Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 51692-51693 [E7-17721]

Download as PDF 51692 Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56346; File No. SR–ISE– 2007–78] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes August 31, 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 August 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 prepared by ISE. ISE filed the proposal pursuant to Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 4(f)(2) 4 thereunder, as establishing or changing a due, fee, or other charges applicable to a member, 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 ISE is proposing to amend its Schedule of Fees to establish fees for transaction in options on one Premium Product.5 The text of the proposed rule change is available at ISE, http:// www.iseoptions.com, and the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ebenthall on PRODPC61 with NOTICES 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. 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). 5 ‘‘Premium Products’’ are defined in the Schedule of Fees as the products enumerated therein. 2 17 VerDate Aug<31>2005 15:27 Sep 07, 2007 Jkt 211001 1. Purpose The Exchange is proposing to amend its Schedule of Fees to establish fees for transactions in options on the following Premium Product: iShares MSCI Emerging Markets Fund (‘‘EEM’’).6 The Exchange represents that EEM is eligible for options trading because it constitutes ‘‘Fund Shares,’’ as defined by ISE Rule 502(h). All of the applicable fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. Specifically, the Exchange is proposing to adopt an execution fee and a comparison fee for all transactions in options on EEM.7 The amount of the execution fee and comparison fee for products covered by this filing shall be $0.15 and $0.03 per contract, respectively, for all Public Customer Orders 8 and Firm Proprietary orders. The amount of the execution fee and comparison fee for all ISE Market Maker transactions shall be equal to the execution fee and comparison fee currently charged by the Exchange for ISE Market Maker transactions in equity options.9 Finally, the amount of the execution fee and comparison fee for all non–ISE Market Maker transactions shall be $0.37 and $0.03 per contract, respectively. Further, since options on 6 iShares is a registered trademark of Barclays Global Investors, N.A. (‘‘BGI’’), a majority owned subsidiary of Barclays Bank PLC. ‘‘MSCI Emerging Markets Index’’ is a service mark of Morgan Stanley Capital International (‘‘MSCI’’) and has been licensed for use for certain purposes by BGI. All other trademarks and service marks are the property of their respective owners. EEM is not sponsored, endorsed, issued, sold or promoted by MSCI. BGI and MSCI have not licensed or authorized ISE to: (i) Engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on EEM; or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on EEM or with making disclosures concerning options on EEM under any applicable federal or state laws, rules or regulations. BGI and MSCI do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. 7 These fees will be charged only to Exchange members. Under a pilot program that is set to expire on July 31, 2008, these fees will also be charged to Linkage Orders (as defined in ISE Rule 1900). See Securities Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August 1, 2007) (SR–ISE–2007– 55). 8 ‘‘Public Customer Order’’ is defined in Exchange Rule 100(a)(39) as an order for the account of a Public Customer. ‘‘Public Customer’’ is defined in Exchange Rule 100(a)(38) as a person that is not a broker or dealer in securities. 9 The execution fee is currently between $0.21 and $0.12 per contract side, depending on the Exchange Average Daily Volume, and the comparison fee is currently $0.03 per contract side. PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 EEM are multiply-listed, the Payment for Order Flow fee shall apply to this product. 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 the objectives of Section 6 of the Act,10 in general, and furthers the objectives of Section 6(b)(4),11 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. 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 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 12 and Rule 19b–4(f)(2) 13 thereunder, because it establishes or changes a due, fee, or other charge applicable only to a member. 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 Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 10 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b–4(f)(2). 11 15 E:\FR\FM\10SEN1.SGM 10SEN1 Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2007–78 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56348; File No. SR– NASDAQ–2007–073] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the Halt Cross Process August 31, 2007. ebenthall on PRODPC61 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on August to Nancy M. Morris, Secretary, 20, 2007, The NASDAQ Stock Market Securities and Exchange Commission, LLC (‘‘Nasdaq’’), filed with the 100 F Street, NE., Washington, DC Securities and Exchange Commission 20549–1090. (‘‘Commission’’) the proposed rule change as described in Items I and II All submissions should refer to File below, which Items have been Number SR–ISE–2007–78. This file substantially prepared by Nasdaq. On number should be included on the subject line if e-mail is used. To help the August 31, 2007, the Exchange filed Amendment No. 1 to the proposed rule Commission process and review your change.3 The Exchange filed the comments more efficiently, please use only one method. The Commission will proposal as a ‘‘non-controversial’’ post all comments on the Commission’s proposed rule change pursuant to Section 19(b)(3)(A) of the Act 4 and Rule Internet Web site (http://www.sec.gov/ 19b–4(f)(6) thereunder,5 which rendered rules/sro.shtml). Copies of the the proposal effective upon filing with submission, all subsequent the Commission. The Commission is amendments, all written statements publishing this notice to solicit with respect to the proposed rule comments on the proposed rule change, change that are filed with the as amended, from interested persons. Commission, and all written communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Statement of the Terms of Substance of Commission and any person, other than the Proposed Rule Change those that may be withheld from the Nasdaq proposes to make minor public in accordance with the modifications to the manner in which provisions of 5 U.S.C. 552, will be Nasdaq resumes trading of securities available for inspection and copying in that are the subject of the Nasdaq Halt the Commission’s Public Reference Cross as well as the potential duration Room, 100 F Street, NE., Washington, of the Display Only Period, as set forth DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. in Nasdaq Rule 4120. The text of the proposed rule change is available at Copies of such filing also will be Nasdaq, the Commission’s Public available for inspection and copying at Reference Room, and http:// the principal office of ISE. All www.complinet.com/nasdaq. comments received will be posted without change; the Commission does II. Self-Regulatory Organization’s not edit personal identifying Statement of the Purpose of, and information from submissions. You Statutory Basis for, the Proposed Rule should submit only information that Change you wish to make available publicly. All In its filing with the Commission, submissions should refer to File Nasdaq included statements concerning Number SR–ISE–2007–78 and should be the purpose of and basis for the submitted on or before October 1, 2007. proposed rule change and discussed any For the Commission, by the Division of comments it received on the proposed Market Regulation, pursuant to delegated rule change. The text of these statements authority.14 may be examined at the places specified Florence E. Harmon, Deputy Secretary. [FR Doc. E7–17721 Filed 9–7–07; 8:45 am] BILLING CODE 8010–01–P 14 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:27 Sep 07, 2007 Jkt 211001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaced the original filing in its entirety. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(6). 2 17 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 51693 in Item IV below. Nasdaq 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 Nasdaq’s Halt Cross has been in production for one year and in that time it has proven to be a highly successful process to begin trading Nasdaq-listed securities. With the transition of Nasdaq-listed trading to a single platform in October 2006, Nasdaq implemented a similar process for resuming trading in halted stocks referred to as the Halt cross, providing greater transparency as issues begin trading again after a halt. NASDAQ has determined that by amending certain rules governing the Halt Cross, NASDAQ can provide more accurate price discovery to market participants. First, Nasdaq is proposing to extend the period of time those securities may be subject to Display Only status prior to the operation of the Halt Cross. Currently, after the initial 15-minute Display Only period, Nasdaq may extend the Display Only period for up to three additional 5-minute intervals, for a total of 15 additional minutes. Nasdaq believes that the price discovery capability of the Halt Cross will be improved by permitting additional Display Only periods. Therefore, Nasdaq is proposing to authorize up to three additional 5minute extensions of the Display Only Period for a total of 30 minutes. This proposal will not alter how Nasdaq extends the Display Only period or how Nasdaq operates the Halt Cross. Second, Nasdaq is proposing to change the existing mechanism for extending the duration of the ‘‘Display Only’’ period that occurs prior to the Halt Cross during which time members enter quotes and orders they expect to participate in the Halt Cross. The current rule states that the Display Only period for Halt Crosses will be extended by 5 minutes in the event that the Current Reference Price moves more than 10% between the imbalance dissemination 15 seconds prior to the cross and the cross time. Nasdaq has reviewed data from Halt Crosses and found that the 10% threshold is wider than necessary. For example, in reviewing a series of 13 IPOs from the beginning of 2007, 1 moved 4% in the last 15 seconds, 1 moved 1.5%, while 11 did not move at all. Therefore Nasdaq E:\FR\FM\10SEN1.SGM 10SEN1

Agencies

[Federal Register Volume 72, Number 174 (Monday, September 10, 2007)]
[Notices]
[Pages 51692-51693]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17721]



[[Page 51692]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56346; File No. SR-ISE-2007-78]


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

August 31, 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 August 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 prepared by ISE. ISE filed the 
proposal pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 
19b-4(f)(2) \4\ thereunder, as establishing or changing a due, fee, or 
other charges applicable to a member, 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)(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 is proposing to amend its Schedule of Fees to establish fees 
for transaction in options on one Premium Product.\5\ The text of the 
proposed rule change is available at ISE, http://www.iseoptions.com, 
and the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ ``Premium Products'' are defined in the Schedule of Fees as 
the products enumerated therein.
---------------------------------------------------------------------------

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 Exchange is proposing to amend its Schedule of Fees to 
establish fees for transactions in options on the following Premium 
Product: iShares MSCI Emerging Markets Fund (``EEM'').\6\ The Exchange 
represents that EEM is eligible for options trading because it 
constitutes ``Fund Shares,'' as defined by ISE Rule 502(h).
---------------------------------------------------------------------------

    \6\ iShares[reg] is a registered trademark of Barclays Global 
Investors, N.A. (``BGI''), a majority owned subsidiary of Barclays 
Bank PLC. ``MSCI Emerging Markets Index'' is a service mark of 
Morgan Stanley Capital International (``MSCI'') and has been 
licensed for use for certain purposes by BGI. All other trademarks 
and service marks are the property of their respective owners. EEM 
is not sponsored, endorsed, issued, sold or promoted by MSCI. BGI 
and MSCI have not licensed or authorized ISE to: (i) Engage in the 
creation, listing, provision of a market for trading, marketing, and 
promotion of options on EEM; or (ii) to use and refer to any of 
their trademarks or service marks in connection with the listing, 
provision of a market for trading, marketing, and promotion of 
options on EEM or with making disclosures concerning options on EEM 
under any applicable federal or state laws, rules or regulations. 
BGI and MSCI do not sponsor, endorse, or promote such activity by 
ISE, and are not affiliated in any manner with ISE.
---------------------------------------------------------------------------

    All of the applicable fees covered by this filing are identical to 
fees charged by the Exchange for all other Premium Products. 
Specifically, the Exchange is proposing to adopt an execution fee and a 
comparison fee for all transactions in options on EEM.\7\ The amount of 
the execution fee and comparison fee for products covered by this 
filing shall be $0.15 and $0.03 per contract, respectively, for all 
Public Customer Orders \8\ and Firm Proprietary orders. The amount of 
the execution fee and comparison fee for all ISE Market Maker 
transactions shall be equal to the execution fee and comparison fee 
currently charged by the Exchange for ISE Market Maker transactions in 
equity options.\9\ Finally, the amount of the execution fee and 
comparison fee for all non-ISE Market Maker transactions shall be $0.37 
and $0.03 per contract, respectively. Further, since options on EEM are 
multiply-listed, the Payment for Order Flow fee shall apply to this 
product. The Exchange believes the proposed rule change will further 
the Exchange's goal of introducing new products to the marketplace that 
are competitively priced.
---------------------------------------------------------------------------

    \7\ These fees will be charged only to Exchange members. Under a 
pilot program that is set to expire on July 31, 2008, these fees 
will also be charged to Linkage Orders (as defined in ISE Rule 
1900). See Securities Exchange Act Release No. 56128 (July 24, 
2007), 72 FR 42161 (August 1, 2007) (SR-ISE-2007-55).
    \8\ ``Public Customer Order'' is defined in Exchange Rule 
100(a)(39) as an order for the account of a Public Customer. 
``Public Customer'' is defined in Exchange Rule 100(a)(38) as a 
person that is not a broker or dealer in securities.
    \9\ The execution fee is currently between $0.21 and $0.12 per 
contract side, depending on the Exchange Average Daily Volume, and 
the comparison fee is currently $0.03 per contract side.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\10\ in general, and 
furthers the objectives of Section 6(b)(4),\11\ in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 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 \12\ 
and Rule 19b-4(f)(2) \13\ thereunder, because it establishes or changes 
a due, fee, or other charge applicable only to a member.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule

[[Page 51693]]

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-2007-78 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-2007-78. 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, 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 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-2007-78 and should be 
submitted on or before October 1, 2007.

For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-17721 Filed 9-7-07; 8:45 am]
BILLING CODE 8010-01-P