Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Payment for Order Flow Fees, 34814-34815 [E8-13707]
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34814
Federal Register / Vol. 73, No. 118 / Wednesday, June 18, 2008 / Notices
underlying indicator value. Additional
margin may be required pursuant to
Exchange Rule 12.10.
The Exchange hereby designates BXM
options as eligible for trading as Flexible
Exchange Options as provided for in
Chapters XXIVA (Flexible Exchange
Options) and XXIVB (FLEX Hybrid
Trading System).
Capacity
CBOE has analyzed its capacity and
represents that it believes the Exchange
and the OPRA have the necessary
systems capacity to handle the
additional traffic associated with the
listing of new series that would result
from the introduction of BXM options.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act 13 in general, and furthers
the objectives of Section 6(b)(5) of the
Act 14 in particular, in that it will permit
trading in options based on the index
pursuant to rules designed to prevent
fraudulent and manipulative acts and
practices and to promote just and
equitable principles of trade, and
thereby will provide investors with the
ability to invest in options that provide
statistical measurements of market
variability.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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.
rwilkins on PROD1PC63 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which CBOE consents, the
Commission will:
(A) By order approve such proposed
rule change; or
13 15
14 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
18:01 Jun 17, 2008
Jkt 214001
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–13703 Filed 6–17–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57951; File No. SR–ISE–
2008–42]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2008–26 on the
subject line.
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Payment for Order
Flow Fees
June 11, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 2,
to Secretary, Securities and Exchange
2008, the International Securities
Commission, 100 F Street, NE.,
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
Washington, DC 20549–1090.
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
All submissions should refer to File
proposed rule change as described in
Number SR–CBOE–2008–26. This file
Items I, II, and III below, which Items
number should be included on the
have been prepared by the Exchange.
subject line if e-mail is used. To help the The Exchange has designated this
Commission process and review your
proposal as one establishing or changing
comments more efficiently, please use
a due, fee, or other charge imposed by
only one method. The Commission will ISE under Section 19(b)(3)(A)(ii) of the
post all comments on the Commission’s Act 3 and Rule 19b–4(f)(2) thereunder,4
Internet Web site (https://www.sec.gov/
which renders the proposal effective
rules/sro.shtml). Copies of the
upon filing with the Commission. The
submission, all subsequent
Commission is publishing this notice to
amendments, all written statements
solicit comments on the proposed rule
with respect to the proposed rule
change from interested persons.
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
ISE proposes to amend its payment
for order flow (‘‘PFOF’’) fees for issues
those that may be withheld from the
that trade as part of the Penny Pilot
public in accordance with the
(‘‘Pilot’’).5 The text of the proposed rule
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
15 17 CFR 200.30–3(a)(12).
the Commission’s Public Reference
1 15 U.S.C. 78s(b)(1).
Room, 100 F Street, NE., Washington,
2 17 CFR 240.19b–4.
DC 20549, on official business days
3 15 U.S.C. 78s(b)(3)(A)(ii).
between the hours of 10 a.m. and 3 p.m.
4 17 CFR 240.19b–4(f)(2).
Copies of such filing also will be
5 See, e.g., Securities Exchange Act Release Nos.
54603 (October 16, 2006), 71 FR 62024 (October 20,
available for inspection and copying at
2006) (SR–ISE–2006–62) (Notice of Filing of
the principal offices of the Exchange.
Proposed Rule Change to Implement a Pilot
All comments received will be posted
Program To Quote and To Trade Options in
without change; the Commission does
Pennies); 56151 (July 26, 2007), 72 FR 42452
(August 2, 2007) (SR–ISE–2007–68) (Notice of
not edit personal identifying
Filing and Immediate Effectiveness of Proposed
information from submissions. You
Rule Change Relating to an Extension of the Penny
should submit only information that
Pilot Program); 56564 (September 27, 2007), 72 FR
you wish to make available publicly. All 56412 (October 3, 2007) (SR–ISE–2007–74) (Order
Granting Accelerated Approval to a Proposed Rule
submissions should refer to File
to an Extension and
Number SR–CBOE–2008–26 and should Change RelatingProgram); and 57508 Expansion of
the Penny Pilot
(March 17,
be submitted on or before July 9, 2008.
2008), 73 FR 15243 (March 21, 2008) (SR–ISE–
Paper Comments
PO 00000
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Sfmt 4703
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Federal Register / Vol. 73, No. 118 / Wednesday, June 18, 2008 / Notices
change is available at the Exchange, the
Commission’s Public Reference Room,
and www.ise.com.
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change, and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. ISE
has substantially prepared summaries,
set forth in Sections A, B, and C below,
of the most significant aspects of such
statements.
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
PFOF fees for issues that trade as part
of the Pilot. Specifically, ISE proposes
to increase the PFOF fee from $0.10 per
contract to $0.25 per contract. As a
result of this change, ISE believes that
its PFOF fee in the Pilot options classes
would be more competitive with the
PFOF fee other options exchanges assess
in these options classes, and allow ISE
market makers to compete better for
order flow in these options classes. ISE
proposes to implement this change in its
PFOF fee beginning on June 2, 2008.
The Exchange is not amending its PFOF
program in any other respect.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among ISE members. In
particular, the Exchange believes
increasing its PFOF fees in the Pilot
options classes is reasonable and
equitable in that it will allow ISE market
makers to better compete for order flow
in these options classes.
rwilkins on PROD1PC63 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
2008–27) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change
Implementing Phase II of the Penny Pilot Program
Expansion).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
18:01 Jun 17, 2008
Jkt 214001
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 8 and Rule 19b–4(f)(2) 9 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange. Accordingly, the proposal
will take effect upon filing with the
Commission. At any time within 60
days of the filing of such 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:
34815
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2008–42 and should be
submitted on or before July 9, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–13707 Filed 6–17–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2008–42 on the subject
line.
[Release No. 34–57950; File No. SR–
NYSEArca–2008–57]
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2008–42. 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
June 11, 2008.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending NYSE Arca
Rule 5.3 and Rule 5.4 To Enable the
Listing and Trading of Options on
Index-Linked Securities
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 29,
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
10 17
8 15
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 73, Number 118 (Wednesday, June 18, 2008)]
[Notices]
[Pages 34814-34815]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-13707]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57951; File No. SR-ISE-2008-42]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change Relating to Payment for Order Flow Fees
June 11, 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 June 2, 2008, the International Securities Exchange, LLC (``ISE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange has designated this proposal as one establishing or changing a
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 proposes to amend its payment for order flow (``PFOF'') fees
for issues that trade as part of the Penny Pilot (``Pilot'').\5\ The
text of the proposed rule
[[Page 34815]]
change is available at the Exchange, the Commission's Public Reference
Room, and www.ise.com.
---------------------------------------------------------------------------
\5\ See, e.g., Securities Exchange Act Release Nos. 54603
(October 16, 2006), 71 FR 62024 (October 20, 2006) (SR-ISE-2006-62)
(Notice of Filing of Proposed Rule Change to Implement a Pilot
Program To Quote and To Trade Options in Pennies); 56151 (July 26,
2007), 72 FR 42452 (August 2, 2007) (SR-ISE-2007-68) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating
to an Extension of the Penny Pilot Program); 56564 (September 27,
2007), 72 FR 56412 (October 3, 2007) (SR-ISE-2007-74) (Order
Granting Accelerated Approval to a Proposed Rule Change Relating to
an Extension and Expansion of the Penny Pilot Program); and 57508
(March 17, 2008), 73 FR 15243 (March 21, 2008) (SR-ISE-2008-27)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Implementing Phase II of the Penny Pilot Program Expansion).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change, and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. ISE has substantially 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 proposes to amend its PFOF fees for issues that trade
as part of the Pilot. Specifically, ISE proposes to increase the PFOF
fee from $0.10 per contract to $0.25 per contract. As a result of this
change, ISE believes that its PFOF fee in the Pilot options classes
would be more competitive with the PFOF fee other options exchanges
assess in these options classes, and allow ISE market makers to compete
better for order flow in these options classes. ISE proposes to
implement this change in its PFOF fee beginning on June 2, 2008. The
Exchange is not amending its PFOF program in any other respect.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \7\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among ISE members. In particular, the Exchange
believes increasing its PFOF fees in the Pilot options classes is
reasonable and equitable in that it will allow ISE market makers to
better compete for order flow in these options classes.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder, because it establishes or changes a due, fee,
or other charge imposed by the Exchange. Accordingly, the proposal will
take effect upon filing with the Commission. At any time within 60 days
of the filing of such 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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-2008-42 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2008-42. 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2008-42 and should be
submitted on or before July 9, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-13707 Filed 6-17-08; 8:45 am]
BILLING CODE 8010-01-P
