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 One Premium Product, 31173-31174 [E8-12033]

Download as PDF Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices and a national market system, and, in general, to protect investors and the public interest. The Commission notes that the proposed rule change is designed to simplify and standardize delegations of authority under the CBOE Rules. The Commission notes that, under the proposed rule change, the Exchange would have the flexibility to delegate authorities under its rules to Exchange staff or an Exchange committee, as appropriate, which could foster greater efficiency from an administrative perspective. The Commission further notes that the Exchange has not proposed any revisions to its current disciplinary, arbitration or appeals procedures (or related Business Conduct, Arbitration and Appeals Committees) as part of the proposed rule change. The Commission believes that CBOE’s proposal is consistent with the requirements of the Act. 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. III. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,11 that the proposed rule change (SR–CBOE–2008– 02) is hereby approved. 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–12076 Filed 5–29–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION 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 one Premium Product.5 The text of the proposed rule change is available at https:// www.ise.com, the principal offices of the Exchange, and the Commission’s Public Reference Room. [Release No. 34–57854; File No. SR–ISE– 2008–40] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 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 One Premium Product 1. Purpose The Exchange is proposing to amend its Schedule of Fees to establish fees for transactions in options on the Claymore/MAC Global Solar Energy Index ETF (‘‘TAN’’).6 The Exchange 3 15 sroberts on PROD1PC70 with NOTICES May 22, 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 20, 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 11 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. 12 17 VerDate Aug<31>2005 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 5 Premium Product is defined in the Schedule of Fees as the products enumerated therein. 6 Claymore is a registered trademark of Claymore Securities, Inc. (‘‘Claymore’’). MAC Indexing LLC (‘‘MAC’’) is the Index Provider for the Claymore/ MAC Global Solar Energy Index ETF (‘‘TAN’’). Claymore Advisors, LLC is the Investment Advisor for TAN. Claymore is the Distributor for TAN. MAC is not affiliated with the Investment Adviser or the Distributor. The Investment Adviser has entered into a license agreement with MAC to use the MAC Global Solar Energy Index. TAN is not sponsored, endorsed, issued, sold or promoted by MAC. MAC and Claymore Securities 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 TAN or (ii) to use and refer to any of their trademarks or service marks in 4 17 18:39 May 29, 2008 Jkt 214001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 31173 represents that TAN is eligible for options trading because it constitutes an ‘‘Exchange-Traded Fund Share,’’ 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 TAN.7 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 8 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.9 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.10 Further, since options on TAN are multiply-listed, the Exchange’s Payment for Order Flow fee shall apply to this product. The Exchange believes the proposed rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,11 connection with the listing, provision of a market for trading, marketing, and promotion of options on TAN or with making disclosures concerning options on TAN under any applicable federal or state laws, rules or regulations. MAC and Claymore Securities do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. 7 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). 8 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. 9 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. 10 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. 11 15 U.S.C. 78f. E:\FR\FM\30MYN1.SGM 30MYN1 31174 Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices in general, and furthers the objectives of Section 6(b)(4),12 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 13 and Rule 19b–4(f)(2)14 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: Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. [Release No. 34–57862; File No. SR–NYSE– 2008–41] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of All submissions should refer to File Proposed Rule Change Amending Number SR–ISE–2008–40. This file Exchange Rule 15 (Pre-Opening number should be included on the subject line if e-mail is used. To help the Indications) and Exchange Rule 123C (Market on the Close Policy and Commission process and review your Expiration Procedures) comments more efficiently, please use only one method. The Commission will May 23, 2008. post all comments on the Commission’s Pursuant to section 19(b)(1) of the Internet Web site (https://www.sec.gov/ Securities Exchange Act of 1934 rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on May 16, amendments, all written statements 2008, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with with respect to the proposed rule the Securities and Exchange change that are filed with the Commission (‘‘Commission’’) the Commission, and all written proposed rule change as described in communications relating to the Items I and II below, which Items have proposed rule change between the Commission and any person, other than been substantially prepared by the Exchange. The Exchange has designated those that may be withheld from the the proposed rule change as a ‘‘nonpublic in accordance with the controversial’’ rule change pursuant to provisions of 5 U.S.C. 552, will be section 19(b)(3)(A) of the Act 3 and Rule available for inspection and copying in 19b–4(f)(6) thereunder,4 which renders the Commission’s Public Reference the proposed rule change effective upon Room, 100 F Street, NE., Washington, filing with the Commission. The DC 20549, on official business days Commission is publishing this notice to between the hours of 10 a.m. and 3 p.m. solicit comments on the proposed rule Copies of such filing also will be change from interested persons. available for inspection and copying at the principal office of the Exchange. All I. Self-Regulatory Organization’s Statement of the Terms of Substance of comments received will be posted the Proposed Rule Change without change; the Commission does not edit personal identifying The Exchange proposes to amend information from submissions. You Exchange Rule 15 (Pre-Opening Indications) and Exchange Rule 123C should submit only information that you wish to make publicly available. All (Market On The Close Policy And Expiration Procedures) to allow submissions should refer to File Number SR–ISE–2008–40 and should be Exchange systems to disseminate a data feed of real-time order imbalances that submitted on or before June 20, 2008. accumulate prior to the opening of For the Commission, by the Division of trading on the Exchange and prior to the Trading and Markets, pursuant to delegated close of trading on the Exchange. The authority.15 text of the proposed rule change is J. Lynn Taylor, available at https://www.nyse.com, the Assistant Secretary. Exchange, and the Commission’s Public [FR Doc. E8–12033 Filed 5–29–08; 8:45 am] Reference Room. BILLING CODE 8010–01–P II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NYSE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed Electronic Comments sroberts on PROD1PC70 with NOTICES SECURITIES AND EXCHANGE COMMISSION • 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–2008–40 on the subject line. 1 15 12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A)(ii). 14 17 CFR 240.19b–4(f)(2). VerDate Aug<31>2005 16:52 May 29, 2008 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 2 17 15 17 Jkt 214001 PO 00000 CFR 200.30–3(a)(12). Frm 00123 Fmt 4703 Sfmt 4703 E:\FR\FM\30MYN1.SGM 30MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 105 (Friday, May 30, 2008)]
[Notices]
[Pages 31173-31174]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12033]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57854; File No. SR-ISE-2008-40]


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 One Premium Product

May 22, 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 20, 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).
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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 one Premium Product.\5\ The text of the 
proposed rule change is available at https://www.ise.com, the principal 
offices of the Exchange, and the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ Premium Product 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 Claymore/MAC Global 
Solar Energy Index ETF (``TAN'').\6\ The Exchange represents that TAN 
is eligible for options trading because it constitutes an ``Exchange-
Traded Fund Share,'' as defined by ISE Rule 502(h).
---------------------------------------------------------------------------

    \6\ Claymore[supreg] is a registered trademark of Claymore 
Securities, Inc. (``Claymore''). MAC Indexing LLC (``MAC'') is the 
Index Provider for the Claymore/MAC Global Solar Energy Index ETF 
(``TAN''). Claymore Advisors, LLC is the Investment Advisor for TAN. 
Claymore is the Distributor for TAN. MAC is not affiliated with the 
Investment Adviser or the Distributor. The Investment Adviser has 
entered into a license agreement with MAC to use the MAC Global 
Solar Energy Index. TAN is not sponsored, endorsed, issued, sold or 
promoted by MAC. MAC and Claymore Securities 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 TAN 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 TAN or with making 
disclosures concerning options on TAN under any applicable federal 
or state laws, rules or regulations. MAC and Claymore Securities 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 TAN.\7\ 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 \8\ 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.\9\ 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.\10\ Further, since options on TAN 
are multiply-listed, the Exchange's Payment for Order Flow fee shall 
apply to this product. The Exchange believes the proposed rule change 
will further the Exchange's goal of introducing new products to the 
marketplace that are competitively priced.
---------------------------------------------------------------------------

    \7\ 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).
    \8\ 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.
    \9\ 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.
    \10\ 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.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\11\

[[Page 31174]]

in general, and furthers the objectives of Section 6(b)(4),\12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 \13\ and Rule 
19b-4(f)(2)\14\ 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2008-40 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-2008-40. 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-2008-40 and should be 
submitted on or before June 20, 2008.
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E8-12033 Filed 5-29-08; 8:45 am]
BILLING CODE 8010-01-P

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