Self-Regulatory Organizations; International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 64264-64265 [E7-22338]

Download as PDF 64264 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56773; File No. SR–ISE– 2007–104] Self-Regulatory Organizations; International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes November 8, 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 November 1, 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, II, and III below, which Items have been prepared by the ISE. 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 ISE is proposing to amend its Schedule of Fees to remove the surcharge fee for transactions in options on 10 Premium Products.3 The text of the proposed rule change is available on the ISE’s Web site (http://www.ise.com), at the principal office of the ISE, 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 ISE 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 ISE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. pwalker on PROD1PC71 with NOTICES 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 remove the surcharge fee previously adopted for 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Premium Products is defined in the Schedule of Fees as the products enumerated therein. 2 17 VerDate Aug<31>2005 19:50 Nov 14, 2007 Jkt 214001 transactions in options on the iShares S&P 100 Index Fund (‘‘OEF’’),4 the Financial Select Sector SPDR Fund (‘‘XLF’’), the Technology Select Sector SPDR Fund (‘‘XLK’’), the Utilities Select Sector SPDR Fund (‘‘XLU’’),5 the Materials Select Sector SPDR Fund (‘‘XLB’’), the Industrial Select Sector SPDR Fund (‘‘XLI’’), the Health Care Select Sector SPDR Fund (‘‘XLV’’), the Consumer Discretionary Select Sector SPDR Fund (‘‘XLY’’),6 the Energy Select Sector SPDR Fund (‘‘XLE’’), and the Consumer Staples Select Sector SPDR Fund (‘‘XLP’’).7 The Exchange is proposing to remove the surcharge fee for these products from its Schedule of Fees because it no longer pays a license fee to Standard and Poor’s, Inc. in connection with transactions in options on OEF, XLF, XLK, XLU, XLB, XLI, XLV, XLY, XLE and XLP. Accordingly, there is no longer a need for this surcharge fee. The Exchange will, however, continue to charge an execution fee and a comparison fee for transactions in options on OEF, XLF, XLK, XLU, XLB, XLI, XLV, XLY, XLE and XLP. 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. 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. 4 See Securities Exchange Act Release No. 46189 (July 11, 2002), 67 FR 47587 (July 19, 2002). 5 See Securities Exchange Act Release No. 47243 (January 24, 2003), 68 FR 5066 (January 31, 2003). 6 See Securities Exchange Act Release No. 47536 (March 19, 2003), 68 FR 14727 (March 26, 2003). 7 See Securities Exchange Act Release No. 47564 (March 24, 2003), 68 FR 15256 (March 28, 2003). 8 15 U.S.C. 78f(b)(4). PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3) of the Act 9 and Rule 19b–4(f)(2) 10 thereunder. At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form http://www.sec.gov/ rules/sro.shtml); or • Send an E-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2007–104 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–2007–104. 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 9 15 U.S.C. 78s(b)(3)(A). CFR 19b–4(f)(2). 10 17 E:\FR\FM\15NON1.SGM 15NON1 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Notices 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 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–2007–104 and should be submitted on or before December 6, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22338 Filed 11–14–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56767; File No. SR– NYSEArca–2007–87] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of a Proposed Rule Change, and Amendments No. 1 and No. 2 Thereto, To Amend Listing Fees for Structured Products November 7, 2007. pwalker on PROD1PC71 with NOTICES 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 16, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 October 30, 2007, the Exchange filed Amendment No. 1 to the proposed rule change. On November 7, 2007, the Exchange filed Amendment No. 2 to the proposed rule change. 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 The Exchange, through its whollyowned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), proposes to amend its Schedule of Fees and 11 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 19:50 Nov 14, 2007 Jkt 214001 Charges (‘‘Fee Schedule’’) to revise the listing fees applicable to structured products listed on NYSE Arca, LLC (‘‘NYSE Arca Marketplace’’), the equities facility of NYSE Arca Equities. The proposed revisions would apply retroactively as of October 3, 2007. The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange, and at http://www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change, and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose a. Listing Fee Schedule NYSE Arca has determined to revise the listing fees specifically applicable to Structured Products 3 in order to harmonize its fees with the New York Stock Exchange LLC’s fees. The proposed revisions would apply as of October 3, 2007. NYSE Arca currently assesses a onetime Listing Fee of $20,000 for each Structured Product that is listed pursuant to an initial public offering (‘‘IPO’’) or an initial listing. Each time the issuer lists additional shares for the same Structured Product pursuant to a subsequent IPO, the issuer is charged a $1,000 fee. If an issuer lists a Structured Product that is already listed on another Marketplace or quoted on an interdealer Quotation System, the issuer is subject to a $5,000 fee per such product. In addition, if an issuer lists additional Structured Products that were already listed on another marketplace or quoted 3 For purposes of this proposal, Structured Products include securities qualified for listing and trading on NYSE Arca under the following NYSE Arca Equities Rules: Rule 5.2(j)(1) (Other Securities), 5.2(j)(2) (Equity Linked Notes), Rule 5.2(j)(4) (Index-Linked Exchangeable Notes), Rule 5.2(j)(6) (Equity Index-Linked Securities, Commodity-Linked Securities and Currency-Linked Securities) and Rule 8.3 (Currency and Index Warrants), as these rules may be amended from time to time. PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 64265 on an inter-dealer quotation system, the issuer is subject to the following fees: Number of structured products 2–10 .............................................. 11–100 .......................................... 100+ .............................................. Fee per product $1,000 500 100 The revised fee schedule would clarify the types of products defined as ‘‘Structured Products’’ and replace the current fee schedule with a fee schedule based on the total of shares outstanding. The revised fee schedule provides a fee cap of $45,000 per issue. The new fee schedule is as follows: Shares outstanding Up to 1 million .............................. 1+ to 2 million ............................... 2+ to 3 million ............................... 3+ to 4 million ............................... 4+ to 5 million ............................... 5+ to 6 million ............................... 6+ to 7 million ............................... 7+ to 8 million ............................... 8+ to 9 million ............................... 9+ to 10 million ............................. 10+ to 15 million ........................... in excess of 15 million .................. Fee $5,000 10,000 15,000 20,000 25,000 30,000 30,000 30,000 30,000 32,500 37,500 45,000 As set forth in the revised fee schedule for Structured Products, the fees will apply each time an issuer lists a Structured Product as well as subsequent listings of additional shares of the same Structured Product. The Exchange will treat each series of a Structured Product as a separate issue. b. Annual Fee Schedule NYSE Arca currently assesses Annual Fees based on the total number of Structured Products per issuer. The Annual Fee for one Structured Product listed is $5,000. For each additional Structured Product listed by the same issuer the following fees apply: Number of structured products 2 through 10 ................................. 11 through 100 ............................. 101+ .............................................. Fee per product $1,000 500 100 NYSE Arca proposes revised Annual Fees for Structured Products based on total shares outstanding for each issue, as follows: Shares outstanding Up to 6 million .............................. 6+ to 7 million ............................... 7+ to 8 million ............................... 8+ to 9 million ............................... 9+ to 10 million ............................. 10+ to 15 million ........................... 15+ to 25 million ........................... E:\FR\FM\15NON1.SGM 15NON1 Fee $10,000 12,000 14,000 16,000 18,000 20,000 25,000

Agencies

[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Notices]
[Pages 64264-64265]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22338]



[[Page 64264]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56773; File No. SR-ISE-2007-104]


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

November 8, 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 November 1, 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, II, and III below, which Items have been prepared by the ISE. 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees to remove the 
surcharge fee for transactions in options on 10 Premium Products.\3\ 
The text of the proposed rule change is available on the ISE's Web site 
(http://www.ise.com), at the principal office of the ISE, and at the 
Commission's Public Reference Room.
---------------------------------------------------------------------------

    \3\ Premium Products is 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 ISE 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 ISE 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 remove 
the surcharge fee previously adopted for transactions in options on the 
iShares S&P 100 Index Fund (``OEF''),\4\ the Financial Select Sector 
SPDR Fund (``XLF''), the Technology Select Sector SPDR Fund (``XLK''), 
the Utilities Select Sector SPDR Fund (``XLU''),\5\ the Materials 
Select Sector SPDR Fund (``XLB''), the Industrial Select Sector SPDR 
Fund (``XLI''), the Health Care Select Sector SPDR Fund (``XLV''), the 
Consumer Discretionary Select Sector SPDR Fund (``XLY''),\6\ the Energy 
Select Sector SPDR Fund (``XLE''), and the Consumer Staples Select 
Sector SPDR Fund (``XLP'').\7\ The Exchange is proposing to remove the 
surcharge fee for these products from its Schedule of Fees because it 
no longer pays a license fee to Standard and Poor's, Inc. in connection 
with transactions in options on OEF, XLF, XLK, XLU, XLB, XLI, XLV, XLY, 
XLE and XLP. Accordingly, there is no longer a need for this surcharge 
fee. The Exchange will, however, continue to charge an execution fee 
and a comparison fee for transactions in options on OEF, XLF, XLK, XLU, 
XLB, XLI, XLV, XLY, XLE and XLP.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 46189 (July 11, 
2002), 67 FR 47587 (July 19, 2002).
    \5\ See Securities Exchange Act Release No. 47243 (January 24, 
2003), 68 FR 5066 (January 31, 2003).
    \6\ See Securities Exchange Act Release No. 47536 (March 19, 
2003), 68 FR 14727 (March 26, 2003).
    \7\ See Securities Exchange Act Release No. 47564 (March 24, 
2003), 68 FR 15256 (March 28, 2003).
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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.
---------------------------------------------------------------------------

    \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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3) of the Act \9\ and Rule 19b-4(f)(2) \10\ 
thereunder. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form http://
www.sec.gov/rules/sro.shtml); or
     Send an E-mail to rule-comments@sec.gov. Please include 
File No. SR-ISE-2007-104 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-2007-104. 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

[[Page 64265]]

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 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-
2007-104 and should be submitted on or before December 6, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22338 Filed 11-14-07; 8:45 am]
BILLING CODE 8011-01-P