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 Waivers, 39648-39650 [E7-13959]

Download as PDF 39648 Federal Register / Vol. 72, No. 138 / Thursday, July 19, 2007 / Notices Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an e-mail to: David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312, or by sending an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: July 12, 2007. Nancy M. Morris, Secretary. [FR Doc. E7–13965 Filed 7–18–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. cprice-sewell on PROD1PC66 with NOTICES Extension: Rule 15a–6, SEC File No. 270–0329, OMB Control No. 3235–0371. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 15a–6 (17 CFR 240.15a–6) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) provides, among other things, an exemption from brokerdealer registration for foreign brokerdealers that effect trades with or for U.S. institutional investors through a U.S. registered broker-dealer, provided that the U.S. broker-dealer obtains certain information about, and consents to service of process from, the personnel of the foreign broker-dealer involved in such transactions, and maintains certain records in connection therewith. These requirements are intended to ensure (a) that the U.S. broker-dealer will receive notice of the identity of, and has reviewed the background of, foreign personnel who will contact U.S. institutional investors, (b) that the foreign broker-dealer and its personnel effectively may be served with process in the event enforcement action is necessary, and (c) that the Commission has ready access to information VerDate Aug<31>2005 15:31 Jul 18, 2007 Jkt 211001 concerning these persons and their U.S. securities activities. In general, the records to be maintained under Rule 15a–6 must be kept for the applicable time periods as set forth in Rule 17a–4 (17 CFR 240.17a–4) under the Exchange Act or, with respect to the consents to service of process, for a period of not less than six years after the applicable person ceases engaging in U.S. securities activities. Reliance on the exemption set forth in Rule 15a–6 is voluntary, but if a foreign broker-dealer elects to rely on such exemption, the collection of information described therein is mandatory. The collection does not involve confidential information. Please note that an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. It is estimated that approximately 2,000 respondents will incur an average burden of three hours per year to comply with this rule, for a total burden of 6,000 hours. At an average cost per hour of approximately $100, the resultant total cost of compliance for the respondents is $600,000 per year (2,000 entities × 3 hours/entity × $100/hour = $600,000). General comments regarding the estimated burden hours should be directed to the following persons: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or send an e-mail to: David_Rostker@omb.eop.gov and (ii) R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: July 12, 2007. Nancy M. Morris, Secretary. [FR Doc. E7–13966 Filed 7–18–07; 8:45 am] BILLING CODE 8010–01–P PO 00000 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56055; File No. SR–ISE– 2007–52] 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 Waivers July 12, 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 (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the Exchange. On July 11, 2007, the Exchange filed Amendment No. 1 to the proposed rule change. 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, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change ISE proposes to amend its Schedule of Fees to extend two fee waivers. The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange, and on its Web site at http://www.ise.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 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 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.SGM 19JYN1 Federal Register / Vol. 72, No. 138 / Thursday, July 19, 2007 / Notices the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change cprice-sewell on PROD1PC66 with NOTICES 1. Purpose The purpose of this proposed rule change is to extend two fee waivers. First, ISE currently waives most customer transaction fees, with such waiver scheduled to expire on June 30, 2007.5 In order to remain competitive in the marketplace, the Exchange proposes to extend this waiver through June 30, 2008. Second, ISE currently has a pilot program that: (1) Caps and waives execution and comparison fees for transactions in options on the NASDAQ–100 Index Tracking Stock (‘‘QQQQ’’) 6 and the iShares Russell 2000 Index Fund (‘‘IWM’’) 7 when a member transacts a certain number of QQQQ and IWM option contracts; and (2) reduces and waives the facilitation execution and comparison fees when a member transacts a certain number of contracts through the Exchange’s Facilitation Mechanism. The Exchange’s fee discount program applies to ISE Market Maker orders and Firm Proprietary orders in QQQQ and IWM options. The Exchange’s current transaction fees for these order types are as follows: for ISE Market Maker orders, the transaction fees range from $.21 to $.12 per contract, depending on the Exchange’s trading volume, plus a comparison fee of $.03 per contract; and for Firm Proprietary orders, the transaction fee is $.15 per contract, plus a comparison fee of $.03 per contract. Under the QQQQ pilot program, when a member’s average daily volume (‘‘A.D.V.’’) in QQQQ options reaches 10,000 contracts, the member’s execution fee for the next 2,000 QQQQ option contracts is reduced by $.10 per contract. Further, when a member’s monthly A.D.V. in QQQQ options reaches 12,000 contracts, the Exchange 5 See Securities Exchange Act Release No. 53954 (June 7, 2006), 71 FR 34651 (June 15, 2006) (SR– ISE–2006–29). 6 The Exchange instituted this pilot program in November 2003 and has since extended it on numerous occasions. See Securities Exchange Act Release Nos. 49147 (January 29, 2004), 69 FR 5629 (February 5, 2004) (SR–ISE–2003–32); 49853 (June 14, 2004), 69 FR 35087 (June 23, 2004) (SR–ISE– 2004–15); 50900 (December 21, 2004), 69 FR 78075 (December 29, 2004) (SR–ISE–2004–36); 52934 (December 9, 2005), 70 FR 74859 (December 16, 2005) (SR–ISE–2005–53); 54841 (November 30, 2006), 71 FR 71006 (December 6, 2006) (SR–ISE– 2006–69). 7 See Securities Exchange Act Release No. 55973 (June 28, 2007), 72 FR 37063 (July 6, 2007) (SR– ISE–2007–39). VerDate Aug<31>2005 15:31 Jul 18, 2007 Jkt 211001 waives the entire execution fee and the comparison fee for each QQQQ option contract traded thereafter. Under the IWM pilot program, when a member’s A.D.V. in IWM options reaches 8,000 contracts, the member’s execution fee for the next 2,000 IWM option contracts is reduced by $.10 per contract. Further, when a member’s monthly A.D.V. in IWM options reaches 12,000 contracts, the Exchange waives the entire execution fee and the comparison fee for each IWM option contract traded thereafter. The structure of the reduction and waiver of the facilitation execution fee and the comparison fee is based on the structure of the reduction and waiver of the QQQQ and IWM execution and comparison fees noted above. That is, when a member’s monthly A.D.V. in the Facilitation Mechanism reaches 15,000 contracts, the member’s facilitation execution fee for the next 5,000 contracts transacted in the Facilitation Mechanism are reduced by $.10 per contract. Further, when a member’s monthly A.D.V. in the Facilitation Mechanism reaches 20,000 contracts, the Exchange waives the entire facilitation execution fee and the comparison fee for each contract transacted in the Facilitation Mechanism thereafter. The Exchange notes that the current pilot program is set to expire on June 30, 2007. The Exchange now proposes to extend the pilot program for another year, until June 30, 2008. ISE seeks to extend this pilot program for competitive reasons. This pilot program was initiated and extended in an attempt to increase the Exchange’s market share in QQQQ and IWM options and to also encourage members to use the Exchange’s Facilitation Mechanism. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4) of the Act 8 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 would extend current waivers, thus effectively maintaining low fees. 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. PO 00000 8 15 U.S.C. 78f(b)(4). Frm 00045 Fmt 4703 Sfmt 4703 39649 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 been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 9 and Rule 19b–4(f)(2) 10 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.11 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–2007–52 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–2007–52. This file number should be included on the subject line if e-mail is used. To help the 9 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 11 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on July 11, 2007, the date on which ISE filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 10 17 E:\FR\FM\19JYN1.SGM 19JYN1 39650 Federal Register / Vol. 72, No. 138 / Thursday, July 19, 2007 / Notices 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, 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–2007–52 and should be submitted on or before August 9, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E7–13959 Filed 7–18–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56067; File No. SR–NSX– 2007–08] Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Effective Period for Rule 2.12 Regarding Third-Party Routing Services in Respect of Orders Entered Into NSX BLADE cprice-sewell on PROD1PC66 with NOTICES July 13, 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 29, 2007, the National Stock Exchange, Inc. (‘‘NSX’’ or ‘‘Exchange’’) 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 NSX. The Exchange has filed the proposal as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders it 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 extend the effective period for Rule 2.12, which describes the terms under which the Exchange provides routing services procured from a third party with respect to orders entered into its new state of the art trading system, NSX BLADE. The text of the proposed rule change is available at NSX, the Commission’s Public Reference Room, and http:// www.nsx.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, NSX 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. NSX 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 Exchange Rules 2.11 and 2.12 to extend the effective period for Rule 2.12 (relating to the Exchange’s use of a third party to provide outbound routing of orders from the Exchange to other trading centers (‘‘Routing Services’’)) through September 30, 2007, and to delay the effectiveness of Rule 2.11 (relating to the outbound routing function of the Exchange’s affiliate, NSX Securities, LLC (‘‘NSX Securities’’)) until October 1, 2007. Rule 2.11 provides for certain terms and conditions under which NSX Securities, an affiliate of the Exchange, 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 15:31 Jul 18, 2007 3 15 4 17 Jkt 211001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00046 Fmt 4703 Sfmt 4703 will provide Routing Services. Rule 2.11 was approved by the Commission in connection with the approval of the Exchange’s new trading rules relating to NSX BLADE on August 31, 2006.5 The Exchange filed and received approval for the addition of Rule 2.12, which provides for terms and conditions of the Exchange’s use of a third party to provide Routing Services.6 The Exchange subsequently filed and received approval to extend the effective period for Rule 2.12.7 Rule 2.12 currently provides that it is effective through June 30, 2007, with Rule 2.11 becoming effective on July 1, 2007. In connection with the rule filing adding Rule 2.12,8 the Exchange requested this finite period of effectiveness so that the Exchange could offer routing services through NSX BLADE while NSX Securities completed its registration process as a brokerdealer with the National Association of Securities Dealers, Inc. (and thus became available to provide routing services),9 and while the Exchange evaluated its options for providing routing services to ETP Holders. In the instant rule filing, the Exchange is proposing to extend the effectiveness of Rule 2.12 through September 30, 2007, and to delay the effectiveness of Rule 2.11 until October 1, 2007, in order to allow the Exchange more time to evaluate its options for providing routing services to ETP Holders. The ability to route orders entered into NSX BLADE to away markets for execution at the best available prices is a key feature of NSX’s new system. The Exchange intends to provide routing services in accordance with Rule 2.12 until September 30, 2007, unless the Exchange, with the Commission’s approval, amends Rule 2.12 before such date. During such time period, the Exchange intends to evaluate its options for providing routing services. At the conclusion of such time period, the Exchange may decide to (i) continue the approach provided for in Rule 2.12 on a permanent basis, and not use NSX Securities as the outbound router (by filing a proposed rule change 5 See Securities Exchange Act Release No. 54391 (August 31, 2006), 71 FR 52836 (September 7, 2006) (SR–NSX–2006–08). 6 See Securities Exchange Act Release No. 54808 (November 21, 2006), 71 FR 69163 (November 29, 2006) (SR–NSX–2006–15). 7 See Securities Exchange Act Release No. 55624 (April 12, 2007), 72 FR 19732 (April 19, 2007) (SR– NSX–2007–04). 8 Id. 9 In January 2007, NSX Securities’ application for registration as a broker-dealer was approved by the National Association of Securities Dealers, Inc. To date, the Exchange has not used NSX Securities for routing services. E:\FR\FM\19JYN1.SGM 19JYN1

Agencies

[Federal Register Volume 72, Number 138 (Thursday, July 19, 2007)]
[Notices]
[Pages 39648-39650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13959]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56055; File No. SR-ISE-2007-52]


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 Waivers

 July 12, 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 (``ISE'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been substantially prepared by the 
Exchange. On July 11, 2007, the Exchange filed Amendment No. 1 to the 
proposed rule change. 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, 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

    ISE proposes to amend its Schedule of Fees to extend two fee 
waivers. The text of the proposed rule change is available at the 
Commission's Public Reference Room, at the Exchange, and on its Web 
site at http://www.ise.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

[[Page 39649]]

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 extend two fee 
waivers. First, ISE currently waives most customer transaction fees, 
with such waiver scheduled to expire on June 30, 2007.\5\ In order to 
remain competitive in the marketplace, the Exchange proposes to extend 
this waiver through June 30, 2008.
    Second, ISE currently has a pilot program that: (1) Caps and waives 
execution and comparison fees for transactions in options on the 
NASDAQ-100 Index Tracking Stock[supreg] (``QQQQ'') \6\ and the iShares 
Russell 2000[supreg] Index Fund (``IWM'') \7\ when a member transacts a 
certain number of QQQQ and IWM option contracts; and (2) reduces and 
waives the facilitation execution and comparison fees when a member 
transacts a certain number of contracts through the Exchange's 
Facilitation Mechanism.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 53954 (June 7, 
2006), 71 FR 34651 (June 15, 2006) (SR-ISE-2006-29).
    \6\ The Exchange instituted this pilot program in November 2003 
and has since extended it on numerous occasions. See Securities 
Exchange Act Release Nos. 49147 (January 29, 2004), 69 FR 5629 
(February 5, 2004) (SR-ISE-2003-32); 49853 (June 14, 2004), 69 FR 
35087 (June 23, 2004) (SR-ISE-2004-15); 50900 (December 21, 2004), 
69 FR 78075 (December 29, 2004) (SR-ISE-2004-36); 52934 (December 9, 
2005), 70 FR 74859 (December 16, 2005) (SR-ISE-2005-53); 54841 
(November 30, 2006), 71 FR 71006 (December 6, 2006) (SR-ISE-2006-
69).
    \7\ See Securities Exchange Act Release No. 55973 (June 28, 
2007), 72 FR 37063 (July 6, 2007) (SR-ISE-2007-39).
---------------------------------------------------------------------------

    The Exchange's fee discount program applies to ISE Market Maker 
orders and Firm Proprietary orders in QQQQ and IWM options. The 
Exchange's current transaction fees for these order types are as 
follows: for ISE Market Maker orders, the transaction fees range from 
$.21 to $.12 per contract, depending on the Exchange's trading volume, 
plus a comparison fee of $.03 per contract; and for Firm Proprietary 
orders, the transaction fee is $.15 per contract, plus a comparison fee 
of $.03 per contract.
    Under the QQQQ pilot program, when a member's average daily volume 
(``A.D.V.'') in QQQQ options reaches 10,000 contracts, the member's 
execution fee for the next 2,000 QQQQ option contracts is reduced by 
$.10 per contract. Further, when a member's monthly A.D.V. in QQQQ 
options reaches 12,000 contracts, the Exchange waives the entire 
execution fee and the comparison fee for each QQQQ option contract 
traded thereafter. Under the IWM pilot program, when a member's A.D.V. 
in IWM options reaches 8,000 contracts, the member's execution fee for 
the next 2,000 IWM option contracts is reduced by $.10 per contract. 
Further, when a member's monthly A.D.V. in IWM options reaches 12,000 
contracts, the Exchange waives the entire execution fee and the 
comparison fee for each IWM option contract traded thereafter.
    The structure of the reduction and waiver of the facilitation 
execution fee and the comparison fee is based on the structure of the 
reduction and waiver of the QQQQ and IWM execution and comparison fees 
noted above. That is, when a member's monthly A.D.V. in the 
Facilitation Mechanism reaches 15,000 contracts, the member's 
facilitation execution fee for the next 5,000 contracts transacted in 
the Facilitation Mechanism are reduced by $.10 per contract. Further, 
when a member's monthly A.D.V. in the Facilitation Mechanism reaches 
20,000 contracts, the Exchange waives the entire facilitation execution 
fee and the comparison fee for each contract transacted in the 
Facilitation Mechanism thereafter.
    The Exchange notes that the current pilot program is set to expire 
on June 30, 2007. The Exchange now proposes to extend the pilot program 
for another year, until June 30, 2008. ISE seeks to extend this pilot 
program for competitive reasons. This pilot program was initiated and 
extended in an attempt to increase the Exchange's market share in QQQQ 
and IWM options and to also encourage members to use the Exchange's 
Facilitation Mechanism.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) of the Act \8\ 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 would extend current waivers, thus effectively 
maintaining low fees.
---------------------------------------------------------------------------

    \8\ 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 been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) \10\ 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.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
    \11\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on July 11, 2007, the date on which ISE filed Amendment 
No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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 Number SR-ISE-2007-52 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-2007-52. This file 
number should be included on the subject line if e-mail is used. To 
help the

[[Page 39650]]

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, 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-2007-52 and should be submitted on 
or before August 9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Nancy M. Morris,
Secretary.
 [FR Doc. E7-13959 Filed 7-18-07; 8:45 am]
BILLING CODE 8010-01-P