Self-Regulatory Organizations; International Securities Exchange, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Relating to Customer Fees for Certain Complex Orders, 67667-67668 [E6-19734]

Download as PDF Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Notices 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–CBOE–2006–85 and should be submitted on or before December 13, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–19726 Filed 11–21–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54682A; File No. SR–FICC– 2006–15] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Modify Its Rules To Diversify and Standardize Clearing Fund Collateral Requirements Across the Divisions To Improve Liquidity and Minimize Risk for Its Members; Correction and Extension of Comment Period November 17, 2006. Correction In FR Doc. E6–18948, beginning on page 65855 for Thursday, November 9, 2006, revise the number ‘‘500,000’’ to read ‘‘5,000,000’’ on page 65856, second column, sixth line. pwalker on PROD1PC61 with NOTICES Extension On October 4, 2006, the Fixed Income Clearing Corporation (‘‘FICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 13 17 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). VerDate Aug<31>2005 22:25 Nov 21, 2006 Jkt 211001 67667 19b–4 thereunder 2 that would modify the rules of both of the Government Securities Division (‘‘GSD’’) and the Mortgage-Backed Securities Division (‘‘MBSD’’) (collectively, the ‘‘Divisions’’) of FICC to diversify and standardize Clearing Fund collateral requirements across the Divisions. A complete description of the proposed rule change is found in the notice of filing, which was published in the Federal Register on November 9, 2006.3 The comment period expires on November 30, 2006.4 To give the public additional time to comment on the correction above, the Commission has decided to extend the comment period pursuant to Section 19(b)(2) of the Act.5 Accordingly, the comment period shall be extended until December 12, 2006. 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: 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 Section, 100 F Street, NE., Washington, DC 20549. Copies of such filings also will be available for inspection and copying at the principal office of FICC and on FICC’s Web site at http:// www.ficc.com/gov/notices/ GOV115.06.htm?NS-query. 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–FICC–2006–15 and should be submitted on or before December 12, 2006. Electronic Comments BILLING CODE 8011–01–P • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FICC–2006–15 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–FICC–2006–15. 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 (http://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 2 17 CFR 240.19b–4. Act Release No. 54682 (November 1, 2006) 71 FR 65855 (November 9, 2006) (SR–FICC– 2006–15). 4 Id. 5 15 U.S.C. 78s(b)(2). 3 Exchange PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 For the Commission by the Division of Market Regulation, pursuant to delegated authority.6 Nancy M. Morris, Secretary. [FR Doc. E6–19727 Filed 11–21–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54751; File No. SR–ISE– 2006–56] Self-Regulatory Organizations; International Securities Exchange, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Relating to Customer Fees for Certain Complex Orders November 14, 2006. I. Introduction On September 20, 2006, the International Securities Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’) 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 establish execution and comparison fees for customer Complex Orders that take liquidity from the ISE’s complex order book. The ISE filed Amendment No. 1 to the proposal on October 4, 2006.3 The 6 17 CFR 200.30–3(a)(12). 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment No. 1 revises the text of the ISE’s Schedule of Fees to: (1) explain when an order takes liquidity from the ISE’s complex order book; and (2) clarify that the proposed fee applies solely to Complex Orders that trade with other Complex 11 E:\FR\FM\22NON1.SGM Continued 22NON1 67668 Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Notices proposed rule change, as amended, was published for comment in the Federal Register on October 13, 2006.4 The Commission received no comments regarding the proposal, as amended. This order approves the proposed rule change, as amended. II. Description of the Proposal Under its current rules, the ISE generally charges execution and comparison fees of $.15 and $.03 per contract, respectively, for Firm Proprietary orders.5 The ISE states that it has noted increased volume in certain customer transactions in Complex Orders. According to the ISE, customers that use highly developed trading systems are able to take liquidity quickly from ISE’s complex order book.6 To place customer orders on a more equal footing with broker-dealer orders, the ISE proposes to amend its Schedule of Fees to adopt execution and comparison fees of $.15 and $.03 per contract, respectively, for customer Complex Orders that take liquidity from the ISE’s complex order book. pwalker on PROD1PC61 with NOTICES III. Discussion The Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.7 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(4) of the Act,8 which requires that the rules of an exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. Under its current rules, the ISE generally charges execution and comparison fees of $.15 and $.03 per contract, respectively, for Firm Orders, and not to Complex Orders that trade with customer orders in the regular order book. 4 See Securities Exchange Act Release No. 54571 (October 4, 2006), 71 FR 60593. 5 For Firm Proprietary Complex Orders, the execution fee is charged only for the leg of the trade with the most contracts. 6 Under the ISE’s proposal, an order takes liquidity when it interacts with a Complex Order resident on the ISE’s complex order book. The ISE determines the liquidity provider and the liquidity taker based on time, i.e., the order that arrives first on the ISE’s complex order book is the liquidity provider. The fees established in the proposal apply solely to customer Complex Orders that take liquidity from the ISE’s complex order book, but not to customer Complex Orders that trade with orders in the regular order book. Similarly, the fees do not apply to customer orders in the regular order book that trade with Complex Orders. 7 In approving this proposed rule change the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 22:25 Nov 21, 2006 Jkt 211001 Proprietary orders. The proposal establishes execution and comparison fees of $.15 and $.03 per contract, respectively, for customer Complex Orders that take liquidity from the ISE’s complex order book.9 Accordingly, the Commission believes that the proposal provides for the equitable allocation of fees among members and other persons using the ISE’s facilities, consistent with Section 6(b)(4) of the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (SR–ISE–2006– 56), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–19734 Filed 11–21–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54765; File No. SR– NASDAQ–2006–009] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendments No. 1 and 2 Thereto To Permit Trading Pursuant to Unlisted Trading Privileges of streetTRACKS Gold Shares and To Establish Trading Rules to Trade, Pursuant to Unlisted Trading Privileges, Certain Securities Whose Value Is Linked to the Value of One or More Commodities November 16, 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 15, 2006 The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’), 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 Nasdaq. On October 10, 2006, the Exchange submitted Amendment No. 1 to the proposal,3 and on November 14, 2006, the Exchange 9 As with the current execution fee for Firm Proprietary Complex Orders, the execution fee will be charged only for the leg of the trade with the most contracts. 10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). 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. PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 submitted Amendment No. 2 to the proposal.4 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons, and is granting accelerated approval to the proposal, as amended. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq is making this filing to enable it to continue trading pursuant to unlisted trading privileges (‘‘UTP’’) of streetTRACKS Gold Shares (‘‘Shares’’) and to add Nasdaq Rule 4630 to establish trading rules to trade, pursuant to UTP, certain securities whose value is linked to the value of one or more commodities. The text of the proposed rule change is below. Proposed new language is in italics.5 * * * * * 4630. Trading in Commodity-Based Trust Shares (a) Nasdaq will consider for trading pursuant to unlisted trading privileges, Commodity-Based Trust Shares that meet the criteria of this Rule. (b) Applicability. This Rule is applicable only to Commodity-Based Trust Shares. Except to the extent inconsistent with this Rule, or unless the context otherwise requires, the provisions of Rule 4420(l) and all other Nasdaq Rules shall be applicable to the trading on Nasdaq of such securities. Commodity-Based Trust Shares are included within the definition of ‘‘security’’ or ‘‘securities’’ as such terms are used in the Nasdaq Rules. (c) Definitions. The following terms shall, unless the context otherwise requires, have the meaning herein specified: (1) Commodity-Based Trust Shares. The term ‘‘Commodity-Based Trust Shares’’ means a security (a) that is issued by a trust (‘‘Trust’’) that holds a specified commodity deposited with the Trust; (b) that is issued by such Trust in a specified aggregate minimum number in return for a deposit of a quantity of the underlying commodity; and (c) that, when aggregated in the same specified minimum number, may be redeemed at a holder’s request by such Trust which will deliver to the redeeming holder the quantity of the underlying commodity. (2) Commodity. The term ‘‘commodity’’ is defined in Section 1(a)(4) of the Commodity Exchange Act. 4 Amendment No. 2 replaced Amendment No. 1 in its entirety. 5 Changes are marked to the rule text that appears in the electronic manual of Nasdaq found at http:// www.complinet.com/nasdaq. E:\FR\FM\22NON1.SGM 22NON1

Agencies

[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Notices]
[Pages 67667-67668]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19734]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54751; File No. SR-ISE-2006-56]


Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Relating 
to Customer Fees for Certain Complex Orders

November 14, 2006.

I. Introduction

    On September 20, 2006, the International Securities Exchange, Inc. 
(``ISE'' or ``Exchange'') 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 establish execution and 
comparison fees for customer Complex Orders that take liquidity from 
the ISE's complex order book. The ISE filed Amendment No. 1 to the 
proposal on October 4, 2006.\3\ The

[[Page 67668]]

proposed rule change, as amended, was published for comment in the 
Federal Register on October 13, 2006.\4\ The Commission received no 
comments regarding the proposal, as amended. This order approves the 
proposed rule change, as amended.
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    \1\ 1 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 revises the text of the ISE's Schedule of 
Fees to: (1) explain when an order takes liquidity from the ISE's 
complex order book; and (2) clarify that the proposed fee applies 
solely to Complex Orders that trade with other Complex Orders, and 
not to Complex Orders that trade with customer orders in the regular 
order book.
    \4\ See Securities Exchange Act Release No. 54571 (October 4, 
2006), 71 FR 60593.
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II. Description of the Proposal

    Under its current rules, the ISE generally charges execution and 
comparison fees of $.15 and $.03 per contract, respectively, for Firm 
Proprietary orders.\5\ The ISE states that it has noted increased 
volume in certain customer transactions in Complex Orders. According to 
the ISE, customers that use highly developed trading systems are able 
to take liquidity quickly from ISE's complex order book.\6\ To place 
customer orders on a more equal footing with broker-dealer orders, the 
ISE proposes to amend its Schedule of Fees to adopt execution and 
comparison fees of $.15 and $.03 per contract, respectively, for 
customer Complex Orders that take liquidity from the ISE's complex 
order book.
---------------------------------------------------------------------------

    \5\ For Firm Proprietary Complex Orders, the execution fee is 
charged only for the leg of the trade with the most contracts.
    \6\ Under the ISE's proposal, an order takes liquidity when it 
interacts with a Complex Order resident on the ISE's complex order 
book. The ISE determines the liquidity provider and the liquidity 
taker based on time, i.e., the order that arrives first on the ISE's 
complex order book is the liquidity provider. The fees established 
in the proposal apply solely to customer Complex Orders that take 
liquidity from the ISE's complex order book, but not to customer 
Complex Orders that trade with orders in the regular order book. 
Similarly, the fees do not apply to customer orders in the regular 
order book that trade with Complex Orders.
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III. Discussion

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\7\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(4) of the Act,\8\ which requires that the rules of an 
exchange provide for the equitable allocation of reasonable dues, fees, 
and other charges among its members and issuers and other persons using 
its facilities. Under its current rules, the ISE generally charges 
execution and comparison fees of $.15 and $.03 per contract, 
respectively, for Firm Proprietary orders. The proposal establishes 
execution and comparison fees of $.15 and $.03 per contract, 
respectively, for customer Complex Orders that take liquidity from the 
ISE's complex order book.\9\ Accordingly, the Commission believes that 
the proposal provides for the equitable allocation of fees among 
members and other persons using the ISE's facilities, consistent with 
Section 6(b)(4) of the Act.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ As with the current execution fee for Firm Proprietary 
Complex Orders, the execution fee will be charged only for the leg 
of the trade with the most contracts.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-ISE-2006-56), as amended, is 
approved.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
[FR Doc. E6-19734 Filed 11-21-06; 8:45 am]
BILLING CODE 8011-01-P