Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 50848-50850 [E8-19985]

Download as PDF 50848 Federal Register / Vol. 73, No. 168 / Thursday, August 28, 2008 / Notices 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. jlentini on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has designated the proposed rule change as one that: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. Additionally, the Exchange provided the Commission with written notice of its intention to file the proposed rule change at least five business days before its filing. Therefore, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 14 and Rule 19b–4(f)(6) thereunder.15 A proposed rule change filed under Rule 19b–4(f)(6) under the Act normally may not become operative prior to 30 days after the date of filing. However, Rule 19b–4(f)(6)(iii) under the Act 16 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay, which would make the rule change effective and operative upon filing. The Exchange believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the Exchange to continue to list options on the EEM Fund. For this reason, the Commission designates that the proposed rule change has become effective and operative immediately.17 14 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 16 17 CFR 240.19b–4(f)(6)(iii). 17 For purposes only of waiving the operative delay for this proposal, the Commission has 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2008–66 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–2008–66. 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 15 17 VerDate Aug<31>2005 17:36 Aug 27, 2008 Jkt 214001 information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–ISE–2008–66 and should be submitted on or before September 18, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Florence E. Harmon, Acting Secretary. [FR Doc. E8–19943 Filed 8–27–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Release No. 34–58411; File No. SR–ISE– 2008–65] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes August 22, 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 August 12, 2008, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and Exchange Commission the proposed rule change, as described in Items I, II, and III below, which items have been prepared by the self-regulatory organization. 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 ISE is proposing to amend its Schedule of Fees to establish fees for transactions in options on 12 Premium Products.3 The text of the proposed rule change is available at the Exchange. 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 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Premium Product is defined in the Schedule of Fees as the products enumerated therein. 1 15 considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\28AUN1.SGM 28AUN1 Federal Register / Vol. 73, No. 168 / Thursday, August 28, 2008 / Notices 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. jlentini on PROD1PC65 with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose—The Exchange is proposing to amend its Schedule of Fees to establish fees for transactions in options on the iShares DJ U.S. Financial Sector Index Fund (‘‘IYF’’),4 the Market Vectors Coal ETF (‘‘KOL’’),5 the SPDR KBW Regional Banking ETF (‘‘KRE’’),6 4 iShares is a registered trademark of Barclays Global Investors, N.A. (‘‘BGI’’), a wholly owned subsidiary of Barclays Bank PLC. ‘‘Dow Jones’’ and ‘‘Dow Jones U.S. Financial Sector Index Fund’’ are service marks of Dow Jones & Company, Inc. (‘‘Dow Jones’’) and have been licensed for use for certain purposes by BGI. All other trademarks and service marks are the property of their respective owners. The Dow Jones U.S. Financial Sector Index Fund (‘‘IYF’’) is not sponsored, endorsed, issued, sold or promoted by Dow Jones. BGI and Dow Jones have not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on IYF or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on IYF or with making disclosures concerning options on IYF under any applicable federal or state laws, rules or regulations. BGI and Dow Jones do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. 5 The Market Vectors Coal ETF (‘‘KOL’’) is distributed by Van Eck Securities Corporation (‘‘VESC’’) and tracks the Stowe Coal IndexSM, which is published by Stowe Global Indexes LLC (‘‘Stowe’’). VESC has entered into a licensing agreement with Stowe to use the Stowe Coal Index in connection with KOL. Van Eck Associates Corporation (‘‘VEAC’’) is the investment adviser to KOL. Stowe’s only relationship with VEAC is the licensing of certain service marks and trade names of Stowe and of the Stowe Coal Index. Stowe does not sponsor, endorse, or promote KOL and makes no representation regarding the advisability of investing in KOL. Neither VESC nor VEAC has licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on KOL or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on KOL or with making disclosures concerning options on KOL under any applicable federal or state laws, rules or regulations. Neither VESC nor VEAC sponsors, endorses, or promotes such activity by ISE, and are not affiliated in any manner with ISE. 6 ‘‘SPDR’’ is a trademark of the The McGraw-Hill Companies, Inc (‘‘McGraw-Hill’’). The ‘‘KBW Regional Bank IndexSM’’ and ‘‘Keefe, Bruyette & WoodsSM’’ are service marks and the property of Keefe, Bruyette & Woods, Inc. (‘‘KBW’’). KBW’s only relationship to State Street Bank and Trust Company is the licensing of certain trademarks and tradenames of KBW and the KBW Regional Banking Index in connection with the listing and trading of the KBW Regional Banking ETF (‘‘KRE’’) on the American Stock Exchange. KRE is not sponsored, sold or endorsed by KBW or McGraw-Hill and neither KBW nor McGraw-Hill makes any VerDate Aug<31>2005 17:36 Aug 27, 2008 Jkt 214001 the Ultra Oil & Gas ProShares Trust (‘‘DIG’’), the UltraShort Real Estate ProShares Trust (‘‘SRS’’), the UltraShort Basic Materials ProShares Trust (‘‘SMN’’),7 the Vanguard Materials ETF (‘‘VAW’’), the Vanguard REIT ETF (‘‘VNQ’’), the Vanguard Growth ETF (‘‘VUG’’), the Vanguard Europe Pacific ETF (‘‘VEA’’), the Vanguard Emerging Markets ETF (‘‘VWO’’) 8 and the Regional Bank HOLDRs Trust (‘‘RKH’’).9 representation regarding the advisability of investing in KRE. Neither KBW nor McGraw-Hill has licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on KRE or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on KRE or with making disclosures concerning options on KRE under any applicable federal or state laws, rules or regulations. Neither KBW nor McGraw-Hill sponsors, endorses, or promotes such activity by ISE and are not affiliated in any manner with ISE. 7 ‘‘Dow Jones’’, ‘‘Dow Jones U.S. Oil & GasSM’’, ‘‘Dow Jones U.S. Basic MaterialsSM’’, and ‘‘Dow Jones U.S. Real EstateSM’’ are service marks of Dow Jones & Company, Inc. (‘‘Dow Jones’’) and have been licensed for use for certain purposes by ProFunds Trust. All other trademarks and service marks are the property of their respective owners. The Ultra Oil & Gas ProShares (‘‘DIG’’), the UltraShort Real Estate ProShares (‘‘SRS’’), and the UltraShort Basic Materials ProShares (‘‘SMN’’) are not sponsored, endorsed, issued, sold or promoted by Dow Jones. Dow Jones has not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on DIG, SRS and SMN or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on DIG, SRS and SMN or with making disclosures concerning options on DIG, SRS and SMN under any applicable federal or state laws, rules or regulations. Dow Jones does not sponsor, endorse, or promote such activity by ISE and is not affiliated in any manner with ISE. 8 Vanguard, Vanguard ETFs and Vanguard ETF are trademarks of The Vanguard Group, Inc. (‘‘Vanguard’’). All other marks are the exclusive property of their respective owners. The Vanguard Materials ETF (‘‘VAW’’) tracks the Morgan Stanley Capital International (MSCI) U.S. Investable Market Materials Index. The Vanguard REIT ETF (‘‘VNQ’’) tracks the MSCI U.S. REIT Index. The Vanguard Growth ETF (‘‘VUG’’) tracks the MSCI U.S. Prime Market Growth Index. The Vanguard Europe Pacific ETF (‘‘VEA’’) tracks the MSCI Europe, Australasia, Far East Index. The Vanguard Emerging Markets ETF (‘‘VWO’’) tracks the MSCI Emerging Markets Index. MSCI does not sponsor, endorse, or promote VAW, VNQ, VUG, VEA and VWO and makes no representation regarding the advisability of investing in VAW, VNQ, VUG, VEA and VWO. Vanguard has not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on VAW, VNQ, VUG, VEA and VWO or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on VAW, VNQ, VUG, VEA and VWO or with making disclosures concerning options on VAW, VNQ, VUG, VEA and VWO under any applicable federal or state laws, rules or regulations. Vanguard does not sponsor, endorse, or promote such activity by ISE, and is not affiliated in any manner with ISE. 9 The Regional Bank HOLDRSSM Trust (‘‘RKH’’) issues Depositary Receipts called Regional bank PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 50849 The Exchange represents that IYF, KOL, KRE, DIG, SRS, SMN, VAW, VNQ, VUG, VEA, VWO and RKH are eligible for options trading because they constitute ‘‘Exchange-Traded Fund Share,’’ [sic] as defined by ISE Rule 502(h). All of the applicable fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. Specifically, the Exchange is proposing to adopt an execution fee for all transactions in options on IYF, KOL, KRE, DIG, SRS, SMN, VAW, VNQ, VUG, VEA, VWO and RKH.10 The amount of the execution fee for products covered by this filing shall be $0.18 per contract for all Public Customer Orders 11 and Firm Proprietary orders. The amount of the execution fee for all ISE Market Maker transactions shall be equal to the execution fee currently charged by the Exchange for ISE Market Maker transactions in equity options.12 Finally, the amount of the execution fee for all non-ISE Market Maker transactions shall be $0.45 per contract.13 Further, since options on IYF, KOL, KRE, DIG, SRS, SMN, VAW, VNQ, VUG, VEA, VWO and RKH are multiply-listed, the Exchange’s Payment for Order Flow fee shall apply to all these products. The HOLDRSSM representing undivided beneficial ownership in the U.S.-traded common stock of a group of specified companies that, among other things, are involved in various segments of the regional banking industry. ‘‘HOLDRS’’ and ‘‘HOLding Company Depositary ReceiptS’’ are service marks of Merrill Lynch & Co., Inc. (‘‘Merrill Lynch’’). All other trademarks and service marks are the property of their respective owners. Merrill Lynch has not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on RKH or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on RKH or with making disclosures concerning options on RKH under any applicable federal or state laws, rules or regulations. Merrill Lynch does not sponsor, endorse, or promote such activity by ISE, and is not affiliated in any manner with ISE. 10 These fees will be charged only to Exchange members. Under a pilot program that is set to expire on July 31, 2009, these fees will also be charged to Linkage Principal Orders (‘‘Linkage P Orders’’) and Linkage Principal Acting as Agent Orders (‘‘Linkage P/A Orders’’). The amount of the execution fee charged by the Exchange for Linkage P Orders and Linkage P/A Orders is $0.24 per contract side and $0.15 per contract side, respectively. See Securities Exchange Act Release No. 58143 (July 11, 2008), 73 FR 41388 (July 18, 2008) (SR–ISE–2008–52). 11 Public Customer Order is defined in Exchange Rule 100(a)(39) as an order for the account of a Public Customer. Public Customer is defined in Exchange Rule 100(a)(38) as a person or entity that is not a broker or dealer in securities. 12 The Exchange applies a sliding scale, between $0.01 and $0.18 per contract side, based on the number of contracts an ISE market maker trades in a month. 13 The amount of the execution fee for non-ISE Market Maker transactions executed in the Exchange’s Facilitation and Solicitation Mechanisms is $0.19 per contract. E:\FR\FM\28AUN1.SGM 28AUN1 50850 Federal Register / Vol. 73, No. 168 / Thursday, August 28, 2008 / Notices Exchange believes the proposed rule change will further the Exchange’s goal of introducing new products to the marketplace that are competitively priced. (b) Basis—The Exchange believes that the proposed rule change is consistent with the objectives of section 6 of the Act,14 in general, and furthers the objectives of section 6(b)(4),15 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. 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 16 and Rule 19b–4(f)(2) 17 thereunder. 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. jlentini on PROD1PC65 with NOTICES 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: Number SR–ISE–2008–65 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–2008–65. 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 will also be available for inspection and copying at the principal office of the self-regulatory organization. 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– 2008–65 and should be submitted on or before September 18, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Florence E. Harmon, Acting Secretary. [FR Doc. E8–19985 Filed 8–27–08; 8:45 am] BILLING CODE 8010–01–P 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 14 15 U.S.C. 78f. U.S.C. 78f(b)(4). 16 15 U.S.C. 78s(b)(3)(A). 17 17 CFR 19b–4(f)(2). 15 15 VerDate Aug<31>2005 17:36 Aug 27, 2008 18 17 Jkt 214001 PO 00000 CFR 200.30–3(a)(12). Frm 00095 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58406; File No. SR–MSRB– 2008–06] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 51 Examination Program August 21, 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 August 18, 2008, the Municipal Securities Rulemaking Board (‘‘MSRB’’ or ‘‘Board’’), filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the MSRB. The MSRB has designated the proposed rule change as constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule of the self-regulatory organization pursuant to Section 19(b)(3)(A)(i) of the Act,3 and Rule 19b– 4(f)(1) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The MSRB is filing with the Commission revisions to the study outline and selection specifications for the Municipal Fund Securities Limited Principal Qualification Examination (Series 51) program.5 The proposed revisions consolidate certain job responsibilities (such as the recordkeeping functions) and regroup others in order to allow more detailed testing of particular rule requirements. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). 5 The MSRB is also proposing corresponding revisions to the Series 51 question bank, but based upon instructions from the Commission staff, the MSRB is submitting SR–MSRB–2008–06 for immediate effectiveness pursuant to Section 19(b)(3)(A)(i) of the Act and Rule 19b–4(f)(1) thereunder, and is not filing the question bank for Commission review. See letter to Diane G. Klinke, General Counsel, MSRB, from Belinda Blaine, Associate Director, Division of Market Regulation, SEC, dated July 24, 2000. The question bank is available for Commission review. 2 17 E:\FR\FM\28AUN1.SGM 28AUN1

Agencies

[Federal Register Volume 73, Number 168 (Thursday, August 28, 2008)]
[Notices]
[Pages 50848-50850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19985]


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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-58411; File No. SR-ISE-2008-65]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fee Changes

August 22, 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 August 12, 2008, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission the proposed rule change, as described in Items I, 
II, and III below, which items have been prepared by the self-
regulatory organization. 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.
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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 establish 
fees for transactions in options on 12 Premium Products.\3\ The text of 
the proposed rule change is available at the Exchange.
---------------------------------------------------------------------------

    \3\ Premium Product is defined in the Schedule of Fees as the 
products enumerated therein.
---------------------------------------------------------------------------

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

[[Page 50849]]

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 is proposing to amend its Schedule of Fees 
to establish fees for transactions in options on the iShares DJ U.S. 
Financial Sector Index Fund (``IYF''),\4\ the Market Vectors Coal ETF 
(``KOL''),\5\ the SPDR KBW Regional Banking ETF (``KRE''),\6\ the Ultra 
Oil & Gas ProShares Trust (``DIG''), the UltraShort Real Estate 
ProShares Trust (``SRS''), the UltraShort Basic Materials ProShares 
Trust (``SMN''),\7\ the Vanguard[supreg] Materials ETF (``VAW''), the 
Vanguard[supreg] REIT ETF (``VNQ''), the Vanguard[supreg] Growth ETF 
(``VUG''), the Vanguard[supreg] Europe Pacific ETF (``VEA''), the 
Vanguard[supreg] Emerging Markets ETF (``VWO'') \8\ and the Regional 
Bank HOLDRs Trust (``RKH'').\9\ The Exchange represents that IYF, KOL, 
KRE, DIG, SRS, SMN, VAW, VNQ, VUG, VEA, VWO and RKH are eligible for 
options trading because they constitute ``Exchange-Traded Fund Share,'' 
[sic] as defined by ISE Rule 502(h).
---------------------------------------------------------------------------

    \4\ iShares[supreg] is a registered trademark of Barclays Global 
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays 
Bank PLC. ``Dow Jones'' and ``Dow Jones U.S. Financial Sector Index 
Fund'' are service marks of Dow Jones & Company, Inc. (``Dow 
Jones'') and have been licensed for use for certain purposes by BGI. 
All other trademarks and service marks are the property of their 
respective owners. The Dow Jones U.S. Financial Sector Index Fund 
(``IYF'') is not sponsored, endorsed, issued, sold or promoted by 
Dow Jones. BGI and Dow Jones have not licensed or authorized ISE to 
(i) engage in the creation, listing, provision of a market for 
trading, marketing, and promotion of options on IYF or (ii) to use 
and refer to any of their trademarks or service marks in connection 
with the listing, provision of a market for trading, marketing, and 
promotion of options on IYF or with making disclosures concerning 
options on IYF under any applicable federal or state laws, rules or 
regulations. BGI and Dow Jones do not sponsor, endorse, or promote 
such activity by ISE, and are not affiliated in any manner with ISE.
    \5\ The Market Vectors Coal ETF (``KOL'') is distributed by Van 
Eck Securities Corporation (``VESC'') and tracks the Stowe Coal 
IndexSM, which is published by Stowe Global Indexes LLC 
(``Stowe''). VESC has entered into a licensing agreement with Stowe 
to use the Stowe Coal Index in connection with KOL. Van Eck 
Associates Corporation (``VEAC'') is the investment adviser to KOL. 
Stowe's only relationship with VEAC is the licensing of certain 
service marks and trade names of Stowe and of the Stowe Coal Index. 
Stowe does not sponsor, endorse, or promote KOL and makes no 
representation regarding the advisability of investing in KOL. 
Neither VESC nor VEAC has licensed or authorized ISE to (i) engage 
in the creation, listing, provision of a market for trading, 
marketing, and promotion of options on KOL or (ii) to use and refer 
to any of their trademarks or service marks in connection with the 
listing, provision of a market for trading, marketing, and promotion 
of options on KOL or with making disclosures concerning options on 
KOL under any applicable federal or state laws, rules or 
regulations. Neither VESC nor VEAC sponsors, endorses, or promotes 
such activity by ISE, and are not affiliated in any manner with ISE.
    \6\ ``SPDR[supreg]'' is a trademark of the The McGraw-Hill 
Companies, Inc (``McGraw-Hill''). The ``KBW Regional Bank 
IndexSM'' and ``Keefe, Bruyette & WoodsSM'' 
are service marks and the property of Keefe, Bruyette & Woods, Inc. 
(``KBW''). KBW's only relationship to State Street Bank and Trust 
Company is the licensing of certain trademarks and tradenames of KBW 
and the KBW Regional Banking Index in connection with the listing 
and trading of the KBW Regional Banking ETF (``KRE'') on the 
American Stock Exchange. KRE is not sponsored, sold or endorsed by 
KBW or McGraw-Hill and neither KBW nor McGraw-Hill makes any 
representation regarding the advisability of investing in KRE. 
Neither KBW nor McGraw-Hill has licensed or authorized ISE to (i) 
engage in the creation, listing, provision of a market for trading, 
marketing, and promotion of options on KRE or (ii) to use and refer 
to any of their trademarks or service marks in connection with the 
listing, provision of a market for trading, marketing, and promotion 
of options on KRE or with making disclosures concerning options on 
KRE under any applicable federal or state laws, rules or 
regulations. Neither KBW nor McGraw-Hill sponsors, endorses, or 
promotes such activity by ISE and are not affiliated in any manner 
with ISE.
    \7\ ``Dow Jones'', ``Dow Jones U.S. Oil & GasSM'', 
``Dow Jones U.S. Basic MaterialsSM'', and ``Dow Jones 
U.S. Real EstateSM'' are service marks of Dow Jones & 
Company, Inc. (``Dow Jones'') and have been licensed for use for 
certain purposes by ProFunds Trust. All other trademarks and service 
marks are the property of their respective owners. The Ultra Oil & 
Gas ProShares (``DIG''), the UltraShort Real Estate ProShares 
(``SRS''), and the UltraShort Basic Materials ProShares (``SMN'') 
are not sponsored, endorsed, issued, sold or promoted by Dow Jones. 
Dow Jones has not licensed or authorized ISE to (i) engage in the 
creation, listing, provision of a market for trading, marketing, and 
promotion of options on DIG, SRS and SMN or (ii) to use and refer to 
any of their trademarks or service marks in connection with the 
listing, provision of a market for trading, marketing, and promotion 
of options on DIG, SRS and SMN or with making disclosures concerning 
options on DIG, SRS and SMN under any applicable federal or state 
laws, rules or regulations. Dow Jones does not sponsor, endorse, or 
promote such activity by ISE and is not affiliated in any manner 
with ISE.
    \8\ Vanguard, Vanguard ETFs and Vanguard ETF are trademarks of 
The Vanguard Group, Inc. (``Vanguard''). All other marks are the 
exclusive property of their respective owners. The Vanguard[supreg] 
Materials ETF (``VAW'') tracks the Morgan Stanley Capital 
International[supreg] (MSCI[supreg]) U.S. Investable Market 
Materials Index. The Vanguard[supreg] REIT ETF (``VNQ'') tracks the 
MSCI U.S. REIT Index. The Vanguard[supreg] Growth ETF (``VUG'') 
tracks the MSCI U.S. Prime Market Growth Index. The Vanguard[supreg] 
Europe Pacific ETF (``VEA'') tracks the MSCI Europe, Australasia, 
Far East Index. The Vanguard[supreg] Emerging Markets ETF (``VWO'') 
tracks the MSCI Emerging Markets Index. MSCI does not sponsor, 
endorse, or promote VAW, VNQ, VUG, VEA and VWO and makes no 
representation regarding the advisability of investing in VAW, VNQ, 
VUG, VEA and VWO. Vanguard has not licensed or authorized ISE to (i) 
engage in the creation, listing, provision of a market for trading, 
marketing, and promotion of options on VAW, VNQ, VUG, VEA and VWO or 
(ii) to use and refer to any of their trademarks or service marks in 
connection with the listing, provision of a market for trading, 
marketing, and promotion of options on VAW, VNQ, VUG, VEA and VWO or 
with making disclosures concerning options on VAW, VNQ, VUG, VEA and 
VWO under any applicable federal or state laws, rules or 
regulations. Vanguard does not sponsor, endorse, or promote such 
activity by ISE, and is not affiliated in any manner with ISE.
    \9\ The Regional Bank HOLDRSSM Trust (``RKH'') issues 
Depositary Receipts called Regional bank HOLDRSSM 
representing undivided beneficial ownership in the U.S.-traded 
common stock of a group of specified companies that, among other 
things, are involved in various segments of the regional banking 
industry. ``HOLDRS'' and ``HOLding Company Depositary ReceiptS'' are 
service marks of Merrill Lynch & Co., Inc. (``Merrill Lynch''). All 
other trademarks and service marks are the property of their 
respective owners. Merrill Lynch has not licensed or authorized ISE 
to (i) engage in the creation, listing, provision of a market for 
trading, marketing, and promotion of options on RKH or (ii) to use 
and refer to any of their trademarks or service marks in connection 
with the listing, provision of a market for trading, marketing, and 
promotion of options on RKH or with making disclosures concerning 
options on RKH under any applicable federal or state laws, rules or 
regulations. Merrill Lynch does not sponsor, endorse, or promote 
such activity by ISE, and is not affiliated in any manner with ISE.
---------------------------------------------------------------------------

    All of the applicable fees covered by this filing are identical to 
fees charged by the Exchange for all other Premium Products. 
Specifically, the Exchange is proposing to adopt an execution fee for 
all transactions in options on IYF, KOL, KRE, DIG, SRS, SMN, VAW, VNQ, 
VUG, VEA, VWO and RKH.\10\ The amount of the execution fee for products 
covered by this filing shall be $0.18 per contract for all Public 
Customer Orders \11\ and Firm Proprietary orders. The amount of the 
execution fee for all ISE Market Maker transactions shall be equal to 
the execution fee currently charged by the Exchange for ISE Market 
Maker transactions in equity options.\12\ Finally, the amount of the 
execution fee for all non-ISE Market Maker transactions shall be $0.45 
per contract.\13\ Further, since options on IYF, KOL, KRE, DIG, SRS, 
SMN, VAW, VNQ, VUG, VEA, VWO and RKH are multiply-listed, the 
Exchange's Payment for Order Flow fee shall apply to all these 
products. The

[[Page 50850]]

Exchange believes the proposed rule change will further the Exchange's 
goal of introducing new products to the marketplace that are 
competitively priced.
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    \10\ These fees will be charged only to Exchange members. Under 
a pilot program that is set to expire on July 31, 2009, these fees 
will also be charged to Linkage Principal Orders (``Linkage P 
Orders'') and Linkage Principal Acting as Agent Orders (``Linkage P/
A Orders''). The amount of the execution fee charged by the Exchange 
for Linkage P Orders and Linkage P/A Orders is $0.24 per contract 
side and $0.15 per contract side, respectively. See Securities 
Exchange Act Release No. 58143 (July 11, 2008), 73 FR 41388 (July 
18, 2008) (SR-ISE-2008-52).
    \11\ Public Customer Order is defined in Exchange Rule 
100(a)(39) as an order for the account of a Public Customer. Public 
Customer is defined in Exchange Rule 100(a)(38) as a person or 
entity that is not a broker or dealer in securities.
    \12\ The Exchange applies a sliding scale, between $0.01 and 
$0.18 per contract side, based on the number of contracts an ISE 
market maker trades in a month.
    \13\ The amount of the execution fee for non-ISE Market Maker 
transactions executed in the Exchange's Facilitation and 
Solicitation Mechanisms is $0.19 per contract.
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    (b) Basis--The Exchange believes that the proposed rule change is 
consistent with the objectives of section 6 of the Act,\14\ in general, 
and furthers the objectives of section 6(b)(4),\15\ in particular, in 
that it is designed to provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
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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 \16\ and Rule 19b-4(f)(2) \17\ thereunder. 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.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

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-2008-65 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-2008-65. 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 will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-
2008-65 and should be submitted on or before September 18, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19985 Filed 8-27-08; 8:45 am]
BILLING CODE 8010-01-P
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