Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Implementing Phase II of the Penny Pilot Program Expansion, 15243-15244 [E8-5696]
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Federal Register / Vol. 73, No. 56 / Friday, March 21, 2008 / Notices
All submissions should refer to File No.
SR–ISE–2007–77. 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 at 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 the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–ISE–2007–77 and should be
submitted on or before April 11, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5695 Filed 3–20–08; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Implementing Phase II of the
Penny Pilot Program Expansion
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 March 12,
2008, the International Securities
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Jkt 214001
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
5 Exhibit 5 to the filing contains a Regulatory
Information Circular that constitutes the text of the
proposed rule change.
6 See Securities Exchange Act Release No. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(the ‘‘Initial Filing’’). The Penny Pilot Program was
subsequently extended for an additional two month
period, until September 27, 2007. See Securities
Exchange Act Release No. 56151 (July 26, 2007), 72
FR 42452 (August 2, 2007) (SR–ISE–2007–68).
Under the Penny Pilot Program, the
minimum price variation for all 13
option classes, except for the Nasdaq100 Index Tracking Stock (‘‘QQQQs’’), is
$0.01 for all quotations in option series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. The QQQQs are
quoted in $0.01 increments for all
options series.
A subsequent ISE rule filing, SR–ISE–
2007–74, initiated a two-phase
expansion of the Penny Pilot Program.
Phase I of the expansion, which
commenced on September 28, 2007,7
added 22 option classes that are among
the most actively traded, multiply-listed
option classes based on national average
daily volume, and together with the
original 13 option classes, represented
approximately 35% of the total industry
volume.
The Exchange now proposes to
implement Phase II of the expansion,
which will begin on March 28, 2008 and
continue for one year until March 27,
2009. Phase II will add an additional 28
option classes to the Penny Pilot
Program on March 28, 2008, bringing
the total number of option classes in the
Penny Pilot Program to 63. These 28
new option classes are also among the
most actively traded, multiply-listed
option classes. A Regulatory
Information Circular, attached as
Exhibit 5 to this proposed rule change,
identifies these additional 28
underlying securities.8 The 35 classes
currently in the Penny Pilot Program
will continue to be quoted as they are
today.
ISE believes that expanding the Penny
Pilot Program as proposed by this rule
filing will allow the Exchange and the
Commission to further analyze, and over
a longer period of time, the impact of
quoting and trading option classes in
penny increments and the impact of the
Penny Pilot Program on liquidity,
market structure, and quote traffic.
As proposed in the Initial Filing, ISE
represents that options trading in penny
increments will not be eligible for split
pricing, as permitted under ISE Rule
716. In the Initial Filing, the Exchange
also made references to quote mitigation
strategies that are currently in place and
proposed to apply them to the Penny
3 15
March 17, 2008.
mstockstill on PROD1PC66 with 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.
1. Purpose
On January 24, 2007, the Commission
approved ISE’s rule filing, SR–ISE–
2006–62, which permits 13 option
classes to quote in penny increments in
connection with the implementation of
an industry-wide, six-month pilot
program (the ‘‘Penny Pilot Program’’).6
[Release No. 34–57508; File No. SR–ISE–
2008–27]
18:33 Mar 20, 2008
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
ISE is proposing to implement Phase
II of the Penny Pilot Program expansion.
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.5
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
VerDate Aug<31>2005
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 Exchange has designated this
proposal as one constituting a stated
policy, practice, or interpretation with
respect to the meaning, administration,
or enforcement of an existing rule under
section 19(b)(3)(A)(i) of the Act 3 and
Rule 19b–4(f)(1) 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.
15243
4 17
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
7 See Securities Exchange Act Release No. 56564
(September 27, 2007), 72 FR 56412 (October 3,
2007).
8 The Exchange notes that on August 27, 2007,
Sun Microsystems, Inc. changed its ticker symbol
from SUNW to JAVA. The Exchange will amend the
Regulatory Information Circular to reflect this
change prior to its issuance. In addition, the
Exchange will revise the Regulatory Information
Circular prior to its issuance to correct a
typographical error.
E:\FR\FM\21MRN1.SGM
21MRN1
15244
Federal Register / Vol. 73, No. 56 / Friday, March 21, 2008 / Notices
Pilot Program. The Exchange proposes
to continue applying those quote
mitigation strategies. Specifically, as
proposed in ISE Rule 804, ISE will
continue to utilize a holdback timer that
delays quotation updates for up to, but
not longer than, one second. The
Exchange’s monitoring and delisting
policies, as proposed in the Initial
Filing, shall also continue to apply.
Finally, ISE intends to submit reports
to the Commission analyzing the Penny
Pilot Program for the following time
periods:
• February 1, 2008—July 31, 2008
• August 1, 2008—January 31, 2009
The Exchange anticipates its reports
will analyze the impact of penny pricing
on market quality and options system
capacity. The Exchange will submit
each report within one month following
the end of the period being analyzed.
mstockstill on PROD1PC66 with NOTICES
2. Statutory Basis
The basis under the Act for this
proposed rule change is found in
section 6(b)(5),9 in that the proposed
rule change is designed 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.
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.12
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 rulecomments@sec.gov. Please include File
Number SR–ISE–2008–27 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–2008–27. This file
number should be included on the
B. Self-Regulatory Organization’s
subject line if e-mail is used. To help the
Statement on Burden on Competition
Commission process and review your
The proposed rule change does not
comments more efficiently, please use
impose any burden on competition that
only one method. The Commission will
is not necessary or appropriate in
post all comments on the Commission’s
furtherance of the purposes of the Act.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
C. Self-Regulatory Organization’s
submission, all subsequent
Statement on Comments on the
amendments, all written statements
Proposed Rule Change Received From
with respect to the proposed rule
Members, Participants, or Others
change that are filed with the
The Exchange has not solicited, and
Commission, and all written
does not intend to solicit, comments on
communications relating to the
this proposed rule change. The
proposed rule change between the
Exchange has not received any written
Commission and any person, other than
comments from members or other
those that may be withheld from the
interested parties.
public in accordance with the
III. Date of Effectiveness of the
provisions of 5 U.S.C. 552, will be
Proposed Rule Change and Timing for
available for inspection and copying in
Commission Action
the Commission’s Public Reference
The proposed rule change has become Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
effective pursuant to section
of the filing also will be available for
10 and Rule 19b–
19(b)(3)(A)(i) of the Act
inspection and copying at the principal
4(f)(1) thereunder,11 because it
office of the ISE. All comments received
constitutes a stated policy, practice, or
will be posted without change; the
interpretation with respect to the
Commission does not edit personal
meaning, administration, or
identifying information from
enforcement of an existing rule.
submissions. You should submit only
At any time within 60 days of the
information that you wish to make
filing of the proposed rule change, the
available publicly. All submissions
9 15 U.S.C. 78f(b)(5).
should refer to File Number SR–ISE–
10 15
11 17
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
VerDate Aug<31>2005
18:33 Mar 20, 2008
12 See
Jkt 214001
PO 00000
15 U.S.C. 78s(b)(3)(C).
Frm 00125
Fmt 4703
Sfmt 4703
2008–27 and should be submitted on or
before April 11, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5696 Filed 3–20–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57500; File No. SR–MSRB–
2008–02]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Amendment to Rule
A–3, on Membership on the Board, and
Rule A–4, on Meetings of the Board
March 14, 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 March 5,
2008, the Municipal Securities
Rulemaking Board (‘‘MSRB’’ or
‘‘Board’’), filed with the Securities and
Exchange Commission (‘‘Commission’’
or ‘‘SEC’’) the proposed rule change as
described in Items I, II and III below,
which Items have been substantially
prepared by the MSRB. The MSRB has
filed the proposal pursuant to Section
19(b)(3)(A)(iii) of the Act,3 and Rule
19b–4(f)(3) 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 MSRB is filing with the
Commission a proposed rule change
consisting of amendments to Rule A–3
to permit greater diversity in
considering persons to serve on the
Nominating Committee or for Board
membership and amendments to Rule
A–4 to permit the Chairman of the
Board to call a special meeting of the
Board directly and more quickly, but
with unanimous consent. The text of the
proposed rule change is available on the
MSRB’s Web site (https://www.msrb.org),
at the MSRB, and at the Commission’s
Public Reference Room.
13 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)(iii).
4 17 CFR 240.19b–4(f)(3).
1 15
E:\FR\FM\21MRN1.SGM
21MRN1
]]>Agencies
[Federal Register Volume 73, Number 56 (Friday, March 21, 2008)]
[Notices]
[Pages 15243-15244]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5696]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57508; File No. SR-ISE-2008-27]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Implementing Phase II of the Penny Pilot Program Expansion
March 17, 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 March 12, 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 Exchange has designated this proposal as one constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule under section
19(b)(3)(A)(i) of the Act \3\ and Rule 19b-4(f)(1) 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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
ISE is proposing to implement Phase II of the Penny Pilot Program
expansion. 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.\5\
---------------------------------------------------------------------------
\5\ Exhibit 5 to the filing contains a Regulatory Information
Circular that constitutes the text of the proposed rule change.
---------------------------------------------------------------------------
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
On January 24, 2007, the Commission approved ISE's rule filing, SR-
ISE-2006-62, which permits 13 option classes to quote in penny
increments in connection with the implementation of an industry-wide,
six-month pilot program (the ``Penny Pilot Program'').\6\ Under the
Penny Pilot Program, the minimum price variation for all 13 option
classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQs''), is
$0.01 for all quotations in option series that are quoted at less than
$3 per contract and $0.05 for all quotations in options series that are
quoted at $3 per contract or greater. The QQQQs are quoted in $0.01
increments for all options series.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 55161 (January 24,
2007), 72 FR 4754 (February 1, 2007) (the ``Initial Filing''). The
Penny Pilot Program was subsequently extended for an additional two
month period, until September 27, 2007. See Securities Exchange Act
Release No. 56151 (July 26, 2007), 72 FR 42452 (August 2, 2007) (SR-
ISE-2007-68).
---------------------------------------------------------------------------
A subsequent ISE rule filing, SR-ISE-2007-74, initiated a two-phase
expansion of the Penny Pilot Program. Phase I of the expansion, which
commenced on September 28, 2007,\7\ added 22 option classes that are
among the most actively traded, multiply-listed option classes based on
national average daily volume, and together with the original 13 option
classes, represented approximately 35% of the total industry volume.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 56564 (September 27,
2007), 72 FR 56412 (October 3, 2007).
---------------------------------------------------------------------------
The Exchange now proposes to implement Phase II of the expansion,
which will begin on March 28, 2008 and continue for one year until
March 27, 2009. Phase II will add an additional 28 option classes to
the Penny Pilot Program on March 28, 2008, bringing the total number of
option classes in the Penny Pilot Program to 63. These 28 new option
classes are also among the most actively traded, multiply-listed option
classes. A Regulatory Information Circular, attached as Exhibit 5 to
this proposed rule change, identifies these additional 28 underlying
securities.\8\ The 35 classes currently in the Penny Pilot Program will
continue to be quoted as they are today.
---------------------------------------------------------------------------
\8\ The Exchange notes that on August 27, 2007, Sun
Microsystems, Inc. changed its ticker symbol from SUNW to JAVA. The
Exchange will amend the Regulatory Information Circular to reflect
this change prior to its issuance. In addition, the Exchange will
revise the Regulatory Information Circular prior to its issuance to
correct a typographical error.
---------------------------------------------------------------------------
ISE believes that expanding the Penny Pilot Program as proposed by
this rule filing will allow the Exchange and the Commission to further
analyze, and over a longer period of time, the impact of quoting and
trading option classes in penny increments and the impact of the Penny
Pilot Program on liquidity, market structure, and quote traffic.
As proposed in the Initial Filing, ISE represents that options
trading in penny increments will not be eligible for split pricing, as
permitted under ISE Rule 716. In the Initial Filing, the Exchange also
made references to quote mitigation strategies that are currently in
place and proposed to apply them to the Penny
[[Page 15244]]
Pilot Program. The Exchange proposes to continue applying those quote
mitigation strategies. Specifically, as proposed in ISE Rule 804, ISE
will continue to utilize a holdback timer that delays quotation updates
for up to, but not longer than, one second. The Exchange's monitoring
and delisting policies, as proposed in the Initial Filing, shall also
continue to apply.
Finally, ISE intends to submit reports to the Commission analyzing
the Penny Pilot Program for the following time periods:
February 1, 2008--July 31, 2008
August 1, 2008--January 31, 2009
The Exchange anticipates its reports will analyze the impact of
penny pricing on market quality and options system capacity. The
Exchange will submit each report within one month following the end of
the period being analyzed.
2. Statutory Basis
The basis under the Act for this proposed rule change is found in
section 6(b)(5),\9\ in that the proposed rule change is designed 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to section
19(b)(3)(A)(i) of the Act \10\ and Rule 19b-4(f)(1) thereunder,\11\
because it constitutes a stated policy, practice, or interpretation
with respect to the meaning, administration, or enforcement of an
existing rule.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the 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.\12\
---------------------------------------------------------------------------
\12\ See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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-2008-27 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-2008-27. 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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal office of the 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-2008-27 and should be submitted on or before April
11, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E8-5696 Filed 3-20-08; 8:45 am]
BILLING CODE 8011-01-P
