Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 5246-5248 [E8-1482]
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Federal Register / Vol. 73, No. 19 / Tuesday, January 29, 2008 / Notices
presently listed on the Exchange.4 As
such, this FXPMM is precluded from
serving as an FXPMM in any additional
currency pairs. The Exchange represents
that it intends to launch additional
currency pairs in the near future and
would like to allow the current FXPMM
to participate in the auction for FXPMM
trading licenses in these additional
currency pairs.
must be submitted within 30 days of
this notice.
Dated: January 16, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1506 Filed 1–28–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Order Approving Proposed Rule
Change, as Modified by Amendment
No. 1 Thereto, Relating to Rule 2213,
Market Maker Trading Licenses
January 22, 2008.
I. Introduction
On November 14, 2007, the
International Securities Exchange, LLC
(‘‘ISE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
eliminate the limitation in ISE Rule
2213, ‘‘Market Maker Trading Licenses,’’
that a foreign exchange options primary
market maker (‘‘FXPMM’’) in the
Exchange’s foreign currency options
(‘‘FX options’’) cannot hold FXPMM
trading licenses in more than four
currency pairs. On December 13, 2007,
the Exchange filed Amendment No. 1 to
the proposed rule change. The proposed
rule change, as modified by Amendment
No. 1, was published for comment in
the Federal Register on December 21,
2007.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change, as
modified by Amendment No. 1.
sroberts on PROD1PC70 with NOTICES
II. Description of the Proposal
ISE Rule 2213 currently provides that
an FXPMM in the Exchange’s FX
options will be limited to holding no
more than four FXPMM trading licenses
across all currency pairs. The Exchange
proposes to eliminate this restriction on
the number of FXPMM trading licenses
that a member can hold. The Exchange
states that there is currently only one
FXPMM trading in the four FX options
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 72808
(December 17, 2007), 72 FR 72808.
2 17
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1480 Filed 1–28–08; 8:45 am]
BILLING CODE 8011–01–P
III. Discussion
[Release No. 34–57182; File No. SR–ISE–
2007–109]
1 15
proposed rule change (SR–ISE–2007–
109), as modified by Amendment No. 1,
be, and hereby is, approved.
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange and, in
particular, with Section 6(b)(5) of the
Act,5 which requires, among other
things, that the rules of a national
securities exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest.6
The Commission believes that
eliminating the limitation in ISE Rule
2213 prohibiting a member from acting
as an FXPMM in more than four
currency pairs could assist the Exchange
in listing additional currency pairs by
allowing the only current FXPMM to
participate in the auction for FXPMM
trading licenses in these additional
currency pairs. At the same time, the
Commission believes that the existing
process for obtaining FXPMM trading
licenses in ISE Rule 2213(f) pursuant to
a sealed bid auction should continue to
ensure that trading licenses are awarded
in a fair and reasonable manner and
provide fair access to the exchange.7
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
4 The Exchange currently lists options on the
euro, the British pound, the Japanese yen, and the
Canadian dollar. See Securities Exchange Act
Release No. 55575 (April 3, 2007), 72 FR 17963
(April 10, 2007) (SR–ISE–2006–59).
5 15 U.S.C. 78f(b)(5).
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 See ISE Rule 2213(f). See also Securities
Exchange Act Release No. 55575 (April 3, 2007), 72
FR 17963, 17966 (April 10, 2007) (SR–ISE–2006–59)
(noting that the Commission believed that the
sealed bid auction for FXPMM trading licenses was
reasonably calculated to award trading licenses in
a fair and reasonable manner and provide fair
access to the Exchange).
8 15 U.S.C. 78s(b)(2).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57185; File No. SR–ISE–
2008–07]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
January 22, 2008.
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 January
14, 2008, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
ISE. The ISE has designated this
proposal as one establishing or changing
a due, fee, or other charge applicable
only to a member under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
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 establish fees for
transactions in options on five Premium
Products.5 The text of the proposed rule
change is available at the ISE, at the
Commission’s Public Reference Room,
and on the ISE’s Web site (https://
www.iseoptions.com/legal/
proposed_rule_changes.asp).
9 17
CFR 200.30–3(a)(12).
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).
5 ‘‘Premium Products’’ is defined in the Schedule
of Fees as the products enumerated therein.
1 15
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Federal Register / Vol. 73, No. 19 / Tuesday, January 29, 2008 / Notices
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 establish fees for
transactions in options on the iShares
MSCI Mexico Index Fund (‘‘EWW’’),6
FocusShares ISE-Revere Wal-Mart
Supplier Index Fund (‘‘WSI’’),7
FocusShares ISE-ndash;CMM Homeland
Security Index Fund (‘‘MYP’’),
FocusShares ISE SINdex Fund (‘‘PUF’’),
sroberts on PROD1PC70 with NOTICES
6 iShares
is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a wholly owned
subsidiary of Barclays Bank PLC. ‘‘MSCI Mexico
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. EWW 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 EWW; or (ii) 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 EWW or with making
disclosures concerning options on EWW 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 The ISE-Revere Wal-Mart Supplier Index was
jointly developed by ISE and Revere Data, LLC
(‘‘Revere’’). Revere, an independent and privately
owned provider of research data and investment
analytics, provides specific research and support for
the Wal-Mart Supplier Index. Wal-Mart is a
trademark of Wal-Mart Stores, Inc. The Wal-Mart
Supplier Index (‘‘WMX’’) is not sponsored,
endorsed, sold or promoted by Wal-Mart Stores,
Inc., and Wal-Mart Stores, Inc. makes no
representation regarding the advisability of
investing in WMX. Wal-Mart Stores, Inc. has not
licensed or authorized ISE to: (i) Engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on exchangetraded funds based on WMX (‘‘WMX ETF options’’);
or (ii) use any of their trademarks or service marks
in connection with the listing, provision of a market
for trading, marketing, and promotion of WMX ETF
options or with making disclosures concerning
WMX ETF options under any applicable federal or
state laws, rules or regulations. Wal-Mart Stores,
Inc. does not sponsor, endorse, or promote such
activity by ISE, and is not affiliated in any manner
with ISE.
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and FocusShares ISE Homebuilders
Index Fund (‘‘SAW’’).8 The Exchange
represents that EWW, MYP, PUF, SAW
and WSI are eligible for options trading
because they constitute ‘‘ExchangeTraded 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 EWW, MYP, PUF, SAW and
WSI.9 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 10 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.11 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.12
Further, since options on EWW are
multiply-listed, the Exchange’s Payment
for Order Flow fee shall apply only to
this one product. The Exchange believes
8 FocusShares is a registered trademark of
FocusShares, LLC. ‘‘ISE Homebuilders Index,’’ ‘‘ISE
SINdex,’’ ‘‘ISE-CCM Homeland Security Index,’’
and ‘‘ISE-Revere Wal-Mart Supplier Index’’ are
trademarks of the ISE and have been licensed for
use for certain purposes by FocusShares. All other
trademarks and service marks are the property of
their respective owners. FocusShares ISE
Homebuilders Index Fund, FocusShares ISE SINdex
Fund, FocusShares ISE-CCM Homeland Security
Index Fund, and FocusShares ISE-Revere Wal-Mart
Supplier Index Fund are not sponsored, endorsed,
issued, sold or promoted by ISE.
9 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 Principal Orders (‘‘Linkage P Orders’’) and
Linkage Principal Acting as Agent Orders (‘‘Linkage
P/A Orders’’). The amount of the execution fee
charged by the Exchange for Linkage P Orders and
Linkage P/A Orders is $0.24 per contract side and
$0.15 per contract side, respectively. See Securities
Exchange Act Release No. 56128 (July 24, 2007), 72
FR 42161 (August 1, 2007) (SR–ISE–2007–55).
Telephone conversation between Samir Patel,
Assistant General Counsel, ISE, and Sara Gillis,
Special Counsel, Division of Trading and Markets,
Commission, on January 17, 2008.
10 ‘‘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.
11 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.
12 The amount of the execution and comparison
fee for non-ISE Market Maker transactions executed
in the Exchange’s Facilitation and Solicitation
Mechanisms is $0.16 and $0.03 per contract,
respectively.
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5247
the proposed rule change will further
the Exchange’s goal of introducing new
products to the marketplace that are
competitively priced.
Further, as a matter of housekeeping,
the Exchange proposes to remove FTZ
from its Schedule of Fees.13
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,14
in general, and furthers the objectives of
Section 6(b)(4),15 in particular, in that it
is designed to provide for the 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.
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)(A) of the Act 16 and
Rule 19b–4(f)(2) 17 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.
13 FTZ was recently delisted and no longer trades
on the Exchange.
14 15 U.S.C. 78f.
15 15 U.S.C. 78f(b)(4).
16 15 U.S.C. 78s(b)(3)(A).
17 17 17 CFR 19b–4(f)(2).
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Federal Register / Vol. 73, No. 19 / Tuesday, January 29, 2008 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2008–07 on the subject
line.
[Release No. 34–57175; File No. SR–
NASDAQ–2008–006)
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Clarify the
Recipients of Certain Risk Disclosures
January 18, 2008.
Paper Comments
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 January
17, 2007, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) filed with the Securities
All submissions should refer to File
and Exchange Commission
Number SR–ISE–2008–07. This file
(‘‘Commission’’) the proposed rule
number should be included on the
change as described in Items I and II
subject line if e-mail is used. To help the below, which Items have been prepared
Commission process and review your
substantially by Nasdaq. Nasdaq filed
comments more efficiently, please use
the proposed rule change as a ‘‘nononly one method. The Commission will controversial’’ proposed rule change
post all comments on the Commission’s pursuant to Section 19(b)(3)(A) of the
Internet Web site (https://www.sec.gov/
Act 3 and Rule 19b–4(f)(6) thereunder,4
rules/sro.shtml). Copies of the
which renders it effective upon filing
submission, all subsequent
with the Commission. The Commission
amendments, all written statements
is publishing this notice to solicit
with respect to the proposed rule
comments on the proposed rule change
change that are filed with the
from interested persons.
Commission, and all written
I. Self-Regulatory Organization’s
communications relating to the
Statement of the Terms of Substance of
proposed rule change between the
Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
Nasdaq proposes to amend Rule 4631
public in accordance with the
to clarify to whom members must
provisions of 5 U.S.C. 552, will be
provide disclosures pursuant to the
available for inspection and copying in
Rule. Nasdaq proposes to implement the
the Commission’s Public Reference
proposed rule change immediately.
Room, 100 F Street, NE., Washington,
The text of the proposed rule change
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. is available at https://
nasdaq.complinet.com, the principal
Copies of such filing also will be
office of Nasdaq, and the Commission’s
available for inspection and copying at
Public Reference Room.
the principal office of the ISE. All
comments received will be posted
II. Self-Regulatory Organization’s
without change; the Commission does
Statement of the Purpose of, and
not edit personal identifying
Statutory Basis for, the Proposed Rule
information from submissions. You
Change
should submit only information that
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–2008–07 and should be the purpose of and basis for the
submitted on or before February 19,
proposed rule change. The text of these
2008.
statements may be examined at the
places specified in Item IV below.
For the Commission, by the Division of
Nasdaq has prepared summaries, set
Trading and Markets, pursuant to delegated
forth in Sections A, B, and C below, of
authority.18
the most significant aspects of such
Florence E. Harmon,
statements.
sroberts on PROD1PC70 with NOTICES
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
Deputy Secretary.
[FR Doc. E8–1482 Filed 1–28–08; 8:45 am]
BILLING CODE 8011–01–P
18 17
22:52 Jan 28, 2008
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).
2 17
CFR 200.30–3(a)(12).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to amend Rule 4631,
which covers the disclosures required of
members when accepting certain orders
for trades outside the regular market
session, to clarify to whom members
must provide these disclosures. Rule
4631 requires members to provide
certain risk disclosures to non-members
prior to accepting orders for the pre- or
post-market sessions. The term ‘‘nonmember’’ may be interpreted to include
a broker-dealer who is not a member of
Nasdaq. In the approval order for the
Rule,5 however, the discussion of
Nasdaq’s purpose for Rule 4631 is
framed in terms of disclosures to ‘‘nonmember customers.’’ Nasdaq Rule
0120(g) defines the term ‘‘customer’’ to
exclude a broker or dealer.6 The
differing terminology used in the Rule
and in the approval order has caused
some confusion among members.
Nasdaq notes that, as currently
written, Rule 4631 could be interpreted
to require members to make the risk
disclosures to non-member brokerdealers, but not to member brokerdealers. Nasdaq believes that such a
technical distinction is not meaningful
nor was it Nasdaq’s intention to make
such a distinction when proposing the
Rule. By clarifying that the Rule applies
to members’ disclosures to customers, as
defined by Rule 0120(g), Nasdaq would
avoid further member confusion
surrounding the reading of the Rule and
its associated approval order, while
remaining consistent with the rule’s
intent.
Accordingly, Nasdaq believes it is
necessary to amend Rule 4631 to make
clear that the disclosures required by
the Rule apply to members when
accepting orders from customers, not
‘‘non-members.’’
2. Statutory Basis
The proposed rule change is
consistent with the provisions of
Section 6 of the Act,7 in general, and
with Sections 6(b)(1) and (b)(5) of the
Act,8 in particular, in that the proposal
enables Nasdaq to be so organized as to
have the capacity to be able to carry out
the purposes of the Act and to comply
with and enforce compliance by
5 Securities Exchange Act Release No. 56985
(December 18, 2007), 72 FR 73388 (December 27,
2007) (SR–NASDAQ–2007–098).
6 Rule 0120(g) states: The term ‘‘customer’’ shall
not include a broker or dealer.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(1) and (b)(5).
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]]>Agencies
[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Notices]
[Pages 5246-5248]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1482]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57185; File No. SR-ISE-2008-07]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
January 22, 2008.
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 January 14, 2008, the International Securities Exchange, LLC
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been substantially
prepared by the ISE. The ISE has designated this proposal as one
establishing or changing a due, fee, or other charge applicable only to
a member under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-
4(f)(2) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change 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
The ISE is proposing to amend its Schedule of Fees to establish
fees for transactions in options on five Premium Products.\5\ The text
of the proposed rule change is available at the ISE, at the
Commission's Public Reference Room, and on the ISE's Web site (https://
www.iseoptions.com/legal/proposed_rule_changes.asp).
---------------------------------------------------------------------------
\5\ ``Premium Products'' is defined in the Schedule of Fees as
the products enumerated therein.
---------------------------------------------------------------------------
[[Page 5247]]
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
establish fees for transactions in options on the iShares MSCI Mexico
Index Fund (``EWW''),\6\ FocusShares ISE-Revere Wal-Mart Supplier Index
Fund (``WSI''),\7\ FocusShares ISE-ndash;CMM Homeland Security Index
Fund (``MYP''), FocusShares ISE SINdex Fund (``PUF''), and FocusShares
ISE Homebuilders Index Fund (``SAW'').\8\ The Exchange represents that
EWW, MYP, PUF, SAW and WSI are eligible for options trading because
they constitute ``Exchange-Traded Fund Shares,'' as defined by ISE Rule
502(h).
---------------------------------------------------------------------------
\6\ iShares[supreg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays
Bank PLC. ``MSCI Mexico 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. EWW 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 EWW; or (ii) 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 EWW or with
making disclosures concerning options on EWW 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\ The ISE-Revere Wal-Mart Supplier Index was jointly developed
by ISE and Revere Data, LLC (``Revere''). Revere, an independent and
privately owned provider of research data and investment analytics,
provides specific research and support for the Wal-Mart Supplier
Index. Wal-Mart[supreg] is a trademark of Wal-Mart Stores, Inc. The
Wal-Mart Supplier Index (``WMX'') is not sponsored, endorsed, sold
or promoted by Wal-Mart Stores, Inc., and Wal-Mart Stores, Inc.
makes no representation regarding the advisability of investing in
WMX. Wal-Mart Stores, Inc. has not licensed or authorized ISE to:
(i) Engage in the creation, listing, provision of a market for
trading, marketing, and promotion of options on exchange-traded
funds based on WMX (``WMX ETF options''); or (ii) use any of their
trademarks or service marks in connection with the listing,
provision of a market for trading, marketing, and promotion of WMX
ETF options or with making disclosures concerning WMX ETF options
under any applicable federal or state laws, rules or regulations.
Wal-Mart Stores, Inc. does not sponsor, endorse, or promote such
activity by ISE, and is not affiliated in any manner with ISE.
\8\ FocusShares is a registered trademark of FocusShares, LLC.
``ISE Homebuilders Index,'' ``ISE SINdex,'' ``ISE-CCM Homeland
Security Index,'' and ``ISE-Revere Wal-Mart Supplier Index'' are
trademarks of the ISE and have been licensed for use for certain
purposes by FocusShares. All other trademarks and service marks are
the property of their respective owners. FocusShares ISE
Homebuilders Index Fund, FocusShares ISE SINdex Fund, FocusShares
ISE-CCM Homeland Security Index Fund, and FocusShares ISE-Revere
Wal-Mart Supplier Index Fund are not sponsored, endorsed, issued,
sold or promoted by ISE.
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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 EWW, MYP, PUF, SAW
and WSI.\9\ 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 \10\ 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.\11\ 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.\12\
Further, since options on EWW are multiply-listed, the Exchange's
Payment for Order Flow fee shall apply only to this one 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.
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\9\ 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 Principal Orders (``Linkage P
Orders'') and Linkage Principal Acting as Agent Orders (``Linkage P/
A Orders''). The amount of the execution fee charged by the Exchange
for Linkage P Orders and Linkage P/A Orders is $0.24 per contract
side and $0.15 per contract side, respectively. See Securities
Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August
1, 2007) (SR-ISE-2007-55). Telephone conversation between Samir
Patel, Assistant General Counsel, ISE, and Sara Gillis, Special
Counsel, Division of Trading and Markets, Commission, on January 17,
2008.
\10\ ``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.
\11\ 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.
\12\ The amount of the execution and comparison fee for non-ISE
Market Maker transactions executed in the Exchange's Facilitation
and Solicitation Mechanisms is $0.16 and $0.03 per contract,
respectively.
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Further, as a matter of housekeeping, the Exchange proposes to
remove FTZ from its Schedule of Fees.\13\
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\13\ FTZ was recently delisted and no longer trades on the
Exchange.
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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,\14\ in general, and
furthers the objectives of Section 6(b)(4),\15\ in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among its members and other persons using
its facilities.
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\14\ 15 U.S.C. 78f.
\15\ 15 U.S.C. 78f(b)(4).
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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)(A) of the Act \16\ and Rule 19b-4(f)(2)
\17\ 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.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 17 CFR 19b-4(f)(2).
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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.
[[Page 5248]]
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2008-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2008-07. 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 (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the 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-2008-07 and should be
submitted on or before February 19, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Florence E. Harmon,
Deputy Secretary.
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\18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-1482 Filed 1-28-08; 8:45 am]
BILLING CODE 8011-01-P
