Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Schedule of Fees To Establish Fees for Transactions in Options on Five Premium Products, 30176-30178 [E8-11523]
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30176
Federal Register / Vol. 73, No. 101 / Friday, May 23, 2008 / Notices
The effective date of the proposed
rule change would be the date of
Commission approval.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b) of the Act, including
Section 15A(b)(6), which requires,
among other things, that FINRA rules
must 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. FINRA
believes that the proposed rule change
will further facilitate the consolidation
of the member firm regulation functions
of FINRA and NYSE Regulation,
resulting in more effective and efficient
regulation of all brokers, thereby
enhancing investor protection.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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
Written comments were neither
solicited nor received.
III. 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:
dwashington3 on PRODPC61 with NOTICES
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–FINRA–2008–017 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–FINRA–2008–017. 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
VerDate Aug<31>2005
15:34 May 22, 2008
Jkt 214001
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, NW., 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 FINRA. 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–FINRA–2008–017 and
should be submitted on or before June
13, 2008.
IV. Commission Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder.13 As such, the Commission
finds the proposal to be consistent with
the objectives of Section 15A of the
Act,14 in that it is designed to promote
just and equitable principles of trade, to
prevent fraudulent and manipulative
acts and practices, and in general, to
protect investors and the public interest.
The proposed rule change furthers the
purposes of the consolidation by
recognizing the unique status of any
NYSE member organization that is
exempt from the definition of broker
under Section 3(a)(4)(E) of the Act.
Moreover, the proposed rule change
does not propose any substantive
amendments to existing rules.
The Commission also finds good
cause for approving the proposed rule
change prior to the 30th day after its
publication in the Federal Register.
Accordingly, the Commission believes
good cause exists, consistent with
Sections 15A(b)(5) and 19(b) of the Act
to approve the proposed rule change on
an accelerated basis.
13 In approving this rule change, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
14 15 U.S.C. 78o–3(b)(6).
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V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,15 that the
proposed rule change (SR–FINRA–
2008–017) be, and hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon
Deputy Secretary.
[FR Doc. E8–11529 Filed 5–22–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57831; File No. SR–ISE–
2008–39]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend its Schedule of
Fees To Establish Fees for
Transactions in Options on Five
Premium Products
May 16, 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 May 9,
2008, International Securities Exchange,
LLC (‘‘ISE’’ or the ‘‘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 by ISE. The
Exchange has designated this proposal
as one establishing or changing a
member due, fee, or other charge
imposed by ISE 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
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
15 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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).
5 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
16 17
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Federal Register / Vol. 73, No. 101 / Friday, May 23, 2008 / Notices
change is available at https://
www.ise.com, the principal offices of
the Exchange, and 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, 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. 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
dwashington3 on PRODPC61 with NOTICES
1. Purpose
The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the
CurrencySharesSM Australian Dollar
Trust (‘‘FXA’’), the CurrencySharesSM
British Pound Sterling Trust (‘‘FXB’’),
the CurrencySharesSM Euro Trust
(‘‘FXE’’), the CurrencySharesSM
Japanese Yen Trust (‘‘FXY’’) 6 and the
iShares MSCI Taiwan Index Fund
(‘‘EWT’’).7 The Exchange represents that
6 CurrencySharesSM Australian Dollar Trust,
CurrencySharesSM British Pound Sterling Trust,
CurrencySharesSM Euro Trust, and
CurrencySharesSM Japanese Yen Trust are service
marks of their respective owner(s). Rydex
Distributors, Inc., an affiliate of Rydex Investments
and Rydex Specialized Products, is the distributor
of Rydex funds. Rydex Specialized Products LLC,
d/b/a Rydex Investments (‘‘Rydex’’), is the sponsor
of the CurrencySharesSM Australian Dollar Trust
(‘‘FXA’’), the CurrencySharesSM British Pound
Sterling Trust (‘‘FXB’’), the CurrencySharesSM Euro
Trust (‘‘FXE’’) and the CurrencySharesSM Japanese
Yen Trust (‘‘FXY’’). Rydex 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 FXA, FXB, FXE and FXY
or (ii) to use and refer to any trademarks or service
marks in connection with the listing, provision of
a market for trading, marketing, and promotion of
options on FXA, FXB, FXE and FXY or with making
disclosures concerning options on FXA, FXB, FXE
and FXY under any applicable federal or state laws,
rules or regulations. Rydex does not sponsor,
endorse, or promote such activity by ISE, and is not
affiliated in any manner with ISE.
7 iShares is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a majority owned
subsidiary of Barclays Bank PLC. ‘‘MSCI Taiwan
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. iShares MSCI Taiwan
Index Fund (‘‘EWT’’) 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
VerDate Aug<31>2005
15:34 May 22, 2008
Jkt 214001
FXA, FXB, FXE, FXY and EWT are
eligible for options trading because they
constitute ‘‘Exchange-Traded 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 FXA, FXB, FXE, FXY and
EWT.8 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 9 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.10 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.11
Further, since options on FXA, FXB,
FXE, FXY and EWT are multiply-listed,
the Exchange’s Payment for Order Flow
fee shall apply to all these products. The
Exchange believes the proposed rule
change will further the Exchange’s goal
of introducing new products to the
marketplace that are competitively
priced.
Further, the Exchange proposes to
remove IXK from its Schedule of Fees.12
trading, marketing, and promotion of options on
EWT or (ii) to 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 EWT or with making
disclosures concerning options on EWT 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.
8 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).
9 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 or entity that
is not a broker or dealer in securities.
10 The execution fee is currently between $.21
and $.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $.03 per contract side.
11 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.
12 This Premium Product was recently delisted
and no longer trades on the Exchange. Thus, the
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30177
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of section 6 of the Act,13
in general, and furthers the objectives of
section 6(b)(4),14 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
The foregoing proposed rule change
has been designated as a fee change
pursuant to section 19(b)(3)(A)(ii) of the
Act 15 and Rule 19b–4(f)(2) 16
thereunder, because it establishes or
changes a due, fee, or other charge
imposed on members by ISE.
Accordingly, the proposal is effective
upon filing with the Commission. 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:
Exchange proposes to remove it from its fee
schedule.
13 15 U.S.C. 78f.
14 15 U.S.C. 78f(b)(4).
15 15 U.S.C. 78s(b)(3)(A)(ii).
16 17 CFR 240.19b–4(f)(2).
E:\FR\FM\23MYN1.SGM
23MYN1
30178
Federal Register / Vol. 73, No. 101 / Friday, May 23, 2008 / Notices
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–2008–39 on the subject
line.
Paper Comments
dwashington3 on PRODPC61 with NOTICES
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57833; File No. SR–NYSE–
2008–35]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change To
Amend Section 703.21 of the Listed
Company Manual Relating to EquityLinked Debt Securities
May 19, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
All submissions should refer to File
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Number SR–ISE–2008–39. This file
notice is hereby given that on May 2,
number should be included on the
2008, the New York Stock Exchange
subject line if e-mail is used. To help the LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
Commission process and review your
the Securities and Exchange
comments more efficiently, please use
Commission (‘‘Commission’’) the
only one method. The Commission will proposed rule change as described in
post all comments on the Commission’s Items I and II below, which Items have
Internet Web site (https://www.sec.gov/
been prepared substantially by the
rules/sro.shtml). Copies of the
Exchange. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
from interested persons and is granting
change that are filed with the
accelerated approval to the proposed
Commission, and all written
rule change.
communications relating to the
I. Self-Regulatory Organization’s
proposed rule change between the
Commission and any person, other than Statement of the Terms of Substance of
the Proposed Rule Change
those that may be withheld from the
public in accordance with the
The Exchange proposes to amend
provisions of 5 U.S.C. 552, will be
Section 703.21 of the Listed Company
available for inspection and copying in
Manual (‘‘Manual’’) to clarify the
the Commission’s Public Reference
application of Rule 19b–4(e) under the
Room, 100 F Street, NE., Washington,
Act 3 to the listing of equity-linked debt
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. securities (‘‘ELDS’’). The text of the
proposed rule change is available at the
Copies of such filing also will be
Exchange, the Commission’s Public
available for inspection and copying at
the principal office of the Exchange. All Reference Room, and https://
www.nyse.com.
comments received will be posted
without change; the Commission does
II. Self-Regulatory Organization’s
not edit personal identifying
Statement of the Purpose of, and
information from submissions. You
Statutory Basis for, the Proposed Rule
should submit only information that
Change
you wish to make publicly available. All
In its filing with the Commission,
submissions should refer to File
Number SR–ISE–2008–39 and should be NYSE included statements concerning
the purpose of, and basis for, the
submitted on or before June 13, 2008.
proposed rule change. The text of these
For the Commission, by the Division of
statements may be examined at the
Trading and Markets, pursuant to delegated
places specified in Item III below. NYSE
17
authority.
has prepared summaries, set forth in
Florence E. Harmon,
Sections A, B, and C below, of the most
Deputy Secretary.
significant aspects of such statements.
[FR Doc. E8–11523 Filed 5–22–08; 8:45 am]
BILLING CODE 8010–01–P
1. Purpose
Section 703.21 of the Manual
provides that the Exchange will
consider listing ELDS that meet the
criteria of Section 703.21. ELDS are nonconvertible debt of an issuer where the
value of the debt is based, at least in
part, on the value of another issuer’s
common stock, non-convertible
preferred stock, common units of a
master limited partnership, or any other
common equity security of a type
classified for trading as stocks by the
Exchange.
The Exchange proposes to make
explicit that Rule 19b–4(e) under the
Act applies to the listing of ELDS that
meet the criteria of paragraphs (A)
through (D) of Section 703.21 of the
Manual. The Exchange states that these
criteria, therefore, constitute ‘‘generic’’
listing criteria for ELDS, and the
Exchange would file an appropriate
Form 19b–4(e) with the Commission
within five days of listing a series of
ELDS under the generic listing criteria.
The proposed rule change would also
provide that the Exchange may submit
a rule filing pursuant to Section 19(b)(2)
of the Act 4 to permit the listing and
trading of ELDS that do not otherwise
meet the standards set forth in
paragraphs (A) through (D) of Section
703.21 of the Manual.
The Exchange also proposes to amend
paragraph (D) of Section 703.21 to refer
to the Commission’s Division of Trading
and Markets.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 5 of the Act, in general, and
furthers the objectives of Section
6(b)(5),6 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system. The Exchange believes that the
proposed rule change clarifies the
application of Rule 19b–4(e) under the
Act to the listing of ELDS. This
facilitates the listing and trading of such
securities on the Exchange, thereby
1 15
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:34 May 22, 2008
Jkt 214001
4 15
2 17
17 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(e).
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
5 15
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Fmt 4703
U.S.C. 78s(b)(2).
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
Sfmt 4703
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]]>Agencies
[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Notices]
[Pages 30176-30178]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11523]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57831; File No. SR-ISE-2008-39]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Amend its Schedule of Fees To Establish Fees for Transactions
in Options on Five Premium Products
May 16, 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 May 9, 2008, International Securities Exchange, LLC (``ISE'' or
the ``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 by ISE. The Exchange has
designated this proposal as one establishing or changing a member due,
fee, or other charge imposed by ISE under section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(f)(2) thereunder, \4\ which renders the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
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
[[Page 30177]]
change is available at https://www.ise.com, the principal offices of the
Exchange, and the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
---------------------------------------------------------------------------
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 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. 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 CurrencyShares\SM\
Australian Dollar Trust (``FXA''), the CurrencyShares\SM\ British Pound
Sterling Trust (``FXB''), the CurrencyShares\SM\ Euro Trust (``FXE''),
the CurrencyShares\SM\ Japanese Yen Trust (``FXY'') \6\ and the iShares
MSCI Taiwan Index Fund (``EWT'').\7\ The Exchange represents that FXA,
FXB, FXE, FXY and EWT are eligible for options trading because they
constitute ``Exchange-Traded Fund Shares,'' as defined by ISE Rule
502(h).
---------------------------------------------------------------------------
\6\ CurrencyShares\SM\ Australian Dollar Trust,
CurrencyShares\SM\ British Pound Sterling Trust, CurrencyShares\SM\
Euro Trust, and CurrencyShares\SM\ Japanese Yen Trust are service
marks of their respective owner(s). Rydex Distributors, Inc., an
affiliate of Rydex Investments and Rydex Specialized Products, is
the distributor of Rydex funds. Rydex Specialized Products LLC, d/b/
a Rydex Investments (``Rydex''), is the sponsor of the
CurrencyShares\SM\ Australian Dollar Trust (``FXA''), the
CurrencyShares\SM\ British Pound Sterling Trust (``FXB''), the
CurrencyShares\SM\ Euro Trust (``FXE'') and the CurrencyShares\SM\
Japanese Yen Trust (``FXY''). Rydex 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 FXA, FXB, FXE
and FXY or (ii) to use and refer to any trademarks or service marks
in connection with the listing, provision of a market for trading,
marketing, and promotion of options on FXA, FXB, FXE and FXY or with
making disclosures concerning options on FXA, FXB, FXE and FXY under
any applicable federal or state laws, rules or regulations. Rydex
does not sponsor, endorse, or promote such activity by ISE, and is
not affiliated in any manner with ISE.
\7\ iShares[supreg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a majority owned subsidiary of Barclays
Bank PLC. ``MSCI Taiwan 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. iShares MSCI Taiwan Index
Fund (``EWT'') 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 EWT or (ii) to 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 EWT or with making disclosures concerning options on
EWT 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.
---------------------------------------------------------------------------
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 FXA, FXB, FXE, FXY
and EWT.\8\ 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 \9\ 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.\10\ 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.\11\
Further, since options on FXA, FXB, FXE, FXY and EWT are multiply-
listed, the Exchange's Payment for Order Flow fee shall apply to all
these products. 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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\8\ 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).
\9\ 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 or entity that is
not a broker or dealer in securities.
\10\ The execution fee is currently between $.21 and $.12 per
contract side, depending on the Exchange Average Daily Volume, and
the comparison fee is currently $.03 per contract side.
\11\ 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, the Exchange proposes to remove IXK from its Schedule of
Fees.\12\
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\12\ This Premium Product was recently delisted and no longer
trades on the Exchange. Thus, the Exchange proposes to remove it
from its fee schedule.
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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,\13\ in general, and
furthers the objectives of section 6(b)(4),\14\ 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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\13\ 15 U.S.C. 78f.
\14\ 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
The foregoing proposed rule change has been designated as a fee
change pursuant to section 19(b)(3)(A)(ii) of the Act \15\ and Rule
19b-4(f)(2) \16\ thereunder, because it establishes or changes a due,
fee, or other charge imposed on members by ISE. Accordingly, the
proposal is effective upon filing with the Commission. 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.
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-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. Comments may be submitted by any of
the following methods:
[[Page 30178]]
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-2008-39 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-2008-39. 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 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 publicly available. All
submissions should refer to File Number SR-ISE-2008-39 and should be
submitted on or before June 13, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-11523 Filed 5-22-08; 8:45 am]
BILLING CODE 8010-01-P
