Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to PrecISE Fees, 55268-55269 [E7-19164]

Download as PDF 55268 Federal Register / Vol. 72, No. 188 / Friday, September 28, 2007 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–56496; File No. SR–ISE– 2007–85] • 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–2007–83 on the subject line. Paper Comments jlentini on PROD1PC65 with NOTICES • 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–2007–83. 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 the 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– 2007–83 and should be submitted on or before October 19, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.22 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19161 Filed 9–27–07; 8:45 am] BILLING CODE 8010–01–P 22 17 18:15 Sep 27, 2007 September 21, 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 September 17, 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 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 to: (i) Raise its PrecISE through VPN fees; and (ii) adopt a PrecISE Sponsored Customer fee. 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 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). 2 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to PrecISE Fees Jkt 211001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to amend the Exchange’s Schedule of Fees to: (i) Raise its PrecISE through VPN fees; and (ii) adopt a PrecISE Sponsored Customer fee. ‘‘PrecISE’’ is ISE’s internallydeveloped proprietary order-routing terminal used by Electronic Access Members (‘‘EAMs’’) to send order flow to the Exchange. The Exchange currently permits EAMs to access the Exchange through a VPN connection from their PrecISE terminals for which the Exchange currently charges $250 per month per terminal.5 VPN is an internet-based ‘‘virtual private network’’ that allows secure access to the ISE through the internet. PrecISE through VPN provides PrecISE functionality without requiring dedicated network lines and is a cost-efficient means of access for small and mid-sized brokerdealers. The Exchange notes that EAMs may also use PrecISE through VPN as a back-up or disaster recovery connection to the Exchange. The Exchange now proposes to increase its PrecISE through VPN fee from $250 per month per terminal to $300 per month per terminal to offset the Exchange’s costs for maintaining these connections.6 The Exchange also proposes to adopt a PrecISE Sponsored Customer fee of $300 per month per terminal. The Exchange currently operates a program that permits sponsored customers of Members to access the Exchange directly via a PrecISE trade terminal, provided certain conditions are met.7 The proposed Sponsored Customer fee shall only apply to sponsored customers that are not affiliates of the ISE member who sponsors its access. For example, an ISE member that sponsors five of its customers, all of whom are not affiliated with it, will be charged $1,500 per month for the five sponsored terminals through which the Member’s customers 5 See Securities Exchange Act Release No. 54121 (July 10, 2006), 71 FR 40566 (July 17, 2006) (SR– ISE–2006–31). 6 The Exchange notes that this proposed fee increase will bring the PrecISE through VPN fees in line with the fee the Exchange currently charges EAMs for a network connection. See Securities Exchange Act Release No. 55960 (June 26, 2007), 72 FR 36531 (July 3, 2007) (SR–ISE–2007–42) (notice of filing and immediate effectiveness of proposed rule change adopting a per user per month fee for the Exchange’s PrecISE Trade terminal). 7 See Securities Exchange Act Release No. 55586 (April 5, 2007), 72 FR 18701 (April 13, 2007) (SR– ISE–2007–19) (notice of filing and immediate effectiveness of proposed rule change relating to access to the Exchange by Sponsored Customers). E:\FR\FM\28SEN1.SGM 28SEN1 Federal Register / Vol. 72, No. 188 / Friday, September 28, 2007 / Notices will be able to directly connect to the Exchange. or otherwise in furtherance of the purposes of the Act. 2. Statutory Basis IV. Solicitation of Comments The Exchange believes that the proposed rule change is consistent with the objectives of section 6 of the Act,8 in general, and furthers the objectives of section 6(b)(4),9 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. In particular, these fees will permit the Exchange to recover the costs of developing, maintaining, and supporting PrecISE Trade terminals and its various functionalities. Additionally, the Exchange believes the proposed fees are equitable in that they only apply to those members that elect to use PrecISE.10 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: 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 11 and Rule 19b–4(f)(2) 12 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, jlentini on PROD1PC65 with NOTICES 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 Telephone amendment between Samir Patel, Assistant General Counsel, ISE, and Richard Holley, Senior Special Counsel, Division of Market Regulation, Commission, September 21, 2007. 11 15 U.S.C. 78s(b)(3)(A)(ii). 12 17 CFR 240.19b–4(f)(2). 9 15 VerDate Aug<31>2005 17:12 Sep 27, 2007 Jkt 211001 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–2007–85 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. 55269 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–19164 Filed 9–27–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56497; File No. SR–ISE– 2007–86] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Commence a One Year Pilot Program Relating to a Quote Mitigation Plan for Competitive Market Makers September 21, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 17, 2007, the International All submissions should refer to File Securities Exchange, LLC (the Number SR–ISE–2007–85. This file ‘‘Exchange’’ or the ‘‘ISE’’) filed with the number should be included on the subject line if e-mail is used. To help the Securities and Exchange Commission the proposed rule change as described Commission process and review your in Items I, II, and III below, which items comments more efficiently, please use only one method. The Commission will have been substantially prepared by the post all comments on the Commission’s Exchange. The Exchange has designated this proposal as constituting a stated Internet Web site (http://www.sec.gov/ policy, practice, or interpretation with rules/sro.shtml). Copies of the respect to the meaning, administration, submission, all subsequent or enforcement of an existing rule under amendments, all written statements Section 19(b)(3)(A)(i) of the Act,3 and with respect to the proposed rule Rule 19b–4(f)(1) thereunder,4 which change that are filed with the renders the proposal effective upon Commission, and all written filing with the Commission. The communications relating to the Commission is publishing this notice to proposed rule change between the Commission and any person, other than solicit comments on the proposed rule change from interested persons. those that may be withheld from the public in accordance with the I. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of available for inspection and copying in the Proposed Rule Change the Commission’s Public Reference Room, 100 F Street, NE., Washington, The ISE submits this rule filing to DC 20549, on official business days implement a quote mitigation plan for between the hours of 10 a.m. and 3 p.m. the Exchange’s Competitive Market Copies of such filing also will be Makers (‘‘CMM’’) on a pilot basis for available for inspection and copying at one-year.5 The text of the proposed rule the principal office of ISE. All change is available at the ISE, the comments received will be posted Commission’s Public Reference Room, without change; the Commission does and http://www.ise.com. not edit personal identifying 13 17 CFR 200.30–3(a)(12). information from submissions. You 1 15 U.S.C. 78s(b)(1). should submit only information that 2 17 CFR 240.19b–4. you wish to make available publicly. All 3 15 U.S.C. 78s(b)(3)(A)(i). submissions should refer to File 4 17 CFR 240.19b–4(f)(1). Number SR–ISE–2007–85 and should be 5 See Securities Exchange Act Release No. 56444 submitted on or before October 19, (September 14, 2007) (Order approving SR–ISE– 2007. 2007–45). PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.SGM 28SEN1

Agencies

[Federal Register Volume 72, Number 188 (Friday, September 28, 2007)]
[Notices]
[Pages 55268-55269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19164]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56496; File No. SR-ISE-2007-85]


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

September 21, 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 September 17, 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 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).
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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 
to: (i) Raise its PrecISE through VPN fees; and (ii) adopt a PrecISE 
Sponsored Customer fee. 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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend the Exchange's 
Schedule of Fees to: (i) Raise its PrecISE through VPN fees; and (ii) 
adopt a PrecISE Sponsored Customer fee.
    ``PrecISE'' is ISE's internally-developed proprietary order-routing 
terminal used by Electronic Access Members (``EAMs'') to send order 
flow to the Exchange. The Exchange currently permits EAMs to access the 
Exchange through a VPN connection from their PrecISE terminals for 
which the Exchange currently charges $250 per month per terminal.\5\ 
VPN is an internet-based ``virtual private network'' that allows secure 
access to the ISE through the internet. PrecISE through VPN provides 
PrecISE functionality without requiring dedicated network lines and is 
a cost-efficient means of access for small and mid-sized broker-
dealers. The Exchange notes that EAMs may also use PrecISE through VPN 
as a back-up or disaster recovery connection to the Exchange. The 
Exchange now proposes to increase its PrecISE through VPN fee from $250 
per month per terminal to $300 per month per terminal to offset the 
Exchange's costs for maintaining these connections.\6\
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    \5\ See Securities Exchange Act Release No. 54121 (July 10, 
2006), 71 FR 40566 (July 17, 2006) (SR-ISE-2006-31).
    \6\ The Exchange notes that this proposed fee increase will 
bring the PrecISE through VPN fees in line with the fee the Exchange 
currently charges EAMs for a network connection. See Securities 
Exchange Act Release No. 55960 (June 26, 2007), 72 FR 36531 (July 3, 
2007) (SR-ISE-2007-42) (notice of filing and immediate effectiveness 
of proposed rule change adopting a per user per month fee for the 
Exchange's PrecISE Trade[reg] terminal).
---------------------------------------------------------------------------

    The Exchange also proposes to adopt a PrecISE Sponsored Customer 
fee of $300 per month per terminal. The Exchange currently operates a 
program that permits sponsored customers of Members to access the 
Exchange directly via a PrecISE trade terminal, provided certain 
conditions are met.\7\ The proposed Sponsored Customer fee shall only 
apply to sponsored customers that are not affiliates of the ISE member 
who sponsors its access. For example, an ISE member that sponsors five 
of its customers, all of whom are not affiliated with it, will be 
charged $1,500 per month for the five sponsored terminals through which 
the Member's customers

[[Page 55269]]

will be able to directly connect to the Exchange.
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    \7\ See Securities Exchange Act Release No. 55586 (April 5, 
2007), 72 FR 18701 (April 13, 2007) (SR-ISE-2007-19) (notice of 
filing and immediate effectiveness of proposed rule change relating 
to access to the Exchange by Sponsored Customers).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of section 6 of the Act,\8\ in general, and 
furthers the objectives of section 6(b)(4),\9\ 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. In particular, these fees will permit the 
Exchange to recover the costs of developing, maintaining, and 
supporting PrecISE Trade terminals and its various functionalities. 
Additionally, the Exchange believes the proposed fees are equitable in 
that they only apply to those members that elect to use PrecISE.\10\
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ Telephone amendment between Samir Patel, Assistant General 
Counsel, ISE, and Richard Holley, Senior Special Counsel, Division 
of Market Regulation, Commission, September 21, 2007.
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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 \11\ 
and Rule 19b-4(f)(2) \12\ thereunder, because it establishes or changes 
a due, fee, or other charge applicable only to a member.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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 
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-2007-85 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-2007-85. 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-2007-85 and should be 
submitted on or before October 19, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-19164 Filed 9-27-07; 8:45 am]
BILLING CODE 8010-01-P