Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Quarterly Options Series Pilot Program, 38014-38016 [E8-14926]

Download as PDF 38014 Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices dealer ‘‘does not know’’ a trade submitted on its behalf by a Demand Trade Source, the dealer is able to submit a DK (i.e., ‘‘don’t know’’) to the GSD. The receipt of a DK by FICC causes the demand comparison trade to no longer be deemed compared. In order to effect comparison for a demand comparison trade that has been DKed, the DK must be removed. If the member that sent the DK determines that it did so erroneously, the member is able to remove the DK so that the trade is compared.5 Modification of a DKed trade by the Demand Trade Source also removes the DK so that the trade is compared.6 The removal of the DK and modification of a DKed trade are subject to the prescribed timeframes for Demand DK processing. 2. Proposal FICC’s current proposal is to mandate Demand Comparison for all blindbrokered repo trades that are submitted by 4 p.m. New York time. The GSD’s members acting as inter-dealer brokers for repos will be designated as approved Demand Trade Sources. Members on whose behalf the brokers submit trades will not need to separately authorize the brokers as their Demand Trade Sources for GSD’s purposes because GSD’s rules will do so. After approval of the rule change, counterparties to blind-brokered repo trades will still need to submit their trade data as they do currently. Dealers will need to monitor the broker submissions against them in order to submit DKs where necessary to block any further processing of the submission. In order to provide the dealer counterparties with adequate time by which to submit their DKs, especially for trades submitted close to the 4 p.m. deadline, GSD will create a 30 minute DK window following the 4 p.m. Demand Comparison submission deadline (until 4:30 p.m.) during which time the dealer counterparties can DK previously received demand trades; however, dealer counterparties will be able to submit DKs at any time during the Demand Comparison submission processing timeframe. Under Demand Comparison processing, a dealer counterparty that does not submit a DK with respect to a blind-brokered repo trade submitted against it will be responsible for that trade. Blind- jlentini on PROD1PC65 with NOTICES 5 Under this proposal to require Demand Comparison processing of blind-brokered repo trades, the cut-off time for removing DKs will be 8 p.m. New York time. 6 Under this proposal to require Demand Comparison processing of blind-brokered repo trades, the cut-off time for modifications by Demand Trade Sources will be 8 p.m. New York time. VerDate Aug<31>2005 18:51 Jul 01, 2008 Jkt 214001 brokered repo trades submitted after the 4 p.m. deadline will be treated as trades submitted for ‘‘bilateral comparison’’ requiring two-sided submission and matching for comparison to occur. FICC believes that requiring Demand Comparison for blind-brokered repo trades as described above will reduce risk by promoting earlier comparison and a higher rate of comparison. Demand Comparison trade entry will also encourage members to reconcile differences on a timely basis. FICC plans to implement the proposed changes four months after submission of this filing to the Commission (i.e., early August), subject to approval by the Commission, in order to provide members with the opportunity to make any necessary system changes. III. Discussion Section 19(b) of the Act directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization. Section 17A(b)(3)(F) of the Act requires that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions.7 The Commission believes that FICC’s proposed rule change is consistent with this Section because it should facilitate the prompt and accurate clearance and settlement of securities by enabling earlier comparison and a higher rate of comparison of blind-brokered repo transactions. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular Section 17A of the Act and the rules and regulations thereunder. In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition and capital formation.8 It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR– FICC–2008–02) be and hereby is approved. PO 00000 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Acting Secretary. [FR Doc. E8–14975 Filed 7–1–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58019; File No. SR–ISE– 2008–49] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Quarterly Options Series Pilot Program June 25, 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 23, 2008, the International Securities Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as non-controversial under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to extend, until July 10, 2009, its quarterly options series pilot program. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.ise.com), at the principal office of the Exchange, and at 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, the Exchange included statements concerning the purpose of, and basis for, 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 7 15 8 15 U.S.C. 78q–1(b)(3)(F). U.S.C. 78c(f). Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\02JYN1.SGM 02JYN1 Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange 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 extend, until July 10, 2009, an ISE pilot program (the ‘‘Quarterly Options Series Pilot Program’’) to list and trade options series that expire at the close of business on the last business day of a calendar quarter (‘‘Quarterly Options Series’’).5 The current Quarterly Options Series Pilot Program is set to expire on July 10, 2008. Under the Quarterly Options Series Pilot Program, the Exchange is allowed to open up to five (5) currently listed options classes that are either index options or options on exchangetraded funds (ETFs). The Exchange is also allowed to list Quarterly Options Series on any options class that is selected by other securities exchanges that employ a similar pilot program under their respective rules. The Exchange has selected the following five options classes to participate in the Quarterly Options Series Pilot Program: the Standard & Poor’s Depositary Receipts (SPY), Nasdaq–100 Shares (QQQQ), Diamonds Trust Series 1 (DIA), iShares Russell 2000 Index Fund (IWM), and Select Sector SPDR—Energy (XLE). The ISE believes the Quarterly Options Series Pilot Program has been successful and well received by its members and the investing public. Thus, the ISE proposes to extend the Pilot Program until July 10, 2009. In support of this proposed rule change, and as required by the Quarterly Options Series Pilot Program Approval Order, the Exchange has submitted to the Commission a report (the ‘‘Quarterly Options Series Pilot Program Report’’), detailing the Exchange’s experience with the Quarterly Options Series Pilot Program. Specifically, the Quarterly Options Series Pilot Program Report jlentini on PROD1PC65 with NOTICES 5 See Exchange Act Release No. 54113 (July 7, 2006); 71 FR 39694 (July 13, 2006) (SR–ISE 2006– 24) (the ‘‘Quarterly Options Series Pilot Program Approval Order’’). See also Exchange Act Release No. 57425 (March 4, 2008); 73 FR 12783 (March 10, 2008) (SR–ISE 2008–19) (amending the Quarterly Options Series Pilot Program to permit the listing of additional series and to implement a delisting policy for outlying series with no open interest). VerDate Aug<31>2005 18:51 Jul 01, 2008 Jkt 214001 contains data and written analysis regarding the five options classes included in the Quarterly Options Pilot Program for the period from April 1, 2007 through March 31, 2008. The Exchange believes there is sufficient investor interest and demand to extend the Quarterly Options Series Pilot Program for another year. The Exchange further believes that the Quarterly Options Series Pilot Program has provided investors with a flexible and valuable tool to manage risk exposure, minimize capital outlays, and the ability to more closely tailor their investment strategies and decisions to the movement of the underlying security. The Exchange notes that it has not detected any material proliferation of illiquid options series resulting from the introduction of the Quarterly Options Series Pilot Program. Finally, the Exchange represents that it has the necessary systems capacity to support new options series that result from the continued listing and trading of Quarterly Options Series. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder. Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(5) of the Act,6 which requires that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, 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. The Exchange believes that extension of the Quarterly Options Pilot Program will result in a continuing benefit to investors, by allowing them to more closely tailor their investment decisions, and will allow the Exchange to further study investor interest in quarterly options. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that 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 PO 00000 6 15 U.S.C. 78(f)(b)(5). Frm 00088 Fmt 4703 Sfmt 4703 38015 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 Exchange has designated the proposed rule change as one that: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) does not become operative for 30 days from the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. Therefore, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and subparagraph (f)(6) of Rule 19b–4 thereunder.8 The Exchange has asked the Commission to waive the operative delay to permit the proposed rule change to become operative prior to the 30th day after filing. The Commission has determined that waiving the 30-day operative delay of the Exchange’s proposal is consistent with the protection of investors and the public interest and will promote competition because such waiver will allow ISE to continue the existing Quarterly Options Series Pilot Program without interruption.9 Therefore, the Commission designates the proposal operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the 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. 7 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of 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. The Exchange has fulfilled this requirement. 9 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 8 17 E:\FR\FM\02JYN1.SGM 02JYN1 38016 Federal Register / Vol. 73, No. 128 / Wednesday, July 2, 2008 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–58029; File No. SR– NASDAQ–2008–053] • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2008–49 on the subject line. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Modify the Definition of ‘‘Independent Director’’ June 26, 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 6, to Secretary, Securities and Exchange 2008, The NASDAQ Stock Market LLC Commission, 100 F Street, NE., (‘‘Nasdaq’’), filed with the Securities Washington, DC 20549–1090. and Exchange Commission (‘‘SEC’’ or All submissions should refer to File ‘‘Commission’’) the proposed rule Number SR–ISE–2008–49. This file change as described in Items I, II, and number should be included on the III below, which Items have been subject line if e-mail is used. To help the substantially prepared by Nasdaq. The Commission process and review your Commission is publishing this notice to comments more efficiently, please use solicit comments on the proposed rule only one method. The Commission will change from interested persons. post all comments on the Commission’s I. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of rules/sro.shtml). Copies of the the Proposed Rule Change submission, all subsequent Nasdaq proposes to amend Rule amendments, all written statements 4200(a)(15)(B) and IM–4200 to modify with respect to the proposed rule Nasdaq’s definition of ‘‘independent change that are filed with the director.’’ Nasdaq will implement the Commission, and all written proposed rule upon approval. communications relating to the The text of the proposed rule change proposed rule change between the is available at Nasdaq, at the Commission and any person, other than Commission’s Public Reference Room, those that may be withheld from the and on Nasdaq’s Web site at http:// public in accordance with the nasdaq.complinet.com. provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s available for inspection and copying in Statement of the Purpose of, and the Commission’s Public Reference Statutory Basis for, the Proposed Rule Room, 100 F Street, NE., Washington, Change DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. In its filing with the Commission, Copies of such filing also will be Nasdaq included statements concerning available for inspection and copying at the purpose of, and basis for, the the principal office of the Exchange. All proposed rule change and discussed any comments received will be posted comments it received on the proposed rule change. The text of these statements without change; the Commission does may be examined at the places specified not edit personal identifying in Item IV below. Nasdaq has prepared information from submissions. You summaries, set forth in Sections A, B, should submit only information that you wish to make available publicly. All and C below, of the most significant aspects of such statements. submissions should refer to File No. SR–ISE–2008–49 and should be A. Self-Regulatory Organization’s submitted on or before July 23, 2008. Statement of the Purpose of, and Statutory Basis for, the Proposed Rule For the Commission, by the Division of Change Trading and Markets, pursuant to delegated jlentini on PROD1PC65 with NOTICES Paper Comments authority.10 Florence E. Harmon, Acting Secretary. [FR Doc. E8–14926 Filed 7–1–08; 8:45 am] 1. Purpose The purpose of this rule filing is to modify Nasdaq’s definition of an ‘‘independent director.’’ BILLING CODE 8010–01–P 1 15 10 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 18:51 Jul 01, 2008 2 17 Jkt 214001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00089 Fmt 4703 Sfmt 4703 Nasdaq’s rules generally preclude a director from being considered independent if the director has received more than $100,000 in compensation from the issuer.3 When Nasdaq first adopted this rule in 1999, the threshold was $60,000, which was chosen to be consistent with the $60,000 disclosure threshold set by the Commission in Regulation S–K, Item 404.4 In August 2006, the Commission adopted final rules raising the threshold in Regulation S–K, Item 404 from $60,000 to $120,000.5 Following this change to the SEC’s rules, Nasdaq, as an intermediate step, increased the threshold in its independence definition from $60,000 to $100,000,6 which was consistent with the threshold in the comparable rule of the New York Stock Exchange, Inc. (‘‘NYSE’’).7 On June 8, 2007, NYSE amended a prior rule proposal filed with the Commission regarding changes to certain of its corporate governance requirements.8 In the amendment, NYSE proposed increasing the threshold in its independence definition from $100,000 to $120,000. In its statement of the purpose of its proposal, NYSE explained that ‘‘[t]his change reflects the SEC’s recent amendment to the dollar threshold applicable to related party transactions that must be disclosed under Item 404 of Regulation S–K.’’ 9 Nasdaq believes that the monetary threshold in its independence definition should be consistent with the amount in Regulation S–K, Item 404. Using a consistent standard would enhance Nasdaq’s ability to assess compliance with the independent director requirements because companies are required to disclose compensation in excess of $120,000, but are not necessarily required to disclose compensation between $100,000 and $120,000. Finally, Nasdaq believes that its rules and the NYSE rules should be consistent with regard to the definition 3 Nasdaq Rule 4200(a)(15)(B). rule filing stated that ‘‘* * * Nasdaq believes that a compensation threshold of $60,000 is appropriate as it corresponds to the de minimis threshold for disclosure of relationships that may affect the independent judgment of directors set forth in SEC Regulation S–K, Item 404.’’ See Securities Exchange Act Release No. 41982 (October 6, 1999), 64 FR 55510 (October 13, 1999). 5 See Securities Exchange Act Release No. 54302A (August 29, 2006), 71 FR 53158 (September 8, 2006). 6 See Securities Exchange Act Release No. 55463 (March 13, 2007), 72 FR 13327 (March 21, 2007). 7 See Section 303A.02(b)(ii) of the NYSE Listed Company Manual. 8 See Amendment No. 1 to File No. SR–NYSE– 2005–81. 9 Id., citing Securities Act Release No. 8732A (August 29, 2006), 71 FR 53158 (September 8, 2006). 4 The E:\FR\FM\02JYN1.SGM 02JYN1

Agencies

[Federal Register Volume 73, Number 128 (Wednesday, July 2, 2008)]
[Notices]
[Pages 38014-38016]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14926]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58019; File No. SR-ISE-2008-49]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Extend the Quarterly Options Series Pilot Program

June 25, 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 23, 2008, the International Securities Exchange, LLC 
(``Exchange'' or ``ISE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been substantially prepared by 
the Exchange. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change 
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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to extend, until July 10, 2009, its 
quarterly options series pilot program. The text of the proposed rule 
change is available on the Exchange's Web site (http://www.ise.com), at 
the principal office of the Exchange, and at 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, the Exchange included statements 
concerning the purpose of, and basis for,

[[Page 38015]]

the proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The Exchange 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 extend, until July 10, 2009, an ISE 
pilot program (the ``Quarterly Options Series Pilot Program'') to list 
and trade options series that expire at the close of business on the 
last business day of a calendar quarter (``Quarterly Options 
Series'').\5\ The current Quarterly Options Series Pilot Program is set 
to expire on July 10, 2008. Under the Quarterly Options Series Pilot 
Program, the Exchange is allowed to open up to five (5) currently 
listed options classes that are either index options or options on 
exchange-traded funds (ETFs). The Exchange is also allowed to list 
Quarterly Options Series on any options class that is selected by other 
securities exchanges that employ a similar pilot program under their 
respective rules. The Exchange has selected the following five options 
classes to participate in the Quarterly Options Series Pilot Program: 
the Standard & Poor's Depositary Receipts[reg] (SPY), Nasdaq-100[reg] 
Shares (QQQQ), Diamonds[reg] Trust Series 1 (DIA), iShares Russell 
2000[reg] Index Fund (IWM), and Select Sector SPDR[reg]--Energy (XLE). 
The ISE believes the Quarterly Options Series Pilot Program has been 
successful and well received by its members and the investing public. 
Thus, the ISE proposes to extend the Pilot Program until July 10, 2009.
---------------------------------------------------------------------------

    \5\ See Exchange Act Release No. 54113 (July 7, 2006); 71 FR 
39694 (July 13, 2006) (SR-ISE 2006-24) (the ``Quarterly Options 
Series Pilot Program Approval Order''). See also Exchange Act 
Release No. 57425 (March 4, 2008); 73 FR 12783 (March 10, 2008) (SR-
ISE 2008-19) (amending the Quarterly Options Series Pilot Program to 
permit the listing of additional series and to implement a delisting 
policy for outlying series with no open interest).
---------------------------------------------------------------------------

    In support of this proposed rule change, and as required by the 
Quarterly Options Series Pilot Program Approval Order, the Exchange has 
submitted to the Commission a report (the ``Quarterly Options Series 
Pilot Program Report''), detailing the Exchange's experience with the 
Quarterly Options Series Pilot Program. Specifically, the Quarterly 
Options Series Pilot Program Report contains data and written analysis 
regarding the five options classes included in the Quarterly Options 
Pilot Program for the period from April 1, 2007 through March 31, 2008. 
The Exchange believes there is sufficient investor interest and demand 
to extend the Quarterly Options Series Pilot Program for another year. 
The Exchange further believes that the Quarterly Options Series Pilot 
Program has provided investors with a flexible and valuable tool to 
manage risk exposure, minimize capital outlays, and the ability to more 
closely tailor their investment strategies and decisions to the 
movement of the underlying security. The Exchange notes that it has not 
detected any material proliferation of illiquid options series 
resulting from the introduction of the Quarterly Options Series Pilot 
Program.
    Finally, the Exchange represents that it has the necessary systems 
capacity to support new options series that result from the continued 
listing and trading of Quarterly Options Series.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder. Specifically, the 
Exchange believes the proposed rule change is consistent with Section 
6(b)(5) of the Act,\6\ which requires that the rules of a national 
securities exchange be designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts, 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. The Exchange believes that extension 
of the Quarterly Options Pilot Program will result in a continuing 
benefit to investors, by allowing them to more closely tailor their 
investment decisions, and will allow the Exchange to further study 
investor interest in quarterly options.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that 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 Exchange has designated the proposed rule change as one that: 
(1) Does not significantly affect the protection of investors or the 
public interest; (2) does not impose any significant burden on 
competition; and (3) does not become operative for 30 days from the 
date of filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest. 
Therefore, the foregoing rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \7\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written notice of its intent to file the proposed rule change, 
along with a brief description and text of 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. The Exchange has fulfilled this requirement.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the operative delay 
to permit the proposed rule change to become operative prior to the 
30th day after filing. The Commission has determined that waiving the 
30-day operative delay of the Exchange's proposal is consistent with 
the protection of investors and the public interest and will promote 
competition because such waiver will allow ISE to continue the existing 
Quarterly Options Series Pilot Program without interruption.\9\ 
Therefore, the Commission designates the proposal operative upon 
filing.
---------------------------------------------------------------------------

    \9\ For purposes only of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate the 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.

[[Page 38016]]

Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-ISE-2008-49 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-2008-49. 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 (http://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 available publicly. All 
submissions should refer to File No. SR-ISE-2008-49 and should be 
submitted on or before July 23, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-14926 Filed 7-1-08; 8:45 am]
BILLING CODE 8010-01-P