Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ISE Stock Exchange Fees, 75593-75594 [E6-21359]

Download as PDF Federal Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Notices 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–2006–75 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54897; File No. SR–ISE– 2006–76] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ISE Stock Exchange Fees December 8, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on December to Nancy M. Morris, Secretary, 5, 2006, the International Securities Securities and Exchange Commission, Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) Station Place, 100 F Street, NE., filed with the Securities and Exchange Washington, DC 20549–1090. Commission (‘‘Commission’’) the proposed rule change as described in All submissions should refer to File Items I, II, and III below, which Items Number SR–ISE–2006–75. This file have been prepared by the Exchange. number should be included on the subject line if e-mail is used. To help the The Exchange has designated this proposal as one establishing or changing Commission process and review your a due, fee, or other charge imposed by comments more efficiently, please use only one method. The Commission will a self-regulatory organization pursuant 3 post all comments on the Commission’s to section 19(b)(3)(A) of the Act, and rule 19b–4(f)(2) thereunder,4 which Internet Web site (http://www.sec.gov/ renders the proposal effective upon rules/sro.shtml). Copies of the filing with the Commission. The submission, all subsequent Commission is publishing this notice to amendments, all written statements solicit comments on the proposed rule with respect to the proposed rule change from interested persons. change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the Commission and any person, other than The Exchange is proposing to amend those that may be withheld from the its Schedule of Fees to adopt fees public in accordance with the related to the ISE Stock Exchange, LLC provisions of 5 U.S.C. 552, will be (‘‘ISE Stock’’). The text of the proposed rule change is available on the available for inspection and copying in Exchange’s Web site, http:// the Commission’s Public Reference Room. Copies of such filing also will be www.iseoptions.com, at the Exchange’s Office of the Secretary, and at the available for inspection and copying at the principal office of the Exchange. All Commission’s Public Reference Room. comments received will be posted II. Self-Regulatory Organization’s without change; the Commission does Statement of the Purpose of, and not edit personal identifying Statutory Basis for, the Proposed Rule information from submissions. You Change should submit only information that In its filing with the Commission, the you wish to make available publicly. All Exchange included statements submissions should refer to File concerning the purpose of and basis for Number SR–ISE–2006–75 and should be the proposed rule change and discussed submitted on or before January 5, 2007. any comments it received on the proposal. The text of these statements For the Commission, by the Division of may be examined at the places specified Market Regulation, pursuant to delegated in Item IV below. The Exchange has authority.11 prepared summaries, set forth in Florence E. Harmon, sections A, B, and C below, of the most Deputy Secretary, significant aspects of such statements. mstockstill on PROD1PC61 with NOTICES Paper Comments 75593 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose 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 trades being executed in the MidPoint Match system.5 The fees that are applicable to MidPoint Match were filed separately; the fees set forth in this filing apply only to the displayed market. With regard to the execution fees, the Exchange proposes to charge members that remove liquidity an execution fee of $0.0030 per share executed or 0.3% of the trade value in the case of shares priced under $1.00. For members that provide liquidity, the Exchange proposes a rebate of $0.0025 per share executed. There will be no rebate to liquidity providers for executions under $1.00. The execution fees are applied on a per share basis, regardless of where the security is listed. Pursuant to Regulation NMS under the Act, when ISE Stock does not have contra-side interest resident in its system equal to or better than a Protected Bid or Protected Offer,6 it will either cancel the orders that are marketable against the Protected Bid or Protected Offer if the system is incapable of routing out, or route orders that are marketable against a Protected Bid or Protected Offer to one or more Trading Centers.7 For the orders that are routed out, the Exchange proposes to charge a fee of $0.0030 per share executed, which is the same as the fee ISE Stock proposes to charge members for removing liquidity. The Exchange proposes not to charge any additional fees for routing orders to another Trading Center for execution. Additionally, in line with current practice in the industry, where market data revenue received from the Consolidated Tape Association and UTP Plan is shared between firms that execute on an exchange and the exchange itself, the Exchange proposes a 50 percent credit to members that provide liquidity to the displayed [FR Doc. E6–21357 Filed 12–14–06; 8:45 am] BILLING CODE 8011–01–P 11 17 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)(2). CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:47 Dec 14, 2006 5 See Securities Exchange Act Release No. 54561 (October 2, 2006), 71 FR 59844 (October 11, 2006) (SR–ISE–2006–54). 6 See ISE Rule 2100(c)(15). 7 See ISE Rule 2100(c)(20). 1 15 Jkt 211001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1 75594 Federal Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Notices market. Finally, the Exchange proposes to charge a Session/API fee of $250 per month to connect to the displayed market, with a waiver until June 30, 2007 for a second and subsequent connection. • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2006–76 on the subject line. 2. Statutory Basis • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street NE., Washington, DC 20549–1090. The Exchange believes that the proposed rule change furthers the objectives of section 6(b)(4) of the Act,8 in that it is an equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change would impose no 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 did not solicit or receive any written comments with respect to the proposal. 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 9 and Rule 19b–4(f)(2) 10 thereunder. Accordingly, the proposal is effective upon filing with the Commission. At any time within 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.11 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 All submissions should refer to File Number SR–ISE–2006–76. 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 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–ISE–2006–76 and should be submitted on or before January 5, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–21359 Filed 12–14–06; 8:45 am] BILLING CODE 8011–01–P mstockstill on PROD1PC61 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or U.S.C. 78f(b)(4). U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). 11 See 15 U.S.C. 78s(b)(3)(C). SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54905; File No. SR–ISE– 2006–68] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 2107 (Priority and Execution of Orders) December 8, 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 24, 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 and II below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change as a ‘‘non-controversial’’ rule change under Rule 19b–4(f)(6) under the Act,3 which rendered 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 Exchange proposes to amend ISE Rule 2107 (Priority and Execution of Orders). The text of the proposed rule change is available on the Exchange’s Web site, http://www.iseoptions.com, at the Exchange’s Office of the Secretary, 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 Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposal. 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. 8 15 1 15 9 15 VerDate Aug<31>2005 15:47 Dec 14, 2006 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 2 17 12 17 Jkt 211001 PO 00000 CFR 200.30–3(a)(12). Frm 00120 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

Agencies

[Federal Register Volume 71, Number 241 (Friday, December 15, 2006)]
[Notices]
[Pages 75593-75594]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21359]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54897; File No. SR-ISE-2006-76]


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

December 8, 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 December 5, 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 Exchange has designated this proposal as one establishing 
or changing a due, fee, or other charge imposed by a self-regulatory 
organization pursuant to section 19(b)(3)(A) 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).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing 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, 
http://www.iseoptions.com, at the Exchange's Office of the Secretary, 
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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposal. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    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 trades being executed in the MidPoint Match 
system.\5\ The fees that are applicable to MidPoint Match were filed 
separately; the fees set forth in this filing apply only to the 
displayed market. With regard to the execution fees, the Exchange 
proposes to charge members that remove liquidity an execution fee of 
$0.0030 per share executed or 0.3% of the trade value in the case of 
shares priced under $1.00. For members that provide liquidity, the 
Exchange proposes a rebate of $0.0025 per share executed. There will be 
no rebate to liquidity providers for executions under $1.00. The 
execution fees are applied on a per share basis, regardless of where 
the security is listed.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 54561 (October 2, 
2006), 71 FR 59844 (October 11, 2006) (SR-ISE-2006-54).9
---------------------------------------------------------------------------

    Pursuant to Regulation NMS under the Act, when ISE Stock does not 
have contra-side interest resident in its system equal to or better 
than a Protected Bid or Protected Offer,\6\ it will either cancel the 
orders that are marketable against the Protected Bid or Protected Offer 
if the system is incapable of routing out, or route orders that are 
marketable against a Protected Bid or Protected Offer to one or more 
Trading Centers.\7\ For the orders that are routed out, the Exchange 
proposes to charge a fee of $0.0030 per share executed, which is the 
same as the fee ISE Stock proposes to charge members for removing 
liquidity. The Exchange proposes not to charge any additional fees for 
routing orders to another Trading Center for execution.
---------------------------------------------------------------------------

    \6\ See ISE Rule 2100(c)(15).
    \7\ See ISE Rule 2100(c)(20).
---------------------------------------------------------------------------

    Additionally, in line with current practice in the industry, where 
market data revenue received from the Consolidated Tape Association and 
UTP Plan is shared between firms that execute on an exchange and the 
exchange itself, the Exchange proposes a 50 percent credit to members 
that provide liquidity to the displayed

[[Page 75594]]

market. Finally, the Exchange proposes to charge a Session/API fee of 
$250 per month to connect to the displayed market, with a waiver until 
June 30, 2007 for a second and subsequent connection.
2. Statutory Basis
    The Exchange believes that the proposed rule change furthers the 
objectives of section 6(b)(4) of the Act,\8\ in that it is an equitable 
allocation of reasonable dues, fees, and other charges among its 
members and other persons using its facilities.
---------------------------------------------------------------------------

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

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

    The Exchange believes that the proposed rule change would impose no 
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 did not solicit or receive any written comments with 
respect to the proposal.

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 \9\ and Rule 19b-
4(f)(2) \10\ thereunder. Accordingly, the proposal is effective upon 
filing with the Commission. At any time within 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.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
    \11\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2006-76 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2006-76. 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 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-ISE-2006-76 and should be submitted on or before January 
5, 2007.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21359 Filed 12-14-06; 8:45 am]
BILLING CODE 8011-01-P