Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Directed Orders System Change, 3890-3891 [E7-1230]
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3890
Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55144; File No. SR–ISE–
2007–05]
1. Purpose
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Directed Orders
System Change
January 22, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
18, 2007, 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 substantially prepared by the
ISE. The proposed rule change has been
filed by the ISE as effecting a change in
an existing order-entry or trading system
pursuant to Section 19(b)(3)(A) of the
Act,3 and Rule 19b–4(f)(5) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to extend the
pilot period for the system change that
identifies to a Directed Market Maker
(‘‘DMM’’) the identity of the firm
entering a Directed Order until July 31,
2007.5
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sroberts on PROD1PC70 with NOTICES
In its filing with the Commission, the
ISE included statements concerning the
purpose of, and basis for, the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The ISE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(5).
5 The Commission has changed this date from
January 31, 2007 to July 31, 2007 to conform it to
the date in the Form 19b–4 filed by ISE.
2 17
VerDate Aug<31>2005
17:19 Jan 25, 2007
Jkt 211001
On January 5, 2006, the ISE initiated
a system change to identify to a DMM
the identity of the firm entering a
Directed Order. The ISE filed this
system change on a pilot basis under
Section 19(b)(3)(A) of the Act and Rule
19b–4(f)(5) thereunder 6 so that it would
be effective while the Commission
considered a separate proposed rule
change filed under Section 19(b)(2) of
the Act to amend the ISE’s rules to
reflect the system change on a
permanent basis (the ‘‘Permanent Rule
Change’’).7 The pilot currently expires
on January 31, 2007, 8 but the
Commission has not yet taken action
with respect to the Permanent Rule
Change. Accordingly, the Exchange
proposes to extend the pilot until July
31, 2007, so that the system change will
remain in effect while the Commission
continues to evaluate the Permanent
Rule Change.9
2. Statutory Basis
The Exchange believes that the basis
under the Act is found in Section
6(b)(5), in that the propose rule change
is designed to promote just and
equitable principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. Extension of the pilot
program will allow the Exchange to
continue operating under the pilot
while the Commission considers the
Permanent Rule Change.
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.
6 Securities Exchange Act Release No. 53104 (Jan.
11, 2006), 71 FR 3142 (Jan. 19, 2006) (Notice of
Filing and Immediate Effectiveness for SR–ISE–
2006–02).
7 Securities Exchange Act Release No. 53103 (Jan.
11, 2006), 71 FR 3144 (Jan. 19, 2006) (Notice of
Filing for SR–ISE–2006–01).
8 Securities Exchange Act Release No. 54542
(Sept. 29, 2006), 71 FR 59170 (Oct. 6, 2006) (Notice
of Filing and Immediate Effectiveness for SR–ISE–
2006–57).
9 The ISE anticipated that extension of the pilot
might be necessary and included this in the filing
for the initial pilot. See supra note 6, at footnote
5.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change effects a change in an existing
order entry or trading system that (i)
does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not have the effect of limiting
access to or availability of the system, it
has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act 10 and
Rule 19b–4(f)(5) thereunder.11
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2007–05 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–2007–05. 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
10 15
11 17
E:\FR\FM\26JAN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 19b-4(f)(5).
26JAN1
Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Notices
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the ISE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2007–05 and should be
submitted on or before February 16,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–1230 Filed 1–25–07; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Reduce
Risk Management Service Fees
sroberts on PROD1PC70 with NOTICES
January 19, 2007.
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
29, 2006, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) 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 Nasdaq. Nasdaq filed the
proposal pursuant to Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
VerDate Aug<31>2005
17:19 Jan 25, 2007
Jkt 211001
Nasdaq proposes to reduce the fees
charged for Nasdaq’s Risk Management
Service (‘‘Service’’). Nasdaq will
implement the proposed rule change
immediately. The text of the proposed
rule change is available at Nasdaq,
https://www.nasdaq.com, and 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,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1. Purpose
[Release No. 34–55131; File No. SR–
NASDAQ–2006–066]
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
12 17
4(f)(2) 4 thereunder, as establishing or
changing a member due, fee, or other
charge, which renders the proposed rule
change effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
The Service provides clearing brokers
with a view of their correspondents’
trading activity, notification when preset trading limits have been breached
and the ability to prevent certain trades
from locking in and clearing when the
pre-set limits have been exceeded.
Currently, Nasdaq imposes a fee on
clearing firms that use the Service of
$17.25 per month for each
correspondent executing broker
monitored by Nasdaq, and a per-trade
fee of $0.035.5 The total amount of
Service fees per month for an individual
clearing firm is currently capped at
$10,000.
4 17
CFR 240.19b–4(f)(2).
fee amount is incorrectly reflected in
Nasdaq’s rules as $0.0035 per trade, as the result of
an inadvertent error occurring when the fee
schedule at issue was transferred into the Nasdaq
rule book as part of Nasdaq’s exchange registration
process. At all relevant times, Nasdaq has imposed
the specific Commission-approved fee rate of
$0.035 per trade level, which is now being reduced
to $0.025 with the instant proposed rule change.
5 This
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
3891
With the instant proposed rule
change, Nasdaq proposes to reduce the
per trade fee for the Service to $0.025,
and cap the per month total Service fee
per clearing firm at $7,500. Nasdaq
believes that these fee reductions will
ensure that Nasdaq’s charges for risk
management services remain
competitive with charges of other
providers of similar services.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
Nasdaq operates or controls.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing with
the Commission pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
4(f)(2) thereunder,9 in that the proposed
rule change establishes or changes a
member due, fee, or other charge
imposed by the self-regulatory
organization. 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.
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.
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
7 15
E:\FR\FM\26JAN1.SGM
26JAN1
]]>Agencies
[Federal Register Volume 72, Number 17 (Friday, January 26, 2007)]
[Notices]
[Pages 3890-3891]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-1230]
[[Page 3890]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55144; File No. SR-ISE-2007-05]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Directed Orders System Change
January 22, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 18, 2007, 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 substantially
prepared by the ISE. The proposed rule change has been filed by the ISE
as effecting a change in an existing order-entry or trading system
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(5)
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)(5).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to extend the pilot period for the system
change that identifies to a Directed Market Maker (``DMM'') the
identity of the firm entering a Directed Order until July 31, 2007.\5\
---------------------------------------------------------------------------
\5\ The Commission has changed this date from January 31, 2007
to July 31, 2007 to conform it to the date in the Form 19b-4 filed
by ISE.
---------------------------------------------------------------------------
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
On January 5, 2006, the ISE initiated a system change to identify
to a DMM the identity of the firm entering a Directed Order. The ISE
filed this system change on a pilot basis under Section 19(b)(3)(A) of
the Act and Rule 19b-4(f)(5) thereunder \6\ so that it would be
effective while the Commission considered a separate proposed rule
change filed under Section 19(b)(2) of the Act to amend the ISE's rules
to reflect the system change on a permanent basis (the ``Permanent Rule
Change'').\7\ The pilot currently expires on January 31, 2007, \8\ but
the Commission has not yet taken action with respect to the Permanent
Rule Change. Accordingly, the Exchange proposes to extend the pilot
until July 31, 2007, so that the system change will remain in effect
while the Commission continues to evaluate the Permanent Rule
Change.\9\
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 53104 (Jan. 11, 2006),
71 FR 3142 (Jan. 19, 2006) (Notice of Filing and Immediate
Effectiveness for SR-ISE-2006-02).
\7\ Securities Exchange Act Release No. 53103 (Jan. 11, 2006),
71 FR 3144 (Jan. 19, 2006) (Notice of Filing for SR-ISE-2006-01).
\8\ Securities Exchange Act Release No. 54542 (Sept. 29, 2006),
71 FR 59170 (Oct. 6, 2006) (Notice of Filing and Immediate
Effectiveness for SR-ISE-2006-57).
\9\ The ISE anticipated that extension of the pilot might be
necessary and included this in the filing for the initial pilot. See
supra note 6, at footnote 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the basis under the Act is found in
Section 6(b)(5), in that the propose rule change is designed to promote
just and equitable principles of trade, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
Extension of the pilot program will allow the Exchange to continue
operating under the pilot while the Commission considers the Permanent
Rule Change.
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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change effects a change in an
existing order entry or trading system that (i) does not significantly
affect the protection of investors or the public interest; (ii) does
not impose any significant burden on competition; and (iii) does not
have the effect of limiting access to or availability of the system, it
has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act
\10\ and Rule 19b-4(f)(5) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 19b-4(f)(5).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2007-05 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-2007-05. 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
[[Page 3891]]
only one method. The Commission will post all comments on the
Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room. Copies of such filing also will be
available for inspection and copying at the principal office of the
ISE. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-ISE-
2007-05 and should be submitted on or before February 16, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-1230 Filed 1-25-07; 8:45 am]
BILLING CODE 8011-01-P
