Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ISE Stock Exchange Fees, 59844-59845 [E6-16729]

Download as PDF 59844 Federal Register / Vol. 71, No. 196 / Wednesday, October 11, 2006 / Notices in the Antidiscrimination Laws and Whistleblower Protection Laws sections or, if applicable, the administrative or negotiated grievance procedures in order to pursue any legal remedy. SECURITIES AND EXCHANGE COMMISSION Disciplinary Actions Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ISE Stock Exchange Fees Under the existing laws, OPIC retains the right, where appropriate, to discipline a Federal employee who has engaged in discriminatory or retaliatory conduct, up to and including removal. If the Office of Special Counsel has initiated an investigation under 5 U.S.C. 1214 (‘‘Investigation of prohibited personnel practices; corrective action’’), however, according to 5 U.S.C. 1214(f), OPIC must seek approval from the Special Counsel to discipline employees for, among other activities, engaging in prohibited retaliation. Nothing in the No FEAR Act alters existing laws or permits an agency to take unfounded disciplinary action against a Federal employee or to violate the procedural rights of a Federal employee who has been accused of discrimination. Additional Information For further information regarding the No FEAR regulations, refer to OPIC’s EEO Office, Human Resources Management or the Department of Legal Affairs. Additional information regarding Federal antidiscrimination, whistleblower protection and retaliation laws can be found at the EEOC Web site—https://www.eeoc.gov and the OSC Web site—https://www.osc.gov. Existing Rights Unchanged Pursuant to section 205 of the No FEAR Act, neither the Act nor this notice creates, expands or reduces any rights otherwise available to any employee, former employee or applicant under the laws of the United States, including the provisions of law specified in 5 U.S.C. 2302(d). William L. Garrett, EEO Director. [FR Doc. 06–8588 Filed 10–10–06; 8:45 am] pwalker on PRODPC60 with NOTICES BILLING CODE 3210–01–M [Release No. 34–54561; File No. SR–ISE– 2006–54] October 2, 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 6, 2006, the International Securities Exchange, LLC (‘‘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 ISE has designated this proposal as one changing a fee imposed by the ISE under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) 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 proposes to amend its Schedule of Fees to adopt fees related to the ISE Stock Exchange, LLC (‘‘ISE Stock’’). The text of the proposed rule change is available on the Exchange’s Web site at https://www.iseoptions.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 IV below. The ISE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 VerDate Aug<31>2005 16:53 Oct 10, 2006 Jkt 211001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The ISE states that the purpose of the proposed rule change is to adopt fees related to the trading of equity securities on ISE Stock, a facility of the Exchange. The proposed fee schedule includes execution fees, access fees, and regulatory fees for trading of equity securities, as well as changes to existing language to clarify the application of certain fees that are specific to options trading only. With regard to the execution fees, the Exchange proposes to charge fees based on a member’s average daily shares executed, with the average daily volume (‘‘ADV’’) calculated on a monthly basis. This fee would be charged on a tiered basis (e.g., a member that executes 9,600,000 shares in a 20-day month would have an ADV of 480,000 shares and would be charged as follows: $0.0025 for the first 200,000 shares ADV (4,000,000 shares) and $0.0020 for the remaining 280,000 shares ADV (5,600,000 shares)). Further, a member that transacts more than 3,000,000 shares on a daily basis would be charged a fee of $0.0010 per share for all of its monthly volume instead of being charged on a tiered basis.5 Additionally, in an effort to promote ISE Stock, the Exchange proposes to waive all execution fees until December 1, 2006. With regard to access fees, the Exchange states that it currently charges an Electronic Access Member (‘‘EAM’’) that trades options an access fee of $500 per month. Access fees for these EAMs will remain unchanged if they also trade equities on ISE Stock. For an EAM that trades equities only, the Exchange proposes a monthly access fee of $200. Finally, the Exchange states that it currently charges an EAM that trades options a regulatory fee of $5,000 per year. For EAMs that trade equities only, the Exchange proposes an annual regulatory fee of $5,000. For EAMs that trade both equities and options, the 5 The tiers are as follows: A.D.V. Up to 200,000 shares—$0.0025 per share. A.D.V. From 200,001 to 500,000 shares—$0.0020 per share. A.D.V. From 500,001 to 2,000,000 shares— $0.0015 per share. A.D.V. From 2,000,001 to 3,000,000 shares— $0.0010 per share. A.D.V. Over 3,000,000 shares—$0.0010 per share (applied to all volume). Telephone conversation between Michou H.M. Nguyen, Special Counsel, Division of Market Regulation, Commission, and Samir Patel, Assistant General Counsel, Exchange, on September 27, 2006. E:\FR\FM\11OCN1.SGM 11OCN1 Federal Register / Vol. 71, No. 196 / Wednesday, October 11, 2006 / Notices Exchange proposes an annual regulatory fee of $6,000.6 The Exchange also proposes to amend (1) the Notes for the cancellation fee to clarify that the fee is applicable to options orders only; and (2) language to the EAM / Trade Review Terminal fee and the Order Routing Service Connection Fee to clarify that these fees are options fees and are applicable to EAMs that trade options.7 The Exchange states that both these fees currently appear as Session/API Fee in the current fee schedule. Finally, the Exchange also proposes to charge EAMs that trade equity securities certain administrative fees. These would include fees related to the registration of Form U4 as well as a CRD fee. The Exchange states that these administrative fees currently appear under the Legal & Regulatory section of the current fee schedule. Act 10 and Rule 19b–4(f)(2) 11 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. 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. 2. Statutory Basis 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–2006–54 on the subject line. The Exchange believes that its proposal is consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(4) of the Act 9 in particular, in that it provides for an equitable allocation of reasonable dues, fees, and other charges among ISE members. 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 nor received any written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the pwalker on PRODPC60 with NOTICES 6 The Exchange represents that there exists overlap in the costs associated with the regulatory fee for trading options and for trading equities. Therefore, if an EAM trades both, the EAM is only charged $6,000 instead of $10,000. Id. 7 The Exchange represents that the Trade Review Terminal and the related Order Routing Service are used exclusively for the trading of options. Therefore, the Trade Review Terminal fee and the associated Order Routing Service Connection Fee would only be charged to EAMs trading options. Id. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 16:53 Oct 10, 2006 Jkt 211001 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: 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–2006–54. 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 10 15 11 17 PO 00000 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00131 Fmt 4703 Sfmt 4703 59845 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–2006–54 and should be submitted on or before November 1, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–16729 Filed 10–10–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54562; File No. SR–NASD– 2006–111] Self Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amending the Citation to Section 19 of the Securities Exchange Act in NASD Rule 9559 October 3, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 25, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by NASD. NASD has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon receipt of this filing by 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 NASD is proposing to amend NASD Rule 9559(s), to amend the citation to section 19 of the Act. Below is the text 12 17 CFR 200.30–3(a)(12). 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)(6). 1 15 E:\FR\FM\11OCN1.SGM 11OCN1

Agencies

[Federal Register Volume 71, Number 196 (Wednesday, October 11, 2006)]
[Notices]
[Pages 59844-59845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16729]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54561; File No. SR-ISE-2006-54]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to ISE Stock Exchange Fees

October 2, 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 6, 2006, the International Securities Exchange, LLC 
(``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 ISE has designated this proposal as one changing a fee 
imposed by the ISE under Section 19(b)(3)(A)(ii) of the Act \3\ and 
Rule 19b-4(f)(2) 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to amend its Schedule of Fees to adopt fees 
related to the ISE Stock Exchange, LLC (``ISE Stock''). The text of the 
proposed rule change is available on the Exchange's Web site at https://
www.iseoptions.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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 IV 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
    The ISE states that the purpose of the proposed rule change is to 
adopt fees related to the trading of equity securities on ISE Stock, a 
facility of the Exchange. The proposed fee schedule includes execution 
fees, access fees, and regulatory fees for trading of equity 
securities, as well as changes to existing language to clarify the 
application of certain fees that are specific to options trading only. 
With regard to the execution fees, the Exchange proposes to charge fees 
based on a member's average daily shares executed, with the average 
daily volume (``ADV'') calculated on a monthly basis. This fee would be 
charged on a tiered basis (e.g., a member that executes 9,600,000 
shares in a 20-day month would have an ADV of 480,000 shares and would 
be charged as follows: $0.0025 for the first 200,000 shares ADV 
(4,000,000 shares) and $0.0020 for the remaining 280,000 shares ADV 
(5,600,000 shares)). Further, a member that transacts more than 
3,000,000 shares on a daily basis would be charged a fee of $0.0010 per 
share for all of its monthly volume instead of being charged on a 
tiered basis.\5\ Additionally, in an effort to promote ISE Stock, the 
Exchange proposes to waive all execution fees until December 1, 2006.
---------------------------------------------------------------------------

    \5\ The tiers are as follows:
    A.D.V. Up to 200,000 shares--$0.0025 per share.
    A.D.V. From 200,001 to 500,000 shares--$0.0020 per share.
    A.D.V. From 500,001 to 2,000,000 shares--$0.0015 per share.
    A.D.V. From 2,000,001 to 3,000,000 shares--$0.0010 per share.
    A.D.V. Over 3,000,000 shares--$0.0010 per share (applied to all 
volume).
    Telephone conversation between Michou H.M. Nguyen, Special 
Counsel, Division of Market Regulation, Commission, and Samir Patel, 
Assistant General Counsel, Exchange, on September 27, 2006.
---------------------------------------------------------------------------

    With regard to access fees, the Exchange states that it currently 
charges an Electronic Access Member (``EAM'') that trades options an 
access fee of $500 per month. Access fees for these EAMs will remain 
unchanged if they also trade equities on ISE Stock. For an EAM that 
trades equities only, the Exchange proposes a monthly access fee of 
$200. Finally, the Exchange states that it currently charges an EAM 
that trades options a regulatory fee of $5,000 per year. For EAMs that 
trade equities only, the Exchange proposes an annual regulatory fee of 
$5,000. For EAMs that trade both equities and options, the

[[Page 59845]]

Exchange proposes an annual regulatory fee of $6,000.\6\
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    \6\ The Exchange represents that there exists overlap in the 
costs associated with the regulatory fee for trading options and for 
trading equities. Therefore, if an EAM trades both, the EAM is only 
charged $6,000 instead of $10,000. Id.
---------------------------------------------------------------------------

    The Exchange also proposes to amend (1) the Notes for the 
cancellation fee to clarify that the fee is applicable to options 
orders only; and (2) language to the EAM / Trade Review Terminal fee 
and the Order Routing Service Connection Fee to clarify that these fees 
are options fees and are applicable to EAMs that trade options.\7\ The 
Exchange states that both these fees currently appear as Session/API 
Fee in the current fee schedule.
---------------------------------------------------------------------------

    \7\ The Exchange represents that the Trade Review Terminal and 
the related Order Routing Service are used exclusively for the 
trading of options. Therefore, the Trade Review Terminal fee and the 
associated Order Routing Service Connection Fee would only be 
charged to EAMs trading options. Id.
---------------------------------------------------------------------------

    Finally, the Exchange also proposes to charge EAMs that trade 
equity securities certain administrative fees. These would include fees 
related to the registration of Form U4 as well as a CRD fee. The 
Exchange states that these administrative fees currently appear under 
the Legal & Regulatory section of the current fee schedule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(4) of the Act \9\ in particular, in that it provides for an 
equitable allocation of reasonable dues, fees, and other charges among 
ISE members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 nor received any written comments on 
the proposed rule change.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed by the Exchange. Accordingly, the proposal 
will take effect upon filing with the Commission. 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2006-54 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-2006-54. 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-2006-54 and should be submitted on or before 
November 1, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-16729 Filed 10-10-06; 8:45 am]
BILLING CODE 8011-01-P