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]

Download as PDF 5246 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 VerDate Aug<31>2005 22:52 Jan 28, 2008 Jkt 214001 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). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 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 (http:// 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 E:\FR\FM\29JAN1.SGM 29JAN1 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. VerDate Aug<31>2005 22:52 Jan 28, 2008 Jkt 214001 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. PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 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). E:\FR\FM\29JAN1.SGM 29JAN1 5248 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 (http://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 (http://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 http:// 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). VerDate Aug<31>2005 1 15 Jkt 214001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 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). E:\FR\FM\29JAN1.SGM 29JAN1

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]


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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.
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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)(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

    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 (http://
www.iseoptions.com/legal/proposed_rule_changes.asp).
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    \5\ ``Premium Products'' is defined in the Schedule of Fees as 
the products enumerated therein.

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[[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).
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    \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 (http://
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 (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 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