Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change To Amend Exchange Rules Related to the Imposition of Fines for Minor Rule Violations, 6753-6754 [E8-1970]
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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices
Exchange proposes to expand the
program to apply to any non-customer
order underlying a P order.6 Second, in
order to recover the significant costs of
this program, the Exchange proposes to
pass through to the member that
originated the underlying order the total
amount of the credits paid by the
Exchange to the DPM under the program
(i.e., away exchange transaction fee, and
OCC, clearing firm and Sales Value
fees). The Exchange represents that
members seeking to send orders to the
Exchange that are not routed away
through the Linkage (thereby avoiding
any pass-through Linkage charges) may
do so by marking orders sent to CBOE
with an Immediate or Cancel (‘‘IOC’’)
designation. IOC orders are not routed
to other market centers, instead if they
cannot be executed on CBOE they are
cancelled.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with section
6(b) of the Act 7 in general and furthers
the objectives of section 6(b)(4) 8 of the
Act in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among CBOE members and other
persons using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will result in 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 neither solicited nor
received comments on the proposal.
rmajette on PROD1PC64 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(2) 10
thereunder because it establishes or
changes a due, fee, or other charge
applicable only to a member. At any
time within 60 days of the filing of such
proposed rule change, the Commission
may summarily abrogate such rule
6 The Exchange is expanding the application of
the P order program due to the fact that HAL now
processes market-maker orders in addition to
broker-dealer orders.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–(f)(2).
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15:34 Feb 04, 2008
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6753
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–2059 Filed 2–4–08; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2007–152 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57229; File No. SR–ISE–
2008–09]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing of Proposed Rule
Change To Amend Exchange Rules
Related to the Imposition of Fines for
Minor Rule Violations
January 29, 2008.
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 January
Paper Comments
18, 2008, the International Securities
• Send paper comments in triplicate
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
to Nancy M. Morris, Secretary,
filed with the Securities and Exchange
Securities and Exchange Commission,
Commission (‘‘Commission’’) the
100 F Street, NE., Washington, DC
proposed rule change as described in
20549–1090.
Items I, II, and III below, which Items
have been prepared substantially by the
All submissions should refer to File
ISE. The Commission is publishing this
Number SR–CBOE–2007–152. This file
notice to solicit comments on the
number should be included on the
subject line if e-mail is used. To help the proposed rule change from interested
persons.
Commission process and review your
comments more efficiently, please use
I. Self-Regulatory Organization’s
only one method. The Commission will Statement of the Terms of Substance of
post all comments on the Commission’s the Proposed Rule Change
Internet Web site (https://www.sec.gov/
The Exchange proposes to amend ISE
rules/sro.shtml). Copies of the
Rule 1614, ‘‘Imposition of Fines for
submission, all subsequent
Minor Rule Violations,’’ to add
amendments, all written statements
summary fines for violations of ISE Rule
with respect to the proposed rule
1100, ‘‘Exercise of Options Contracts.’’
change that are filed with the
The text of the proposed rule change is
Commission, and all written
available on the Exchange’s Web site
communications relating to the
(https://www.ise.com), at the ISE’s
proposed rule change between the
Commission and any person, other than principal office, and at the
Commission’s Public Reference Room.
those that may be withheld from the
public in accordance with the
II. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
Statement of the Purpose of, and
available for inspection and copying in
Statutory Basis for, the Proposed Rule
the Commission’s Public Reference
Change
Room. Copies of such filing also will be
In its filing with the Commission, the
available for inspection and copying at
Exchange included statements
the principal office of CBOE.
concerning the purpose of, and basis for,
All comments received will be posted
the proposed rule change and discussed
without change; the Commission does
any comments it received on the
not edit personal identifying
proposed rule change. The text of these
information from submissions. You
statements may be examined at the
should submit only information that
places specified in Item IV below. The
you wish to make available publicly. All
Exchange has prepared summaries, set
submissions should refer to File
Number SR–CBOE–2007–152 and
11 17 CFR 200.30–3(a)(12).
should be submitted on or before
1 15 U.S.C. 78s(b)(1).
February 26, 2008.
2 17 CFR 240.19b–4.
PO 00000
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6754
Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices
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 proposes to add a
summary fine schedule pursuant to its
Minor Rule Violation Plan (‘‘MRVP’’)
that will apply to any member who fails
to submit to the Exchange in a timely
manner, pursuant to ISE Rule 1100 (or
a regulatory information circular issued
pursuant to ISE Rule 1100), ‘‘Advice
Cancel’’ or exercise instruction relating
to the exercise or nonexercise of a
noncash-settled equity option. The
Exchange believes that imposing the
fine levels specified with respect to both
individual members and member
organizations, and providing for a
rolling 24-month surveillance period,
will serve as an effective deterrent to
such violative conduct.
In addition, the Exchange, as a
member of the Intermarket Surveillance
Group, as well as certain other selfregulatory organizations (‘‘SROs’’),
executed and filed with the
Commission, on October 29, 2007, a
final version of an Agreement pursuant
to Section 17(d) of the Act (the ‘‘17d–
2 Agreement’’).3 As set forth in the 17d–
2 Agreement, the SROs have agreed that
their respective rules concerning the
filing of Expiring Exercise Declarations
(also referred to as Contrary Exercise
Advices) are common rules. As a result,
the proposal to amend the ISE’s MRVP
will further result in consistency in
sanctions among the SROs that are
signatories to the 17d–2 Agreement
concerning Contrary Exercise Advice
violations.4
rmajette on PROD1PC64 with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices; to
promote just and equitable principles of
trade; and to protect investors and the
public interest in that it is designed to
foster cooperation and coordination
with persons engaged in regulating,
3 See letter to Richard Holley, Senior Special
Counsel, Division of Trading and Markets,
Commission, from Nyieri Nazarian, Assistant
General Counsel, American Stock Exchange LLC
(‘‘Amex’’), dated October 29, 2007.
4 See Amex Rule 590.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
15:34 Feb 04, 2008
Jkt 214001
clearing, settling, processing
information with respect to, and
facilitating transactions in securities; 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. Additionally, the
Exchange believes that the proposed
rule change will promote consistency in
minor rule violations and respective
SRO reporting obligations as set forth
pursuant to Rule 19d–1(c)(2) under the
Act,7 which governs minor rule
violation plans.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ISE 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 neither solicited nor
received comments on the proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
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–2008–09. 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–2008–09 and should be
submitted on or before February 26,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–1970 Filed 2–4–08; 8:45 am]
BILLING CODE 8011–01–P
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
Number SR–ISE–2008–09 on the subject
line.
7 17
PO 00000
CFR 240.19d–1(c)(2).
Frm 00065
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8 17
Sfmt 4703
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CFR 200.30–3(a)(12).
05FEN1
]]>Agencies
[Federal Register Volume 73, Number 24 (Tuesday, February 5, 2008)]
[Notices]
[Pages 6753-6754]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1970]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57229; File No. SR-ISE-2008-09]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing of Proposed Rule Change To Amend Exchange Rules
Related to the Imposition of Fines for Minor Rule Violations
January 29, 2008.
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 January 18, 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 prepared
substantially by the ISE. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend ISE Rule 1614, ``Imposition of Fines
for Minor Rule Violations,'' to add summary fines for violations of ISE
Rule 1100, ``Exercise of Options Contracts.'' The text of the proposed
rule change is available on the Exchange's Web site (https://
www.ise.com), at the ISE's principal office, 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
[[Page 6754]]
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 proposes to add a summary fine schedule pursuant to
its Minor Rule Violation Plan (``MRVP'') that will apply to any member
who fails to submit to the Exchange in a timely manner, pursuant to ISE
Rule 1100 (or a regulatory information circular issued pursuant to ISE
Rule 1100), ``Advice Cancel'' or exercise instruction relating to the
exercise or nonexercise of a noncash-settled equity option. The
Exchange believes that imposing the fine levels specified with respect
to both individual members and member organizations, and providing for
a rolling 24-month surveillance period, will serve as an effective
deterrent to such violative conduct.
In addition, the Exchange, as a member of the Intermarket
Surveillance Group, as well as certain other self-regulatory
organizations (``SROs''), executed and filed with the Commission, on
October 29, 2007, a final version of an Agreement pursuant to Section
17(d) of the Act (the ``17d-2 Agreement'').\3\ As set forth in the 17d-
2 Agreement, the SROs have agreed that their respective rules
concerning the filing of Expiring Exercise Declarations (also referred
to as Contrary Exercise Advices) are common rules. As a result, the
proposal to amend the ISE's MRVP will further result in consistency in
sanctions among the SROs that are signatories to the 17d-2 Agreement
concerning Contrary Exercise Advice violations.\4\
---------------------------------------------------------------------------
\3\ See letter to Richard Holley, Senior Special Counsel,
Division of Trading and Markets, Commission, from Nyieri Nazarian,
Assistant General Counsel, American Stock Exchange LLC (``Amex''),
dated October 29, 2007.
\4\ See Amex Rule 590.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices;
to promote just and equitable principles of trade; and to protect
investors and the public interest in that it is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities; 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.
Additionally, the Exchange believes that the proposed rule change will
promote consistency in minor rule violations and respective SRO
reporting obligations as set forth pursuant to Rule 19d-1(c)(2) under
the Act,\7\ which governs minor rule violation plans.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
ISE 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 neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2008-09 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-2008-09. 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-2008-09 and should be
submitted on or before February 26, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-1970 Filed 2-4-08; 8:45 am]
BILLING CODE 8011-01-P
