Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Historical ISE Open/Close Trade Profile Fees, 71988-71989 [E7-24583]

Download as PDF 71988 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices 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–2007–110 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56957; File No. SR–ISE– 2007–115] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Historical ISE Open/Close Trade Profile Fees December 13, 2007. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, notice is hereby given that on December Securities and Exchange Commission, 11, 2007, the International Securities 100 F Street, NE., Washington, DC Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 20549–1090. filed with the Securities and Exchange All submissions should refer to File Commission (‘‘Commission’’) the Number SR–ISE–2007–110. This file proposed rule change as described in number should be included on the Items I and II below, which Items have subject line if e-mail is used. To help the been substantially prepared by ISE. The Commission process and review your Exchange filed the proposal pursuant to comments more efficiently, please use section 19(b)(3)(A) of the Act 3 and Rule only one method. The Commission will 19b–4(f)(6) thereunder,4 which renders post all comments on the Commission’s the proposal effective upon filing with Internet Web site (http://www.sec.gov/ the Commission. The Commission is rules/sro.shtml). Copies of the publishing this notice to solicit submission, all subsequent comments on the proposed rule change amendments, all written statements from interested persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the ISE proposes to amend its Schedule of proposed rule change between the Commission and any person, other than Fees to: (1) Clarify the terms on which it offers the ISE Open/Close Trade those that may be withheld from the Profile, a market data product described public in accordance with the below; and (2) adopt a subscription fee provisions of 5 U.S.C. 552, will be for the sale of historical ISE Open/Close available for inspection and copying in Trade Profile. The text of the proposed the Commission’s Public Reference rule change is available at the Exchange, Room, 100 F Street, NE., Washington, on the Exchange’s Web site at http:// DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. www.ise.com, and at the Commission’s Copies of the filing also will be available Public Reference Room. for inspection and copying at the II. Self-Regulatory Organization’s principal office of the Exchange. All Statement of the Purpose of, and comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying In its filing with the Commission, the information from submissions. You Exchange included statements should submit only information that you wish to make available publicly. All concerning the purpose of, and basis for, the proposed rule change and discussed submissions should refer to File any comments it received on the Number SR–ISE–2007–110 and should proposed rule change. The text of these be submitted on or before January 9, statements may be examined at the 2008. places specified in Item IV below. The For the Commission, by the Division of Exchange has prepared summaries, set Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of authority.10 the most significant aspects of such Florence E. Harmon, statements. mstockstill on PROD1PC66 with NOTICES Paper Comments Deputy Secretary. [FR Doc. E7–24535 Filed 12–18–07; 8:45 am] 1 15 BILLING CODE 8011–01–P 2 17 10 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 21:40 Dec 18, 2007 Jkt 214001 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose ISE currently creates volume data for each ISE listed option that consists of opening buys and opening sells and closing buys and closing sells.5 ISE currently uses a subset of this data, the customer ‘‘opening only’’ trade data, for its calculation of investor sentiment, the ISE Sentiment Index, or ISEE, and for ISEE Select. The Commission recently approved a broader market data offering comprised of the entire opening and closing trade data of ISE listed options of both customers and firms, referred to by the Exchange as the ISE Open/Close Trade Profile.6 The ISE Open/Close Trade Profile offering is subdivided by origin code (i.e., customer or firm) and the customer data is then further subdivided by order size. The volume data is summarized by day and series (i.e., symbol, expiration date, strike price, call or put). ISE Open/Close Trade Profile is a subscription service, available to both members and nonmembers, and that enables subscribers to create their own proprietary put/call calculations. The data is compiled and formatted by ISE as an end of day file. The Exchange charges both members and non-members $600 per month based on an annual subscription 7 for the ISE Open/Close Trade Profile market data offering. ISE now proposes to sell historical ISE Open/Close Trade Profile, a market data offering comprised of the entire opening and closing trade data of both customers and firms that dates back to May 2005, to both members and nonmembers, on an ad-hoc basis or as a complete set that dates back to May 2005. Ad-hoc subscribers will be able to purchase this data for any number of months, beginning from May 2005 through the current month. Alternatively, subscribers will be able to purchase the entire set of this data, beginning from May 2005 through the 5 An opening buy is a transaction that creates or increases a long position and an opening sell is a transaction that creates or increases a short position. A closing buy is a transaction made to close out an existing position. A closing sell is a transaction to reduce or eliminate a long position. 6 See Securities Exchange Act Release No. 56254 (August 15, 2007), 72 FR 47104 (August 22, 2007) (SR–ISE–2007–70). 7 The Exchange notes that while historical ISE Open/Close Trade Profile is available on a month to month basis, the non-historical ISE Open/Close Trade Profile offering is available only on an annual subscription basis, which the Exchange proposes to clarify by adding the words ‘‘With an annual subscription’’ under the Notes section on its Schedule of Fees. E:\FR\FM\19DEN1.SGM 19DEN1 Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Notices current month. The data will be compiled and formatted by ISE and sold as a zipped file. ISE proposes to charge ad-hoc subscribers $600 per request for each month of data. For subscribers that want the compete set of the data from May 2005 to the present, ISE proposes to charge a discounted fee of $500.00 for each month of data. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b)(4) of the Act,8 which requires that a national securities exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. The Exchange states that the proposed rule filing will provide members and non-members with valuable market data, and that it has expended considerable resources, i.e., internal development costs, purchase of servers, etc., to bring this offering to market. The Exchange states that it took these costs into account in setting the fees proposed for the historical ISE Open/Close Trade Profile market data offering. This product is identical to one that the Chicago Board Options Exchange (‘‘CBOE’’) currently sells to the marketplace called Open/ Close Data.9 Further, ISE states that its proposed fees for this new historical product are cheaper than or identical to the fees that CBOE currently charges for its Open/Close Data offering.10 Finally, the Exchange notes that the fees proposed by ISE for this product, which is available for purchase on a voluntary basis, are not discriminatory in that the Exchange proposes to charge both members and non-members an identical fee. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. mstockstill on PROD1PC66 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. 8 15 U.S.C. 78(f)(b)(4). Securities Exchange Act Release No. 55062 (January 8, 2007), 72 FR 2048 (January 17, 2007) (SR–CBOE–2006–88). 10 See id. 9 See VerDate Aug<31>2005 21:40 Dec 18, 2007 Jkt 214001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change does not: (1) Significantly affect the protection of investors or the public interest; (2) impose any significant burden on competition; and (3) become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A) of the Act and Rule 19b– 4(f)(6) thereunder.11 A proposed rule change filed under 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b–4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow ISE to immediately offer the historical ISE Open/Close Trade Profile data to investors interested in subscribing.12 This market data product is substantially similar to one offered by CBOE, and it appears that it does not raise any novel regulatory issues. For these reasons, the Commission designates the proposed rule change to be effective and operative 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. 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: 11 In addition, Rule 19b–4(f)(6) requires a selfregulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. ISE has satisfied this requirement. 12 For the purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 71989 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–2007–115 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–2007–115. 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 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 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– 2007–115 and should be submitted on or before January 9, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–24583 Filed 12–18–07; 8:45 am] BILLING CODE 8011–01–P 13 17 E:\FR\FM\19DEN1.SGM CFR 200.30–3(a)(12). 19DEN1

Agencies

[Federal Register Volume 72, Number 243 (Wednesday, December 19, 2007)]
[Notices]
[Pages 71988-71989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24583]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56957; File No. SR-ISE-2007-115]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Historical ISE Open/Close Trade Profile Fees

December 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 December 11, 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 and II below, which Items have been substantially prepared by 
ISE. The Exchange filed the proposal pursuant to section 19(b)(3)(A) of 
the Act \3\ and Rule 19b-4(f)(6) 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 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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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: (1) Clarify the 
terms on which it offers the ISE Open/Close Trade Profile, a market 
data product described below; and (2) adopt a subscription fee for the 
sale of historical ISE Open/Close Trade Profile. The text of the 
proposed rule change is available at the Exchange, on the Exchange's 
Web site at http://www.ise.com, and at the Commission's Public 
Reference Room.

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

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

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

1. Purpose
    ISE currently creates volume data for each ISE listed option that 
consists of opening buys and opening sells and closing buys and closing 
sells.\5\ ISE currently uses a subset of this data, the customer 
``opening only'' trade data, for its calculation of investor sentiment, 
the ISE Sentiment Index[reg], or ISEE[reg], and for ISEE Select[reg]. 
The Commission recently approved a broader market data offering 
comprised of the entire opening and closing trade data of ISE listed 
options of both customers and firms, referred to by the Exchange as the 
ISE Open/Close Trade Profile.\6\ The ISE Open/Close Trade Profile 
offering is subdivided by origin code (i.e., customer or firm) and the 
customer data is then further subdivided by order size. The volume data 
is summarized by day and series (i.e., symbol, expiration date, strike 
price, call or put). ISE Open/Close Trade Profile is a subscription 
service, available to both members and non-members, and that enables 
subscribers to create their own proprietary put/call calculations. The 
data is compiled and formatted by ISE as an end of day file. The 
Exchange charges both members and non-members $600 per month based on 
an annual subscription \7\ for the ISE Open/Close Trade Profile market 
data offering.
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    \5\ An opening buy is a transaction that creates or increases a 
long position and an opening sell is a transaction that creates or 
increases a short position. A closing buy is a transaction made to 
close out an existing position. A closing sell is a transaction to 
reduce or eliminate a long position.
    \6\ See Securities Exchange Act Release No. 56254 (August 15, 
2007), 72 FR 47104 (August 22, 2007) (SR-ISE-2007-70).
    \7\ The Exchange notes that while historical ISE Open/Close 
Trade Profile is available on a month to month basis, the non-
historical ISE Open/Close Trade Profile offering is available only 
on an annual subscription basis, which the Exchange proposes to 
clarify by adding the words ``With an annual subscription'' under 
the Notes section on its Schedule of Fees.
---------------------------------------------------------------------------

    ISE now proposes to sell historical ISE Open/Close Trade Profile, a 
market data offering comprised of the entire opening and closing trade 
data of both customers and firms that dates back to May 2005, to both 
members and non-members, on an ad-hoc basis or as a complete set that 
dates back to May 2005. Ad-hoc subscribers will be able to purchase 
this data for any number of months, beginning from May 2005 through the 
current month. Alternatively, subscribers will be able to purchase the 
entire set of this data, beginning from May 2005 through the

[[Page 71989]]

current month. The data will be compiled and formatted by ISE and sold 
as a zipped file. ISE proposes to charge ad-hoc subscribers $600 per 
request for each month of data. For subscribers that want the compete 
set of the data from May 2005 to the present, ISE proposes to charge a 
discounted fee of $500.00 for each month of data.
 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b)(4) of the Act,\8\ which requires that a national 
securities exchange have an equitable allocation of reasonable dues, 
fees and other charges among its members and other persons using its 
facilities. The Exchange states that the proposed rule filing will 
provide members and non-members with valuable market data, and that it 
has expended considerable resources, i.e., internal development costs, 
purchase of servers, etc., to bring this offering to market. The 
Exchange states that it took these costs into account in setting the 
fees proposed for the historical ISE Open/Close Trade Profile market 
data offering. This product is identical to one that the Chicago Board 
Options Exchange (``CBOE'') currently sells to the marketplace called 
Open/Close Data.\9\ Further, ISE states that its proposed fees for this 
new historical product are cheaper than or identical to the fees that 
CBOE currently charges for its Open/Close Data offering.\10\ Finally, 
the Exchange notes that the fees proposed by ISE for this product, 
which is available for purchase on a voluntary basis, are not 
discriminatory in that the Exchange proposes to charge both members and 
non-members an identical fee.
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    \8\ 15 U.S.C. 78(f)(b)(4).
    \9\ See Securities Exchange Act Release No. 55062 (January 8, 
2007), 72 FR 2048 (January 17, 2007) (SR-CBOE-2006-88).
    \10\ See id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
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 neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change does not: (1) Significantly 
affect the protection of investors or the public interest; (2) impose 
any significant burden on competition; and (3) become operative for 30 
days after the date of this filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\11\
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    \11\ In addition, Rule 19b-4(f)(6) requires a self-regulatory 
organization to give the Commission written notice of its intent to 
file the proposed rule change, along with a brief description and 
text of the proposed rule change, at least five business days prior 
to the date of filing of the proposed rule change, or such shorter 
time as designated by the Commission. ISE has satisfied this 
requirement.
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has requested that the Commission 
waive the 30-day operative delay. The Commission believes that waiving 
the 30-day operative delay is consistent with the protection of 
investors and the public interest because it will allow ISE to 
immediately offer the historical ISE Open/Close Trade Profile data to 
investors interested in subscribing.\12\ This market data product is 
substantially similar to one offered by CBOE, and it appears that it 
does not raise any novel regulatory issues. For these reasons, the 
Commission designates the proposed rule change to be effective and 
operative upon filing with the Commission.
---------------------------------------------------------------------------

    \12\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 rule-comments@sec.gov. Please include 
File Number SR-ISE-2007-115 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-2007-115. 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 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 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-2007-115 and should be submitted on or before 
January 9, 2008.

    For the Commission, by the Division of Trading and Markets, 
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. E7-24583 Filed 12-18-07; 8:45 am]
BILLING CODE 8011-01-P