Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 2 Thereto Relating to Changes to the Fee Schedule, 41142-41143 [E8-16363]

Download as PDF 41142 Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58139; File No. SR–ISE– 2008–54] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 2 Thereto Relating to Changes to the Fee Schedule July 10, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 30, 2008, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) 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 selfregulatory organization. On July 9, 2008, the ISE filed Amendment No. 1 to the proposed rule change. On July 9, 2008, the ISE withdrew Amendment No. 1 and filed Amendment No. 2 to the proposed rule change. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. mstockstill on PROD1PC66 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to amend its Schedule of Fees to extend two fee waivers and to remove reference to two expiring fee pilots. The amendment also simplifies the fee schedule by imbedding the ‘‘comparison’’ fee into the ‘‘execution’’ fee. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// www.ise.com. 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 self-regulatory organization 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. The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Aug<31>2005 21:03 Jul 16, 2008 Jkt 214001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Purpose—The purpose of this proposed rule change is to extend the pilot fee waivers for Premium Products and Second Market options, adopt a new pilot fee waiver related to FX options, and remove reference to expiring pilot fee discounts. The Exchange also proposes to simplify the way in which certain current fees are stated in the fee schedule. These changes will be operative on July 1, 2008. 1. Pilot Extensions First, ISE currently waives most customer transaction fees, with such waiver scheduled to expire on June 30, 2008.3 In order to remain competitive in the market place, we propose to extend this waiver through June 30, 2009. Second, pursuant to a pilot program, ISE offers a fee discount for certain orders of 7,500 contracts or more that are executed in the Exchange’s Facilitation Mechanism.4 Specifically, ISE waives (1) the execution and comparison fee on incremental volume above 7,500 contracts for Firm Proprietary orders, Non-ISE Market Maker orders, and Customer orders in Premium Products, and (2) the execution fee on incremental volume above 7,500 contracts for Customer orders in Second Market options.5 The number of contracts at or under the threshold are charged as per the Exchange’s Schedule of Fees. ISE believes that extending a fee cap for large-sized orders executed in its Facilitation Mechanism will help strengthen its competitive position and encourage members to use the Exchange’s Facilitation Mechanism. The current pilot program is set to expire on June 30, 2008. The Exchange proposes to extend the fee cap for another year, until June 30, 2009. With regards to the two fee pilots that are being extended, the Exchange notes that it is making no substantive changes to the way the two fee pilots currently operate, other than to extend the date of operation through June 30, 2009. 2. New Pilot Fee Waiver for FX Options The Exchange proposes to adopt a fee cap for large-size foreign currency 3 See Securities Exchange Act Release No. 56055 (June 12, 2007), 72 FR 39648 (June 19, 2007) (SR– ISE–2007–52). 4 See Securities Exchange Act Release No. 57129 (January 10, 2008), 73 FR 2963 (January 16, 2008) (SR–ISE–2008–1). 5 The Exchange notes that there is no comparison fee for orders in Second Market options. PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 (‘‘FX’’) options orders. Specifically, the Exchange proposes, for a one-year pilot expiring on June 30, 2009, to waive the transaction fee on incremental volume above 5,000 for single-sized FX options orders of at least 5,000 contracts. The number of contracts at or under the threshold are charged the constituent’s prescribed execution fee. This waiver is for both Public Customer orders and Firm Proprietary orders. The ISE believes that that this fee cap for largesized orders in FX options will encourage members to execute largesized orders on the Exchange. 3. Pilot Expirations The Exchange also proposes to amend its Schedule of Fees to remove from that schedule references to two pilot programs that will terminate on June 30, 2008 and that the Exchange is not extending. Pursuant to those pilots, the Exchange (1) capped and waived fees when a firm reached certain volume thresholds in options on the NASDAQ– 100 Index Tracking Stock (‘‘QQQQ’’) and the iShares Russell 2000 Index Fund (‘‘IWM’’), and (2) capped and waived fees for members that achieved certain threshold levels in the Exchange’s Facilitation Mechanism. In light of the Exchange’s increase market share in QQQQ and IWM and the level of trading in its Facilitation Mechanism, achieved in large part due to these fee pilot programs, ISE does not believe there is a need to continue to provide a fee discount as an incentive to members. 4. Consolidation of Execution and Comparison Fees Currently on the fee schedule, the Exchange separately itemizes execution fees and a comparison fee. The Exchange proposes to eliminate the comparison fee as a separate line item and instead imbed the fee into the execution fee. Historically, the Exchange has waived comparison fees in parallel with execution fees. Therefore, this change will not change the actual amount being charged to any members, but will simplify the fee schedule so that total transaction costs are more easily understood. Statutory Basis—The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4) that an exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. The Exchange believes the fee changes proposed by this filing are reasonable in that, with regards to the fee waivers, the proposed rule change waives most fees for customer transactions and for certain E:\FR\FM\17JYN1.SGM 17JYN1 Federal Register / Vol. 73, No. 138 / Thursday, July 17, 2008 / Notices trades in FX Options; with regards to the fee pilot terminations, the Exchange believes there is no longer a need to provide an incentive to trade in those products or in the Exchange’s Facilitation Mechanism; with regards to the fee consolidation, the proposed rule change will simplify the fee schedule. The Exchange notes that the fee changes are also equitably allocated in that they equally apply to all members of the Exchange. 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 rule change has become effective pursuant to Section 19(b)(3) of the Act 6 and Rule 19b–4(f)(2) 7 thereunder because it establishes or changes a due, fee, or other charge imposed on members by ISE. 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 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: mstockstill on PROD1PC66 with NOTICES 6 15 U.S.C. 78s(b)(3)(A). CFR 19b–4(f)(2). 8 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on July 9, 2008, the date on which the ISE submitted Amendment No. 2. See 15 U.S.C. 78s(b)(3)(C). 7 17 VerDate Aug<31>2005 21:03 Jul 16, 2008 Jkt 214001 Electronic Comments • 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 Number SR–ISE–2008–54 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. 41143 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58145; File No. SR– NASDAQ–2008–016] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change To Establish Fees for Nasdaq Market Pathfinders Service July 11, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 27, 2008, The NASDAQ Stock Market LLC All submissions should refer to File (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Number SR–ISE–2008–54. This file Securities and Exchange Commission number should be included on the subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule change as described in Items I, II, and Commission process and review your III below, which Items have been comments more efficiently, please use prepared substantially by Nasdaq. The only one method. The Commission will Commission is publishing this notice to post all comments on the Commission’s solicit comments on the proposed rule Internet Web site (http://www.sec.gov/ change from interested persons. rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule change that are filed with the Nasdaq is filing with the Commission a proposed rule change to establish fees Commission, and all written to make Nasdaq Market Pathfinders communications relating to the service available via either a Web-based proposed rule change between the Commission and any person, other than data product or via a data feed that will provide aggregated market activity of those that may be withheld from the certain market participants referred to as public in accordance with the ‘‘Pathfinders.’’ provisions of 5 U.S.C. 552, will be The text of the proposed rule change available for inspection and copying in is below. All text is new. the Commission’s Public Reference Room, 100 F Street, NE., Washington, 7044. Nasdaq Market Pathfinders DC 20549, on official business days Service between the hours of 10 a.m. and 3 p.m. (a) The Nasdaq Market Pathfinders Copies of such filing also will be Service will allow participating available for inspection and copying at subscribers to view a real time data the principal office of the Exchange. All product that tracks the aggregated comments received will be posted market activity of certain market without change; the Commission does participants who are aggressively not edit personal identifying buying and/or selling. information from submissions. You (b) Standard Charge. (1) 30-Day Free-Trial Offer. Nasdaq should submit only information that you wish to make publicly available. All shall offer all new and potential new Nasdaq Market Pathfinders subscribers a submissions should refer to File Number SR–ISE–2008–54 and should be 30-day waiver of the user fees for the service. This waiver may be provided submitted on or before August 7, 2008. only once to a specific new subscriber For the Commission, by the Division of or potential subscriber. Trading and Markets, pursuant to delegated (2) The following charges shall apply authority.9 to Nasdaq Market Pathfinders Florence E. Harmon, subscribers and to new subscribers after Acting Secretary. the conclusion of the 30-day waiver period: [FR Doc. E8–16363 Filed 7–16–08; 8:45 am] (A) Professional subscriber access to BILLING CODE 8010–01–P view and print the Web reports shall be available for a fee of $50/month; PO 00000 1 15 9 17 CFR 200.30–3(a)(12). Frm 00118 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\17JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 17JYN1

Agencies

[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Notices]
[Pages 41142-41143]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16363]



[[Page 41142]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58139; File No. SR-ISE-2008-54]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change and Amendment No. 2 Thereto Relating to Changes to the Fee 
Schedule

 July 10, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 30, 2008, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') 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 self-
regulatory organization. On July 9, 2008, the ISE filed Amendment No. 1 
to the proposed rule change. On July 9, 2008, the ISE withdrew 
Amendment No. 1 and filed Amendment No. 2 to the proposed rule change. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees to extend two 
fee waivers and to remove reference to two expiring fee pilots. The 
amendment also simplifies the fee schedule by imbedding the 
``comparison'' fee into the ``execution'' fee. The text of the proposed 
rule change is available at the Exchange, the Commission's Public 
Reference Room, and http://www.ise.com.

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 self-regulatory organization 
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. The self-regulatory organization 
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

    Purpose--The purpose of this proposed rule change is to extend the 
pilot fee waivers for Premium Products and Second Market options, adopt 
a new pilot fee waiver related to FX options, and remove reference to 
expiring pilot fee discounts. The Exchange also proposes to simplify 
the way in which certain current fees are stated in the fee schedule. 
These changes will be operative on July 1, 2008.
1. Pilot Extensions
    First, ISE currently waives most customer transaction fees, with 
such waiver scheduled to expire on June 30, 2008.\3\ In order to remain 
competitive in the market place, we propose to extend this waiver 
through June 30, 2009.
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    \3\ See Securities Exchange Act Release No. 56055 (June 12, 
2007), 72 FR 39648 (June 19, 2007) (SR-ISE-2007-52).
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    Second, pursuant to a pilot program, ISE offers a fee discount for 
certain orders of 7,500 contracts or more that are executed in the 
Exchange's Facilitation Mechanism.\4\ Specifically, ISE waives (1) the 
execution and comparison fee on incremental volume above 7,500 
contracts for Firm Proprietary orders, Non-ISE Market Maker orders, and 
Customer orders in Premium Products, and (2) the execution fee on 
incremental volume above 7,500 contracts for Customer orders in Second 
Market options.\5\ The number of contracts at or under the threshold 
are charged as per the Exchange's Schedule of Fees. ISE believes that 
extending a fee cap for large-sized orders executed in its Facilitation 
Mechanism will help strengthen its competitive position and encourage 
members to use the Exchange's Facilitation Mechanism.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 57129 (January 10, 
2008), 73 FR 2963 (January 16, 2008) (SR-ISE-2008-1).
    \5\ The Exchange notes that there is no comparison fee for 
orders in Second Market options.
---------------------------------------------------------------------------

    The current pilot program is set to expire on June 30, 2008. The 
Exchange proposes to extend the fee cap for another year, until June 
30, 2009.
    With regards to the two fee pilots that are being extended, the 
Exchange notes that it is making no substantive changes to the way the 
two fee pilots currently operate, other than to extend the date of 
operation through June 30, 2009.
2. New Pilot Fee Waiver for FX Options
    The Exchange proposes to adopt a fee cap for large-size foreign 
currency (``FX'') options orders. Specifically, the Exchange proposes, 
for a one-year pilot expiring on June 30, 2009, to waive the 
transaction fee on incremental volume above 5,000 for single-sized FX 
options orders of at least 5,000 contracts. The number of contracts at 
or under the threshold are charged the constituent's prescribed 
execution fee. This waiver is for both Public Customer orders and Firm 
Proprietary orders. The ISE believes that that this fee cap for large-
sized orders in FX options will encourage members to execute large-
sized orders on the Exchange.
3. Pilot Expirations
    The Exchange also proposes to amend its Schedule of Fees to remove 
from that schedule references to two pilot programs that will terminate 
on June 30, 2008 and that the Exchange is not extending. Pursuant to 
those pilots, the Exchange (1) capped and waived fees when a firm 
reached certain volume thresholds in options on the NASDAQ-100 Index 
Tracking Stock[supreg] (``QQQQ[supreg]'') and the iShares Russell 
2000[supreg] Index Fund (``IWM''), and (2) capped and waived fees for 
members that achieved certain threshold levels in the Exchange's 
Facilitation Mechanism. In light of the Exchange's increase market 
share in QQQQ and IWM and the level of trading in its Facilitation 
Mechanism, achieved in large part due to these fee pilot programs, ISE 
does not believe there is a need to continue to provide a fee discount 
as an incentive to members.
4. Consolidation of Execution and Comparison Fees
    Currently on the fee schedule, the Exchange separately itemizes 
execution fees and a comparison fee. The Exchange proposes to eliminate 
the comparison fee as a separate line item and instead imbed the fee 
into the execution fee. Historically, the Exchange has waived 
comparison fees in parallel with execution fees. Therefore, this change 
will not change the actual amount being charged to any members, but 
will simplify the fee schedule so that total transaction costs are more 
easily understood.
    Statutory Basis--The basis under the Act for this proposed rule 
change is the requirement under Section 6(b)(4) that an exchange have 
an equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities. The Exchange 
believes the fee changes proposed by this filing are reasonable in 
that, with regards to the fee waivers, the proposed rule change waives 
most fees for customer transactions and for certain

[[Page 41143]]

trades in FX Options; with regards to the fee pilot terminations, the 
Exchange believes there is no longer a need to provide an incentive to 
trade in those products or in the Exchange's Facilitation Mechanism; 
with regards to the fee consolidation, the proposed rule change will 
simplify the fee schedule. The Exchange notes that the fee changes are 
also equitably allocated in that they equally apply to all members of 
the Exchange.

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 rule change has become effective pursuant to Section 
19(b)(3) of the Act \6\ and Rule 19b-4(f)(2) \7\ thereunder because it 
establishes or changes a due, fee, or other charge imposed on members 
by ISE. 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\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 19b-4(f)(2).
    \8\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on July 9, 2008, the date on which the ISE submitted 
Amendment No. 2. See 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

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 Number SR-ISE-2008-54 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-2008-54. 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 publicly available. All 
submissions should refer to File Number SR-ISE-2008-54 and should be 
submitted on or before August 7, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16363 Filed 7-16-08; 8:45 am]
BILLING CODE 8010-01-P