Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules Related to the Imposition of Fines for Minor Rule Violations, 46667-46668 [E8-18367]

Download as PDF Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 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–2008–027 and should be submitted on or before September 2, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Florence E. Harmon, Acting Secretary. [FR Doc. E8–18460 Filed 8–8–08; 8:45 am] BILLING CODE 8010–01–P [Release No. 34–58289; File No. SR–ISE– 2008–62] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules Related to the Imposition of Fines for Minor Rule Violations August 1, 2008. rmajette on PRODPC74 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to amend Rule 1614—Imposition of Fines for Minor Rule Violations to increase the summary fines for violations of Rule 412— Position Limits. The text of the proposed rule change is available at ISE, http://www.ise.com, and 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 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 SECURITIES AND EXCHANGE COMMISSION 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 30, 2008, the International Securities Exchange, LLC (‘‘ISE’’ or the ‘‘Exchange’’) 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 Exchange. The Exchange has CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. designated the proposed rule change as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1. Purpose The Exchange proposes to increase and strengthen the sanctions imposed pursuant to its Minor Rule Violation Plan (‘‘MRVP’’) in connection with any member or customer who exceeds the Exchange’s position limits in accordance with Exchange Rule 412. The Exchange believes that increasing the fine levels specified, consolidating individual members, member organizations, and customers into one category, and lengthening the surveillance period from a 12-month period to a rolling 24-month period will serve as an effective deterrent to such violative conduct. In addition, the Exchange, as a member of the Intermarket Surveillance Group (‘‘ISG’’), as well as certain other self-regulatory organizations (‘‘SROs’’) on October 29, 2007 executed and filed with the 16 17 1 15 VerDate Aug<31>2005 15:22 Aug 08, 2008 3 15 4 17 Jkt 214001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00086 Fmt 4703 Sfmt 4703 46667 Commission a final version of an Agreement pursuant to Section 17(d) of the Act (the ‘‘17d–2 Agreement’’).5 The members of the ISG intend to enter into an amendment to the 17d–2 Agreement in the near future concerning the surveillance and sanctions of position limit violations. As such, the SROs have agreed that their respective rules concerning position limits regarding options contracts are common rules. As a result, the proposal to amend the Exchange’s MRVP will further result in consistency in sanctions among the SROs that are signatories to the 17d–2 Agreement and the forthcoming amendment concerning position limit violations. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirement under Section 6(b) of the Act,6 in general, and furthers the objectives of Section 6(b)(5) of the Act,7 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, this proposed rule change will promote consistency in minor rule violations and respective SRO reporting obligations as set forth pursuant to Section 240.19d–1(c)(2) of the Act.8 B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change will 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 5 See Letter to Richard Holley, Division of Market Regulation, Securities and Exchange Commission from Nyieri Nazarian, Assistant General Counsel, American Stock Exchange, October 29, 2007. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). 8 17 CFR 240.19d–1(c)(2). E:\FR\FM\11AUN1.SGM 11AUN1 46668 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices comments from members or other interested parties. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6) thereunder 10 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 filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.11 The Exchange has asked the Commission to waive the 30-day operative delay and designate the proposed rule change as operative upon filing. The Commission hereby grants the Exchange’s request and believes that doing so is consistent with the protection of investors and the public interest.12 The Exchange’s proposed rule change is based on a similar proposal that was previously approved by the Commission 13 and does not raise any novel or significant issues. Therefore, the Commission designates the proposed rule change operative upon filing. At any time within 60 days of the filing of the 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. Electronic Comments [Release No. 34–58282; File No. SR– NASDAQ–2008–067] 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. 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6)(iii) requires the self-regulatory organization to give the Commission 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. ISE has satisfied this requirement. 12 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). 13 See Securities Exchange Act Release No. 58119 (July 8, 2008), 73 FR 40646 (July 15, 2008) (SR– CBOE–2008–53). rmajette on PRODPC74 with NOTICES 10 17 VerDate Aug<31>2005 15:22 Aug 08, 2008 Jkt 214001 • 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–2008–62 on the subject line. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Letters of Guarantee for Options Participants August 1, 2008. Paper Comments 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 29, 2008, The NASDAQ Stock Market LLC (‘‘Nasdaq’’) filed with the Securities and All submissions should refer to File Exchange Commission (‘‘Commission’’) Number SR–ISE–2008–62. This file the proposed rule change as described number should be included on the in Items I, II, and III below, which Items subject line if e-mail is used. To help the have been prepared by Nasdaq. Nasdaq Commission process and review your has designated the proposed rule change comments more efficiently, please use as constituting a non-controversial rule only one method. The Commission will change under Rule 19b–4(f)(6) under the post all comments on the Commission’s Act,3 which renders the proposal Internet Web site (http://www.sec.gov/ effective upon filing with the rules/sro.shtml). Copies of the Commission. The Commission is submission, all subsequent publishing this notice to solicit amendments, all written statements comments on the proposed rule change with respect to the proposed rule from interested persons. change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of the Substance communications relating to the of the Proposed Rule Change proposed rule change between the Commission and any person, other than Nasdaq is filing a proposed rule those that may be withheld from the change for the NASDAQ Options Market public in accordance with the (‘‘NOM’’) to modify Chapter VII, Section provisions of 5 U.S.C. 552, will be 8 of its options rules to require Letters available for inspection and copying in of Guarantee for each options the Commission’s Public Reference participant, rather than each market Room, 100 F Street, NE., Washington, maker. DC 20549, on official business days The text of the proposed rule change between the hours of 10 a.m. and 3 p.m. is below. Proposed new language is in Copies of such filing also will be italics; proposed deletions are in brackets.4 available for inspection and copying at the principal office of the Exchange. All * * * * * comments received will be posted Chapter VII Market Participants without change; the Commission does not edit personal identifying * * * * * information from submissions. You Sec. 8 Letters of Guarantee should submit only information that (a) Required of Each Options you wish to make publicly available. All Participant [Market Maker]. No Options submissions should refer to File Number SR–ISE–2008–62 and should be Participant [Market Maker] shall make any transactions on NOM unless a Letter submitted on or before September 2, of Guarantee has been issued for such 2008. Participant by a Clearing Participant and For the Commission, by the Division of filed with Nasdaq Regulation, and Trading and Markets, pursuant to delegated unless such Letter of Guarantee has not 14 • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. authority. Florence E. Harmon, Acting Secretary. [FR Doc. E8–18367 Filed 8–8–08; 8:45 am] BILLING CODE 8010–01–P 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00087 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 Changes are marked to the rule text that appears in the electronic manual of The NASDAQ Stock Market, LLC found at http:// nasdaq.cchwallstreet.com/. 2 17 E:\FR\FM\11AUN1.SGM 11AUN1

Agencies

[Federal Register Volume 73, Number 155 (Monday, August 11, 2008)]
[Notices]
[Pages 46667-46668]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18367]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58289; File No. SR-ISE-2008-62]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change To Amend Exchange Rules Related to the Imposition of Fines for 
Minor Rule Violations

August 1, 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 30, 2008, the International Securities Exchange, LLC (``ISE'' 
or the ``Exchange'') 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 Exchange. The Exchange 
has designated the proposed rule change as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \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 ISE proposes to amend Rule 1614--Imposition of Fines for Minor 
Rule Violations to increase the summary fines for violations of Rule 
412--Position Limits. The text of the proposed rule change is available 
at ISE, http://www.ise.com, and 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 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 proposes to increase and strengthen the sanctions 
imposed pursuant to its Minor Rule Violation Plan (``MRVP'') in 
connection with any member or customer who exceeds the Exchange's 
position limits in accordance with Exchange Rule 412. The Exchange 
believes that increasing the fine levels specified, consolidating 
individual members, member organizations, and customers into one 
category, and lengthening the surveillance period from a 12-month 
period to a rolling 24-month period will serve as an effective 
deterrent to such violative conduct. In addition, the Exchange, as a 
member of the Intermarket Surveillance Group (``ISG''), as well as 
certain other self-regulatory organizations (``SROs'') on October 29, 
2007 executed and filed with the Commission a final version of an 
Agreement pursuant to Section 17(d) of the Act (the ``17d-2 
Agreement'').\5\ The members of the ISG intend to enter into an 
amendment to the 17d-2 Agreement in the near future concerning the 
surveillance and sanctions of position limit violations. As such, the 
SROs have agreed that their respective rules concerning position limits 
regarding options contracts are common rules. As a result, the proposal 
to amend the Exchange's MRVP will further result in consistency in 
sanctions among the SROs that are signatories to the 17d-2 Agreement 
and the forthcoming amendment concerning position limit violations.
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    \5\ See Letter to Richard Holley, Division of Market Regulation, 
Securities and Exchange Commission from Nyieri Nazarian, Assistant 
General Counsel, American Stock Exchange, October 29, 2007.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirement under Section 6(b) of the Act,\6\ in general, and 
furthers the objectives of Section 6(b)(5) of the Act,\7\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and to protect investors and the public interest 
in that it is designed to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest. Additionally, this proposed 
rule change will promote consistency in minor rule violations and 
respective SRO reporting obligations as set forth pursuant to Section 
240.19d-1(c)(2) of the Act.\8\
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 17 CFR 240.19d-1(c)(2).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will 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

[[Page 46668]]

comments from members or other interested parties.

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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder \10\ 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 filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest.\11\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission 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. ISE has satisfied this requirement.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay and designate the proposed rule change as operative upon filing. 
The Commission hereby grants the Exchange's request and believes that 
doing so is consistent with the protection of investors and the public 
interest.\12\ The Exchange's proposed rule change is based on a similar 
proposal that was previously approved by the Commission \13\ and does 
not raise any novel or significant issues. Therefore, the Commission 
designates the proposed rule change operative upon filing.
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    \12\ 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).
    \13\ See Securities Exchange Act Release No. 58119 (July 8, 
2008), 73 FR 40646 (July 15, 2008) (SR-CBOE-2008-53).
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    At any time within 60 days of the filing of the 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2008-62 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, Station Place, 100 F Street, NE., Washington, 
DC 20549-1090.

    All submissions should refer to File Number SR-ISE-2008-62. 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-2008-62 and should be 
submitted on or before September 2, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-18367 Filed 8-8-08; 8:45 am]
BILLING CODE 8010-01-P