Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fee Changes, 71006-71007 [E6-20714]

Download as PDF 71006 Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Notices (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: sroberts on PROD1PC70 with NOTICES Electronic Comments • 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–CHX–2006–33 in the subject line. should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CHX–2006–33 and should be submitted on or before December 28, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–20731 Filed 12–6–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54841; File No. SR–ISE– 2006–69] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fee Changes November 30, 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 November Paper Comments 27, 2006, the International Securities • Send paper comments in triplicate Exchange, LLC (the ‘‘Exchange’’ or the to Nancy M. Morris, Secretary, ‘‘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, II, 20549–1090. and III below, which items have been All submissions should refer to File prepared by the self-regulatory Number SR–CHX–2006–33. This file organization. The ISE has designated number should be included on the subject line if e-mail is used. To help the this proposal as one changing a fee imposed by the ISE under Section Commission process and review your 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– comments more efficiently, please use 4 only one method. The Commission will 4(f)(2) thereunder, which renders the proposal effective upon filing with the post all comments on the Commission’s Commission. The Commission is Internet Web site (http://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The ISE is proposing to amend its proposed rule change between the Schedule of Fees to extend until June Commission and any person, other than 30, 2007, a pilot program that (i) caps those that may be withheld from the and waives execution and comparison public in accordance with the fees for transactions in options on the provisions of 5 U.S.C. 552, will be NASDAQ–100 Index Tracking Stock available for inspection and copying in (‘‘QQQQ’’) when a member transacts a the Commission’s Public Reference certain number of QQQQ option Section, 100 F Street, NE., Washington, contracts, and (ii) reduces and waives DC 20549. Copies of such filings also the facilitation execution and will be available for inspection and comparison fees when a member copying at the principal office of CHX and on CHX’s Web site, www.chx.com. 10 17 CFR 200.30–3(a)(12). All comments received will be posted 1 15 U.S.C. 78s(b)(1). without change; the Commission does 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). not edit personal identifying 4 17 CFR 240.19b–4(f)(2). information from submissions. You VerDate Aug<31>2005 17:29 Dec 06, 2006 Jkt 211001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 transacts a certain number of contracts through the Exchange’s Facilitation Mechanism. The text of the proposed rule change is available on the Exchange’s Web site at (http:// www.iseoptions.com/legal/proposedrule-changes.asp), at the ISE’s principal office, 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 proposes to amend its Schedule of Fees to extend until June 30, 2007, a pilot program that (i) caps and waives execution and comparison fees for transactions in options on the QQQQ when a member transacts a certain number of QQQQ option contracts, and (ii) reduces and waives the facilitation execution and comparison fees when a member transacts a certain number of contracts through the Exchange’s Facilitation Mechanism.5 Under the QQQQ pilot program, when a member’s monthly average daily volume (‘‘A.D.V.’’) in QQQQ options reaches 10,000 contracts, the member’s execution fee for the next 2,000 QQQQ option contracts is reduced by $.10 per contract.6 Further, when a member’s monthly A.D.V. in QQQQ options reaches 12,000 contracts, the Exchange waives the entire execution fee and the comparison fee for each QQQQ option contract traded thereafter. The Exchange instituted this pilot program in November 2003 for a six month period, 5 Earlier this year, the Exchange amended the pilot program by increasing the threshold levels at which the fee waiver and reduction applied. See Securities Exchange Act Release No. 54016 (June 19, 2006), 71 FR 36575 (June 27, 2006). 6 Telephone conversation between Samir Patel, Assistant General Counsel, ISE, and Hong-anh Tran, Special Counsel, Division of Market Regulation, Commission, on November 28, 2006 (clarifying that the A.D.V. threshold is calculated on a monthly basis). E:\FR\FM\07DEN1.SGM 07DEN1 Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Notices expiring in May 2004.7 The Exchange extended the pilot program in May 2004 for an additional six month period, expiring in November 2004.8 The Exchange extended the pilot program for a one year period in November 2004 9 and again in November 2005.10 The current pilot program is set to expire on November 30, 2006. The Exchange now proposes to further extend the pilot program until June 30, 2007.11 The Exchange seeks to extend this pilot program for competitive reasons. This pilot program was initiated and extended in an attempt to increase the Exchange’s market share in the QQQQ option product. The structure of the reduction and waiver of the facilitation execution fee and the comparison fee is based on the structure of the reduction and waiver of the QQQQ execution fee and comparison fee noted above. That is, when a member’s monthly A.D.V. in the Facilitation Mechanism reaches 15,000 contracts, the member’s facilitation execution fee for the next 5,000 contracts transacted in the Facilitation Mechanism would be reduced by $.10 per contract. Further, when a member’s monthly A.D.V. in the Facilitation Mechanism reaches 20,000 contracts, the Exchange would waive the entire facilitation execution fee and the comparison fee for each contract transacted in the Facilitation Mechanism thereafter. As with the QQQQ incentives, the Exchange is proposing to extend this pilot program to encourage members to use the Facilitation Mechanism. 2. Statutory Basis sroberts on PROD1PC70 with NOTICES The Exchange believes that its proposal is consistent with Section 6(b) of the Act 12 in general, and furthers the objectives of Sections 6(b)(4) of the Act 13 in particular, in that it is an equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. In particular, the fee changes proposed hereby will enable the 7 See Securities Exchange Act Release No. 49147 (January 29, 2004), 69 FR 5629 (February 5, 2004). 8 See Securities Exchange Act Release No. 49853 (June 14, 2004), 69 FR 35087 (June 23, 2004). 9 See Securities Exchange Act Release No. 50900 (December 21, 2004), 69 FR 78075 (December 29, 2004). 10 See Securities Exchange Act Release No. 52934 (December 9, 2005), 70 FR 74859 (December 16, 2005). 11 The Exchange intends to establish, through subsequent filings, June 30 as the date on which all of its fee programs expire. By aligning the expiration date as such, the Exchange seeks to manage its various fee programs more effectively. 12 15 U.S.C. 78f(b). 13 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 17:29 Dec 06, 2006 Jkt 211001 Exchange to continue offering competitively priced products and services. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change does 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 either solicited or received. 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 14 and Rule 19b–4(f)(2) 15 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. 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2006–69 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–2006–69. 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 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–2006–69 and should be submitted on or before December 28, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–20714 Filed 12–6–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54843; File No. SR–NYSE– 2006–73] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment Nos. 1, 2, and 3 Relating to Block Positioning November 30, 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 13, 2006, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule 16 17 14 15 U.S.C. 78s(b)(3)(A)(ii). 15 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 71007 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\07DEN1.SGM 07DEN1

Agencies

[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Notices]
[Pages 71006-71007]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20714]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54841; File No. SR-ISE-2006-69]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change Relating to Fee Changes

November 30, 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 November 27, 2006, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission the proposed rule change as described in Items I, II, and 
III below, which items have been prepared by the self-regulatory 
organization. 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.
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    \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 is proposing to amend its Schedule of Fees to extend until 
June 30, 2007, a pilot program that (i) caps and waives execution and 
comparison fees for transactions in options on the NASDAQ-100 Index 
Tracking Stock[reg] (``QQQQ[reg]'') when a member 
transacts a certain number of QQQQ option contracts, and (ii) reduces 
and waives the facilitation execution and comparison fees when a member 
transacts a certain number of contracts through the Exchange's 
Facilitation Mechanism. The text of the proposed rule change is 
available on the Exchange's Web site at (http://www.iseoptions.com/
legal/proposed-rule-changes.asp), at the ISE's principal office, 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 proposes to amend its Schedule of Fees to extend until June 
30, 2007, a pilot program that (i) caps and waives execution and 
comparison fees for transactions in options on the QQQQ when a member 
transacts a certain number of QQQQ option contracts, and (ii) reduces 
and waives the facilitation execution and comparison fees when a member 
transacts a certain number of contracts through the Exchange's 
Facilitation Mechanism.\5\
---------------------------------------------------------------------------

    \5\ Earlier this year, the Exchange amended the pilot program by 
increasing the threshold levels at which the fee waiver and 
reduction applied. See Securities Exchange Act Release No. 54016 
(June 19, 2006), 71 FR 36575 (June 27, 2006).
---------------------------------------------------------------------------

    Under the QQQQ pilot program, when a member's monthly average daily 
volume (``A.D.V.'') in QQQQ options reaches 10,000 contracts, the 
member's execution fee for the next 2,000 QQQQ option contracts is 
reduced by $.10 per contract.\6\ Further, when a member's monthly 
A.D.V. in QQQQ options reaches 12,000 contracts, the Exchange waives 
the entire execution fee and the comparison fee for each QQQQ option 
contract traded thereafter. The Exchange instituted this pilot program 
in November 2003 for a six month period,

[[Page 71007]]

expiring in May 2004.\7\ The Exchange extended the pilot program in May 
2004 for an additional six month period, expiring in November 2004.\8\ 
The Exchange extended the pilot program for a one year period in 
November 2004 \9\ and again in November 2005.\10\ The current pilot 
program is set to expire on November 30, 2006. The Exchange now 
proposes to further extend the pilot program until June 30, 2007.\11\ 
The Exchange seeks to extend this pilot program for competitive 
reasons. This pilot program was initiated and extended in an attempt to 
increase the Exchange's market share in the QQQQ option product.
---------------------------------------------------------------------------

    \6\ Telephone conversation between Samir Patel, Assistant 
General Counsel, ISE, and Hong-anh Tran, Special Counsel, Division 
of Market Regulation, Commission, on November 28, 2006 (clarifying 
that the A.D.V. threshold is calculated on a monthly basis).
    \7\ See Securities Exchange Act Release No. 49147 (January 29, 
2004), 69 FR 5629 (February 5, 2004).
    \8\ See Securities Exchange Act Release No. 49853 (June 14, 
2004), 69 FR 35087 (June 23, 2004).
    \9\ See Securities Exchange Act Release No. 50900 (December 21, 
2004), 69 FR 78075 (December 29, 2004).
    \10\ See Securities Exchange Act Release No. 52934 (December 9, 
2005), 70 FR 74859 (December 16, 2005).
    \11\ The Exchange intends to establish, through subsequent 
filings, June 30 as the date on which all of its fee programs 
expire. By aligning the expiration date as such, the Exchange seeks 
to manage its various fee programs more effectively.
---------------------------------------------------------------------------

    The structure of the reduction and waiver of the facilitation 
execution fee and the comparison fee is based on the structure of the 
reduction and waiver of the QQQQ execution fee and comparison fee noted 
above. That is, when a member's monthly A.D.V. in the Facilitation 
Mechanism reaches 15,000 contracts, the member's facilitation execution 
fee for the next 5,000 contracts transacted in the Facilitation 
Mechanism would be reduced by $.10 per contract. Further, when a 
member's monthly A.D.V. in the Facilitation Mechanism reaches 20,000 
contracts, the Exchange would waive the entire facilitation execution 
fee and the comparison fee for each contract transacted in the 
Facilitation Mechanism thereafter. As with the QQQQ incentives, the 
Exchange is proposing to extend this pilot program to encourage members 
to use the Facilitation Mechanism.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \12\ in general, and furthers the objectives of 
Sections 6(b)(4) of the Act \13\ in particular, in that it is an 
equitable allocation of reasonable dues, fees, and other charges among 
its members and other persons using its facilities. In particular, the 
fee changes proposed hereby will enable the Exchange to continue 
offering competitively priced products and services.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change does 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 either solicited or received.

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 \14\ and Rule 
19b-4(f)(2) \15\ 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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    \14\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \15\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2006-69 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-2006-69. 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 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-2006-69 and should be submitted on or before 
December 28, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E6-20714 Filed 12-6-06; 8:45 am]
BILLING CODE 8011-01-P