Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Market Data Revenue Rebates, 27159-27160 [E7-9178]

Download as PDF Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices No. SR–CBOE–2007–39 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–55722; File No. SR–ISE– 2007–24] • 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 No. SR–CBOE–2007–39. 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 at http://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 the filing also will be available for inspection and copying at the principal office of the Exchange. 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 No. SR–CBOE–2007–39 and should be submitted on or before June 4, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–9179 Filed 5–11–07; 8:45 am] pwalker on PROD1PC71 with NOTICES BILLING CODE 8010–01–P Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Market Data Revenue Rebates May 8, 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 11, 2007, the International Securities Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’) 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 Exchange. The Exchange filed Amendment No. 1 to the proposed rule change on April 23, 2007, and Amendment No. 2 on May 3, 2007. The ISE filed this proposed rule change which establishes dues, fees or other charges among its members pursuant to Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) 4 thereunder, and, as such, it has become 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. 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 relating to its sharing of market data revenues. The text of the proposed rule change is available at the ISE, the Commission’s Public Reference Room, and http://www.iseoptions.com/ legal/proposed_rule_changes.asp. 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. The Exchange has prepared summaries, set 1 15 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 9 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 18:21 May 11, 2007 Jkt 211001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 27159 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 purpose of this proposed rule change is to amend the Exchange’s Schedule of Fees to clarify that while the Exchange will continue to rebate back to Equity Electronic Access Members (‘‘EAMs’’) fifty percent (50%) of its market data revenues, it will now do so based on the Allocation Amendment of Regulation NMS enacted under the Act—i.e., allocated by quoting shares and trading shares.5 The Exchange will be retroactively applying this formula to market data revenues rebated back to Equity EAMs as of April 1, 2007. Currently, the ISE rebates back fifty percent (50%) of the market data revenue received by the Exchange to Equity EAMs that are the liquidity providers on trades executed in the displayed market. The Allocation Amendment of Regulation NMS modifies the existing formulas for allocating revenues to the SRO participants, namely, introducing: (1) ‘‘Quoting Shares’’—the allocation of revenues based on the extent to which automated quotations displayed by SROs equal the national best bid or offer in NMS stocks; and (2) implementing a new calculation method for allocating revenue based on ‘‘Trade Shares.’’ Under this new formula fifty percent (50%) of revenues will be allocated for Quoting Shares and fifty percent (50%) will be allocated for Trading Shares. Accordingly, the Exchange seeks to continue to rebate back to the Equity EAMs fifty percent (50%) of market data revenue the Exchange receives, but to allocate rebates based on this new formula—i.e., the ISE will rebate to Equity EAMs, on a symbol basis, fifty percent (50%) of the Trading Share revenue received for that symbol and fifty percent (50%) of the Quoting Share revenue for that symbol. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4) 6 that an exchange have an equitable allocation of reasonable dues, fees, and other charges 5 See Securities Exchange Act Release No. 53828 (May 18, 2006) (order exempting self-regulatory organizations (‘‘SROs’’) from compliance with the Allocation Amendment until April 1, 2007). 6 15 U.S.C. 78f(b)(4). E:\FR\FM\14MYN1.SGM 14MYN1 27160 Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices 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 The foregoing proposed rule change has become effective upon filing with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act 7 and Rule 19b– 4(f)(2) thereunder,8 in that the proposed rule change establishes or changes a member due, fee, or other charge imposed by the self-regulatory organization. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–9178 Filed 5–11–07; 8:45 am] BILLING CODE 8010–01–P 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2007–24 on the subject line. Paper Comments pwalker on PROD1PC71 with NOTICES All submissions should refer to File Number SR–ISE–2007–24. 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 (http://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–2007–24 and should be submitted on or before June 4, 2007. • 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. 34–55720; File No. SR– NYSEArca–2007–22] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto Relating to Listing and Annual Fees for Derivative Securities Products and Closed-End Funds 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 February 27, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 240.19, 240.19b–4(f)(2). VerDate Aug<31>2005 19:49 May 11, 2007 1 15 Jkt 211001 PO 00000 Frm 00088 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE Arca, through its wholly owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), is proposing to amend its Schedule of Fees and Charges (‘‘Fee Schedule’’) to revise the listing fees applicable to Derivative Securities Products, Closed-End Funds and Structured Products listed on NYSE Arca, L.L.C. (‘‘NYSE Arca Marketplace’’), the equities facility of NYSE Arca Equities. The Exchange also proposes related modifications to the Fee Schedule. The text of the proposed rule change is available at NYSE Arca, the Commission’s Public Reference Room, and http://www.nysearca.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, NYSE Arca 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. NYSE Arca 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 May 7, 2007. 9 17 7 15 change as described in Items I, II, and III below, which Items have been substantially prepared by NYSE Arca. On May 1, 2007, NYSEArca filed Amendment No. 1 to the proposed rule change.3 On May 3, 2007, NYSEArca filed Amendment No. 2 to the proposed rule change.4 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. Fmt 4703 Sfmt 4703 NYSE Arca has determined to revise the listing fees specifically applicable to Derivative Securities Products (or 3 Amendment No. 1 replaces and supersedes the original filing in its entirety. 4 Amendment No. 2 conforms a single category in the annual fee chart for Derivative Securities Products in the purpose section with the Fee Schedule; and amends the purpose section to reflect that an additional issuer listed a series of Investment Company Units on the Exchange on March 28, 2007. E:\FR\FM\14MYN1.SGM 14MYN1

Agencies

[Federal Register Volume 72, Number 92 (Monday, May 14, 2007)]
[Notices]
[Pages 27159-27160]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9178]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55722; File No. SR-ISE-2007-24]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendments No. 1 and 2 Thereto Relating to Market Data 
Revenue Rebates

May 8, 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 11, 2007, the International Securities Exchange, LLC 
(``Exchange'' or ``ISE'') 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 Exchange. The Exchange filed Amendment No. 1 to the 
proposed rule change on April 23, 2007, and Amendment No. 2 on May 3, 
2007. The ISE filed this proposed rule change which establishes dues, 
fees or other charges among its members pursuant to Section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) \4\ thereunder, 
and, as such, it has become 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.
---------------------------------------------------------------------------

    \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 relating to its 
sharing of market data revenues. The text of the proposed rule change 
is available at the ISE, the Commission's Public Reference Room, and 
http://www.iseoptions.com/legal/proposed_rule_changes.asp.

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. The Exchange 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 purpose of this proposed rule change is to amend the Exchange's 
Schedule of Fees to clarify that while the Exchange will continue to 
rebate back to Equity Electronic Access Members (``EAMs'') fifty 
percent (50%) of its market data revenues, it will now do so based on 
the Allocation Amendment of Regulation NMS enacted under the Act--i.e., 
allocated by quoting shares and trading shares.\5\ The Exchange will be 
retroactively applying this formula to market data revenues rebated 
back to Equity EAMs as of April 1, 2007.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 53828 (May 18, 2006) 
(order exempting self-regulatory organizations (``SROs'') from 
compliance with the Allocation Amendment until April 1, 2007).
---------------------------------------------------------------------------

    Currently, the ISE rebates back fifty percent (50%) of the market 
data revenue received by the Exchange to Equity EAMs that are the 
liquidity providers on trades executed in the displayed market. The 
Allocation Amendment of Regulation NMS modifies the existing formulas 
for allocating revenues to the SRO participants, namely, introducing: 
(1) ``Quoting Shares''--the allocation of revenues based on the extent 
to which automated quotations displayed by SROs equal the national best 
bid or offer in NMS stocks; and (2) implementing a new calculation 
method for allocating revenue based on ``Trade Shares.'' Under this new 
formula fifty percent (50%) of revenues will be allocated for Quoting 
Shares and fifty percent (50%) will be allocated for Trading Shares. 
Accordingly, the Exchange seeks to continue to rebate back to the 
Equity EAMs fifty percent (50%) of market data revenue the Exchange 
receives, but to allocate rebates based on this new formula--i.e., the 
ISE will rebate to Equity EAMs, on a symbol basis, fifty percent (50%) 
of the Trading Share revenue received for that symbol and fifty percent 
(50%) of the Quoting Share revenue for that symbol.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) \6\ that an exchange have an 
equitable allocation of reasonable dues, fees, and other charges

[[Page 27160]]

among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The foregoing proposed rule change has become effective upon filing 
with the Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ 
and Rule 19b-4(f)(2) thereunder,\8\ in that the proposed rule change 
establishes or changes a member due, fee, or other charge imposed by 
the self-regulatory organization. At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19, 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-ISE-2007-24 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-2007-24. 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 (http://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-2007-24 and should be submitted on or before June 4, 
2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-9178 Filed 5-11-07; 8:45 am]
BILLING CODE 8010-01-P