Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending a Pilot Relating to Directed Orders, 59170-59171 [E6-16545]

Download as PDF 59170 Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices of filing of the proposed rule change or such shorter time as designated by the Commission, the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. Under Rule 19b–4(f)(6)(iii) of the Act,11 the proposal does not become operative for 30 days after the date of its filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the five-day pre-filing requirement and accelerate the 30-day operative date. The Commission, consistent with the protection of investors and the public interest, has determined to waive the five-day pre-filing requirement and to accelerate the 30-day operative date to allow DXL options to be traded on Hybrid 2.0 without delay.12 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 rulecomments@sec.gov. Please include File Number SR–CBOE–2006–79 on the subject line. cprice-sewell on PROD1PC66 with 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. All submissions should refer to File Number SR-CBOE–2006–79. This file number should be included on the 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6)(iii). 12 For purposes only of waiving the five-day prefiling requirement and accelerating the 30-day operative period for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 10 17 VerDate Aug<31>2005 14:52 Oct 05, 2006 Jkt 211001 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 CBOE. 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–CBOE–2006–79 and should be submitted on or before October 27, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–16579 Filed 10–5–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54542; File No. SR–ISE– 2006–57] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending a Pilot Relating to Directed Orders September 29, 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 September 21, 2006, the International Securities Exchange, LLC (‘‘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 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 have been prepared by the ISE. The Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(5) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to extend the pilot period for the system change that identifies to a Directed Market Maker (‘‘DMM’’) the identity of the firm entering a Directed Order until January 31, 2006. 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 On January 5, 2006, the ISE initiated a system change to identify to a DMM the identity of the firm entering a Directed Order. The ISE filed this system change on a pilot basis under Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(5) thereunder 5 so that it would be effective while the Commission considered a separate proposed rule change filed under Section 19(b)(2) of the Act to amend the ISE’s rules to reflect the system change on a permanent basis (‘‘Permanent Rule Change’’).6 The pilot currently expires on September 30, 2006,7 but the 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(5). 5 Securities Exchange Act Release No. 53104 (Jan. 11, 2006), 71 FR 2142 (Jan. 19, 2006) (Notice of Filing and Immediate Effectiveness for SR–ISE– 2006–02). 6 Securities Exchange Act Release No. 53103 (Jan. 11, 2006), 71 FR 3144 (Jan. 19, 2006) (Notice of Filing for SR–ISE–2006–01). 7 Securities Exchange Act Release No. 54083 (June 30, 2006), 71 FR 38920 (July 10, 2006) (Notice of Filing and Immediate Effectiveness for SR–ISE– 2006–35). 4 17 E:\FR\FM\06OCN1.SGM 06OCN1 Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices 59171 Commission has not yet taken action with respect to the Permanent Rule Change. Accordingly, the Exchange proposes to extend the pilot until January 31, 2007, so that the system change will remain in effect while the Commission continues to evaluate the Permanent Rule Change.8 such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest for the protection of investors, or otherwise in furtherance of the proposes of the Act. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–16545 Filed 10–5–06; 8:45 am] IV. Solicitation of Comments BILLING CODE 8011–01–P 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act 9 that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and practices, and, in general, to protect investors and the public interest. Extension of the pilot program will allow the Exchange to remain competitive with the Boston Options Exchange (‘‘BOX’’), which operates a directed order program that discloses the identity of an entering firm to the BOX directed market maker.10 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: B. Self-Regulatory Organization’s Statement on Burden on Competition ISE 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 neither received nor solicited written comments on the proposal. cprice-sewell on PROD1PC66 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change effects a change in an existing order entry or trading system that (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) does not have the effect of limiting the access to or availability of the system, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 11 and Rule 19b–4(f)(5) thereunder.12 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate 8 The ISE anticipated that extension of the pilot might be necessary and included this in the filing for the initial pilot. See supra note 5. 9 15 U.S.C. 78f(b)(5). 10 See Securities Exchange Act Release No. 53015 (Dec. 22, 2005), 70 FR 77207 (Dec. 29, 2005). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(5). VerDate Aug<31>2005 14:52 Oct 05, 2006 Jkt 211001 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–2006–57 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54540; File No. SR–ISE– 2006–58] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exercise Deadline for Quarterly Options Series September 29, 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 Paper Comments September 26, 2006, the International • Send paper comments in triplicate Securities Exchange, LLC (‘‘Exchange’’ to Nancy M. Morris, Secretary, or ‘‘ISE’’) filed with the Securities and Securities and Exchange Commission, Exchange Commission the proposed 100 F Street, NE., Washington, DC rule change as described in Items I and 20549–1090. II below, which items have been prepared by the Exchange. The All submissions should refer to File Commission has designated this Number SR–ISE–2006–57. This file proposed rule change as nonnumber should be included on the subject line if e-mail is used. To help the controversial under Section 19(b)(3)(A)(iii) of the Act 3 and Rule Commission process and review your 19b–4(f)(6) thereunder,4 which renders comments more efficiently, please use only one method. The Commission will the proposed rule change effective upon post all comments on the Commission’s filing with the Commission. The Commission is publishing this notice to Internet Web site (https://www.sec.gov/ solicit comments on the proposed rule rules/sro.shtml). Copies of the change from interested persons. submission, all subsequent amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written The ISE proposes to amend ISE rule communications relating to the 1100(c) ‘‘Exercise of Options Contracts.’’ proposed rule change between the Commission and any person, other than The text of the proposed rule change is set forth below. Proposed new language those that may be withheld from the is italicized. public in accordance with the * * * * * provisions of 5 U.S.C. 552, will be available for inspection and copying in Rule 1100. Exercise of Options the Commission’s Public Reference Contracts Room. Copies of such filing also will be (a)–(b) No Change. available for inspection and copying at (c) Exercise cut-off time. Option the principal office of the ISE. All holders have until 5:30 p.m. Eastern comments received will be posted Time on the business day immediately without change; the Commission does prior to the expiration date or, in the not edit personal identifying case of Quarterly Options Series, on the information from submissions. You expiration date, to make a final decision should submit only information that you wish to make available publicly. All 13 17 CFR 200.30–3(a)(12). submissions should refer to File 1 15 U.S.C. 78s(b)(1). Number SR–ISE–2006–57 and should be 2 17 CFR 240.19b–4. submitted on or before October 27, 3 15 U.S.C. 78s(b)(3)(A)(iii). 2006. 4 17 CFR 240.19b–4(f)(6). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\06OCN1.SGM 06OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 194 (Friday, October 6, 2006)]
[Notices]
[Pages 59170-59171]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16545]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54542; File No. SR-ISE-2006-57]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Extending a Pilot Relating to Directed Orders

September 29, 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 September 21, 2006, the International Securities Exchange, LLC 
(``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 ISE. The 
Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the Act 
\3\ and Rule 19b-4(f)(5) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to extend the pilot period for the system 
change that identifies to a Directed Market Maker (``DMM'') the 
identity of the firm entering a Directed Order until January 31, 2006.

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
    On January 5, 2006, the ISE initiated a system change to identify 
to a DMM the identity of the firm entering a Directed Order. The ISE 
filed this system change on a pilot basis under Section 19(b)(3)(A) of 
the Act and Rule 19b-4(f)(5) thereunder \5\ so that it would be 
effective while the Commission considered a separate proposed rule 
change filed under Section 19(b)(2) of the Act to amend the ISE's rules 
to reflect the system change on a permanent basis (``Permanent Rule 
Change'').\6\ The pilot currently expires on September 30, 2006,\7\ but 
the

[[Page 59171]]

Commission has not yet taken action with respect to the Permanent Rule 
Change. Accordingly, the Exchange proposes to extend the pilot until 
January 31, 2007, so that the system change will remain in effect while 
the Commission continues to evaluate the Permanent Rule Change.\8\
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    \5\ Securities Exchange Act Release No. 53104 (Jan. 11, 2006), 
71 FR 2142 (Jan. 19, 2006) (Notice of Filing and Immediate 
Effectiveness for SR-ISE-2006-02).
    \6\ Securities Exchange Act Release No. 53103 (Jan. 11, 2006), 
71 FR 3144 (Jan. 19, 2006) (Notice of Filing for SR-ISE-2006-01).
    \7\ Securities Exchange Act Release No. 54083 (June 30, 2006), 
71 FR 38920 (July 10, 2006) (Notice of Filing and Immediate 
Effectiveness for SR-ISE-2006-35).
    \8\ The ISE anticipated that extension of the pilot might be 
necessary and included this in the filing for the initial pilot. See 
supra note 5.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of Section 6(b)(5) of the Act \9\ that the rules of an 
exchange be designed to promote just and equitable principles of trade, 
to prevent fraudulent and manipulative acts and practices, and, in 
general, to protect investors and the public interest. Extension of the 
pilot program will allow the Exchange to remain competitive with the 
Boston Options Exchange (``BOX''), which operates a directed order 
program that discloses the identity of an entering firm to the BOX 
directed market maker.\10\
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    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See Securities Exchange Act Release No. 53015 (Dec. 22, 
2005), 70 FR 77207 (Dec. 29, 2005).
---------------------------------------------------------------------------

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

    ISE 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 neither received nor solicited written comments on the 
proposal.

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

    Because the foregoing proposed rule change effects a change in an 
existing order entry or trading system that (i) Does not significantly 
affect the protection of investors or the public interest; (ii) does 
not impose any significant burden on competition; and (iii) does not 
have the effect of limiting the access to or availability of the 
system, it has become effective pursuant to Section 19(b)(3)(A)(iii) of 
the Act \11\ and Rule 19b-4(f)(5) thereunder.\12\
    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest for the protection of investors, or otherwise in 
furtherance of the proposes of the Act.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------

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-2006-57 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-2006-57. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the ISE. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-ISE-2006-57 and should be submitted on or before October 
27, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-16545 Filed 10-5-06; 8:45 am]
BILLING CODE 8011-01-P

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