Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Price Improvement Mechanism Pilot Program, 43810-43811 [E8-17121]

Download as PDF 43810 Federal Register / Vol. 73, No. 145 / Monday, July 28, 2008 / Notices organization consents, the Commission will: (A) By order approve such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments should be submitted on or before August 18, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Acting Secretary. [FR Doc. E8–17209 Filed 7–25–08; 8:45 am] 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: BILLING CODE 8010–01–P Electronic Comments Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Price Improvement Mechanism Pilot Program • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FINRA–2008–022 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58197; File No. SR–ISE– 2008–60] July 18, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Secretary, Securities and Exchange notice is hereby given that on July 17, Commission, 100 F Street, NE., 2008, the International Securities Washington, DC 20549–1090. Exchange, LLC (the ‘‘Exchange’’ or All submissions should refer to File ‘‘ISE’’) filed with the Securities and Number SR–FINRA–2008–022. This file Exchange Commission (‘‘Commission’’) number should be included on the the proposed rule change as described subject line if e-mail is used. To help the in Items I and II below, which Items Commission process and review your have been prepared by the ISE. The ISE comments more efficiently, please use has designated the proposed rule change only one method. The Commission will as a ‘‘non-controversial’’ rule change post all comments on the Commission’s pursuant to Section 19(b)(3)(A) of the Internet Web site (https://www.sec.gov/ Act 3 and Rule 19b–4(f)(6) thereunder,4 rules/sro.shtml). Copies of the which renders the proposed rule change submission, all subsequent effective upon filing with the amendments, all written statements Commission. The Commission is with respect to the proposed rule publishing this notice to solicit change that are filed with the comments on the proposed rule change Commission, and all written from interested persons. communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Commission and any person, other than Statement of the Terms of Substance of the Proposed Rule Change those that may be withheld from the public in accordance with the The Exchange is proposing to extend provisions of 5 U.S.C. 552, will be two pilot programs related to its Price available for inspection and copying in Improvement Mechanism (‘‘PIM’’). The the Commission’s Public Reference text of the proposed rule amendment is Room, 100 F Street, NE., Washington, as follows, with proposed deletions in DC 20549, on official business days [brackets], and proposed additions between the hours of 10 a.m. and 3 p.m. italicized: Copies of such filing also will be * * * * * available for inspection and copying at Rule 723. Price Improvement the principal office of FINRA. All Mechanism for Crossing Transactions comments received will be posted without change; the Commission does * * * * * not edit personal identifying information from submissions. You 10 17 CFR 200.30–3(a)(12). should submit only information that 1 15 U.S.C. 78s(b)(1). you wish to make available publicly. All 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). submissions should refer to File 4 17 CFR 240.19b–4(f)(6). Number SR–FINRA–2008–022 and jlentini on PROD1PC65 with NOTICES Paper Comments VerDate Aug<31>2005 18:35 Jul 25, 2008 Jkt 214001 PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 Supplementary Material to Rule 723 .01–.02 No Change. .03 Initially, and for at least a Pilot Period expiring on July 18, 2009 [2008], there will be no minimum size requirements for orders to be eligible for the Price Improvement Mechanism. During the Pilot Period, the Exchange will submit certain data, periodically as required by the Commission, to provide supporting evidence that, among other things, there is meaningful competition for all size orders within the Price Improvement Mechanism, that there is significant price improvement for all orders executed through the Price Improvement Mechanism, and that there is an active and liquid market functioning on the Exchange outside of the Price Improvement Mechanism. Any data which is submitted to the Commission will be provided on a confidential basis. .04 No Change. .05 Paragraphs (c)(5), (d)(5) and (d)(6) will be effective for a Pilot Period expiring on July 18, 2009 [2008]. During the Pilot Period, the Exchange will submit certain data relating to the frequency with which the exposure period is terminated by unrelated orders. Any data which is submitted to the Commission will be provided on a confidential basis. .06–.07 No Change. * * * * * 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 1. Purpose The Exchange currently has two pilot programs related to its PIM.5 The current pilot period provided in 5 See Securities Exchange Act Release Nos. 50819 (December 8, 2004), 69 FR 75093 (December 15, 2004) (approving the PIM Pilot (the ‘‘Approval Order’’)); 52027 (July 13, 2005), 70 FR 41804 (July 20, 2005) (Extending the PIM Pilot for an Additional Year). E:\FR\FM\28JYN1.SGM 28JYN1 Federal Register / Vol. 73, No. 145 / Monday, July 28, 2008 / Notices paragraphs .03 and .05 of the Supplementary Material to Rule 723 is set to expire on July 18, 2008.6 Paragraph .03 provides that there is no minimum size requirement for orders to be eligible for the Price Improvement Mechanism. Paragraph .05 concerns the termination of the exposure period by unrelated orders. In accordance with the Approval Order, the Exchange recently submitted certain data in support of extending the current pilot programs. The Exchange proposes to extend these pilot programs in their present form for an additional year, through July 18, 2009, to give the Exchange and the Commission additional time to evaluate the effects of these pilot programs before requesting permanent approval of the rules. To aid the Commission in its evaluation of the PIM Functionality, ISE represents that it will provide additional PIM-related data as requested. 2. Statutory Basis The basis under the Act for this proposed rule change is found in Section 6(b)(5),7 in that the proposed rule change is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. Since the Price Improvement Mechanism has been operating for a relatively short period of time, the Exchange believes it is appropriate to extend the pilot periods to provide the Exchange and Commission more data upon which to evaluate the rules. 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. jlentini on PROD1PC65 with NOTICES 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 written comments from members or other interested parties. 6 See Securities Exchange Act Release No. 56156 (July 27, 2007), 72 FR 43305 (August 3, 2007) (SR– ISE–2007–66). 7 15 U.S.C. 78f(b). VerDate Aug<31>2005 18:35 Jul 25, 2008 Jkt 214001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) by its terms does not become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and subparagraph (f)(6) of Rule 19b–4 thereunder.9 A proposed rule change filed under Rule 19b–4(f)(6) 10 normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The ISE requests that the Commission waive the 30-day operative delay, as specified in Rule 19b–4(f)(6)(iii),12 which would make the rule change operative upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver will allow the pilot periods to continue without interruption.13 Accordingly, the Commission designates the proposed rule change operative upon filing with the Commission.14 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and U.S.C. 78s(b)(3)A). CFR 240.19b–4(f)(6). 10 Id. 11 17 CFR 240.19b–4(f)(6)(iii). 12 Id. 13 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 14 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. PO 00000 8 15 9 17 Frm 00137 Fmt 4703 Sfmt 4703 43811 arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2008–60 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–2008–60. 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 Number SR–ISE–2008–60 and should be submitted on or before August 18, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Acting Secretary. [FR Doc. E8–17121 Filed 7–25–08; 8:45 am] BILLING CODE 8010–01–P 15 17 E:\FR\FM\28JYN1.SGM CFR 200.30–3(a)(12). 28JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 73, Number 145 (Monday, July 28, 2008)]
[Notices]
[Pages 43810-43811]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17121]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58197; File No. SR-ISE-2008-60]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to the Extension of the Price Improvement Mechanism 
Pilot Program

July 18, 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 July 17, 2008, the International Securities Exchange, LLC (the 
``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 prepared by the ISE. The 
ISE has designated the proposed rule change as a ``non-controversial'' 
rule change pursuant to Section 19(b)(3)(A) 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).
    \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 two pilot programs related to 
its Price Improvement Mechanism (``PIM''). The text of the proposed 
rule amendment is as follows, with proposed deletions in [brackets], 
and proposed additions italicized:
* * * * *

Rule 723. Price Improvement Mechanism for Crossing Transactions

* * * * *
Supplementary Material to Rule 723
    .01-.02 No Change.
    .03 Initially, and for at least a Pilot Period expiring on July 18, 
2009 [2008], there will be no minimum size requirements for orders to 
be eligible for the Price Improvement Mechanism. During the Pilot 
Period, the Exchange will submit certain data, periodically as required 
by the Commission, to provide supporting evidence that, among other 
things, there is meaningful competition for all size orders within the 
Price Improvement Mechanism, that there is significant price 
improvement for all orders executed through the Price Improvement 
Mechanism, and that there is an active and liquid market functioning on 
the Exchange outside of the Price Improvement Mechanism. Any data which 
is submitted to the Commission will be provided on a confidential 
basis.
    .04 No Change.
    .05 Paragraphs (c)(5), (d)(5) and (d)(6) will be effective for a 
Pilot Period expiring on July 18, 2009 [2008]. During the Pilot Period, 
the Exchange will submit certain data relating to the frequency with 
which the exposure period is terminated by unrelated orders. Any data 
which is submitted to the Commission will be provided on a confidential 
basis.
    .06-.07 No Change.
* * * * *

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

1. Purpose
    The Exchange currently has two pilot programs related to its 
PIM.\5\ The current pilot period provided in

[[Page 43811]]

paragraphs .03 and .05 of the Supplementary Material to Rule 723 is set 
to expire on July 18, 2008.\6\ Paragraph .03 provides that there is no 
minimum size requirement for orders to be eligible for the Price 
Improvement Mechanism. Paragraph .05 concerns the termination of the 
exposure period by unrelated orders. In accordance with the Approval 
Order, the Exchange recently submitted certain data in support of 
extending the current pilot programs. The Exchange proposes to extend 
these pilot programs in their present form for an additional year, 
through July 18, 2009, to give the Exchange and the Commission 
additional time to evaluate the effects of these pilot programs before 
requesting permanent approval of the rules. To aid the Commission in 
its evaluation of the PIM Functionality, ISE represents that it will 
provide additional PIM-related data as requested.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release Nos. 50819 (December 8, 
2004), 69 FR 75093 (December 15, 2004) (approving the PIM Pilot (the 
``Approval Order'')); 52027 (July 13, 2005), 70 FR 41804 (July 20, 
2005) (Extending the PIM Pilot for an Additional Year).
    \6\ See Securities Exchange Act Release No. 56156 (July 27, 
2007), 72 FR 43305 (August 3, 2007) (SR-ISE-2007-66).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is found in 
Section 6(b)(5),\7\ in that the proposed rule change is designed to 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanisms of a free and open market and a national 
market system and, in general, to protect investors and the public 
interest. Since the Price Improvement Mechanism has been operating for 
a relatively short period of time, the Exchange believes it is 
appropriate to extend the pilot periods to provide the Exchange and 
Commission more data upon which to evaluate the rules.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------

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 written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, it has become effective pursuant to Section 19(b)(3)(A) of 
the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
may not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The ISE requests that the Commission 
waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\12\ which would make the rule change operative upon 
filing. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest 
because such waiver will allow the pilot periods to continue without 
interruption.\13\ Accordingly, the Commission designates the proposed 
rule change operative upon filing with the Commission.\14\
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    \10\ Id.
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ Id.
    \13\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \14\ 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2008-60 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-2008-60. 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 Number SR-ISE-2008-60 and should be 
submitted on or before August 18, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-17121 Filed 7-25-08; 8:45 am]
BILLING CODE 8010-01-P

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