus (HIV) to SSA’s Blood Donor Locator Service when blood donor facilities have identified donors as testing positive for HIV. This information is used by SSA to furnish the State agencies with the blood donors’ address information for the purpose of notifying them. Respondents are State agencies acting on behalf of blood donor facilities. Type of Request: Extension of an OMB-approved information collection. Number of Respondents: 10. Frequency of Response: 5. Number of Responses: 50. Average Burden Per Response: 15 minutes. Estimated Annual Burden: 13 hours. II. The information collections listed below have been submitted to OMB for clearance. Your comments on the information collections would be most useful if received by OMB and SSA within 30 days from the date of this publication. You can obtain a copy of the OMB clearance packages by calling the SSA Reports Clearance Officer at 410–965–0454, or by writing to the address listed above. 1. Authorization for the Social Security Administration to Obtain Account Records From a Financial Institution and Request for Records—20 CFR 416.200, 416.203—0960–0293. The SSA–4641–U2 provides financial institutions with the applicant, recipient, or deemor’s authorization to disclose records. Responses to the questions are used, in part, to determine whether the resources requirements are met in the Supplemental Security Income (SSI) program. The respondents E:\FR\FM\11SEN1.SGM 11SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 175 (Monday, September 11, 2006)]
[Notices]
[Pages 53483-53485]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14947]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54401; File No. SR-ISE-2006-53]


Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Notice of Filing and Order Granting Accelerated Approval of a 
Proposed Rule Change Relating To Doing Business With the Public

 September 1, 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 August 31, 2006, the International Securities Exchange, Inc. 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission (the ``Commission'') the proposed rule change as 
described in Items I and II below, which items have been prepared by 
the ISE. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons and is

[[Page 53484]]

approving the proposal on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 240.19b-4.
---------------------------------------------------------------------------

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

    The ISE is proposing to adopt a rule with respect to members doing 
business with the public on the ISE, in anticipation of the Exchange's 
entry into the trading of non-option equity securities. Below is the 
text of the proposed rule change. Proposed new language is in italics.
* * * * *

Rule 2106. Doing Business With the Public

    An Equity EAM that does business with the public must also be a 
member of the NASD.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and the 
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 III 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
    Currently, the ISE only trades options on equity securities and 
indices. The purpose of this proposed rule change is to adopt a rule 
that incorporates provisions related to non-option equity securities to 
reflect ISE's intention to begin trading non-option equity securities. 
Specifically, the ISE will require ISE Electronic Access Members 
(``EAMs'') trading equity securities on the ISE (``Equity EAMs'') who 
do business with the public to also be members of the NASD. As such 
those ISE members would be required to comply with NASD rules that 
govern the practices of members when doing business with the public. 
Among other things, these members would be obligated:
     To make suitable recommendations to customers when 
recommending the purchase, sale or exchange of any security; \3\
---------------------------------------------------------------------------

    \3\ See NASD Rules 2310, IM-2310-3 and 2315.
---------------------------------------------------------------------------

     To be aware of possible application of SEC Rule 15g-1 
through 15g-9 when a transaction involves a non-exchange listed equity 
security trading for less than five dollars per share; \4\
---------------------------------------------------------------------------

    \4\ See NASD Rule IM-2310-1.
---------------------------------------------------------------------------

     To deal fairly with customers and others; \5\
---------------------------------------------------------------------------

    \5\ See NASD Rule IM-2310-2.
---------------------------------------------------------------------------

     To use reasonable diligence to ascertain the best inter-
dealer market for the subject security and buy or sell in such market 
so that the resultant price to the customer is as favorable as possible 
under prevailing market conditions; \6\
---------------------------------------------------------------------------

    \6\ See NASD Rule 2320.
---------------------------------------------------------------------------

     To segregate and identify by customers both fully paid and 
``excess margin'' securities; \7\
---------------------------------------------------------------------------

    \7\ See NASD Rule IM-2330.
---------------------------------------------------------------------------

     To make proper use of a customer's securities or funds; 
\8\
---------------------------------------------------------------------------

    \8\ See NASD Rule 2330.
---------------------------------------------------------------------------

     To send a statement of account, no less than once every 
calendar year, containing a description of any securities position, 
money balances, or account activity to each customer whose account had 
a security position, money balance, or account activity during the 
period since the last such statement was sent to the customer; \9\
---------------------------------------------------------------------------

    \9\ See NASD Rule 2340.
---------------------------------------------------------------------------

     To provide customers with a margin disclosure statement 
prior to or at the time of opening a margin account; \10\
---------------------------------------------------------------------------

    \10\ See NASD Rule 2341.
---------------------------------------------------------------------------

     To comply with the provisions of NASD Rule 2350 if the 
member accepts deposits on the premises of a financial institution; 
\11\
---------------------------------------------------------------------------

    \11\ See NASD Rule 2350.
---------------------------------------------------------------------------

     To provide a risk disclosure statement set forth in NASD 
Rule 2361 prior to opening a day-trading account for a customer; \12\ 
and
---------------------------------------------------------------------------

    \12\ See NASD Rules 2360 and 2361.
---------------------------------------------------------------------------

     To not borrow from, or lend money to, a customer unless 
the member complies with the provisions of NASD Rule 2370.\13\
---------------------------------------------------------------------------

    \13\ See NASD Rule 2370.
---------------------------------------------------------------------------

2. Statutory Basis
    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 the requirements of 
Section 6(b)(5) \14\ of the Act. Section 6(b)(5) requires, among other 
things, that the rules of an exchange be designed to promote just and 
equitable principles of trade, remove impediments to and perfect the 
mechanisms of a free and open market and a national market system, and 
in general, to protect investors and the public interest. Specifically, 
ISE believes the proposed rule change will promote just and equitable 
principles of trade and protect investors and the public interest by 
utilizing rules applicable to NASD members to provide safeguards for 
public investors.
---------------------------------------------------------------------------

    \14\ 5 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.

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 written comments from members or other interested parties.

III. 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-2006-53 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-2006-53. 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

[[Page 53485]]

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-2006-53 and should be 
submitted on or before October 2, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    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.\15\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act \16\ in that it promotes 
just and equitable principles of trade and protects investors and the 
public interest by requiring Equity EAMs that do business with the 
public to become NASD members. As NASD members those broker-dealers 
would be subject to a set of rules designed to protect investors.\17\
---------------------------------------------------------------------------

    \15\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ See, e.g., NASD Rules 2310, 2315, 2320. 2330, 2340, 2341, 
2350, 2360, 2361, and 2370, as well as IM-2310 and IM-2330.
---------------------------------------------------------------------------

    ISE has requested accelerated effectiveness of the proposed rule 
change. ISE has also indicated that it believes most EAMs that do 
business with the public are already NASD members and all Equity EAMs 
that do business with the public are NASD members.\18\ After careful 
consideration, the Commission finds good cause, pursuant to Section 
19(b)(2) of the Act,\19\ for approving the proposed rule change prior 
to the thirtieth day after the date of publication of notice in the 
Federal Register. The Commission notes ISE must have rules concerning 
doing business with the public in place prior to ISE commencing trading 
in non-option equity securities. Moreover, because most EAMs are 
already NASD members, the proposal would not impose additional 
requirements on the majority of ISE members. Therefore, granting 
accelerated approval would facilitate ISE's ability to trade equity 
securities in a timely manner. Accordingly, the Commission finds that 
there is good cause, consistent with Section 6(b)(5) of the Act,\20\ to 
approve the proposal on an accelerated basis.
---------------------------------------------------------------------------

    \18\ Telephone call between Laura Clare, Assistant General 
Counsel, ISE, and Haimera Workie, Special Counsel, Office of Chief 
Counsel, Division of Market Regulation, SEC, on August 31, 2006.
    \19\ 15 U.S.C. 78s(b)(2).
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\21\ that the proposed rule change (SR-ISE-2006-53) is hereby 
approved on an accelerated basis.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2).
    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\22\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-14947 Filed 9-8-06; 8:45 am]
BILLING CODE 8010-01-P

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