Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Short Term Option Series Pilot Program, 39106-39108 [E7-13810]
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39106
Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing For
Commission Action
The Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. Therefore, the foregoing rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9 The Exchange has asked
the Commission to waive the operative
delay to permit the Pilot Program
extension to become operative prior to
the 30th day after filing.10
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the benefits of the
Pilot Program to continue without
interruption.11 Therefore, the
Commission designates the proposal
operative upon filing.12
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 As required under Rule 19b–4(f)(6)(iii), the
Exchange provided the Commission with written
notice of its intent to file the proposed rule change
at least five business days before doing so.
11 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 As set forth in the Exchange’s original filing
proposing the Pilot Program, if the Exchange were
to propose an extension, an expansion, or
permanent approval of the Pilot Program, the
Exchange would submit, along with any filing
proposing such amendments to the program, a
report that would provide an analysis of the Pilot
Program covering the entire period during which
the Pilot Program was in effect. The report would
include, at a minimum: (1) Data and written
analysis on the open interest and trading volume in
the classes for which Short Term Option Series
were opened; (2) an assessment of the
appropriateness of the option classes selected for
the Pilot Program; (3) an assessment of the impact
of the Pilot Program on the capacity of the
Exchange, OPRA, and market data vendors (to the
extent data from market data vendors is available);
(4) any capacity problems or other problems that
arose during the operation of the Pilot Program and
how the Exchange addressed such problems; (5) any
complaints that the Exchange received during the
operation of the Pilot Program and how the
sroberts on PROD1PC70 with NOTICES
9 17
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17:40 Jul 16, 2007
Jkt 211001
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2007–62 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–Amex–2007–62. 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 Commissions
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, 100 F Street, NE., Washington,
DC 20549, 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
Exchange addressed them; and (6) any additional
information that would assist in assessing the
operation of the Pilot Program. The report must be
submitted to the Commission at least sixty (60) days
prior to the expiration date of the Pilot Program. See
Form 19b–4 for File No. SR–Amex–2005–35, filed
March 23, 2005.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
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
Number SR–Amex–2007–62 and should
be submitted on or before August 7,
2007.13
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7–13809 Filed 7–16–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56047; File No. SR–ISE–
2007–54]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Extend the Short Term
Option Series Pilot Program
July 11, 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 June 27,
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 and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
this proposal as non-controversial under
section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
its rules to extend the Short Term
Option Series Pilot Program (‘‘Pilot
Program’’) for an additional year. The
text of the proposed rule change is
13 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)(6).
1 15
E:\FR\FM\17JYN1.SGM
17JYN1
Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
available on the Exchange’s Web site
(https://www.ise.com), at the Exchange’s
principal office, 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
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
sroberts on PROD1PC70 with NOTICES
1. Purpose
On July 12, 2005, the Commission
approved the Pilot Program, which
allows ISE to list and trade Short Term
Option Series.5 Under the terms of the
Pilot Program, the Exchange can select
up to five options classes on which
Short Term Option Series may be
opened on any Short Term Option
Opening Date, as that term is defined in
ISE Rules 504 and 2009. The Exchange
is also allowed to list Short Term
Option Series on any option class that
is selected by other securities exchanges
that employ a similar Pilot Program
under their respective rules.
The Pilot Program is currently set to
expire on July 12, 2007.6 The purpose
of this proposed rule change is to extend
the Pilot Program for an additional year,
through July 12, 2008. The Exchange
believes that Short Term Option Series
provides investors with a flexible and
valuable tool to manage risk exposure,
minimize capital outlays, and be more
responsive to the timing of events
affecting the securities that underlie
option contracts. While ISE has not
listed any Short Term Option Series
during the Pilot Program, there has been
investor interest in trading short-term
options at the Chicago Board Options
Exchange. For competitive reasons and
in order to have the ability to respond
to customer interest in Short Term
Option Series, the Exchange proposes
5 See Securities Exchange Act Release No. 52012
(July 12, 2005), 70 FR 41246 (July 18, 2005) (File
No. SR–ISE–2005–17).
6 See Securities Exchange Act Release No. 54117
(July 10, 2006), 71 FR 40564 (July 17, 2006) (File
No. SR–ISE–2006–37).
VerDate Aug<31>2005
17:40 Jul 16, 2007
Jkt 211001
the continuation of the Pilot Program at
ISE.
In the original proposal to establish
the Pilot Program, the Exchange stated
that if it were to propose an extension
or an expansion of the Pilot Program,
the Exchange would submit, along with
any filing proposing such amendments
to the Pilot Program, a report (‘‘Pilot
Program Report’’) that would provide an
analysis of the Pilot Program covering
the entire period during which the Pilot
Program was in effect. Since the
Exchange did not list any Short Term
Option Series during the preceding year
of the Pilot Program, there is no data
available to compile such a report at this
time. Therefore, the Exchange is not
submitting a Pilot Program Report with
this proposal.
Finally, the Exchange represents that
it has the necessary systems capacity to
support the listing of Short Term Option
Series, should it determine to do so in
the future.
2. Statutory Basis
The Exchange believes that Short
Term Option Series increase the variety
of listed options available to investors
and provide investors with a valuable
tool to manage risk exposure, minimize
capital outlays, and be more responsive
to the timing of events affecting the
securities that underlie options
contracts. For these reasons, the
Exchange believes the proposed rule
change is consistent with section 6(b) of
the Act.7 Specifically, the Exchange
believes the proposed rule change is
consistent with the requirements of
section 6(b)(5) of the Act 8 that the rules
of an exchange be designed to promote
just and equitable principles of trade, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that 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
PO 00000
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00066
Fmt 4703
Sfmt 4703
39107
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. Therefore, the foregoing rule
change has become effective pursuant to
section 19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10 The Exchange has asked
the Commission to waive the operative
delay to permit the Pilot Program
extension to become operative prior to
the 30th day after filing.11
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the benefits of the
Pilot Program to continue without
interruption.12 Therefore, the
Commission designates the proposal
operative upon filing.13
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 As required under Rule 19b–4(f)(6)(iii), the
Exchange provided the Commission with written
notice of its intent to file the proposed rule change
at least five business before doing so.
12 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
13 As set forth in the Exchange’s original filing
proposing the Pilot Program, if the Exchange were
to propose an extension, an expansion, or
permanent approval of the Pilot Program, the
Exchange would submit, along with any filing
proposing such amendments to the program, a
report that would provide an analysis of the Pilot
Program covering the entire period during which
the Pilot Program was in effect. The report would
include, at a minimum: (1) Data and written
analysis on the open interest and trading volume in
the classes for which Short Term Option Series
were opened; (2) an assessment of the
appropriateness of the option classes selected for
the Pilot Program; (3) an assessment of the impact
of the Pilot Program on the capacity of the
Exchange, OPRA, and market data vendors (to the
extent data from market data vendors is available);
(4) any capacity problems or other problems that
arose during the operation of the Pilot Program and
how the Exchange addressed such problems; (5) any
complaints that the Exchange received during the
operation of the Pilot Program and how the
Exchange addressed them; and (6) any additional
information that would assist in assessing the
operation of the Pilot Program. The report must be
submitted to the Commission at least sixty (60) days
prior to the expiration date of the Pilot Program. See
Form 19b–4 for File No. SR–ISE–2005–17, filed
March 7, 2005.
10 17
E:\FR\FM\17JYN1.SGM
17JYN1
39108
Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Notices
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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:
submissions should refer to File
Number SR–ISE–2007–54 and should
besubmitted on or before August 7,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7–13810 Filed 7–16–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56044; File No. SR–
NASDAQ–2007–024]
sroberts on PROD1PC70 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2007–54 on the subject
line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change and
Amendment No. 1 Thereto To Provide
Additional Transparency To How
Nasdaq Applies Its Public Interest
Authority
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–2007–54. 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 Commissions
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, 100 F Street, NE., Washington,
DC 20549, 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 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
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 March 16,
2007, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) 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
Nasdaq. On June 26, 2007, Nasdaq filed
Amendment No. 1 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
VerDate Aug<31>2005
17:40 Jul 16, 2007
Jkt 211001
July 11, 2007.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to modify Nasdaq
IM–4300 to provide additional
transparency to how Nasdaq applies its
public interest authority. Nasdaq will
implement the proposed rule upon
approval. The text of the proposed rule
change is below. Proposed new
language is in italics; proposed
deletions are in brackets.3
*
*
*
*
*
IM–4300. Use of Discretionary
Authority
In order to further issuers’
understanding of Rule 4300, Nasdaq is
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://www.complinet.com/nasdaq.
PO 00000
14 17
1 15
Frm 00067
Fmt 4703
Sfmt 4703
adopting this Interpretive Material as a
non-exclusive description of the
circumstances in which the Rule is
generally invoked.
Nasdaq may use its authority under
Rule 4300 to deny initial or continued
listing to an issuer when an individual
with a history of regulatory misconduct
is associated with the issuer. Such
individuals are typically an officer,
director, substantial security holder (as
defined in Rule 4350(i)(5)), or
consultant to the issuer. In making this
determination, Nasdaq [shall] will
consider a variety of factors, including:
[the severity of the violation; whether it
involved fraud or dishonesty; whether it
was securities-related; whether the
investing public was involved; when the
violation occurred; how the individual
has been employed since the violation;
whether there are continuing sanctions
against the individual; whether the
individual made restitution; whether
the issuer has taken effective remedial
action; and the totality of the
individual’s relationship to the issuer.]
• The nature and severity of the
conduct, taken in conjunction with the
length of time since the conduct
occurred;
• whether the conduct involved fraud
or dishonesty;
• whether the conduct was securitiesrelated;
• whether the investing public was
involved;
• how the individual has been
employed since the violative conduct;
• whether there are continuing
sanctions (either criminal or civil)
against the individual;
• whether the individual made
restitution;
• whether the issuer has taken
effective remedial action; and
• the totality of the individual’s
relationship to the issuer, giving
consideration to:
Æ the individual’s current or
proposed position;
Æ o the individual’s current or
proposed scope of authority;
Æ the extent to which the individual
has responsibility for financial
accounting or reporting; and
Æ the individual’s equity interest.
Based on this review, Nasdaq may
determine that the regulatory history
rises to the level of a public interest
concern, but may also consider whether
remedial measures proposed by the
issuer, if taken, would allay that
concern. Examples of such remedial
measures could include any or all of the
following, as appropriate:
• The individual’s resignation from
officer and director positions, and/or
other employment with the company;
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 72, Number 136 (Tuesday, July 17, 2007)]
[Notices]
[Pages 39106-39108]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13810]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56047; File No. SR-ISE-2007-54]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Extend the Short Term Option Series Pilot Program
July 11, 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 June 27, 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 and II below, which Items have been substantially prepared by
the Exchange. The Exchange has designated this proposal as non-
controversial under section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change
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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its rules to extend the Short
Term Option Series Pilot Program (``Pilot Program'') for an additional
year. The text of the proposed rule change is
[[Page 39107]]
available on the Exchange's Web site (https://www.ise.com), at the
Exchange's principal office, 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 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
On July 12, 2005, the Commission approved the Pilot Program, which
allows ISE to list and trade Short Term Option Series.\5\ Under the
terms of the Pilot Program, the Exchange can select up to five options
classes on which Short Term Option Series may be opened on any Short
Term Option Opening Date, as that term is defined in ISE Rules 504 and
2009. The Exchange is also allowed to list Short Term Option Series on
any option class that is selected by other securities exchanges that
employ a similar Pilot Program under their respective rules.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 52012 (July 12,
2005), 70 FR 41246 (July 18, 2005) (File No. SR-ISE-2005-17).
---------------------------------------------------------------------------
The Pilot Program is currently set to expire on July 12, 2007.\6\
The purpose of this proposed rule change is to extend the Pilot Program
for an additional year, through July 12, 2008. The Exchange believes
that Short Term Option Series provides investors with a flexible and
valuable tool to manage risk exposure, minimize capital outlays, and be
more responsive to the timing of events affecting the securities that
underlie option contracts. While ISE has not listed any Short Term
Option Series during the Pilot Program, there has been investor
interest in trading short-term options at the Chicago Board Options
Exchange. For competitive reasons and in order to have the ability to
respond to customer interest in Short Term Option Series, the Exchange
proposes the continuation of the Pilot Program at ISE.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54117 (July 10,
2006), 71 FR 40564 (July 17, 2006) (File No. SR-ISE-2006-37).
---------------------------------------------------------------------------
In the original proposal to establish the Pilot Program, the
Exchange stated that if it were to propose an extension or an expansion
of the Pilot Program, the Exchange would submit, along with any filing
proposing such amendments to the Pilot Program, a report (``Pilot
Program Report'') that would provide an analysis of the Pilot Program
covering the entire period during which the Pilot Program was in
effect. Since the Exchange did not list any Short Term Option Series
during the preceding year of the Pilot Program, there is no data
available to compile such a report at this time. Therefore, the
Exchange is not submitting a Pilot Program Report with this proposal.
Finally, the Exchange represents that it has the necessary systems
capacity to support the listing of Short Term Option Series, should it
determine to do so in the future.
2. Statutory Basis
The Exchange believes that Short Term Option Series increase the
variety of listed options available to investors and provide investors
with a valuable tool to manage risk exposure, minimize capital outlays,
and be more responsive to the timing of events affecting the securities
that underlie options contracts. For these reasons, the Exchange
believes the proposed rule change is consistent with section 6(b) of
the Act.\7\ Specifically, the Exchange believes the proposed rule
change is consistent with the requirements of section 6(b)(5) of the
Act \8\ that the rules of an exchange be designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism for a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that 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 Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\10\ The Exchange has asked the Commission to waive the
operative delay to permit the Pilot Program extension to become
operative prior to the 30th day after filing.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided the Commission with written notice of its intent to file
the proposed rule change at least five business before doing so.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the benefits of the Pilot Program to continue
without interruption.\12\ Therefore, the Commission designates the
proposal operative upon filing.\13\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\13\ As set forth in the Exchange's original filing proposing
the Pilot Program, if the Exchange were to propose an extension, an
expansion, or permanent approval of the Pilot Program, the Exchange
would submit, along with any filing proposing such amendments to the
program, a report that would provide an analysis of the Pilot
Program covering the entire period during which the Pilot Program
was in effect. The report would include, at a minimum: (1) Data and
written analysis on the open interest and trading volume in the
classes for which Short Term Option Series were opened; (2) an
assessment of the appropriateness of the option classes selected for
the Pilot Program; (3) an assessment of the impact of the Pilot
Program on the capacity of the Exchange, OPRA, and market data
vendors (to the extent data from market data vendors is available);
(4) any capacity problems or other problems that arose during the
operation of the Pilot Program and how the Exchange addressed such
problems; (5) any complaints that the Exchange received during the
operation of the Pilot Program and how the Exchange addressed them;
and (6) any additional information that would assist in assessing
the operation of the Pilot Program. The report must be submitted to
the Commission at least sixty (60) days prior to the expiration date
of the Pilot Program. See Form 19b-4 for File No. SR-ISE-2005-17,
filed March 7, 2005.
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[[Page 39108]]
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2007-54 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-2007-54. 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 Commissions 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, 100 F Street,
NE., Washington, DC 20549, 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 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 Number SR-ISE-2007-54 and should be
submitted on or before August 7, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E7-13810 Filed 7-16-07; 8:45 am]
BILLING CODE 8010-01-P
