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]
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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.
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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 (https://
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
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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
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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 (https://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 (https://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 https://
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
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]]>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]
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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 (https://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.
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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.
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\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).
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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 (https://
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 (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 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\
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\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
