Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Market Maker Orders, 54321-54323 [E6-15268]

Download as PDF Federal Register / Vol. 71, No. 178 / Thursday, September 14, 2006 / Notices Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54412; File No. SR–Amex– 2006–64] Self-Regulatory Organizations; American Stock Exchange LLC; Order All submissions should refer to File Granting Approval to a Proposed Rule Number SR–Amex–2006–72. This file Change and Amendment No. 1 Thereto number should be included on the subject line if e-mail is used. To help the Relating to a Retroactive Suspension of Transaction Charges for Specialist Commission process and review your Orders in the Nasdaq-100 Tracking comments more efficiently, please use only one method. The Commission will Stock (QQQQ) post all comments on the Commission’s September 7, 2006. Internet Web site (https://www.sec.gov/ On July 7, 2006, the American Stock rules/sro.shtml). Copies of the Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) submission, all subsequent filed with the Securities and Exchange amendments, all written statements Commission (‘‘Commission’’), pursuant with respect to the proposed rule to Section 19(b)(1) of the Securities change that are filed with the Exchange Act of 1934 (‘‘Act’’) 1 and Rule Commission, and all written 19b–4 thereunder,2 a proposed rule communications relating to the change to retroactively apply a proposed rule change between the Commission and any person, other than suspension of transaction charges for specialist orders in connection with the those that may be withheld from the trading of the Nasdaq-100 Index public in accordance with the Tracking Stock (Symbol: QQQQ) from provisions of 5 U.S.C. 552, will be July 1, 2006 through July 12, 2006. On available for inspection and copying in July 27, 2006, the Exchange filed the Commission’s Public Reference Room. Copies of such filing also will be Amendment No. 1 to the proposed rule change.3 The proposed rule change, as available for inspection and copying at amended, was published for comment the principal office of the Amex. All in the Federal Register on August 8, comments received will be posted 2006.4 The Commission received no without change; the Commission does comments on the proposal. not edit personal identifying information from submissions. You The Commission finds that the should submit only information that proposed rule change, as amended, is you wish to make available publicly. All consistent with the requirements of the submissions should refer to File Act and the rules and regulations Number SR–Amex–2006–72 and should thereunder applicable to a national be submitted on or before October 5, securities exchange.5 In particular, the 2006. Commission believes that the proposal is consistent with Section 6(b)(4) of the For the Commission by the Division of Act 6 in that it provides for the equitable Market Regulation, pursuant to delegated allocation of reasonable dues, fees, and authority.15 other charges among its members. J. Lynn Taylor, It is therefore ordered, pursuant to Assistant Secretary. Section 19(b)(2) of the Act,7 that the [FR Doc. E6–15241 Filed 9–13–06; 8:45 am] proposed rule change (File No. SR– BILLING CODE 8010–01–P Amex–2006–64), as amended, be, and it hereby is, approved. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaced and superseded the original filing in its entirety. 4 See Securities Exchange Act Release No. 54262 (August 1, 2006), 71 FR 45083. 5 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(2). rwilkins on PROD1PC63 with NOTICES 2 17 15 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 20:23 Sep 13, 2006 Jkt 208001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 54321 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–15273 Filed 9–13–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54415; File No. SR–ISE– 2004–17] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Market Maker Orders September 7, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 26, 2004, 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 Exchange. The Exchange filed Amendment No. 1 to the proposed rule change on August 14, 2006.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend ISE Rule 717(g) to eliminate the restriction on Electronic Access Members representing ISE market maker orders, provided that such orders are identified as orders for the account of an ISE market maker. Under the proposal, an Electronic Access Member will not be permitted to enter orders solicited from an ISE market maker into the Solicited Order Mechanism and the Price Improvement Mechanism. The text of the proposed rule change, as amended, is set forth below. Proposed new language is in italics; deletions are in [brackets]. * * * * * Rule 716. Block Trades (a) through (e) No change. 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment No. 1 replaced the original filing in its entirety. 1 15 E:\FR\FM\14SEN1.SGM 14SEN1 54322 Federal Register / Vol. 71, No. 178 / Thursday, September 14, 2006 / Notices Supplementary Material to Rule 716 .01 through .04 No change. .05 Under paragraph (e) above, Members may enter contra orders that are solicited. The Solicited Order Mechanism provides a facility for Members that locate liquidity for their customer orders. Members may not use the Solicited Order Mechanism to circumvent Exchange Rule 717(d) limiting principal transactions. This may include, but is not limited to, Members entering contra orders that are solicited from (1) affiliated brokerdealers, or (2) broker-dealers with which the Member has an arrangement that allows the Member to realize similar economic benefits from the solicited transaction as it would achieve by executing the customer order in whole or in part as principal. Additionally, any solicited contra orders entered by Members to trade against Agency Orders may not be for the account of an ISE market maker that is assigned to the options class. .06 through .08 No change. Rule 717. Limitations on Orders (a) through (f) No change. (g) Orders for the Account of Another Member. [Absent an exemption from an Exchange official designated by the Board,] Electronic Access Members shall not cause the entry of orders for the account of an ISE market maker that is exempt from the provisions of Regulation T of the Board of Governors of the Federal Reserve System pursuant to Section 7(c)(2) of the Exchange Act unless such orders are identified as orders for the account of an ISE market maker in the manner prescribed by the Exchange. Supplemental Material to Rule 717 .01 through .02 No change. * * * * * Rule 723. Price Improvement Mechanism for Crossing Transactions (a) through (d) No change. rwilkins on PROD1PC63 with NOTICES Supplementary Material to Rule 723 .01 through .06 No change. .07 Any solicited Counter-Side Orders submitted by an Electronic Access Member to trade against Agency Orders may not be for the account of an ISE market maker assigned to the options class. * * * * * 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 VerDate Aug<31>2005 20:23 Sep 13, 2006 Jkt 208001 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 Currently, under ISE Rules, Electronic Access Members (‘‘EAMs’’) are not permitted to represent orders for the account of an ISE market maker. While it is common practice on other exchanges for brokers to represent orders for the account of a market maker, the ISE initially included this restriction in its rules due to a system limitation. Specifically, allowing ISE market makers to enter orders through another member instead of directly might have created an opportunity for ISE market makers to avoid certain limitations on market maker trading contained in the Exchange’s Rules.4 The Exchange has developed the capability for EAMs to mark orders to show that they are for the account of an ISE market maker. As such, these orders will flow through the Exchange’s surveillance system as if they were directly entered by the market makers. Therefore, we propose to eliminate the prohibition against EAMs entering orders for the account of ISE market makers. However, under the proposal, an EAM will be prohibited from entering orders solicited from an ISE market maker assigned to the options class into the Solicited Order Mechanism and the Price Improvement Mechanism, which are designed to expose solicited transactions to the market.5 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 6 in general, and furthers the objectives of Section 6(b)(5) 4 See, e.g., ISE Rule 805 (Market Maker Orders). limitation on entering orders solicited from market makers assigned to the options class was included in a rule change by the CBOE (the ‘‘Automated Improvement Mechanism’’ or ‘‘AIM’’) recently approved by the Commission. See Securities Exchange Act Release No. 53222 (Feb. 3, 2006), 71 FR 7089 (Feb. 10, 2006). The execution of solicited transactions through AIM is similar to the execution of orders through the ISE’s Solicited Order Mechanism and Price Improvement Mechanism. 6 15 U.S.C. 78f(b). 5 This PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 of the Act 7 in particular, in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transaction 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 rule change will allow EAMs to represent ISE market maker orders on the ISE, while prohibiting them from entering orders solicited from market makers assigned to the options class through mechanisms designed to expose solicited transactions to the market. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would 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 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 Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. 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: 7 15 E:\FR\FM\14SEN1.SGM U.S.C. 78f(b)(5). 14SEN1 Federal Register / Vol. 71, No. 178 / Thursday, September 14, 2006 / 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 Number SR–ISE–2004–17 on the subject line. Paper Comments rwilkins on PROD1PC63 with NOTICES • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54416; File No. SR–MSRB– 2006–07] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed Rule Change to MSRB Rule G–14 RTRS Procedures Relating to ‘‘List Offering Price’’ and ‘‘Takedown’’ Transactions September 8, 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 All submissions should refer to File 15, 2006, the Municipal Securities Number SR–ISE–2004–17. This file Rulemaking Board (‘‘MSRB’’ or number should be included on the ‘‘Board’’) filed with the Securities and subject line if e-mail is used. To help the Exchange Commission (‘‘SEC’’ or Commission process and review your ‘‘Commission’’) the proposed rule comments more efficiently, please use change as described in Items I, II, and only one method. The Commission will III below, which Items have been post all comments on the Commission’s substantially prepared by the MSRB. Internet Web site (https://www.sec.gov/ The Commission is publishing this rules/sro.shtml). Copies of the notice to solicit comments on the proposed rule change from interested submission, all subsequent persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The MSRB is filing with the proposed rule change between the Commission a proposed rule change to Commission and any person, other than Rule G–14 RTRS Procedures under Rule those that may be withheld from the G–14, Reports of Sales or Purchases, to public in accordance with the expand the usage of ‘‘list offering price’’ provisions of 5 U.S.C. 552, will be transactions to include certain interavailable for inspection and copying in dealer ‘‘takedown’’ transactions and to the Commission’s Public Reference require the reporting of these Room. Copies of such filing also will be transactions as ‘‘list offering price’’ available for inspection and copying at transactions on the first day of trading the principal office of the Exchange. All of a new issue. The text of the proposed rule change is available on the MSRB’s comments received will be posted Web site (https://www.msrb.org), at the without change; the Commission does MSRB’s principal office, and at the not edit personal identifying Commission’s Public Reference Room. information from submissions. You should submit only information that you wish to make available publicly. All II. Self-Regulatory Organization’s submissions should refer to File Statement of the Purpose of, and Number SR–ISE–2004–17 and should be Statutory Basis for, the Proposed Rule submitted on or before October 5, 2006. Change For the Commission, by the Division of In its filing with the Commission, the Market Regulation, pursuant to delegated MSRB included statements concerning authority.8 the purpose of and basis for the J. Lynn Taylor, proposed rule change and discussed any Assistant Secretary. comments it received on the proposed rule change. The text of these statements [FR Doc. E6–15268 Filed 9–13–06; 8:45 am] may be examined at the places specified BILLING CODE 8010–01–P in Item IV below. The MSRB has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 1 15 8 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 20:23 Sep 13, 2006 2 17 Jkt 208001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00061 Fmt 4703 Sfmt 4703 54323 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose MSRB Rule G–14 requires brokers, dealers, and municipal securities dealers (collectively ‘‘dealers’’) to report information about each purchase and sale transaction effected in municipal securities to the Real-Time Transaction Reporting System (‘‘RTRS’’) in the manner prescribed by Rule G–14 RTRS Procedures. Rule G–14 requires that transactions effected with a time of trade during the hours of the RTRS business day be reported within fifteen minutes of the time of trade to an RTRS Portal. Under MSRB Rule G–14 RTRS Procedures, paragraph (a)(ii), there are three exceptions to this fifteen minute reporting requirement. The exception addressed by the proposed rule change currently allows syndicate managers, syndicate members and selling group members that effect trades in new issues on the first day of trading at the list offering price to report such trades by the end of the day on which the trades were executed.3 This exception is known as the ‘‘List Offering Price’’ exception. The ‘‘List Offering Price’’ is defined as the publicly announced initial offering price at which a new issue of municipal securities is to be offered to the public.4 The MSRB provided the end-of-day reporting deadline for these customer transactions because of the substantial operational difficulties underwriters would face in reporting large numbers of List Offering Price transactions within a fifteen-minute window after the formal award. The MSRB also concluded that real-time dissemination of large numbers of primary market transactions occurring at the same price would not offer a substantial benefit to RTRS transparency objectives. For purposes of RTRS transaction reporting, a ‘‘Takedown’’ transaction is 3 The other two exceptions to the fifteen minute reporting rule are: (1) A dealer effecting a trade in a short-term instrument under nine months in effective maturity (including variable rate instruments, auction rate products, and commercial paper) shall report such trades by the end of the business day on which the trades were executed; and (2) a dealer shall report a trade within three hours of the time of trade if certain conditions apply. See MSRB Rule G–14 RTRS Procedures (a)(ii)(B) and (C). 4 If the price is not publicly disseminated (e.g., if the security is a ‘‘not reoffered’’ maturity within a serial issue), the price is not a List Offering Price. See ‘‘Reminder Notice on List Offering Price and Three-hour Exception for Real-Time Transaction Reporting: Rule G–14,’’ MSRB Notice 2004–40 (December 10, 2004). E:\FR\FM\14SEN1.SGM 14SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 178 (Thursday, September 14, 2006)]
[Notices]
[Pages 54321-54323]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-15268]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54415; File No. SR-ISE-2004-17]


 Self-Regulatory Organizations; International Securities 
Exchange, Inc.; Notice of Filing of a Proposed Rule Change and 
Amendment No. 1 Thereto Relating to Market Maker Orders

September 7, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 26, 2004, 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 Exchange. The 
Exchange filed Amendment No. 1 to the proposed rule change on August 
14, 2006.\3\ 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 replaced the original filing in its 
entirety.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend ISE Rule 717(g) to eliminate the 
restriction on Electronic Access Members representing ISE market maker 
orders, provided that such orders are identified as orders for the 
account of an ISE market maker. Under the proposal, an Electronic 
Access Member will not be permitted to enter orders solicited from an 
ISE market maker into the Solicited Order Mechanism and the Price 
Improvement Mechanism. The text of the proposed rule change, as 
amended, is set forth below. Proposed new language is in italics; 
deletions are in [brackets].
* * * * *

Rule 716. Block Trades

    (a) through (e) No change.

[[Page 54322]]

Supplementary Material to Rule 716

    .01 through .04 No change.
    .05 Under paragraph (e) above, Members may enter contra orders that 
are solicited. The Solicited Order Mechanism provides a facility for 
Members that locate liquidity for their customer orders. Members may 
not use the Solicited Order Mechanism to circumvent Exchange Rule 
717(d) limiting principal transactions. This may include, but is not 
limited to, Members entering contra orders that are solicited from (1) 
affiliated broker-dealers, or (2) broker-dealers with which the Member 
has an arrangement that allows the Member to realize similar economic 
benefits from the solicited transaction as it would achieve by 
executing the customer order in whole or in part as principal. 
Additionally, any solicited contra orders entered by Members to trade 
against Agency Orders may not be for the account of an ISE market maker 
that is assigned to the options class.
    .06 through .08 No change.

Rule 717. Limitations on Orders

    (a) through (f) No change.
    (g) Orders for the Account of Another Member. [Absent an exemption 
from an Exchange official designated by the Board,] Electronic Access 
Members shall not cause the entry of orders for the account of an ISE 
market maker that is exempt from the provisions of Regulation T of the 
Board of Governors of the Federal Reserve System pursuant to Section 
7(c)(2) of the Exchange Act unless such orders are identified as orders 
for the account of an ISE market maker in the manner prescribed by the 
Exchange.

Supplemental Material to Rule 717

    .01 through .02 No change.
* * * * *

Rule 723. Price Improvement Mechanism for Crossing Transactions

    (a) through (d) No change.

Supplementary Material to Rule 723

    .01 through .06 No change.
    .07 Any solicited Counter-Side Orders submitted by an Electronic 
Access Member to trade against Agency Orders may not be for the account 
of an ISE market maker assigned to the options class.
* * * * *

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
    Currently, under ISE Rules, Electronic Access Members (``EAMs'') 
are not permitted to represent orders for the account of an ISE market 
maker. While it is common practice on other exchanges for brokers to 
represent orders for the account of a market maker, the ISE initially 
included this restriction in its rules due to a system limitation. 
Specifically, allowing ISE market makers to enter orders through 
another member instead of directly might have created an opportunity 
for ISE market makers to avoid certain limitations on market maker 
trading contained in the Exchange's Rules.\4\
---------------------------------------------------------------------------

    \4\ See, e.g., ISE Rule 805 (Market Maker Orders).
---------------------------------------------------------------------------

    The Exchange has developed the capability for EAMs to mark orders 
to show that they are for the account of an ISE market maker. As such, 
these orders will flow through the Exchange's surveillance system as if 
they were directly entered by the market makers. Therefore, we propose 
to eliminate the prohibition against EAMs entering orders for the 
account of ISE market makers. However, under the proposal, an EAM will 
be prohibited from entering orders solicited from an ISE market maker 
assigned to the options class into the Solicited Order Mechanism and 
the Price Improvement Mechanism, which are designed to expose solicited 
transactions to the market.\5\
---------------------------------------------------------------------------

    \5\ This limitation on entering orders solicited from market 
makers assigned to the options class was included in a rule change 
by the CBOE (the ``Automated Improvement Mechanism'' or ``AIM'') 
recently approved by the Commission. See Securities Exchange Act 
Release No. 53222 (Feb. 3, 2006), 71 FR 7089 (Feb. 10, 2006). The 
execution of solicited transactions through AIM is similar to the 
execution of orders through the ISE's Solicited Order Mechanism and 
Price Improvement Mechanism.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \6\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \7\ in particular, in that it 
is designed to foster cooperation and coordination with persons engaged 
in regulating, clearing, settling, processing information with respect 
to, and facilitating transaction 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 rule change will allow EAMs to represent 
ISE market maker orders on the ISE, while prohibiting them from 
entering orders solicited from market makers assigned to the options 
class through mechanisms designed to expose solicited transactions to 
the market.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \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 would 
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 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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:

[[Page 54323]]

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-2004-17 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-2004-17. 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-2004-17 and should be submitted on or before October 
5, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-15268 Filed 9-13-06; 8:45 am]
BILLING CODE 8010-01-P

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