Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Fee Changes, 26663-26664 [E7-8912]

Download as PDF Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FICC–2007–02 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55704; File No. SR–ISE– 2007–25] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Fee Changes May 3, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, notice is hereby given that on April 17, Securities and Exchange Commission, 2007, the International Securities 100 F Street, NE., Washington, DC Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 20549–1090. filed with the Securities and Exchange Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Number SR–FICC–2007–02. This file Items I, II, and III below, which Items number should be included on the have been prepared substantially by the subject line if e-mail is used. To help the Exchange. On May 2, 2007, the ISE Commission process and review your submitted Amendment No. 1 to the comments more efficiently, please use proposed rule change.3 ISE has only one method. The Commission will designated this proposal as one post all comments on the Commission’s establishing or changing a due, fee, or Internet Web site (https://www.sec.gov/ other charge imposed by ISE under rules/sro.shtml). Copies of the Section 19(b)(3)(A)(ii) of the Act 4 and submission, all subsequent Rule 19b–4(f)(2) thereunder,5 which amendments, all written statements renders the proposal effective upon with respect to the proposed rule filing with the Commission. The change that are filed with the Commission is publishing this notice to Commission, and all written solicit comments on the proposed rule communications relating to the change, as amended, from interested proposed rule change between the persons. Commission and any person, other than those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for inspection and copying in The ISE is proposing to amend its the Commission’s Public Reference Schedule of Fees to establish fees for Section, 100 F Street, NE., Washington, transactions in options on a new DC 20549. The text of the proposed rule category of Premium Products.6 The text change is available at FICC, the of the proposed rule change is available Commission’s Public Reference Room, at the Exchange, the Commission’s and https://www.ficc.com/commondocs/ Public Reference Room, and https:// rule.filings/rule.filing.07–02.pdf. All www.iseoptions.com. comments received will be posted II. Self-Regulatory Organization’s without change; the Commission does Statement of the Purpose of, and not edit personal identifying Statutory Basis for, the Proposed Rule information from submissions. You Change should submit only information that you wish to make available publicly. All In its filing with the Commission, the submissions should refer to File Exchange included statements Number SR–FICC–2007–02 and should concerning the purpose of and basis for be submitted on or before May 31, 2007. the proposed rule change, and discussed pwalker on PROD1PC71 with NOTICES Paper Comments For the Commission by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8913 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P 9 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 makes clarifications to the purpose section of the proposed rule change and technical formatting corrections to the Schedule of Fees contained in Exhibit 5. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 6 ‘‘Premium Products’’ is defined in the Schedule of Fees as the products enumerated therein. 2 17 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 26663 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. 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 a new category of Premium Products, foreign currency options, referred to in the Exchange’s Schedule of Fees as FX options.7 The Exchange began trading in FX options on April 17, 2007. All of the applicable execution fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. Specifically, the Exchange is proposing to adopt an execution fee and a comparison fee for all transactions in FX options.8 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.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. 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. Since FX options are not multiply-listed, the Payment for Order Flow fee shall not apply. In addition to the execution fees noted above, the Exchange also proposes to charge ISE market makers a monthly access fee of $500 for the right to quote in FX options. In order to promote trading in FX options, the Exchange proposes to waive, through October 17, 2007: (1) All transaction 7 See Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 10, 2007) (SR– ISE–2006–59) (order approving the listing and trading of foreign currency options). 8 These fees will be charged only to Exchange members. 9 The execution fee is currently between $.21 and $.12 per contract side, depending on the Exchange Average Daily Volume, and the comparison fee is currently $.03 per contract side. 10 ‘‘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. E:\FR\FM\10MYN1.SGM 10MYN1 26664 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices fees applicable to members and (2) the monthly access fee applicable to ISE market makers. As a further incentive for market makers to quote in FX options, the Exchange proposes to waive one API for each class of market maker in FX options. For example, a firm that is both a primary market maker (‘‘PMM’’) and a competitive market maker (‘‘CMM’’) in FX options (‘‘FXPMM’’ and ‘‘FXCMM,’’ respectively) will receive a waiver of two APIs, one for quoting as a FXPMM and one for quoting as a FXCMM. Finally, FX options are an options product and, as such, are subject to certain other fees that are currently on the Schedule of Fees. These fees include the minimum PMM fee and the Inactivity fee applicable to both PMMs and CMMs. In order to promote trading in FX options, ISE proposes to exclude FXPMMs and FXCMMs from being subject to these fees. The Exchange believes that 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(b) of the Act 11 in general, and Section 6(b)(4) of the Act 12 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Exchange members and other persons using Exchange facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change will 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 pwalker on PROD1PC71 with NOTICES The Exchange has not solicited, and does not intend to solicit, comments on the proposed rule change. The Exchange has not received any unsolicited written comments from its members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective pursuant to 11 15 12 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 Section 19(b)(3)(A)(ii) of the Act 13 and Rule 19b–4(f)(2) 14 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. 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.15 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 Number SR–ISE–2007–25 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. All submissions should refer to File Number SR–ISE–2007–25. 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 13 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 15 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, the Commission considers the period to commence on May 2, 2007, the date on which the Exchange filed Amendment No. 1. Room. Copies of such filing also will be available for inspection and copying at the principal office of 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–2007–25 and should be submitted on or before May 31, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.16 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8912 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55703; File No. SR–NASD– 2007–026] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Technical Changes to the Customer, Industry and Mediation Codes May 3, 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 April 13, 2007 the National Association of Securities Dealers, Inc. (‘‘NASD ‘‘), through its wholly owned subsidiary, NASD Dispute Resolution, Inc. (‘‘NASD Dispute Resolution’’) 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 NASD Dispute Resolution. NASD has designated the proposed rule change as concerned solely with the administration of the self-regulatory organization under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(3) thereunder,4 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 14 17 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 16 17 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)(iii). 4 17 CFR 240.19b–4(f)(3). 1 15 E:\FR\FM\10MYN1.SGM 10MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 90 (Thursday, May 10, 2007)]
[Notices]
[Pages 26663-26664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8912]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55704; File No. SR-ISE-2007-25]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change as Modified by Amendment No. 1 Thereto Relating to Fee Changes

May 3, 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 April 17, 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 prepared substantially by the 
Exchange. On May 2, 2007, the ISE submitted Amendment No. 1 to the 
proposed rule change.\3\ ISE has designated this proposal as one 
establishing or changing a due, fee, or other charge imposed by ISE 
under Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) 
thereunder,\5\ which renders the proposal effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 makes clarifications to the purpose section 
of the proposed rule change and technical formatting corrections to 
the Schedule of Fees contained in Exhibit 5.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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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 a new category of Premium 
Products.\6\ The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and https://
www.iseoptions.com.
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    \6\ ``Premium Products'' is defined in the Schedule of Fees as 
the products enumerated therein.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change, and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. 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 a new category of Premium 
Products, foreign currency options, referred to in the Exchange's 
Schedule of Fees as FX options.\7\ The Exchange began trading in FX 
options on April 17, 2007. All of the applicable execution fees covered 
by this filing are identical to fees charged by the Exchange for all 
other Premium Products. Specifically, the Exchange is proposing to 
adopt an execution fee and a comparison fee for all transactions in FX 
options.\8\ 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.\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. 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. Since FX options are not 
multiply-listed, the Payment for Order Flow fee shall not apply.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 55575 (April 3, 
2007), 72 FR 17963 (April 10, 2007) (SR-ISE-2006-59) (order 
approving the listing and trading of foreign currency options).
    \8\ These fees will be charged only to Exchange members.
    \9\ The execution fee is currently between $.21 and $.12 per 
contract side, depending on the Exchange Average Daily Volume, and 
the comparison fee is currently $.03 per contract side.
    \10\ ``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.
---------------------------------------------------------------------------

    In addition to the execution fees noted above, the Exchange also 
proposes to charge ISE market makers a monthly access fee of $500 for 
the right to quote in FX options. In order to promote trading in FX 
options, the Exchange proposes to waive, through October 17, 2007: (1) 
All transaction

[[Page 26664]]

fees applicable to members and (2) the monthly access fee applicable to 
ISE market makers. As a further incentive for market makers to quote in 
FX options, the Exchange proposes to waive one API for each class of 
market maker in FX options. For example, a firm that is both a primary 
market maker (``PMM'') and a competitive market maker (``CMM'') in FX 
options (``FXPMM'' and ``FXCMM,'' respectively) will receive a waiver 
of two APIs, one for quoting as a FXPMM and one for quoting as a FXCMM.
    Finally, FX options are an options product and, as such, are 
subject to certain other fees that are currently on the Schedule of 
Fees. These fees include the minimum PMM fee and the Inactivity fee 
applicable to both PMMs and CMMs. In order to promote trading in FX 
options, ISE proposes to exclude FXPMMs and FXCMMs from being subject 
to these fees.
    The Exchange believes that 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(b) of the Act \11\ in general, and 
Section 6(b)(4) of the Act \12\ in particular, in that it is designed 
to provide for the equitable allocation of reasonable dues, fees, and 
other charges among Exchange members and other persons using Exchange 
facilities.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will 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 the proposed rule change. The Exchange has not received any 
unsolicited written comments from its members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(ii) of the Act \13\ and Rule 19b-4(f)(2) \14\ 
thereunder, because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. 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.\15\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4(f)(2).
    \15\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change, the 
Commission considers the period to commence on May 2, 2007, the date 
on which the Exchange filed Amendment No. 1.
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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 Number SR-ISE-2007-25 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.

All submissions should refer to File Number SR-ISE-2007-25. 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 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-2007-25 and should be submitted on or before May 31, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8912 Filed 5-9-07; 8:45 am]
BILLING CODE 8010-01-P

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