Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Non-Customer Options Orders, 45260-45262 [E8-17762]
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Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
of Section 15A(b)(6) of the Act,6 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change would eliminate
duplicative and unnecessary rules and
advance the development of a more
efficient and effective Consolidated
FINRA Rulebook.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will impose any
burden on competition 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
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
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
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:
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–FINRA–2008–029. 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 FINRA. 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–FINRA–2008–029 and
should be submitted on or before
August 25, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17788 Filed 8–1–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58237; File No. SR–ISE–
2008–61]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Non-Customer
Options Orders
July 29, 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 July 23,
2008, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by ISE. The
Exchange has filed the proposal 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 it 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 proposes to amend its
rules regarding non-customer options
orders. The text of the proposed rule
change is as follows, with deletions in
[brackets] and additions in italics:
Rule 717. Limitations on Orders
(a) Reserved. [Market Orders and
Marketable Limit Orders.
Electronic Access Members shall not
enter into the System, as principal or
agent, Non-Customer market orders.
Non-Customer limit orders that cross
the market and that cannot be executed
within two (2) minimum variations
below the best bid or above the best
offer cannot be executed on the
Exchange. Such limit orders will be
canceled by the System.]
(b) through (g) no change.
pwalker on PROD1PC71 with NOTICES
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–FINRA–2008–029 on the
subject line.
Supplemental Material to Rule 717
.01 through .02 no change.
*
*
*
*
*
Rule 805. Market Maker Orders
(a) Options Classes to Which
Appointed. Market makers may not
6 15
U.S.C. 78o–3(b)(6).
VerDate Aug<31>2005
16:50 Aug 01, 2008
1 15
7 17
Jkt 214001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
place principal orders to buy or sell
options in the options classes to which
they are appointed under Rule 802,
other than immediate-or-cancel orders,
market orders, fill-or-kill orders,
complex orders and block-size orders
executed through the Block Order
Mechanism pursuant to Rule 716(c).
Competitive Market Makers shall
comply with the provisions of Rule
804(e)(2)(ii) upon the entry of such
orders if they were not previously
quoting in the series.
(b) 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.
pwalker on PROD1PC71 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
ISE proposes to amend its rules
regarding non-customer options orders.
ISE rules currently prohibit members
from entering non-customer market
orders and non-customer limit orders
that cross the market and that cannot be
executed within two minimum
variations below the best bid or above
the best offer. This limitation on noncustomer trading was included in the
ISE rules at the time ISE was launched.
Specifically, in support of this
limitation, in its Form 1 application
seeking registration as a national
securities exchange, ISE represented
that, in an electronic market, noncustomer market orders have the
potential to create market volatility by
trading at different price levels until
their order is fully executed. ISE further
noted that, without this limitation, noncustomers would be able to use largesize orders to quickly take out ISE’s
entire order book without giving other
market participants an opportunity to
react.5 Also, at the time this restriction
5 See Securities Exchange Act Release No. 42455
(February 24, 2000), 65 FR 11388 (March 2, 2000)
(File No. 10–127) (In the Matter of the Application
of The International Securities Exchange LLC for
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
was adopted, there were various
limitations imposed on non-customer
trading. For example, displayed quotes
were firm only for public customer
orders. Since that time, electronic
options trading has evolved. With the
adoption of trade-through protection
under the intermarket linkage, every
order must be executed at the best
quoted price. Further, ISE has also
removed restrictions on non-customer
trading. For example, Electronic Access
Members (‘‘EAMs’’) may now submit
non-customer limit orders regardless of
the size of the order where previously
EAMs were prohibited from submitting
orders for non-customers that caused
ISE’s best bid and offer to be for less
than 10 contracts.6 The Exchange does
not believe there is any reason to
maintain the current restriction on noncustomer market and marketable limit
orders, and therefore proposes to delete
Rule 717(a) in its entirety.
The Exchange also proposes to clarify
in Rule 805(a) that market makers may
enter market orders and fill-or-kill
orders in the options classes to which
they are appointed. The limitation on
the types of orders market makers can
enter in their appointed classes is
intended to prevent market makers from
having both standing limit orders and
quotes in the same options class, which
is why the rule specifically allows
immediate-or-cancel orders. Like
immediate-or-cancel orders, fill-or-kill
orders and market orders are either
filled immediately or automatically
cancelled.7 Therefore, the Exchange
believes that allowing ISE market
makers to utilize these orders types is
consistent with the Exchange’s practice
of not allowing market makers to have
both standing limit orders and quotes in
the same options class.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange and, in particular,
Registration as a National Securities Exchange;
Findings and Opinion of the Commission).
6 See Securities Exchange Act Release No. 49602
(April 22, 2004), 69 FR 23841 (April 30, 2004) (SR–
ISE–2003–26).
7 ISE Rule 715 (Types of Orders) defines a fill-orkill order as a limit order that is to be executed in
its entirety as soon as it is received and, if not so
executed, treated as cancelled. A market order is
defined in Rule 715 as an order to buy or sell a
stated number of options contracts that is to be
executed at the best price obtainable when the order
reaches the Exchange. Pursuant to ISE Rule 714,
incoming non-customer orders (which includes fillor-kill and market orders entered by market makers)
that cannot be automatically executed on ISE
because there is a better price on another options
exchange are automatically rejected.
PO 00000
Frm 00057
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45261
the requirements of Section 6(b) of the
Act.8 Specifically, the Exchange
believes the proposed rule change is
consistent with Section 6(b)(5) of the
Act’s 9 requirements that the rules of a
national securities exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest. In particular, the
proposed rule change will permit
members to enter non-customer market
orders and non-customer limit orders
and thus, enable the Exchange to
compete effectively with other options
exchanges who do not have a similar
restriction.
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
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
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
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 satisfied the fiveday pre-filing notice requirement.
9 15
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45262
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17762 Filed 8–1–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58235; File No. SR–NYSE–
2008–59]
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–2008–61 on the subject
line.
Self-Regulatory Organizations; New
York Stock Exchange, LLC; Notice of
Filing of Proposed Rule Change To
Reduce the Period Within Which
Companies Must Issue a Press
Release After the Exchange Notifies
Them That They Are Noncompliant
With Exchange Listing Requirements
Paper Comments
July 28, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on July 22, 2008, New York Stock
Exchange, LLC (the ‘‘NYSE’’ or the
All submissions should refer to File
‘‘Exchange’’) filed with the Securities
Number SR–ISE–2008–61. This file
and Exchange Commission (the
number should be included on the
‘‘Commission’’ or ‘‘SEC’’) the proposed
subject line if e-mail is used. To help the rule change as described in Items I, II,
Commission process and review your
and III below, which Items have been
comments more efficiently, please use
prepared by the Exchange. 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 (https://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
The Exchange proposes to amend
change that are filed with the
Sections 802.02 and 802.03 of the
Commission, and all written
Exchange’s Listed Company Manual
communications relating to the
(the ‘‘Manual’’) to provide that the
proposed rule change between the
Commission and any person, other than Exchange will require a U.S. company,
upon receiving written notification that
those that may be withheld from the
it has fallen below the Exchange’s
public in accordance with the
listing standards, to issue a press release
provisions of 5 U.S.C. 552, will be
within the same amount of time as
available for inspection and copying in
allotted by the SEC for the company to
the Commission’s Public Reference
disclose such an occurrence, but in no
Room, 100 F Street, NE., Washington,
event later than four business days after
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. receipt of such notification, and will
Copies of the filing also will be available require a non-U.S. company to issue a
press release within 30 days of receiving
for inspection and copying at the
written notification from the Exchange
principal office of ISE. All comments
received will be posted without change; that it has fallen below the Exchange’s
listing standards. The text of the
the Commission does not edit personal
proposed rule change is available at
identifying information from
https://www.nyse.com, the NYSE, and
submissions. You should submit only
the Commission’s Public Reference
information that you wish to make
Room.
available publicly. All submissions
should refer to File Number SR–ISE–
12 17 CFR 200.30–3(a)(12).
2008–61 and should be submitted on or
1 15 U.S.C. 78s(b)(1).
before August 25, 2008.
2 17 CFR 240.19b–4.
pwalker on PROD1PC71 with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
PO 00000
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
NYSE 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 proposes to amend
Sections 802.02 and 802.03 of the
Manual to provide that the Exchange
will require a U.S. company, upon
receipt of written notification that it has
fallen below the Exchange’s listing
standards, issue a press release within
the amount of time allotted by the SEC
for companies to disclose such an
occurrence. The Exchange will also
require a non-U.S. company to issue a
press release within 30 days of receiving
written notification that it has fallen
below the Exchange’s listing standard.
Currently, Section 802.02 of the
Manual requires a U.S. company to
issue a press release within 45 days of
receiving written notification from the
Exchange that it has fallen below the
Exchange’s listing standards. However,
SEC rules require the company to file a
Form 8–K giving notice of that event
within four business days of being
notified by the Exchange.3 The
Exchange believes that its own
requirement is too long in light of the
much earlier public notice required by
the Form 8–K rule and that it is
appropriate for the Exchange to issue a
press release on the subject itself if the
company has not acted within the
period provided by Form 8–K and in
any event no later than four business
days after receipt of notification from
the Exchange. The Exchange notes that
companies that are incorporated in
jurisdictions outside the United States
but that do not qualify as foreign private
3 Item 3.01 of Form 8–K requires a registrant to
file a Form 8–K within four business days of receipt
of notice from the national securities exchange that
maintains the principal listing for any class of the
registrant’s common equity that the registrant or
such class of the registrant’s securities does not
satisfy a rule or standard for continued listing on
the exchange.
E:\FR\FM\04AUN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 150 (Monday, August 4, 2008)]
[Notices]
[Pages 45260-45262]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17762]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58237; File No. SR-ISE-2008-61]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Non-Customer Options Orders
July 29, 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 July 23, 2008, the International Securities Exchange, LLC (``ISE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by ISE. The Exchange has
filed the proposal 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 it 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules regarding non-customer
options orders. The text of the proposed rule change is as follows,
with deletions in [brackets] and additions in italics:
Rule 717. Limitations on Orders
(a) Reserved. [Market Orders and Marketable Limit Orders.
Electronic Access Members shall not enter into the System, as
principal or agent, Non-Customer market orders. Non-Customer limit
orders that cross the market and that cannot be executed within two (2)
minimum variations below the best bid or above the best offer cannot be
executed on the Exchange. Such limit orders will be canceled by the
System.]
(b) through (g) no change.
Supplemental Material to Rule 717
.01 through .02 no change.
* * * * *
Rule 805. Market Maker Orders
(a) Options Classes to Which Appointed. Market makers may not
[[Page 45261]]
place principal orders to buy or sell options in the options classes to
which they are appointed under Rule 802, other than immediate-or-cancel
orders, market orders, fill-or-kill orders, complex orders and block-
size orders executed through the Block Order Mechanism pursuant to Rule
716(c). Competitive Market Makers shall comply with the provisions of
Rule 804(e)(2)(ii) upon the entry of such orders if they were not
previously quoting in the series.
(b) 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
ISE proposes to amend its rules regarding non-customer options
orders. ISE rules currently prohibit members from entering non-customer
market orders and non-customer limit orders that cross the market and
that cannot be executed within two minimum variations below the best
bid or above the best offer. This limitation on non-customer trading
was included in the ISE rules at the time ISE was launched.
Specifically, in support of this limitation, in its Form 1 application
seeking registration as a national securities exchange, ISE represented
that, in an electronic market, non-customer market orders have the
potential to create market volatility by trading at different price
levels until their order is fully executed. ISE further noted that,
without this limitation, non-customers would be able to use large-size
orders to quickly take out ISE's entire order book without giving other
market participants an opportunity to react.\5\ Also, at the time this
restriction was adopted, there were various limitations imposed on non-
customer trading. For example, displayed quotes were firm only for
public customer orders. Since that time, electronic options trading has
evolved. With the adoption of trade-through protection under the
intermarket linkage, every order must be executed at the best quoted
price. Further, ISE has also removed restrictions on non-customer
trading. For example, Electronic Access Members (``EAMs'') may now
submit non-customer limit orders regardless of the size of the order
where previously EAMs were prohibited from submitting orders for non-
customers that caused ISE's best bid and offer to be for less than 10
contracts.\6\ The Exchange does not believe there is any reason to
maintain the current restriction on non-customer market and marketable
limit orders, and therefore proposes to delete Rule 717(a) in its
entirety.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 42455 (February 24,
2000), 65 FR 11388 (March 2, 2000) (File No. 10-127) (In the Matter
of the Application of The International Securities Exchange LLC for
Registration as a National Securities Exchange; Findings and Opinion
of the Commission).
\6\ See Securities Exchange Act Release No. 49602 (April 22,
2004), 69 FR 23841 (April 30, 2004) (SR-ISE-2003-26).
---------------------------------------------------------------------------
The Exchange also proposes to clarify in Rule 805(a) that market
makers may enter market orders and fill-or-kill orders in the options
classes to which they are appointed. The limitation on the types of
orders market makers can enter in their appointed classes is intended
to prevent market makers from having both standing limit orders and
quotes in the same options class, which is why the rule specifically
allows immediate-or-cancel orders. Like immediate-or-cancel orders,
fill-or-kill orders and market orders are either filled immediately or
automatically cancelled.\7\ Therefore, the Exchange believes that
allowing ISE market makers to utilize these orders types is consistent
with the Exchange's practice of not allowing market makers to have both
standing limit orders and quotes in the same options class.
---------------------------------------------------------------------------
\7\ ISE Rule 715 (Types of Orders) defines a fill-or-kill order
as a limit order that is to be executed in its entirety as soon as
it is received and, if not so executed, treated as cancelled. A
market order is defined in Rule 715 as an order to buy or sell a
stated number of options contracts that is to be executed at the
best price obtainable when the order reaches the Exchange. Pursuant
to ISE Rule 714, incoming non-customer orders (which includes fill-
or-kill and market orders entered by market makers) that cannot be
automatically executed on ISE because there is a better price on
another options exchange are automatically rejected.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\8\ Specifically, the Exchange believes the
proposed rule change is consistent with Section 6(b)(5) of the Act's
\9\ requirements that the rules of a national securities exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts and, in general, to protect investors
and the public interest. In particular, the proposed rule change will
permit members to enter non-customer market orders and non-customer
limit orders and thus, enable the Exchange to compete effectively with
other options exchanges who do not have a similar restriction.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires that a self-regulatory organization submit to the
Commission 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 satisfied the five-day pre-filing
notice requirement.
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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
[[Page 45262]]
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-2008-61 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-2008-61. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of ISE. 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-2008-61 and should be
submitted on or before August 25, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-17762 Filed 8-1-08; 8:45 am]
BILLING CODE 8010-01-P
