Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Block, Facilitation and Solicited Order Mechanisms, 27588-27590 [E8-10619]
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27588
Federal Register / Vol. 73, No. 93 / Tuesday, May 13, 2008 / Notices
This order approves the proposed rule
change, as modified by Amendment
Nos. 1 and 2.
II. Description of the Proposed Rule
Change
FINRA is proposing to establish an
exemption for certain Regulation NMScompliant ISOs 7 from the Rule and the
Interpretive Material (‘‘IM’’) that govern
trading ahead of customer limit orders
and customer market orders. Under the
proposed rule, a member will be exempt
from its obligations with respect to
trading for its own account if an ISO is
routed in compliance with Rule
600(b)(30)(ii) of Regulation NMS, and
the customer limit order or market order
is received after the member routed the
ISO. The exemption will also apply if
the member executes an ISO to facilitate
a customer limit order or market order,
and the customer has consented to not
receiving the better prices obtained by
the ISO.
In its filing with the Commission,
FINRA stated that the proposed
exemption is similar to an exemption
adopted by the New York Stock
Exchange LLC to its Rule 92
(Limitations on Members’ Trading
Because of Customers’ Orders). The ISO
exemption to Rule 92 was approved by
the Commission on July 5, 2007.8
rwilkins on PROD1PC63 with NOTICES
III. Summary of Comments
The Commission received one
comment letter in response to the
proposed rule change.9 The commenter
stated that the implementation of IM–
2110–2 will reduce liquidity and result
in inferior executions for public
investors who own non-penny stock
OTC securities.10 The commenter also
objected to the change to the definition
of the size of the order on which terms
and conditions may be negotiated.11
the proposed rule text. Because the Amendment is
technical in nature, it is not subject to notice and
comment.
7 Regulation NMS defines an ISO as a limit order
for an NMS stock that meets the following
requirements: (i) When routed to a trading center,
the limit order is identified as an intermarket sweep
order; and (ii) simultaneously with the routing of
the limit order identified as an intermarket sweep
order, one or more additional limit orders, as
necessary, are routed to execute against the full
displayed size of any protected bid, in the case of
a limit order to sell, or the full displayed size of
any protected offer, in the case of a limit order to
buy, for the NMS stock with a price that is superior
to the limit price of the limit order identified as an
intermarket sweep order. These additional routed
orders also must be marked as intermarket sweep
orders. See 17 CFR 242.600(b)(30).
8 See Securities Exchange Release No. 56017 (July
5, 2007), 72 FR 38110 (July 12, 2007) (SR–NYSE–
2007–21).
9 Supra note 4.
10 Id. at 1–2.
11 Id. at 2.
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16:14 May 12, 2008
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FINRA responded to the comment
letter on March 26, 2008.12 FINRA
stated that the comment letter was not
germane to the proposed rule change, as
it did not pertain to the proposed ISO
exemption.13 According to FINRA, the
comments related to a rule change,
previously approved by the
Commission,14 which expanded IM–
2110–2 to apply to OTC equity
securities.15
IV. Discussion and Commission
Findings
The Commission has carefully
reviewed the proposed rule change, the
comment letter, and FINRA’s response
to the comment letter, and finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
association 16 and, in particular, Section
15A(b)(6) of the Act,17 which requires,
among other things, that FINRA rules be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest.
The Commission believes that it is
reasonable for FINRA to amend IM–
2110–2 and Rule 2111 to exempt
members when routing certain
Regulation NMS-compliant ISOs. The
proposed rule change should enable
members to comply with the ISO
routing requirements of Rule 611 of
Regulation NMS without violating IM–
2110–2 and Rule 2111 and, given the
ISO routing exemption that currently
exists under NYSE Rule 92, will subject
ISO routing to consistent standards.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–FINRA–
2007–039), as modified by Amendment
Nos. 1 and 2, be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E8–10594 Filed 5–12–08; 8:45 am]
BILLING CODE 8010–01–P
12 Supra
note 5.
at 1.
14 See Securities Exchange Act Release No. 55351
(February 26, 2007), 72 FR 09810 (March 5, 2007)
(SR–NASD–2005–146).
15 FINRA letter at 2.
16 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
17 15 U.S.C. 78o–3(b)(6).
18 15 U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
13 Id.
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57790; File No. SR–ISE–
2008–33]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding the Block,
Facilitation and Solicited Order
Mechanisms
May 6, 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 April 30,
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 and II below, which Items have
been prepared substantially by ISE. ISE
filed the proposed rule change as a
‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act3 and Rule 19b–4(f)(6)
thereunder,4 which renders it 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
ISE proposes to amend
Supplementary Material .07 to ISE Rule
716 to make it consistent with the
definition of a Block Trade under the
Exchange’s Intermarket Option Linkage
(‘‘options linkage’’) rules. The text of the
proposed rule amendment is as follows,
with deletions in [brackets] and
additions italicized:
Rule 716. Block Trades
(a) through (e) no change.
Supplementary Material to Rule 716
.01 through .06 no change.
.07 Away Market Prices. Orders of 50
to 499 contracts and orders with a
premium value below $150,000
executed through the Block, [and]
Facilitation and Solicited Order
Mechanisms will not be executed at a
price inferior to the national best bid or
offer at the time of execution. Orders of
500 or more contracts with a premium
value of at least $150,000 executed
through the Block, Facilitation and
1 15
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
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Federal Register / Vol. 73, No. 93 / Tuesday, May 13, 2008 / Notices
Solicited Order Mechanisms will be
executed without consideration of any
prices that might be available on other
exchanges trading the same options
contract.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, ISE
included statements concerning the
purpose of, and basis for, the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. 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
rwilkins on PROD1PC63 with NOTICES
1. Purpose
The Exchange’s Block and Facilitation
Mechanisms under ISE Rule 716
provide a way for members to execute
block-sized orders, defined as orders of
at least 50 contracts. The Solicited
Order Mechanism also allows for the
execution of block-sized solicited
orders, but is limited to orders of at least
500 contracts. The Exchange’s rule for
the Block and Facilitation Mechanisms
specify that orders under 500 contracts
may not be executed at prices that
would trade through the national best
bid or offer (‘‘NBBO’’) and that orders of
500 contracts or more may be executed
in the Block, Facilitation and Solicited
Order Mechanisms without
consideration of any prices that might
be available on other exchanges trading
the same options contract.
Under the options linkage rules, Block
Trades, which may be executed at prices
that are inferior to the NBBO,5 are
defined as orders of at least 500
contracts and a premium value of at
least $150,000.6 Accordingly, the
Exchange proposes to amend
Supplementary Material .07 to ISE Rule
716 so that it is consistent with the
definition of a Block Trade under the
options linkage rules by adding a
minimum premium requirement of
$150,000 for orders that may be traded
at prices inferior to the NBBO.7
5 ISE Rule 1902(d)(2) provides that th eExchange
will not consider there to have been a trade-through
if a member executes a block Trade at a price
inferior to the NBBO if such member satisfies all
aggrived parties following the execution of the
Block Trade.
6 ISe Rule 1900(2).
7 The Solicited Order Mechanism will continue to
be limited to orders of at least 500 contracts.
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16:14 May 12, 2008
Jkt 214001
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange and, in particular,
the requirements of Section 6(b) of the
Act.8 Specifically, the Exchange
believes the proposed rule change is
consistent with the requirement of
Section 6(b)(5) of the Act 9 that an
exchange have rules that are 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 for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. In particular, the
proposal will assure that the execution
of orders through the Block, Facilitation
and Solicited Order Mechanism is
consistent with the requirements of the
options linkage rules.
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b-4(f)(6) under the Act normally
may not become operative prior to 30
Reference to the Solicited Order Mechanism is
being added to the first sentence of Supplementary
Material .07 because such orders could have a
premium value that is less than $150,000.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
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27589
days after the date of filing.12 However,
Rule 19b–4(f)(6)(iii) 13 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposed rule
change seeks to conform the definition
of Block Trades to the Exchange’s
existing options linkage rules.14 The
Commission hereby grants the
Exchange’s request and designates the
proposal as operative upon filing.
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.
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
No. SR–ISE–2008–33 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–2008–33. This file
number should be included on the
subject line if e-mail is used. To help the
12 In addition, Rule 19b–4(f)(6)(iii) under the Act
requires a self-regulatory organization to give the
Commission written notice of its intent to file the
proposed rule change at least five business days
prior to the date of filing of the proposed rule
change or such shorter time as designated by the
Commission. ISE has complied with this
requirement.
13 Id.
14 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
E:\FR\FM\13MYN1.SGM
13MYN1
27590
Federal Register / Vol. 73, No. 93 / Tuesday, May 13, 2008 / Notices
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 such filing also will be available for
inspection and copying at the principal
office of 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–
2008–33 and should be submitted on or
before June 3, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Nancy M. Morris,
Secretary.
[FR Doc. E8–10619 Filed 5–12–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57795; File No. SR–
NASDAQ–2008–037]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Modify Nasdaq’s Continued Listing
Requirements To Replace Round Lot
Shareholders
rwilkins on PROD1PC63 with NOTICES
May 7, 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 April 25,
2008, The NASDAQ Stock Market LLC
(‘‘Exchange’’ or ‘‘Nasdaq’’) 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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
16:14 May 12, 2008
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to change the
shareholder requirements for continued
listing. Nasdaq will implement the
proposed rule immediately upon
approval.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are in
brackets.3
4200. Definitions
(a) For purposes of the Rule 4000
Series, unless the context requires
otherwise:
(1)–(31) No change.
(32) ‘‘Public holders’’ of a security
include both beneficial holders and
holders of record, but does not include
any holder who is, either directly or
indirectly, an executive officer, director,
or the beneficial holder of more than
10% of the total shares outstanding.
[‘‘Reported Security’’ means an equity
security for which quotations are
entered into the Consolidate Quotations
Service.]
(33) ‘‘Round lot holder’’ means a
holder of a normal unit of trading. The
number of beneficial holders will be
considered in addition to holders of
record.
(34)–(37) No change.
(38) ‘‘Total holders’’ of a security
include both beneficial holders and
holders of record.
(39) ‘‘Transaction costs’’ means costs
incurred in connection with a limited
partnership rollup transaction,
including printing and mailing the
proxy, prospectus or other documents;
legal fees not related to the solicitation
of votes or tenders; financial advisory
fees; investment banking fees; appraisal
fees; accounting fees; independent
committee expenses; travel expenses;
and all other fees related to the
preparatory work of the transaction, but
not including costs that would have
otherwise been incurred by the subject
limited partnerships in the ordinary
course of business or solicitation
expenses.
[(39)] (40) ‘‘Underwriting Activity
Report’’ is a report provided by the
Corporate Financing Department of
NASD Regulation, Inc. in connection
with a distribution of securities subject
3 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://nasdaq.complinet.com.
1 15
VerDate Aug<31>2005
substantially prepared by Nasdaq. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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to SEC Rule 101 pursuant to NASD Rule
2710(b)(11) and includes forms that are
submitted by members to comply with
their notification obligations under
Rules 4614, 4619, and 4623.
(b)–(c) No change.
*
*
*
*
*
4310. Listing Requirements for
Domestic and Canadian Securities
To qualify for listing in Nasdaq, a
security of a domestic or Canadian
issuer shall satisfy all applicable
requirements contained in paragraphs
(a), (b), and (c) hereof. Issuers that meet
these requirements, but that are not
listed on the Nasdaq Global Market, are
listed on the Nasdaq Capital Market.
(a)–(b) No change.
(c) In addition to the requirements
contained in paragraph (a) and (b)
above, and unless otherwise indicated,
a security shall satisfy the following
criteria for listing on Nasdaq:
(1)–(5) No change.
(6) (A) In the case of common stock,
for initial [and continued] listing[,] there
shall be at least 300 round lot holders
of the security and for continued listing
there shall be at least 300 public holders
of the security.
(B) In the case of preferred stock and
secondary classes of common stock, for
initial [and continued] listing[,] there
shall be at least 100 round lot holders
of the security and for continued listing
there shall be at least 100 public holders
of the security, provided in each case
that the issuer’s common stock or
common stock equivalent equity
security must be listed on Nasdaq or be
a covered security. In the event the
issuer’s common stock or common stock
equivalent security either is not listed
on Nasdaq or is not a covered security,
the preferred stock and/or secondary
class of common stock may be listed on
Nasdaq so long as the security satisfies
the listing criteria for common stock.
(C) No change.
(7)–(30) No change.
(d) No change.
4320. Listing Requirements for NonCanadian Foreign Securities and
American Depositary Receipts
To qualify for listing on Nasdaq, a
security of a non-Canadian foreign
issuer, an American Depositary Receipt
(ADR) or similar security issued in
respect of a security of a foreign issuer
shall satisfy the requirements of
paragraphs (a), (b), and (e) of this Rule.
Issuers that meet these requirements,
but that are not listed on the Nasdaq
Global Market, are listed on the Nasdaq
Capital Market.
(a)–(d) No change.
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]]>Agencies
[Federal Register Volume 73, Number 93 (Tuesday, May 13, 2008)]
[Notices]
[Pages 27588-27590]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-10619]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57790; File No. SR-ISE-2008-33]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Regarding the Block, Facilitation and Solicited Order Mechanisms
May 6, 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 April 30, 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 and
II below, which Items have been prepared substantially by ISE. ISE
filed the proposed rule change as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act\3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders it 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
ISE proposes to amend Supplementary Material .07 to ISE Rule 716 to
make it consistent with the definition of a Block Trade under the
Exchange's Intermarket Option Linkage (``options linkage'') rules. The
text of the proposed rule amendment is as follows, with deletions in
[brackets] and additions italicized:
Rule 716. Block Trades
(a) through (e) no change.
Supplementary Material to Rule 716
.01 through .06 no change.
.07 Away Market Prices. Orders of 50 to 499 contracts and orders
with a premium value below $150,000 executed through the Block, [and]
Facilitation and Solicited Order Mechanisms will not be executed at a
price inferior to the national best bid or offer at the time of
execution. Orders of 500 or more contracts with a premium value of at
least $150,000 executed through the Block, Facilitation and
[[Page 27589]]
Solicited Order Mechanisms will be executed without consideration of
any prices that might be available on other exchanges trading the same
options contract.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, ISE included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. 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's Block and Facilitation Mechanisms under ISE Rule 716
provide a way for members to execute block-sized orders, defined as
orders of at least 50 contracts. The Solicited Order Mechanism also
allows for the execution of block-sized solicited orders, but is
limited to orders of at least 500 contracts. The Exchange's rule for
the Block and Facilitation Mechanisms specify that orders under 500
contracts may not be executed at prices that would trade through the
national best bid or offer (``NBBO'') and that orders of 500 contracts
or more may be executed in the Block, Facilitation and Solicited Order
Mechanisms without consideration of any prices that might be available
on other exchanges trading the same options contract.
Under the options linkage rules, Block Trades, which may be
executed at prices that are inferior to the NBBO,\5\ are defined as
orders of at least 500 contracts and a premium value of at least
$150,000.\6\ Accordingly, the Exchange proposes to amend Supplementary
Material .07 to ISE Rule 716 so that it is consistent with the
definition of a Block Trade under the options linkage rules by adding a
minimum premium requirement of $150,000 for orders that may be traded
at prices inferior to the NBBO.\7\
---------------------------------------------------------------------------
\5\ ISE Rule 1902(d)(2) provides that th eExchange will not
consider there to have been a trade-through if a member executes a
block Trade at a price inferior to the NBBO if such member satisfies
all aggrived parties following the execution of the Block Trade.
\6\ ISe Rule 1900(2).
\7\ The Solicited Order Mechanism will continue to be limited to
orders of at least 500 contracts. Reference to the Solicited Order
Mechanism is being added to the first sentence of Supplementary
Material .07 because such orders could have a premium value that is
less than $150,000.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\8\ Specifically, the Exchange believes the
proposed rule change is consistent with the requirement of Section
6(b)(5) of the Act \9\ that an exchange have rules that are 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 for a free and open market and a national market system,
and, in general, to protect investors and the public interest. In
particular, the proposal will assure that the execution of orders
through the Block, Facilitation and Solicited Order Mechanism is
consistent with the requirements of the options linkage rules.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) under the Act
normally may not become operative prior to 30 days after the date of
filing.\12\ However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposed rule change seeks to conform the definition of
Block Trades to the Exchange's existing options linkage rules.\14\ The
Commission hereby grants the Exchange's request and designates the
proposal as operative upon filing.
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\12\ In addition, Rule 19b-4(f)(6)(iii) under the Act requires a
self-regulatory organization to give the Commission written notice
of its intent to file the proposed rule change at least five
business days prior to the date of filing of the proposed rule
change or such shorter time as designated by the Commission. ISE has
complied with this requirement.
\13\ Id.
\14\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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.
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 No. SR-ISE-2008-33 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-2008-33. This file
number should be included on the subject line if e-mail is used. To
help the
[[Page 27590]]
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 such filing also will be
available for inspection and copying at the principal office of 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-2008-33
and should be submitted on or before June 3, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E8-10619 Filed 5-12-08; 8:45 am]
BILLING CODE 8010-01-P
