Joint Industry Plan; Solicitation of Comments and Order Granting Temporary Summary Effectiveness to Request to Extend the Operation of the Reporting Plan for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privilege Basis, Submitted by the American Stock Exchange LLC, the Boston Stock Exchange, Inc., the Chicago Stock Exchange, Inc., the Chicago Board Options Exchange, Incorporated, the International Securities Exchange, Inc., the National Association of Securities Dealers, Inc., the National Stock Exchange, Inc., the Nasdaq Stock Market LLC, NYSE Arca, Inc., and the Philadelphia Stock Exchange, Inc., and to Request Permanent Approval of the Plan, 78240-78241 [E6-22198]
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78240
Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54988; File No. S7–24–89]
Joint Industry Plan; Solicitation of
Comments and Order Granting
Temporary Summary Effectiveness to
Request to Extend the Operation of the
Reporting Plan for Nasdaq-Listed
Securities Traded on Exchanges on an
Unlisted Trading Privilege Basis,
Submitted by the American Stock
Exchange LLC, the Boston Stock
Exchange, Inc., the Chicago Stock
Exchange, Inc., the Chicago Board
Options Exchange, Incorporated, the
International Securities Exchange, Inc.,
the National Association of Securities
Dealers, Inc., the National Stock
Exchange, Inc., the Nasdaq Stock
Market LLC, NYSE Arca, Inc., and the
Philadelphia Stock Exchange, Inc., and
to Request Permanent Approval of the
Plan
December 20, 2006.
sroberts on PROD1PC70 with NOTICES
I. Introduction and Description
On December 12, 2006, NYSE Arca,
Inc. (‘‘NYSEArca’’), on behalf of itself
and the American Stock Exchange LLC
(‘‘Amex’’), the Boston Stock Exchange,
Inc. (‘‘BSE’’), the Chicago Stock
Exchange, Inc. (‘‘CHX’’), the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’), the International Securities
Exchange, Inc. (‘‘ISE’’), the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), the National Stock Exchange,
Inc. (‘‘NSX’’), the Nasdaq Stock Market
LLC (‘‘Nasdaq’’), and the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’)
(hereinafter referred to collectively as
‘‘Participants’’),1 as members of the
operating committee (‘‘Operating
Committee’’ or ‘‘Committee’’) of the
Plan submitted to the Securities and
Exchange Commission (‘‘Commission’’)
a request to extend the operation of the
Plan, along with a request for permanent
approval of the Plan.2
The Nasdaq UTP Plan governs the
collection, processing, and
dissemination on a consolidated basis of
quotation and last sale information for
Nasdaq-listed securities for each of its
Participants. This consolidated
1 NYSEArca is the chair of the operating
committee (‘‘Operating Committee’’ or
‘‘Committee’’) for the Joint Self-Regulatory
Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed
Securities Traded on Exchanges on an Unlisted
Trading Privilege Basis (‘‘Nasdaq UTP Plan’’ or
‘‘Plan’’) by the Participants.
2 See letter from Bridget M. Farrell, Chairman,
OTC/UTP Operating Committee, to Nancy M.
Morris, Secretary, Commission, dated December 12,
2006.
VerDate Aug<31>2005
20:03 Dec 27, 2006
Jkt 211001
information informs investors of the
current quotation and recent trade
prices of Nasdaq securities. It enables
investors to ascertain from one data
source the current prices in all the
markets trading Nasdaq securities. The
Plan serves as the required transaction
reporting plan for its Participants,
which is a prerequisite for their trading
Nasdaq securities.3
This order grants summary
effectiveness, pursuant to Rule 608(b)(4)
under the Securities Exchange Act of
1934 (‘‘Act’’),4 to the request to extend
operation of the Plan, as modified by all
changes previously approved (‘‘Date
Extension’’). Pursuant to Rule 608(b)(4)
under the Act,5 the Date Extension will
be effective upon publication in the
Federal Register on temporary basis for
120 days from the date of publication.6
II. Discussion
The Commission finds that extending
the operation of the Plan is consistent
with the requirements of the Act and the
rules and regulations thereunder, and,
in particular, Section 12(f) 7 and Section
11A(a)(1) 8 of the Act and Rules 601 and
608 thereunder.9 Section 11A of the Act
directs the Commission to facilitate the
development of a national market
system for securities, ‘‘having due
regard for the public interest, the
protection of investors, and the
maintenance of fair and orderly
markets,’’ and cites as an objective of
that system the ‘‘fair competition . . .
between exchange markets and markets
other than exchange markets.’’ 10 When
the Commission first approved the Plan
on a pilot basis, it found that the Plan
‘‘should enhance market efficiency and
fair competition, avoid investor
confusion, and facilitate surveillance of
concurrent exchange and OTC
trading.’’ 11 The Plan has been in
existence since 1990 and Participants
3 See Securities Exchange Act Release No. 52886
(December 5, 2005), 70 FR 74059 (December 14,
2005).
4 17 CFR 242.608(b)(4).
5 17 CFR 242.608(b)(4).
6 The Participants requested that the Commission
extend the previously issued exemption from
compliance with Section VI.C.1 of the Plan.
However, this exemption is no longer necessary as
Nasdaq is now a registered national securities
exchange with respect to Nasdaq-listed securities.
7 15 U.S.C. 78l(f). Nasdaq became an exchange on
January 13, 2006. See Securities Exchange Act
Release No. 53128 (January 13, 2006), 71 FR 3550
(January 23, 2006). Therefore, unlisted trading
privileges for Nasdaq securities are governed by
Section 12(f)(1)(A)(i).
8 15 U.S.C. 78k–1(a)(1).
9 17 CFR 242.601 and 17 CFR 242.608.
10 15 U.S.C. 78k–1(a).
11 See Securities Exchange Act Release No. 28146
(June 26, 1990), 55 FR 27917 (July 6, 1990).
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
have been trading Nasdaq securities
under the Plan since 1993.
The Commission finds that extending
the operation of the Plan through
summary effectiveness furthers the goals
described above by preventing the lapse
of the sole effective transaction
reporting plan for Nasdaq securities
traded by exchanges pursuant to
unlisted trading privileges. The
Commission believes that the Plan is
currently a critical component of the
national market system and that the
Plan’s expiration would have a serious,
detrimental impact on the further
development of the national market
system.
III. Solicitation of Comments
The Commission seeks general
comments on the extension of the
operation of the Plan, as well as the
request for permanent approval of the
Plan. Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposal 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
Number S7–24–89 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 S7–24–89. 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 written statements with
respect to the Plan extension and the
request for permanent approval of the
Plan that are filed with the Commission,
and all written communications relating
to the Plan extension and the request for
permanent approval of the Plan 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 the filing also will be
E:\FR\FM\28DEN1.SGM
28DEN1
Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Notices
available for inspection and copying at
the Office of the Secretary of the
Committee, currently located at the
NYSEArca, 100 South Wacker Drive,
Suite 1800, Chicago, IL 60606. 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 S7–24–89 and should be
submitted on or before January 18, 2007.
IV. Conclusion
It is therefore ordered, pursuant to
Sections 12(f) and 11A of the Act 12 and
paragraph (b)(4) of Rule 608
thereunder,13 that the operation of the
Plan, as modified by all changes
previously approved, be, and hereby is,
extended, for a period of 120 days from
the date of publication of this Date
Extension in the Federal Register.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22198 Filed 12–27–06; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–54971; File No. SR–ISE–
2006–65]
Self-Regulatory Organizations;
International Securities Exchange, LLC
; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
December 20, 2006.
sroberts on PROD1PC70 with NOTICES
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
21, 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, II, and III below,
which items have been prepared by the
Exchange. The ISE has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
the CBOE under Section 19(b)(3)(A)(ii)
of the Act,3 and Rule 19b–4(f)(2)
U.S.C. 78l(f) and 15 U.S.C. 78k–1.
CFR 242.608(b)(4).
14 17 CFR 200.30–3(a)(27).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
13 17
VerDate Aug<31>2005
20:03 Dec 27, 2006
Jkt 211001
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 establish fees for
transactions in options on 3 Premium
Products.5 The text of the proposed rule
change is available on the ISE’s Web site
(https://www.iseoptions.com), at the
principal office of the ISE, 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
SECURITIES AND EXCHANGE
COMMISSION
12 15
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. Purpose
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the following
3 Premium Products: streetTRACKS
KBW Bank ETF (‘‘KBE’’), streetTRACKS
KBW Capital Markets ETF (‘‘KCE’’), and
streetTRACKS KBW Insurance ETF
(‘‘KIE’’).6 Specifically, the Exchange is
4 17
CFR 240.19b–4(f)(2).
Products is defined in the Schedule of
Fees as the products enumerated therein.
6 The ‘‘KBW Bank Indexsm’’, the ‘‘KBW Capital
Markets Indexsm,’’ the ‘‘KBW Insurance Indexsm,’’
‘‘KBW’’ and ‘‘Keefe, Bruyette & Woodssm’’ are
service marks of Keefe, Bruyette & Woods, Inc.sm,
and have been licensed for use by State Street bank
and Trust in connection with the listing and trading
of KBE, KCE, and KIE on the American Stock
Exchange. KBE, KCE and KIE are not sponsored,
sold or endorsed by Keefe, Bruyette &Woods, Inc.
and Keefe, Bruyette &Woods, Inc. makes no
representation regarding the advisability of
investing in KBE, KCE and KIE. Keefe, Bruyette
&Woods, Inc. has not licensed or authorized ISE to
(i) engage in the creation, listing, provision of a
market for trading, marketing, and promotion of
options on KBE, KCE and KIE or (ii) to use and refer
to any of their trademarks or service marks in
connection with the listing, provision of a market
for trading, marketing, and promotion of options on
KBE, KCE and KIE or with making disclosures
concerning options on KBE, KCE and KIE under any
5 Premium
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
78241
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on KBE, KCE and KIE.7 The
amount of the execution fee and
comparison fee for products covered by
this filing would be $0.15 and $0.03 per
contract, respectively, for all Public
Customer Orders 8 and Firm Proprietary
orders. The amount of the execution fee
and comparison fee for all ISE Market
Maker transactions would be equal to
the execution fee and comparison fee
currently charged by the Exchange for
ISE Market Maker transactions in equity
options.9 Finally, the amount of the
execution fee and comparison fee for all
non-ISE Market Maker transactions
would be $0.16 and $0.03 per contract,
respectively. All of the applicable fees
covered by this filing are identical to
fees charged by the Exchange for all
other Premium Products. The Exchange
believes the proposed rule change will
further the Exchange’s goal of
introducing new products to the
marketplace that are competitively
priced.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirement of Section 6(b)(4) of the
Act 10 that an exchange have 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 ISE does not believe that the
proposed rule change will impose any
inappropriate burden on competition.
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.
applicable federal or state laws, rules or regulations.
Keefe, Bruyette & Woods, Inc. does not sponsor,
endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE. KBE, KCE, and
KIE constitute ‘‘Fund Shares,’’ as defined by ISE
Rule 502(h).
7 These fees will be charged only to Exchange
members. Under a pilot program that is set to expire
on July 31, 2007, these fees will also be charged to
Linkage Orders (as defined in ISE Rule 1900).
8 Public Customer Order is defined in Exchange
Rule 100(a)(33) as an order for the account of a
Public Customer. Public Customer is defined in
Exchange Rule 100(a)(32) as a person that is not a
broker or dealer in securities.
9 The execution fee is currently between $.21 and
$.12 per contract side, depending on the Exchange
Average Daily Volume, and the comparison fee is
currently $.03 per contract side.
10 15 U.S.C. 78f(b)(4).
E:\FR\FM\28DEN1.SGM
28DEN1
]]>Agencies
[Federal Register Volume 71, Number 249 (Thursday, December 28, 2006)]
[Notices]
[Pages 78240-78241]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22198]
[[Page 78240]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54988; File No. S7-24-89]
Joint Industry Plan; Solicitation of Comments and Order Granting
Temporary Summary Effectiveness to Request to Extend the Operation of
the Reporting Plan for Nasdaq-Listed Securities Traded on Exchanges on
an Unlisted Trading Privilege Basis, Submitted by the American Stock
Exchange LLC, the Boston Stock Exchange, Inc., the Chicago Stock
Exchange, Inc., the Chicago Board Options Exchange, Incorporated, the
International Securities Exchange, Inc., the National Association of
Securities Dealers, Inc., the National Stock Exchange, Inc., the Nasdaq
Stock Market LLC, NYSE Arca, Inc., and the Philadelphia Stock Exchange,
Inc., and to Request Permanent Approval of the Plan
December 20, 2006.
I. Introduction and Description
On December 12, 2006, NYSE Arca, Inc. (``NYSEArca''), on behalf of
itself and the American Stock Exchange LLC (``Amex''), the Boston Stock
Exchange, Inc. (``BSE''), the Chicago Stock Exchange, Inc. (``CHX''),
the Chicago Board Options Exchange, Incorporated (``CBOE''), the
International Securities Exchange, Inc. (``ISE''), the National
Association of Securities Dealers, Inc. (``NASD''), the National Stock
Exchange, Inc. (``NSX''), the Nasdaq Stock Market LLC (``Nasdaq''), and
the Philadelphia Stock Exchange, Inc. (``Phlx'') (hereinafter referred
to collectively as ``Participants''),\1\ as members of the operating
committee (``Operating Committee'' or ``Committee'') of the Plan
submitted to the Securities and Exchange Commission (``Commission'') a
request to extend the operation of the Plan, along with a request for
permanent approval of the Plan.\2\
---------------------------------------------------------------------------
\1\ NYSEArca is the chair of the operating committee
(``Operating Committee'' or ``Committee'') for the Joint Self-
Regulatory Organization Plan Governing the Collection, Consolidation
and Dissemination of Quotation and Transaction Information for
Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading
Privilege Basis (``Nasdaq UTP Plan'' or ``Plan'') by the
Participants.
\2\ See letter from Bridget M. Farrell, Chairman, OTC/UTP
Operating Committee, to Nancy M. Morris, Secretary, Commission,
dated December 12, 2006.
---------------------------------------------------------------------------
The Nasdaq UTP Plan governs the collection, processing, and
dissemination on a consolidated basis of quotation and last sale
information for Nasdaq-listed securities for each of its Participants.
This consolidated information informs investors of the current
quotation and recent trade prices of Nasdaq securities. It enables
investors to ascertain from one data source the current prices in all
the markets trading Nasdaq securities. The Plan serves as the required
transaction reporting plan for its Participants, which is a
prerequisite for their trading Nasdaq securities.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 52886 (December 5,
2005), 70 FR 74059 (December 14, 2005).
---------------------------------------------------------------------------
This order grants summary effectiveness, pursuant to Rule 608(b)(4)
under the Securities Exchange Act of 1934 (``Act''),\4\ to the request
to extend operation of the Plan, as modified by all changes previously
approved (``Date Extension''). Pursuant to Rule 608(b)(4) under the
Act,\5\ the Date Extension will be effective upon publication in the
Federal Register on temporary basis for 120 days from the date of
publication.\6\
---------------------------------------------------------------------------
\4\ 17 CFR 242.608(b)(4).
\5\ 17 CFR 242.608(b)(4).
\6\ The Participants requested that the Commission extend the
previously issued exemption from compliance with Section VI.C.1 of
the Plan. However, this exemption is no longer necessary as Nasdaq
is now a registered national securities exchange with respect to
Nasdaq-listed securities.
---------------------------------------------------------------------------
II. Discussion
The Commission finds that extending the operation of the Plan is
consistent with the requirements of the Act and the rules and
regulations thereunder, and, in particular, Section 12(f) \7\ and
Section 11A(a)(1) \8\ of the Act and Rules 601 and 608 thereunder.\9\
Section 11A of the Act directs the Commission to facilitate the
development of a national market system for securities, ``having due
regard for the public interest, the protection of investors, and the
maintenance of fair and orderly markets,'' and cites as an objective of
that system the ``fair competition . . . between exchange markets and
markets other than exchange markets.'' \10\ When the Commission first
approved the Plan on a pilot basis, it found that the Plan ``should
enhance market efficiency and fair competition, avoid investor
confusion, and facilitate surveillance of concurrent exchange and OTC
trading.'' \11\ The Plan has been in existence since 1990 and
Participants have been trading Nasdaq securities under the Plan since
1993.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78l(f). Nasdaq became an exchange on January 13,
2006. See Securities Exchange Act Release No. 53128 (January 13,
2006), 71 FR 3550 (January 23, 2006). Therefore, unlisted trading
privileges for Nasdaq securities are governed by Section
12(f)(1)(A)(i).
\8\ 15 U.S.C. 78k-1(a)(1).
\9\ 17 CFR 242.601 and 17 CFR 242.608.
\10\ 15 U.S.C. 78k-1(a).
\11\ See Securities Exchange Act Release No. 28146 (June 26,
1990), 55 FR 27917 (July 6, 1990).
---------------------------------------------------------------------------
The Commission finds that extending the operation of the Plan
through summary effectiveness furthers the goals described above by
preventing the lapse of the sole effective transaction reporting plan
for Nasdaq securities traded by exchanges pursuant to unlisted trading
privileges. The Commission believes that the Plan is currently a
critical component of the national market system and that the Plan's
expiration would have a serious, detrimental impact on the further
development of the national market system.
III. Solicitation of Comments
The Commission seeks general comments on the extension of the
operation of the Plan, as well as the request for permanent approval of
the Plan. Interested persons are invited to submit written data, views,
and arguments concerning the foregoing, including whether the proposal
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 S7-24-89 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 S7-24-89. 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 written statements with
respect to the Plan extension and the request for permanent approval of
the Plan that are filed with the Commission, and all written
communications relating to the Plan extension and the request for
permanent approval of the Plan 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 the
filing also will be
[[Page 78241]]
available for inspection and copying at the Office of the Secretary of
the Committee, currently located at the NYSEArca, 100 South Wacker
Drive, Suite 1800, Chicago, IL 60606. 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 S7-24-89 and should be submitted on or
before January 18, 2007.
IV. Conclusion
It is therefore ordered, pursuant to Sections 12(f) and 11A of the
Act \12\ and paragraph (b)(4) of Rule 608 thereunder,\13\ that the
operation of the Plan, as modified by all changes previously approved,
be, and hereby is, extended, for a period of 120 days from the date of
publication of this Date Extension in the Federal Register.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78l(f) and 15 U.S.C. 78k-1.
\13\ 17 CFR 242.608(b)(4).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(27).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-22198 Filed 12-27-06; 8:45 am]
BILLING CODE 8011-01-P
