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, 59171-59173 [E6-16583]
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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).
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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
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59172
Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices
to exercise or not exercise an expiring
option. For customer accounts,
Members may not accept exercise
instructions after 5:30 p.m. Eastern
Time but have until 6:30 p.m. Eastern
Time to submit a Contrary Exercise
Advice. For non-customer accounts,
Members may not accept exercise
instructions after 5:30 p.m. Eastern
Time but have until 6:30 p.m. Eastern
Time to submit a Contrary Exercise
Advice if such Member employs an
electronic submission procedure with
time stamp for the submission of
exercise instructions by option holders.
Consistent with Supplemental Material
.03, Members are required to submit a
Contrary Exercise Advice by 5:30 p.m.
for non-customer accounts if such
Members do not employ an electronic
submission procedure with time stamp
for the submission of exercise
instructions by option holders.
(d)–(j) No Change.
*
*
*
*
*
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.
cprice-sewell on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The ISE proposes to amend its rule
regarding exercise cut-off time to revise
its application to Quarterly Options
Series. Currently, under ISE Rule
1100(c), option holders have until 5:30
p.m. Eastern Time on the business day
immediately prior to the expiration date
to make a final decision to exercise or
not exercise an expiring option. The
rule in its current form would require
the holder of a quarterly option to
decide whether to exercise or not
exercise an expiring option on the
business day immediately prior to the
expiration date. However, since
Quarterly Options Series continue to
trade on the expiration date, an option
holder would have to make the decision
whether to exercise an expiring option
without the knowledge of what the
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14:52 Oct 05, 2006
Jkt 211001
closing price of the underlying security
would be on expiration. Accordingly,
the Exchange proposes to amend Rule
1100(c) so that a holder of an expiring
quarterly option has until 5:30 p.m. on
the expiration date to decide whether to
exercise or not exercise an expiring
quarterly option.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 5 in general, and
Section 6(b)(5) of the Act 6 specifically,
in that it is 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8 Because the foregoing
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) the Exchange
provided the Commission with notice of
its intent to file the proposed rule
change at least five days prior to the
filing date, the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6)(iii) thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6).
9 Rule 19b–4(f)(6)(iii) requires the Exchange to
give written notice to the Commission of its intent
to file the proposed rule change five business days
prior to filing. The Exchange provided the
Commission with such notice on September 6,
2006.
6 15
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
4(f)(6)(iii) permits the Commission to
waive the operative delay if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the operative delay to permit the
proposed rule change to become
effective prior to the 30th day after
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Waiving the operative delay will allow
the Exchange to permit exercise of a
Quarterly Options Series at any time
until the close of business on its
expiration date starting with the third
quarter 2006 expirations on Friday,
September 29, 2006, and consequently
will benefit investors. Therefore the
Commission has determined to waive
the 30-day delay and allow the
proposed rule change to become
operative immediately.10
At any time within sixty (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 furtherance of the
purposes of the Act.
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
No. SR–ISE–2006–58 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–2006–58.
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
10 For purposes only of waiving the operative
delay of this proposal, the Commission notes that
it has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices
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–2006–58 and should be
submitted on or before October 27,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–16583 Filed 10–5–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54537; File No. SR–NASD–
2006–091]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving a
Proposed Rule Change and
Amendment No. 2 Thereto and Notice
of Filing and Order Granting
Accelerated Approval to Amendment
No. 3 Thereto to Align NASD Rules
With Regulation NMS
cprice-sewell on PROD1PC66 with NOTICES
September 28, 2006.
I. Introduction
On July 28, 2006, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to align its rules,
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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14:52 Oct 05, 2006
Jkt 211001
including those governing the
Alternative Display Facility (‘‘ADF’’),
with Regulation NMS under the Act
(‘‘Regulation NMS’’).3 On August 4,
2006, NASD filed Amendment No. 1 to
the proposed rule change. Also on
August 4, 2006, NASD withdrew
Amendment No. 1 and filed
Amendment No. 2 to the proposed rule
change. The proposed rule change, as
amended, was published for comment
in the Federal Register on August 14,
2006.4 The Commission received no
comments on the proposal.
On September 27, 2006, NASD filed
Amendment No. 3 to the proposed rule
change.5 This order approves the
proposed rule change, as amended by
Amendment No. 2, grants accelerated
approval to Amendment No. 3 to the
proposed rule change, and solicits
comments from interested persons on
Amendment No. 3.
II. Description
NASD proposes to amend its rules to
comply with Rules 610 and 611 of
Regulation NMS (‘‘Access Rule’’ and
‘‘Order Protection Rule,’’ respectively).6
Additionally, NASD proposes to revise
its Certification Record, which each
ADF Trading Center is required to
complete prior to being permitted to
post quotations through the ADF, and
3 17 CFR 242.600 et seq. See also Securities
Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496 (June 29, 2005) (‘‘Regulation NMS
Adopting Release’’).
4 See Securities Exchange Act Release No. 54277
(August 4, 2006), 71 FR 46527 (‘‘notice’’).
5 In Amendment No. 3, NASD: (1) Added
language to NASD Rule 4611A(a) stating that the
priority for determining the bid and offer to be
designated the protected quotation on the ADF
would be price, size, and time and clarified in its
Form 19b–4 submission that the protected
quotation would be associated with a single market
participant identifier (‘‘MPID’’); (2) modified Item 4
of the proposed Certification Record to make clear
that an ADF Trading Center must respond to orders
immediately and automatically and must respond
to intermarket sweep orders (‘‘ISOs’’) consistent
with Regulation NMS; (3) modified Item 10 of the
proposed Certification Record to make clear that an
ADF Trading Center must post its relevant
connectivity and access technical specifications on
its Web site; (4) added new Item 13 to the proposed
Certification Record regarding the self-help
exception to Rule 611 of Regulation NMS; (5)
clarified the definition of ‘‘system outage’’ in
proposed NASD Rule 4300A(e)(2); (6) revised
proposed NASD Rule 4619A to track more closely
proposed NASD Rule 4300A(e)(2); (7) indicated that
the Certification Record and certification
procedures will be effective upon approval of the
proposal; (8) stated that NASD would make its
approved connectivity provider list available prior
to October 16, 2006; (9) clarified that current ADF
Trading Centers would be required to publish
appropriate technical specifications, consistent
with the proposed Certification Record, no later
than October 16, 2006; (10) stated that NASD would
provide a link to each such ADF Trading Center’s
specifications on its Web site; and (11) made minor
technical changes to the proposal.
6 17 CFR 242.610 and 242.611.
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Frm 00104
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59173
thereafter, to recertify on an annual
basis. NASD also proposes to amend its
rules that govern quoting, trade
reporting, and clearing through the ADF
to extend this functionality to all NMS
stocks, as defined in Rule 600(b)(47) of
Regulation NMS.7 Finally, NASD
proposes to reorganize the ADF trade
reporting rules and make certain
technical changes to enhance the clarity
of the ADF rules.
NASD stated in Amendment No. 3
that the changes to the Certification
Record and certification procedures will
become effective upon approval of the
proposal by the Commission. All other
rule changes in the proposal will
become effective on the Regulation NMS
Trading Phase Date—February 5, 2007.
Automated Quotations
NASD proposes to amend its Rule
4300A(e) to require that an ADF Trading
Center submit only automated
quotations, as defined in Rule 600(b)(3)
of Regulation NMS,8 to the ADF, and to
specifically state that manual
quotations, as defined in Rule 600(b)(37)
of Regulation NMS,9 shall not be
submitted to the ADF. Pursuant to
proposed NASD Rule 4300A(a)(4), each
ADF Trading Center must demonstrate
to NASD that it has sufficient
technology to automatically update its
quotations and immediately respond to
orders for execution directly against the
individual ADF Trading Center’s best
bid or offer (i.e., sufficient technology to
display automated quotations). In
addition, NASD Rule 4300A(e) would
require each ADF Trading Center to
adopt policies and procedures to ensure
that only automated quotations are
submitted to the ADF, and each ADF
Trading Center would be required to
monitor its systems on a real-time basis
to assess whether they are functioning
properly.
NASD also proposes to amend the
system outage procedures in its Rule
4300A. A system outage would now be
defined in NASD Rule 4300A(e)(2) as an
inability to post automated quotations
or an inability to respond to orders
immediately and automatically.10
Pursuant to proposed NASD Rule
4619A, if an ADF Trading Center were
unable to submit automated quotations
or were unable to respond immediately
and automatically to orders, it would
7 17
CFR 242.600(b)(47).
CFR 242.600(b)(3).
9 17 CFR 242.600(b)(37).
10 NASD also proposes to delete existing NASD
IM–4613A that bans the automated update of
certain quotations through the ADF. NASD
originally adopted this IM to address capacity and
operation concerns, but it no longer believes such
a prohibition is necessary.
8 17
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]]>Agencies
[Federal Register Volume 71, Number 194 (Friday, October 6, 2006)]
[Notices]
[Pages 59171-59173]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16583]
-----------------------------------------------------------------------
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 September 26, 2006, the International Securities Exchange, LLC
(``Exchange'' or ``ISE'') filed with the Securities and Exchange
Commission the proposed rule change as described in Items I and II
below, which items have been prepared by the Exchange. The Commission
has designated this proposed rule change as non-controversial under
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposed rule change 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE proposes to amend ISE rule 1100(c) ``Exercise of Options
Contracts.'' The text of the proposed rule change is set forth below.
Proposed new language is italicized.
* * * * *
Rule 1100. Exercise of Options Contracts
(a)-(b) No Change.
(c) Exercise cut-off time. Option holders have until 5:30 p.m.
Eastern Time on the business day immediately prior to the expiration
date or, in the case of Quarterly Options Series, on the expiration
date, to make a final decision
[[Page 59172]]
to exercise or not exercise an expiring option. For customer accounts,
Members may not accept exercise instructions after 5:30 p.m. Eastern
Time but have until 6:30 p.m. Eastern Time to submit a Contrary
Exercise Advice. For non-customer accounts, Members may not accept
exercise instructions after 5:30 p.m. Eastern Time but have until 6:30
p.m. Eastern Time to submit a Contrary Exercise Advice if such Member
employs an electronic submission procedure with time stamp for the
submission of exercise instructions by option holders. Consistent with
Supplemental Material .03, Members are required to submit a Contrary
Exercise Advice by 5:30 p.m. for non-customer accounts if such Members
do not employ an electronic submission procedure with time stamp for
the submission of exercise instructions by option holders.
(d)-(j) No Change.
* * * * *
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
The ISE proposes to amend its rule regarding exercise cut-off time
to revise its application to Quarterly Options Series. Currently, under
ISE Rule 1100(c), option holders have until 5:30 p.m. Eastern Time on
the business day immediately prior to the expiration date to make a
final decision to exercise or not exercise an expiring option. The rule
in its current form would require the holder of a quarterly option to
decide whether to exercise or not exercise an expiring option on the
business day immediately prior to the expiration date. However, since
Quarterly Options Series continue to trade on the expiration date, an
option holder would have to make the decision whether to exercise an
expiring option without the knowledge of what the closing price of the
underlying security would be on expiration. Accordingly, the Exchange
proposes to amend Rule 1100(c) so that a holder of an expiring
quarterly option has until 5:30 p.m. on the expiration date to decide
whether to exercise or not exercise an expiring quarterly option.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \5\ in general, and Section 6(b)(5) of the
Act \6\ specifically, in that it is 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change will not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \7\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\8\ Because the foregoing 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) the Exchange provided the Commission with notice of its
intent to file the proposed rule change at least five days prior to the
filing date, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder.\9\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ Rule 19b-4(f)(6)(iii) requires the Exchange to give written
notice to the Commission of its intent to file the proposed rule
change five business days prior to filing. The Exchange provided the
Commission with such notice on September 6, 2006.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative
delay if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
operative delay to permit the proposed rule change to become effective
prior to the 30th day after filing.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Waiving the operative delay will allow the Exchange to permit exercise
of a Quarterly Options Series at any time until the close of business
on its expiration date starting with the third quarter 2006 expirations
on Friday, September 29, 2006, and consequently will benefit investors.
Therefore the Commission has determined to waive the 30-day delay and
allow the proposed rule change to become operative immediately.\10\
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\10\ For purposes only of waiving the operative delay of this
proposal, the Commission notes that it has considered the proposed
rule's impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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At any time within sixty (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 furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2006-58 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-2006-58. 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
[[Page 59173]]
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-
2006-58 and should be submitted on or before October 27, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-16583 Filed 10-5-06; 8:45 am]
BILLING CODE 8011-01-P
