Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 11411-11413 [E7-4504]
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Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
concerning insider stock holdings and
transactions.
31. Sports-stuff.com Inc. is a Nevada
company. Questions have arisen
regarding the adequacy and accuracy of
press releases concerning the company’s
operations.
32. UBA Technology, Inc., is a Nevada
company. Questions have arisen
regarding the adequacy and accuracy of
press releases concerning the company’s
operations.
33. Wataire Industries Inc. is a Nevada
company with offices in Surrey, British
Columbia, Canada. Questions have
arisen regarding the adequacy and
accuracy of press releases concerning
the company’s operations and assets.
34. WayPoint Biomedical Holdings,
Inc., is a Nevada company with offices
in California. Questions have arisen
regarding the adequacy and accuracy of
press releases concerning the company’s
operations and financing arrangements.
35. Wineco Productions Inc. is a
Nevada company with offices in
Florida. Questions have arisen regarding
the adequacy and accuracy of press
releases concerning the company’s
operations.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the companies listed
above.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
companies listed above is suspended for
the period from 9:30 a.m. EST, March 8,
2007, through 11:59 p.m. EDT, on
March 21, 2007.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. 07–1163 Filed 3–8–07; 1:43 pm]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
cprice-sewell on PROD1PC66 with NOTICES
[Release No. 34–55415; File No. SR–BSE–
2006–03]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Order Granting
Approval of Proposed Rule Change as
Modified by Amendment No. 1,
Relating to the Treatment of Limit
Orders That Are Submitted to the
Boston Options Exchange During a
Price Improvement Period
March 7, 2007.
On December 8, 2006, the Boston
Stock Exchange, Inc. (‘‘BSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
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14:58 Mar 12, 2007
Jkt 211001
(‘‘Commission’’) a proposed rule change
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
to amend the rules of the Boston
Options Exchange (‘‘BOX’’) relating to
the treatment of Limit Orders that are
submitted to the BOX during a Price
Improvement Period (‘‘PIP’’). On
January 4, 2007, the BSE filed
Amendment No. 1 to the proposal. The
proposed rule change, as amended, was
published for comment in the Federal
Register on January 16, 2007.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change as modified by
Amendment No. 1.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange 4 and, in particular, the
requirements of Section 6(b)(5) of the
Act.5 Specifically, the Commission
believes that the proposed rule change
is consistent with the Act because it
makes explicit how unrelated Limit
Orders 6 in the same series as a PIP
Order, submitted to the BOX during the
PIP,7 are treated, and specifies the
circumstances under which
Improvement Orders are not accepted
by the BOX Trading Host.8 The
Commission believes that these rule
amendments are reasonable and
consistent with the Act, and should
help clarify for investors and market
15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 55050
(January 5, 2007), 72 FR 1786 (SR–BSE–2006–03)
(‘‘Notice’’).
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
6 An ‘‘unrelated order,’’ generally, is a nonImprovement Order entered into the BOX market
while a PIP is in progress. See paragraph (a) of
Section 18 of Chapter V of the BOX rules. An
‘‘Improvement Order,’’ generally, is an order
submitted to a PIP to compete for a ‘‘PIP Order’’ (a
customer order submitted to the PIP for price
improvement). See paragraph (e)(i) of Section 18 of
Chapter V of the BOX Rules.
7 As detailed in the Notice, certain unrelated
Limit Orders on the same side of the market as a
PIP Order terminate the PIP prematurely, while
certain unrelated Limit Orders on the opposite side
of the market immediately execute against the PIP
Order (and allow the PIP to continue if the PIP
Order has not been filled). The proposal clarifies
the circumstances in which these early terminations
and immediate executions take place, as well as the
rules governing the prices that the PIP Order and
unrelated Limit Order receive in each of these
circumstances.
8 The proposal specifies that the BOX Trading
Host does not accept Improvement Orders that
would lock or cross the BOX Book.
2 17
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11411
participants how their orders are
executed in various situations.9
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–BSE–2006–
03) as modified by Amendment No. 1,
be, and hereby is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4503 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55407; File No. SR–ISE–
2007–13]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
March 6, 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 February
7, 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 ISE has designated this
proposal as one establishing or changing
a due, fee, or other charge applicable
only to a member 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.
9 In addition, the Commission notes that BSE is
currently obligated to provide certain reports to the
Commission that provide data about BOX-Top and
Market Orders that terminate the PIP prematurely,
as well as BOX-Top and Market Orders that
immediately execute against a PIP Order. BSE
represents that it will provide the same information
for Limit Orders that terminate the PIP prematurely
or immediately execute against a PIP Order.
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
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11412
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
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 three
Premium Products.5 The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and at https://
www.iseoptions.com.
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
cprice-sewell on PROD1PC66 with NOTICES
1. Purpose
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the following
three Premium Products: ISE-Revere
Wal-Mart Supplier Index (‘‘WMX’’),6
iShares Dow Jones U.S. Energy Sector
Index Fund (‘‘IYE’’),7 and First Trust
5 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
6 The ISE-Revere Wal-Mart Supplier Index was
jointly developed by ISE and Revere Data, LLC
(‘‘Revere’’). Revere, an independent and privately
owned provider of research data and investment
analytics, provides specific research and support for
the Wal-Mart Supplier Index. Wal-Mart is a
trademark of Wal-Mart Stores, Inc. The Wal-Mart
Supplier Index is not sponsored, endorsed, sold or
promoted by Wal-Mart Stores, Inc., and Wal-Mart
Stores, Inc. makes no representation regarding the
advisability of investing in WMX. Wal-Mart Stores,
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
WMX or (ii) to use any of their trademarks or
service marks in connection with the listing,
provision of a market for trading, marketing, and
promotion of options on WMX or with making
disclosures concerning options on WMX under any
applicable federal or state laws, rules or regulations.
Wal-Mart Stores, Inc. does not sponsor, endorse, or
promote such activity by ISE, and is not affiliated
in any manner with ISE.
7 iShares is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a wholly owned
subsidiary of Barclays Bank PLC. ‘‘Dow Jones’’ and
‘‘Dow Jones U.S. Energy Sector Index Fund’’ are
trademarks and service marks of Dow Jones &
Company, Inc. (‘‘Dow Jones’’) and have been
licensed for use for certain purposes by BGI. All
other trademarks and service marks are the property
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14:58 Mar 12, 2007
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Dow Jones Select MicroCap Index Fund
(‘‘FDM’’).8 Specifically, the Exchange is
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on WMX, IYE, and FDM.9 The
amount of the execution fee and
comparison fee for products covered by
this filing shall be $0.15 and $0.03 per
contract, respectively, for all Public
Customer Orders10 and Firm Proprietary
orders. The amount of the execution fee
and comparison fee for all ISE Market
Maker transactions shall be equal to the
execution fee and comparison fee
currently charged by the Exchange for
ISE Market Maker transactions in equity
options.11 Finally, the amount of the
of their respective owners. The Dow Jones U.S.
Energy Sector Index Fund is not sponsored,
endorsed, issued, sold or promoted by Dow Jones.
BGI and Dow Jones have not licensed or authorized
ISE to (i) engage in the creation, listing, provision
of a market for trading, marketing, and promotion
of options on IYE 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 IYE or with
making disclosures concerning options on IYE
under any applicable federal or state laws, rules or
regulations. BGI and Dow Jones do not sponsor,
endorse, or promote such activity by ISE, and are
not affiliated in any manner with ISE.
8 The First Trust Dow Jones Select MicroCap
Index SM Fund is distributed by First Trust
Portfolios, L.P. ‘‘Dow Jones,’’ and ‘‘Dow Jones Select
MicroCap Index,’’ are trademarks of Dow Jones &
Company, Inc. and have been licensed for use for
certain purposes by First Trust. All other
trademarks and service marks are the property of
their respective owners. The First Trust Dow Jones
Select MicroCap Index Fund is not sponsored,
endorsed, issued, sold or promoted by Dow Jones.
First Trust and Dow Jones have not licensed or
authorized ISE to (i) engage in the creation, listing,
provision of a market for trading, marketing, and
promotion of options on FDM 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
FDM or with making disclosures concerning
options on FDM under any applicable federal or
state laws, rules or regulations. First Trust and Dow
Jones do not sponsor, endorse, or promote such
activity by ISE, and are not affiliated in any manner
with ISE.
The Exchange represents that IYE and FDM
constitute ‘‘Fund Shares,’’ as defined by ISE Rule
502(h). The Exchange further represents that WMX
meets the standards of ISE Rule 2002(b), which
allows the ISE to begin trading this product by
filing Form 19b–4(e) at least five business days after
commencement of trading this new product
pursuant to Rule 19b–4(e) of the Act. Accordingly,
ISE filed Form 19b–4(e) with the Commission on
February 9, 2007.
9 The Exchange represents that 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). See Securities Exchange
Act Release No. 54204 (July 25, 2006), 71 FR 43548
(August 1, 2006) (SR–ISE–2006–38).
10 Public Customer Order is defined in Exchange
Rule 100(a)(39) as an order for the account of a
Public Customer. Public Customer is defined in
Exchange Rule 100(a)(38) as a person that is not a
broker or dealer in securities.
11 The execution fee is currently between $.21
and $.12 per contract side, depending on the
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
execution fee and comparison fee for all
non-ISE Market Maker transactions shall
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.
Additionally, the Exchange has
entered into a license agreement with
Revere Data, LLC in connection with the
listing and trading of options on WMX.
As with certain other licensed options,
to defray the licensing costs, the
Exchange is adopting a surcharge fee of
five (5) cents per contract for trading in
options on WMX. The Exchange
believes charging the participants that
trade this instrument is the most
equitable means of recovering the costs
of the license. However, because of
competitive pressures in the industry,
the Exchange proposes to exclude
Public Customer Orders from this
surcharge fee. Accordingly, this
surcharge fee will only be charged to
Exchange members with respect to nonPublic Customer Orders (e.g., ISE
Market Maker, non-ISE Market Maker,
and Firm Proprietary orders) and shall
apply to Linkage Orders12 under a pilot
program that is set to expire on July 31,
2007.13 Further, the Exchange’s
Payment for Order Flow fee shall only
apply to the trading in options on IYE
and FDM as these products are
multiply-listed.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4)14 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 proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Exchange Average Daily Volume, and the
comparison fee is currently $.03 per contract side.
12 See ISE Rule 1900.
13 See Securities Exchange Act Release No. 54204
(July 25, 2006), 71 FR 43548 (August 1, 2006) (SR–
ISE–2006–38).
14 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act15 and Rule 19b-4(f)(2)16
thereunder. 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:
cprice-sewell on PROD1PC66 with NOTICES
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–2007–13 on the subject
line.
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–2007–13 and should be
submitted on or before April 3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4504 Filed 3–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55413; File No. SR–
NASDAQ–2007–013]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change as Modified by
Amendment No. 1 to Assess a Fee for
Unsuccessful Appeals Under Rule
11890
March 7, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on February
to Nancy M. Morris, Secretary,
27, 2007, The NASDAQ Stock Market
Securities and Exchange Commission,
LLC (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed
Station Place, 100 F Street, NE.,
with the Securities and Exchange
Washington, DC 20549–1090.
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–ISE–2007–13. This file
Items I, II, and III below, which Items
number should be included on the
have been substantially prepared by
subject line if e-mail is used. To help the Nasdaq. Nasdaq submitted the proposed
Commission process and review your
rule change under Section 19(b)(3)(A) of
comments more efficiently, please use
the Act 3 and Rule 19b–4(f)(2)
only one method. The Commission will thereunder,4 which renders the proposal
post all comments on the Commission’s effective upon filing with the
Internet Web site (https://www.sec.gov/
Commission. On March 1, 2007, the
rules/sro.shtml). Copies of the
Exchange filed Amendment No. 1 to the
submission, all subsequent
proposed rule change. The Commission
amendments, all written statements
is publishing this notice to solicit
with respect to the proposed rule
change that are filed with the
17 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
Commission, and all written
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
15 15
U.S.C. 78s(b)(3)(A).
16 17 CFR 19b-4(f)(2).
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14:58 Mar 12, 2007
3 15
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11413
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to assess a fee for
unsuccessful appeals under Rule 11890.
Nasdaq expects to implement the
proposed rule change as of March 1,
2007.
The text of the proposed rule change
is available on the Nasdaq’s Web site at
https://www.nasdaq.com, at Nasdaq’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,
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq is amending Rule 11890,
which covers the breaking of trades
determined to be clearly erroneous, to
add a new Rule 11890(c)(4) that would
assess a fee of $500.00 for unsuccessful
appeals of clearly erroneous
adjudications.
Rule 11890(c) provides that the losing
party may appeal decisions made by
Nasdaq officers on whether or not to
break trades. Appeals are heard by the
Market Operations Review Committee
(‘‘MORC’’), a committee of up to 15
volunteers who are not affiliated with
Nasdaq. Each appeal is heard by a panel
of two or three MORC members who
must take time from their work or
personal activities to prepare for and
hear the appeal. In addition, appeals
take significant staff time to perform a
number functions including: processing
the appeal, contacting the
counterparties, communicating with
MORC members to determine
availability, preparing briefing materials
on the circumstances of the trade(s) and
communicating the MORC’s decision to
the parties. Nasdaq estimates that on
average the appeals process takes from
four to five person-hours to complete
including staff and panel time.
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]]>Agencies
[Federal Register Volume 72, Number 48 (Tuesday, March 13, 2007)]
[Notices]
[Pages 11411-11413]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4504]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55407; File No. SR-ISE-2007-13]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
March 6, 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 February 7, 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 ISE has designated this proposal as one
establishing or changing a due, fee, or other charge applicable only to
a member 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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[Page 11412]]
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 three Premium Products.\5\ The text
of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and at https://www.iseoptions.com.
---------------------------------------------------------------------------
\5\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
---------------------------------------------------------------------------
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 Exchange is proposing to amend its Schedule of Fees to
establish fees for transactions in options on the following three
Premium Products: ISE-Revere Wal-Mart Supplier Index (``WMX''),\6\
iShares Dow Jones U.S. Energy Sector Index Fund (``IYE''),\7\ and First
Trust Dow Jones Select MicroCap Index Fund (``FDM'').\8\ Specifically,
the Exchange is proposing to adopt an execution fee and a comparison
fee for all transactions in options on WMX, IYE, and FDM.\9\ The amount
of the execution fee and comparison fee for products covered by this
filing shall be $0.15 and $0.03 per contract, respectively, for all
Public Customer Orders\10\ and Firm Proprietary orders. The amount of
the execution fee and comparison fee for all ISE Market Maker
transactions shall be equal to the execution fee and comparison fee
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\11\ Finally, the amount of the execution fee and
comparison fee for all non-ISE Market Maker transactions shall 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.
---------------------------------------------------------------------------
\6\ The ISE-Revere Wal-Mart Supplier Index was jointly developed
by ISE and Revere Data, LLC (``Revere''). Revere, an independent and
privately owned provider of research data and investment analytics,
provides specific research and support for the Wal-Mart Supplier
Index. Wal-Mart[reg] is a trademark of Wal-Mart Stores, Inc. The
Wal-Mart Supplier Index is not sponsored, endorsed, sold or promoted
by Wal-Mart Stores, Inc., and Wal-Mart Stores, Inc. makes no
representation regarding the advisability of investing in WMX. Wal-
Mart Stores, 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 WMX or (ii) to use any of
their trademarks or service marks in connection with the listing,
provision of a market for trading, marketing, and promotion of
options on WMX or with making disclosures concerning options on WMX
under any applicable federal or state laws, rules or regulations.
Wal-Mart Stores, Inc. does not sponsor, endorse, or promote such
activity by ISE, and is not affiliated in any manner with ISE.
\7\ iShares[reg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays
Bank PLC. ``Dow Jones'' and ``Dow Jones U.S. Energy Sector Index
Fund'' are trademarks and service marks of Dow Jones & Company, Inc.
(``Dow Jones'') and have been licensed for use for certain purposes
by BGI. All other trademarks and service marks are the property of
their respective owners. The Dow Jones U.S. Energy Sector Index Fund
is not sponsored, endorsed, issued, sold or promoted by Dow Jones.
BGI and Dow Jones have not licensed or authorized ISE to (i) engage
in the creation, listing, provision of a market for trading,
marketing, and promotion of options on IYE 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 IYE or with making disclosures concerning options on
IYE under any applicable federal or state laws, rules or
regulations. BGI and Dow Jones do not sponsor, endorse, or promote
such activity by ISE, and are not affiliated in any manner with ISE.
\8\ The First Trust Dow Jones Select MicroCap Index
SM Fund is distributed by First Trust Portfolios, L.P.
``Dow Jones,'' and ``Dow Jones Select MicroCap Index,'' are
trademarks of Dow Jones & Company, Inc. and have been licensed for
use for certain purposes by First Trust. All other trademarks and
service marks are the property of their respective owners. The First
Trust Dow Jones Select MicroCap Index Fund is not sponsored,
endorsed, issued, sold or promoted by Dow Jones. First Trust and Dow
Jones have not licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading, marketing, and
promotion of options on FDM 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 FDM or with making disclosures concerning options on FDM
under any applicable federal or state laws, rules or regulations.
First Trust and Dow Jones do not sponsor, endorse, or promote such
activity by ISE, and are not affiliated in any manner with ISE.
The Exchange represents that IYE and FDM constitute ``Fund
Shares,'' as defined by ISE Rule 502(h). The Exchange further
represents that WMX meets the standards of ISE Rule 2002(b), which
allows the ISE to begin trading this product by filing Form 19b-4(e)
at least five business days after commencement of trading this new
product pursuant to Rule 19b-4(e) of the Act. Accordingly, ISE filed
Form 19b-4(e) with the Commission on February 9, 2007.
\9\ The Exchange represents that 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). See Securities Exchange Act Release No.
54204 (July 25, 2006), 71 FR 43548 (August 1, 2006) (SR-ISE-2006-
38).
\10\ Public Customer Order is defined in Exchange Rule
100(a)(39) as an order for the account of a Public Customer. Public
Customer is defined in Exchange Rule 100(a)(38) as a person that is
not a broker or dealer in securities.
\11\ 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.
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Additionally, the Exchange has entered into a license agreement
with Revere Data, LLC in connection with the listing and trading of
options on WMX. As with certain other licensed options, to defray the
licensing costs, the Exchange is adopting a surcharge fee of five (5)
cents per contract for trading in options on WMX. The Exchange believes
charging the participants that trade this instrument is the most
equitable means of recovering the costs of the license. However,
because of competitive pressures in the industry, the Exchange proposes
to exclude Public Customer Orders from this surcharge fee. Accordingly,
this surcharge fee will only be charged to Exchange members with
respect to non-Public Customer Orders (e.g., ISE Market Maker, non-ISE
Market Maker, and Firm Proprietary orders) and shall apply to Linkage
Orders\12\ under a pilot program that is set to expire on July 31,
2007.\13\ Further, the Exchange's Payment for Order Flow fee shall only
apply to the trading in options on IYE and FDM as these products are
multiply-listed.
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\12\ See ISE Rule 1900.
\13\ See Securities Exchange Act Release No. 54204 (July 25,
2006), 71 FR 43548 (August 1, 2006) (SR-ISE-2006-38).
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4)\14\ that an exchange have an
equitable allocation of reasonable dues, fees and other charges among
its members and other persons using its facilities.
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\14\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
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.
[[Page 11413]]
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act\15\ and Rule 19b-4(f)(2)\16\ thereunder. 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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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 19b-4(f)(2).
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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-2007-13 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-2007-13. 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 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-2007-13 and should be submitted on or before April
3, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4504 Filed 3-12-07; 8:45 am]
BILLING CODE 8010-01-P
