Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 17967-17969 [E7-6672]
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Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
increment for an FCO trading at $3.00
or higher will be $0.10.64 In addition,
the Commission believes that it is
reasonable for the Exchange to list
exercise prices of series at intervals no
less than $0.10.65 Further, the Exchange
believes that it appropriate for the
Exchange to list FCOs with expirations
that are the same as the expirations
currently permitted for index options,
with the exception that FCO long-term
series will only have expirations up to
36 months.66
The Commission also notes that,
consistent with the Act, the proposed
rules provide that the Exchange will
have the ability to withdraw approval of
the trading of a FCO if advisable in the
public interest or for the protection of
investors,67 and an Exchange official
will have the authority to halt or
suspend trading in an FCO under
certain circumstances in the interest of
a fair and orderly market.68
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H. Accelerated Approval
The Commission finds good cause for
approving the proposed rule change, as
amended, prior to the thirtieth day after
publishing notice of Amendment No. 2
in the Federal Register. The
Commission notes that the proposal, as
modified by Amendment No. 1, was
published for notice and comment,69
and that the Commission received no
comment letters on the proposal.
Amendment No. 2 proposes to amend
the proposed rules to specify the 47
cross-rate FCOs that ISE proposes to list
and trade, as well as specify the position
and exercise limits and the applicable
rate modifiers for each proposed crossrate FCO. The Commission notes that
the Exchange expressed its intention to
list cross-rate FCOs in its Exhibit 3 to
the original proposed rule change, and
that Amendment No. 2 provided the
additional clarification necessary to
allow the Exchange to do so. The
Commission also notes that the
proposed cross-rate FCOs are based on
the same Currencies set forth in the
original proposal, as modified by
Amendment No. 1 and published in the
Federal Register, and they are subject to
the same rules and requirements as
other FCOs. As such, the Commission
believes that Amendment No. 2 does not
raise any new or novel issues.
Accordingly, the Commission finds
good cause, consistent with Section
64 See
ISE Rule 710.
Proposed ISE Rule 2206(a)(4).
66 See Proposed ISE Rule 2205.
67 See Proposed ISE Rule 2204.
68 See Proposed ISE Rule 2210.
69 See Notice, supra note 5.
65 See
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19(b)(2) of the Act,70 to approve the
proposal, as modified by Amendment
Nos. 1 and 2, on an accelerated basis.
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
17967
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,71 that the
proposed rule change (SR–ISE–2006–
59), as modified by Amendment Nos. 1
and 2, be, and hereby is, approved on
an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.72
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–6655 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
• 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 SR–ISE–2006–59 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55571; File No. SR–ISE–
2007–21]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
April 3, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on March 26,
Number SR–ISE–2006–59. This file
2007, the International Securities
number should be included on the
subject line if e-mail is used. To help the Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission process and review your
Commission (‘‘Commission’’) the
comments more efficiently, please use
only one method. The Commission will proposed rule change as described in
post all comments on the Commission’s Items I, II, and III below, which Items
have been substantially prepared by the
Internet Web site (https://www.sec.gov/
ISE. The ISE has designated this
rules/sro.shtml). Copies of the
proposal as one establishing or changing
submission, all subsequent
a due, fee, or other charge applicable
amendments, all written statements
only to a member under Section
with respect to the proposed rule
19(b)(3)(A)(ii) of the Act,3 and Rule
change that are filed with the
19b–4(f)(2) thereunder,4 which renders
Commission, and all written
the proposal effective upon filing with
communications relating to the
the Commission. The Commission is
proposed rule change between the
publishing this notice to solicit
Commission and any person, other than
comments on the proposed rule change
those that may be withheld from the
from interested persons.
public in accordance with the
I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
Statement of the Terms of Substance of
available for inspection and copying in
the Proposed Rule Change
the Commission’s Public Reference
Room. Copies of the filing also will be
The ISE is proposing to amend its
available for inspection and copying at
Schedule of Fees to establish fees for
the principal office of the Exchange. All transactions in options on seven
comments received will be posted
Premium Products.5 The text of the
without change; the Commission does
proposed rule change is available on the
not edit personal identifying
ISE’s Web site (https://
information from submissions. You
71 15 U.S.C. 78s(b)(2).
should submit only information that
72 17 CFR 200.30–3(a)(12).
you wish to make available publicly. All
1 15 U.S.C. 78s(b)(1).
submissions should refer to File
2 17 CFR 240.19b–4.
Number SR–ISE–2006–59 and should be
3 15 U.S.C. 78s(b)(3)(A)(ii).
submitted on or before May 1, 2007.
4 17 CFR 240.19b–4(f)(2).
70 15
PO 00000
5 ‘‘Premium Products’’ is defined in the Schedule
of Fees as the products enumerated therein.
U.S.C. 78s(b)(2).
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17968
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
www.iseoptions.com/legal/
proposed_rule_changes.asp), at 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
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
seven Premium Products: iShares Dow
Jones U.S. Basic Materials Sector Index
Fund (‘‘IYM’’),6 iShares MSCI Germany
Index Fund (‘‘EWG’’), iShares MSCI
Australia Index Fund (‘‘EWA’’), iShares
S&P 500 Growth Index Fund (‘‘IVW’’),
iShares S&P 500 Value Index Fund
(‘‘IVE’’),7 iShares KLD Select Social
6 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. Basic Materials 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. IYM 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 IYM; or (ii) 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
IYM or with making disclosures concerning options
on IYM 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.
7 iShares is a registered trademark BGI, a wholly
owned subsidiary of Barclays Bank PLC. ‘‘Standard
& Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’ are trademarks of
The McGraw-Hill Companies, Inc. (‘‘McGrawHill’’), and have been licensed for use for certain
purposes by BGI. Neither IVW nor IVE are
sponsored, sold or endorsed by Standard & Poor’s,
(‘‘S&P’’), a division of McGraw-Hill, and S&P makes
no representation regarding the advisability of
investing in IVW and IVE. ‘‘MSCI Germany Index’’
and ‘‘MSCI Australia Index’’ are service marks of
Morgan Stanley Capital International (‘‘MSCI’’) and
have been licensed for use for certain purposes by
BGI. All other trademarks and service marks are the
property of their respective owners. Neither EWG
nor EWA are sponsored, endorsed, issued, sold or
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Index Fund (‘‘KLD’’), and iShares KLD
400 Social Index Fund (‘‘DSI’’).8
All of the applicable fees covered by
this filing are identical to fees charged
by the Exchange for all other Premium
Products.9 Specifically, the Exchange is
proposing to adopt an execution fee and
a comparison fee for all transactions in
options on IYM, EWG, EWA, IVW, IVE,
KLD and DSI.10 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 11 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.12 Finally, the amount of the
promoted by MSCI. BGI, S&P and MSCI 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 IVW, IVE,
EWG and EWA; or (ii) 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 IVW, IVE, EWG and
EWA or with making disclosures concerning
options on IVW, IVE, EWG and EWA under any
applicable federal or state laws, rules or regulations.
BGI, S&P and MSCI do not sponsor, endorse, or
promote such activity by ISE, and are not affiliated
in any manner with ISE.
8 iShares is a registered trademark of BGI, a
wholly owned subsidiary of Barclays Bank PLC.
‘‘KLD Select SocialSM Index’’ and ‘‘Domini 400
SocialSM Index’’ are service marks of KLD Research
& Analytics, Inc. and have been licensed for use for
certain purposes by BGI. All other trademarks and
service marks are the property of their respective
owners. Neither KLD nor DSI are sponsored,
endorsed, issued, sold or promoted by KLD
Research & Analytics, Inc. BGI and KLD Research
& Analytics, Inc. 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 KLD and DSI; or (ii) 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
KLD and DSI or with making disclosures
concerning options on KLD and DSI under any
applicable federal or state laws, rules or regulations.
BGI and KLD Research & Analytics, Inc. do not
sponsor, endorse, or promote such activity by ISE,
and are not affiliated in any manner with ISE.
9 The Exchange represents that IYM, EWG, EWA,
IVW, IVE, KLD and DSI constitute ‘‘Fund Shares,’’
as defined by ISE Rule 502(h).
10 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).
11 ‘‘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.
12 The execution fee is currently between $0.21
and $0.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $0.03 per contract side.
PO 00000
Frm 00153
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Sfmt 4703
execution fee and comparison fee for all
non-ISE Market Maker transactions shall
be $0.16 and $0.03 per contract,
respectively. Further, since options on
IYM, EWG, EWA, IVW, IVE, KLD and
DSI are multiply-listed, the Payment for
Order Flow fee shall also apply. 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 objectives of Section 6 of the Act,13
in general, and furthers the objectives of
Section 6(b)(4),14 in particular, in that it
is designed to provide for the 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.
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 rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
13 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
15 15 U.S.C. 78s(b)(3)(A).
16 17 CFR 19b–4(f)(2).
14 15
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Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices
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–2007–21 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55576; File No. SR–
NASDAQ–2007–026]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
Pricing for Nasdaq Members Using the
Nasdaq Market Center
April 3, 2007.
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 March 22,
to Nancy M. Morris, Secretary,
2007, The NASDAQ Stock Market LLC
Securities and Exchange Commission,
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Station Place, 100 F Street, NE.,
Securities and Exchange Commission
Washington, DC 20549–1090.
(‘‘Commission’’) the proposed rule
All submissions should refer to File
change as described in Items I, II, and
Number SR–ISE–2007–21. This file
III below, which Items have been
number should be included on the
substantially prepared by Nasdaq.
subject line if e-mail is used. To help the Nasdaq has designated this proposal as
Commission process and review your
one establishing or changing a due, fee,
comments more efficiently, please use
or other charge under Section
only one method. The Commission will 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
post all comments on the Commission’s 4(f)(2) thereunder,4 which renders the
proposed rule change effective
Internet Web site (https://www.sec.gov/
immediately upon filing with the
rules/sro.shtml). Copies of the
Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons.
change that are filed with the
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
Nasdaq proposes to modify the
those that may be withheld from the
pricing for Nasdaq members using the
public in accordance with the
Nasdaq Market Center. The text of the
provisions of 5 U.S.C. 552, will be
proposed rule change is available at
available for inspection and copying in
Nasdaq, on the Exchange’s Web site at
the Commission’s Public Reference
Room. Copies of such filing also will be https://www.nasdaq.com, and in the
Commission’s Public Reference Room.
available for inspection and copying at
II. Self-Regulatory Organization’s
the principal office of the ISE. All
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
information from submissions. You
In its filing with the Commission,
should submit only information that
Nasdaq included statements concerning
you wish to make available publicly. All the purpose of, and basis for, the
submissions should refer to File
proposed rule change and discussed any
Number SR–ISE–2007–21 and should be comments it received on the proposed
submitted on or before May 1, 2007.
rule change. The text of these statements
may be examined at the places specified
For the Commission, by the Division of
in Item IV below. Nasdaq has prepared
Market Regulation, pursuant to delegated
summaries, set forth in Sections A, B,
authority.17
and C below, of the most significant
Florence E. Harmon,
aspects of such statements.
Deputy Secretary.
cprice-sewell on PROD1PC66 with NOTICES
Paper Comments:
[FR Doc. E7–6672 Filed 4–9–07; 8:45 am]
BILLING CODE 8010–01–P
17 17
15:22 Apr 09, 2007
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
CFR 200.30–3(a)(12).
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17969
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to conform its
execution fees and liquidity-provider
rebates for transactions in non-Nasdaqlisted securities priced under $1 to the
current fees and rebates for Nasdaqlisted securities priced under $1. The
execution fees for such transactions will
be 0.1% of the total transaction cost,
and the liquidity-provider rebate will be
zero.5 Thus, for example, the execution
fee for a trade of 100 shares in a stock
priced at $0.70 would be $0.07, with no
rebate to the liquidity provider.
Nasdaq is also proposing to modify
the routing fee for Nasdaq-listed and
non-Nasdaq-listed securities priced
under $1 to 0.3% of the total transaction
cost.6 The change reflects the fact that
under Rule 610 of Regulation NMS,7
market centers to which Nasdaq routes
may charge Nasdaq only up to 0.3% of
the transaction cost for executing routed
orders in securities priced under $1.
Nasdaq recently began trading nonNasdaq-listed securities priced under $1
in sub-penny increments. As a result,
Nasdaq has seen an increase in its share
volume in these securities. Nasdaq
believes that, as is true for Nasdaq-listed
securities, the pricing structure for these
securities ensures that market
participants do not pay execution or
routing fees, or receive rebates, that are
disproportionately large when
compared with the dollar value of a
particular transaction. Nasdaq believes
that the changes also ensure that
execution fees are in compliance with
Rule 610 of Regulation NMS.
Separately, Nasdaq has filed a proposal
for a retroactive reduction in the fees
charged for executions of non-Nasdaqlisted securities priced under $1 for the
period from March 5 through March 21,
2007, to ensure that these fees are also
in compliance with the requirements of
Rule 610.
5 For an order in a non-Nasdaq security through
which a member accesses liquidity, this change will
result in a fee reduction; for a quote or order
through which a member acts as a liquidity
provider, this change will eliminate the rebate
previously paid to the member. See e-mail from
John Yetter, Vice President and Deputy General
Counsel, Nasdaq, to Sara Gillis, Attorney, Division
of Market Regulation, Commission, on April 2, 2007
(‘‘April 2, 2007 E-mail’’).
6 Depending on the price of the transaction and
a member’s average daily share volume during the
month, this change may either constitute a fee
increase or a fee reduction for a particular routed
order. See April 2, 2007 E-mail, supra note 5.
7 17 CFR 242.610.
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]]>Agencies
[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17967-17969]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6672]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55571; File No. SR-ISE-2007-21]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
April 3, 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 March 26, 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).
---------------------------------------------------------------------------
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 seven Premium Products.\5\ The text
of the proposed rule change is available on the ISE's Web site (https://
[[Page 17968]]
www.iseoptions.com/legal/proposed_rule_changes.asp), at the ISE, and
at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\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 seven
Premium Products: iShares Dow Jones U.S. Basic Materials Sector Index
Fund (``IYM''),\6\ iShares MSCI Germany Index Fund (``EWG''), iShares
MSCI Australia Index Fund (``EWA''), iShares S&P 500 Growth Index Fund
(``IVW''), iShares S&P 500 Value Index Fund (``IVE''),\7\ iShares KLD
Select Social Index Fund (``KLD''), and iShares KLD 400 Social Index
Fund (``DSI'').\8\
---------------------------------------------------------------------------
\6\ iShares[supreg] 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. Basic Materials 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. IYM 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 IYM; or (ii) 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 IYM or
with making disclosures concerning options on IYM 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.
\7\ iShares[supreg] is a registered trademark BGI, a wholly
owned subsidiary of Barclays Bank PLC. ``Standard &
Poor's[supreg],'' ``S&P[supreg],'' ``S&P 500[supreg],'' are
trademarks of The McGraw-Hill Companies, Inc. (``McGraw-Hill''), and
have been licensed for use for certain purposes by BGI. Neither IVW
nor IVE are sponsored, sold or endorsed by Standard & Poor's,
(``S&P''), a division of McGraw-Hill, and S&P makes no
representation regarding the advisability of investing in IVW and
IVE. ``MSCI Germany Index'' and ``MSCI Australia Index'' are service
marks of Morgan Stanley Capital International (``MSCI'') and have
been licensed for use for certain purposes by BGI. All other
trademarks and service marks are the property of their respective
owners. Neither EWG nor EWA are sponsored, endorsed, issued, sold or
promoted by MSCI. BGI, S&P and MSCI 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 IVW, IVE, EWG
and EWA; or (ii) 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 IVW, IVE, EWG and
EWA or with making disclosures concerning options on IVW, IVE, EWG
and EWA under any applicable federal or state laws, rules or
regulations. BGI, S&P and MSCI do not sponsor, endorse, or promote
such activity by ISE, and are not affiliated in any manner with ISE.
\8\ iShares[supreg] is a registered trademark of BGI, a wholly
owned subsidiary of Barclays Bank PLC. ``KLD Select
SocialSM Index'' and ``Domini 400 SocialSM
Index'' are service marks of KLD Research & Analytics, Inc. and have
been licensed for use for certain purposes by BGI. All other
trademarks and service marks are the property of their respective
owners. Neither KLD nor DSI are sponsored, endorsed, issued, sold or
promoted by KLD Research & Analytics, Inc. BGI and KLD Research &
Analytics, Inc. 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 KLD and DSI; or (ii) 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 KLD and DSI or with making disclosures
concerning options on KLD and DSI under any applicable federal or
state laws, rules or regulations. BGI and KLD Research & Analytics,
Inc. do not sponsor, endorse, or promote such activity by ISE, and
are not affiliated in any manner with ISE.
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All of the applicable fees covered by this filing are identical to
fees charged by the Exchange for all other Premium Products.\9\
Specifically, the Exchange is proposing to adopt an execution fee and a
comparison fee for all transactions in options on IYM, EWG, EWA, IVW,
IVE, KLD and DSI.\10\ 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 \11\ 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.\12\ 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.
Further, since options on IYM, EWG, EWA, IVW, IVE, KLD and DSI are
multiply-listed, the Payment for Order Flow fee shall also apply. The
Exchange believes the proposed rule change will further the Exchange's
goal of introducing new products to the marketplace that are
competitively priced.
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\9\ The Exchange represents that IYM, EWG, EWA, IVW, IVE, KLD
and DSI constitute ``Fund Shares,'' as defined by ISE Rule 502(h).
\10\ 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).
\11\ ``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.
\12\ The execution fee is currently between $0.21 and $0.12 per
contract side, depending on the Exchange Average Daily Volume, and
the comparison fee is currently $0.03 per contract side.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\13\ in general, and
furthers the objectives of Section 6(b)(4),\14\ in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its members and other persons using
its facilities.
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\13\ 15 U.S.C. 78f.
\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.
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 rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it 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,
[[Page 17969]]
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-2007-21 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-2007-21. 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-2007-21 and should be submitted on or before May 1,
2007.
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\17\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-6672 Filed 4-9-07; 8:45 am]
BILLING CODE 8010-01-P
