Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to PrecISE Fees, 36531-36532 [E7-12778]

Download as PDF Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices 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 Section 6(b) of the Act 10 in general, and Section 6(b)(4) of the Act 11 in particular, because 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. jlentini on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 12 and Rule 19b–4(f)(2) 13 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal took effect upon filing with the Commission. At any time within 60 days of the filing of such proposed rule change the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2007–46 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. 34–55960; File No. SR–ISE– 2007–42] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to PrecISE Fees June 26, 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 June 1, 2007, the International Securities All submissions should refer to File Exchange, LLC (the ‘‘Exchange’’ or the Number SR–ISE–2007–46. This file ‘‘ISE’’) filed with the Securities and number should be included on the subject line if e-mail is used. To help the Exchange Commission (‘‘Commission’’) the proposed rule change as described Commission process and review your in Items I, II, and III below, which Items comments more efficiently, please use only one method. The Commission will have been substantially prepared by the Exchange. ISE has designated this post all comments on the Commission’s proposal as one establishing or changing Internet Web site (http://www.sec.gov/ a due, fee, or other charge imposed by rules/sro.shtml). Copies of the ISE under section 19(b)(3)(A)(ii) of the submission, all subsequent Act 3 and Rule 19b–4(f)(2) thereunder,4 amendments, all written statements which renders the proposal effective with respect to the proposed rule upon 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 from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the provisions of 5 U.S.C. 552, will be The ISE is proposing to amend the available for inspection and copying in fees for its PrecISE Trade order entry the Commission’s Public Reference terminals and also to delete obsolete Room, 100 F Street, NE., Washington, references to CLICK fees in its Schedule DC 20549, on official business days of Fees. The text of the proposed rule between the hours of 10 a.m. and 3 p.m. change is available at the Exchange, the Commission’s Public Reference Room, Copies of such filing also will be and http://www.iseoptions.com. available for inspection and copying at the principal office of the Exchange. All II. Self-Regulatory Organization’s comments received will be posted Statement of the Purpose of, and without change; the Commission does Statutory Basis for, the Proposed Rule not edit personal identifying Change information from submissions. You In its filing with the Commission, the should submit only information that you wish to make available publicly. All Exchange included statements concerning the purpose of, and basis for, submissions should refer to File Number SR–ISE–2007–46 and should be the proposed rule change and discussed any comments it received on the submitted on or before July 24, 2007. proposed rule change. The text of these For the Commission, by the Division of statements may be examined at the Market Regulation, pursuant to delegated places specified in Item IV below. The 14 authority. Exchange has prepared summaries, set Florence E. Harmon, forth in sections A, B, and C below, of the most significant aspects of such Deputy Secretary. statements. [FR Doc. E7–12777 Filed 7–2–07; 8:45 am] BILLING CODE 8010–01–P 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b–4(f)(2). VerDate Aug<31>2005 17:57 Jul 02, 2007 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 14 17 Jkt 211001 36531 PO 00000 CFR 200.30–3(a)(12). Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1 36532 Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change using its facilities. In particular, these fees will enable the Exchange to cover its costs for providing an enhanced version of its front-end trading system. 1. Purpose The purpose of this proposed rule change is to amend the ISE’s Schedule of Fees concerning fees for its proprietary PrecISE Trade order entry terminals. ‘‘PrecISE’’ is the Exchange’s internally-developed proprietary orderrouting terminal used by Electronic Access Members (‘‘EAMs’’) to send order flow to ISE. The Exchange currently charges a monthly fee of $250 per terminal, with a $500 minimum and $1,500 maximum per EAM.5 ISE recently updated PrecISE, enhancing it with certain new functionalities that permit, among other things, away market routing for non-ISE listed options. Certain other user-requested enhancements have also been built into the new version, including the facilitation of complex orders. In order for ISE to cover the costs of building out the enhanced version, the Exchange proposes to amend the current PrecISE fees as follows: for the first 10 users, the Exchange proposes a fee of $300 per user per month; for all subsequent users, the Exchange proposes to charge $50 per user per month. Additionally, ISE recently decommissioned all the CLICK terminals that were at member sites. All EAMs now have PrecISE Trade terminals. In the PrecISE Fee Filing, the Exchange noted that upon completion of the phase-out of CLICK, ISE will submit a proposed rule change to the Commission pursuant to which it will remove CLICK fees from its Schedule of Fees. The Exchange thus proposes to remove all references to CLICK terminals from its Schedule of Fees.6 B. Self-Regulatory Organization’s Statement on Burden on Competition jlentini on PROD1PC65 with NOTICES 2. Basis The basis under the Act for this proposed rule change is the requirement under section 6(b)(4) 7 that an exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons 5 See Securities Exchange Act Release No. 53788 (May 11, 2006), 71 FR 28728 (May 17, 2006) (ISE– 2006–19) (the ‘‘PrecISE Fee Filing’’). 6 Regarding the Session/API fee, the Exchange’s proposal to delete the reference to CLICK (referred to as the ‘‘Options Trade Review Terminal’’) in that item of the Schedule of Fees leaves untouched the existing flat $250 Session/API fee, which continues to be applicable to EAMs that use their own API to connect to the Exchange (i.e., EAMs that do not use PrecISE to access the Exchange). See Telephone conference between Samir Patel, Assistant General Counsel, ISE, and Richard Holley III, Special Counsel, Division of Market Regulation, Commission, dated June 22, 2007. 7 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 17:57 Jul 02, 2007 Jkt 211001 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 pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b–4(f)(2) 9 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. 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 All submissions should refer to File Number SR–ISE–2007–42. 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 on official business days between the hours of 10 a.m. and 3 p.m. 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– 2007–42 and should be submitted on or before July 24, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–12778 Filed 7–2–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55957; File No. SR–MSRB– 2007–01] • 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–2007–42 on the subject line. Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed Rule Change to MSRB Rule G–14, Reports of Sales or Purchases Relating to Reporting of Transactions in Certain Special Trading Situations Paper Comments June 26, 2007. • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. PO 00000 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 June 13, 2007, the Municipal Securities 10 17 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). Frm 00114 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\03JYN1.SGM 03JYN1

Agencies

[Federal Register Volume 72, Number 127 (Tuesday, July 3, 2007)]
[Notices]
[Pages 36531-36532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12778]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55960; File No. SR-ISE-2007-42]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change Relating to PrecISE Fees

June 26, 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 June 1, 2007, the International Securities Exchange, LLC (the 
``Exchange'' or the ``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. 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 \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).
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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 the fees for its PrecISE Trade[reg] 
order entry terminals and also to delete obsolete references to CLICK 
fees in its Schedule of Fees. The text of the proposed rule change is 
available at the Exchange, the Commission's Public Reference Room, and 
http://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 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.

[[Page 36532]]

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 ISE's 
Schedule of Fees concerning fees for its proprietary PrecISE Trade[reg] 
order entry terminals. ``PrecISE'' is the Exchange's internally-
developed proprietary order-routing terminal used by Electronic Access 
Members (``EAMs'') to send order flow to ISE. The Exchange currently 
charges a monthly fee of $250 per terminal, with a $500 minimum and 
$1,500 maximum per EAM.\5\ ISE recently updated PrecISE, enhancing it 
with certain new functionalities that permit, among other things, away 
market routing for non-ISE listed options. Certain other user-requested 
enhancements have also been built into the new version, including the 
facilitation of complex orders. In order for ISE to cover the costs of 
building out the enhanced version, the Exchange proposes to amend the 
current PrecISE fees as follows: for the first 10 users, the Exchange 
proposes a fee of $300 per user per month; for all subsequent users, 
the Exchange proposes to charge $50 per user per month.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 53788 (May 11, 
2006), 71 FR 28728 (May 17, 2006) (ISE-2006-19) (the ``PrecISE Fee 
Filing'').
---------------------------------------------------------------------------

    Additionally, ISE recently decommissioned all the CLICK terminals 
that were at member sites. All EAMs now have PrecISE Trade terminals. 
In the PrecISE Fee Filing, the Exchange noted that upon completion of 
the phase-out of CLICK, ISE will submit a proposed rule change to the 
Commission pursuant to which it will remove CLICK fees from its 
Schedule of Fees. The Exchange thus proposes to remove all references 
to CLICK terminals from its Schedule of Fees.\6\
---------------------------------------------------------------------------

    \6\ Regarding the Session/API fee, the Exchange's proposal to 
delete the reference to CLICK (referred to as the ``Options Trade 
Review Terminal'') in that item of the Schedule of Fees leaves 
untouched the existing flat $250 Session/API fee, which continues to 
be applicable to EAMs that use their own API to connect to the 
Exchange (i.e., EAMs that do not use PrecISE to access the 
Exchange). See Telephone conference between Samir Patel, Assistant 
General Counsel, ISE, and Richard Holley III, Special Counsel, 
Division of Market Regulation, Commission, dated June 22, 2007.
---------------------------------------------------------------------------

2. Basis
    The basis under the Act for this proposed rule change is the 
requirement under section 6(b)(4) \7\ that an exchange have an 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities. In particular, 
these fees will enable the Exchange to cover its costs for providing an 
enhanced version of its front-end trading system.
---------------------------------------------------------------------------

    \7\ 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 pursuant to 
Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) \9\ 
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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 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-2007-42 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-2007-42. 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 on official business 
days between the hours of 10 a.m. and 3 p.m. 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-
2007-42 and should be submitted on or before July 24, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-12778 Filed 7-2-07; 8:45 am]
BILLING CODE 8010-01-P