Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Non-Displayed Penny Quotes and Orders, 53298-53300 [E8-21391]
Download as PDF
<![CDATA[
53298
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
associated with maintaining the charter
in this form.5
Because virtually all funds extant
have now adopted audit committee
charters, the annual one-time collection
of information burden associated with
adopting audit committee charters is
limited to the burden incurred by newly
established funds. Commission staff
estimates that fund sponsors establish
approximately 153 new funds each
year,6 and that all of these funds will
adopt an audit committee charter in
order to rely on rule 32a–4. Thus,
Commission staff estimates that the
annual one-time hour burden associated
with adopting an audit committee
charter under rule 32a–4 going forward
will be approximately 459 hours.7
As noted above, all funds that rely on
rule 32a–4 are subject to the ongoing
collection of information requirement to
preserve a copy of the charter in an
easily accessible place. This ongoing
requirement, which Commission staff
has estimated has no hourly burden,
applies to new funds that adopt an audit
committee charter each year and to all
funds that have previously adopted the
charter and continue to maintain it.
When funds adopt an audit committee
charter in order to rely on rule 32a–4,
they also may incur one-time costs
related to hiring outside counsel to
prepare the charter. Commission staff
estimates that those costs average
approximately $1000 per fund.8
Commission staff understands that
virtually all funds now rely on rule 32a–
4 and have adopted audit committee
charters, and thus estimates that the
annual cost burden related to hiring
outside legal counsel is limited to newly
established funds.
As noted above, Commission staff
estimates that approximately 153 new
5 No hour burden related to such maintenance of
the charter was identified by the funds the
Commission staff surveyed. Commission staff
understands that many audit committee charters
have been significantly revised after their adoption
in response to the Sarbanes-Oxley Act (Pub. L. No.
107–204, 116 Stat. 745) and other developments.
However, the costs associated with these revisions
are not attributable to the requirements of rule 32a–
4.
6 This estimate is based on the number of Form
N–8As filed from January 2005 through December
2007.
7 This estimate is based on the following
calculation: (3.0 burden hours for establishing
charter × 153 new funds = 459 burden hours).
8 Costs may vary based on the individual needs
of each fund. However, based on the staff’s
conversations with outside counsel that prepare
these charters, legal fees related to the preparation
and adoption of an audit committee charter usually
average $1000 or less. The Commission also
understands that the ICI has prepared a model audit
committee charter, which most legal professionals
use when establishing audit committees, thereby
reducing the costs associated with drafting a
charter.
VerDate Aug<31>2005
20:22 Sep 12, 2008
Jkt 214001
funds each year will adopt an audit
committee charter in order to rely on
rule 32a–4. Thus, Commission staff
estimates that the ongoing annual cost
burden associated with rule 32a–4 in
the future will be approximately
$153,000.9
The estimates of average burden hours
and costs are made solely for the
purposes of the Paperwork Reduction
Act, and are not derived from a
comprehensive or even a representative
survey or study of the costs of
Commission rules and forms.
The collections of information
required by rule 32a–4 are necessary to
obtain the benefits of the rule. The
Commission is seeking OMB approval,
because an agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’s estimate of the burden of
the collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to Lewis W. Walker, Acting Director/
CIO, Securities and Exchange
Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: September 8, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21408 Filed 9–12–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58486; File No. SR–ISE–
2008–36)
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Non-Displayed
Penny Quotes and Orders
September 8, 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 August 28, 2008, the International
Securities Exchange, LLC (the
‘‘Exchange’’ or the ‘‘ISE’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. 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 allow nondisplayed penny quotes and orders in
options that trade in minimum pricing
increments greater than one cent. The
text of the proposed rule change is
available on the Exchange’s Web site
(https://www.ise.com), at the principal
office of the Exchange, and at 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission has approved rules
with respect to the Nasdaq Options
9 This estimate is based on the following
calculations: ($1000 cost of adopting charter × 153
newly established funds = $153,000).
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
1 15
2 17
E:\FR\FM\15SEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
15SEN1
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
Exchange (‘‘NOM’’) and the Chicago
Board Options Exchange (‘‘CBOE’’) that
permit the entry of orders and quotes in
penny increments in options series that
have a minimum trading increment
greater than one cent.3 Under these
rules, the actual firm price of the order
or quote is not displayed to market
participants or the public. Rather, the
penny price is hidden on the exchange
and displayed at the next closest
allowable trading increment. To avoid
being competitively disadvantaged, the
ISE proposes to adopt rules that
similarly permit its members to enter
orders and quotes in penny increments
(‘‘non-displayed penny orders’’ and
‘‘non-displayed penny quotes’’).
The Exchange proposes to allow both
Electronic Access Members and market
makers to enter non-displayed penny
orders. In addition, Exchange market
makers will be permitted to enter nondisplayed penny quotes. Orders and
quotes will be permitted in one-cent
price increments in selected options
where the applicable minimum price
increment is larger than one-cent.4 The
penny price of such orders will be firm
for incoming orders.5 Non-displayed
penny orders and quotes will be
displayed at the nearest minimum
trading increment for the security, and
the penny price of non-displayed penny
orders and quotes will not be disclosed
to any market participants.
Non-displayed penny orders will
participate in executions effected
through the Block, Facilitation,
Solicited Order and Price Improvement
Mechanisms. Both the Block and the
Price Improvement Mechanism
currently allow members to enter orders
and responses in penny increments.6
Accordingly, a non-displayed penny
order will participate in executions
effected through the Block and Price
Improvement Mechanisms at the penny
price. However, when entering orders
and responses into the Facilitation and
Solicited Order Mechanisms, members
currently are limited to the regular
3 Securities Exchange Act Release No. 57478
(March 12, 2008), 73 FR 14521 (March 18, 2008)
(order approving SR–NASDAQ–2007–004 and SR–
NASDAQ–2007–080); Securities Exchange Act
Release No. 57716 (April 25, 2008), 73 FR 24329
(May 2, 2008) (order approving SR–CBOE–2007–
39).
4 The Exchange will issue a circular to notify
members of the options series in which nondisplayed penny quotes and order may be entered.
5 Incoming orders will receive the firm, nondisplayed penny price. For example, if the nondisplayed price of a limit order to buy is 2.02, an
incoming limit order to sell at 2.01 will be executed
at 2.02.
6 ISE Rule 716, Supplementary Material .09
(regarding penny prices in the Block Mechanism);
ISE Rule 723(b)(2) and (c)(2) (regarding penny
prices in the Price Improvement Mechanism).
VerDate Aug<31>2005
20:22 Sep 12, 2008
Jkt 214001
trading increment for the security and
the split price for the regular trading
increment.7 In order to be consistent
with the current rule, the proposal
specifies that non-displayed penny
orders also will be executed only at the
regular increment or split price, as
applicable. For example, if the
displayed market is $2.00 by $2.05 and
there is a hidden penny order to buy at
2.03, the hidden penny order will
participate in the execution algorithms
applied by the Facilitation and Solicited
Order Mechanisms at the split price of
$2.025. If the hidden penny price in this
example is $2.02, the hidden penny
order will participate in the execution
algorithms at the regular trading
increment of $2.00.
2. Statutory Basis
The basis under the Exchange Act for
this proposed rule change is found in
Section 6(b)(5), in that the proposed rule
change is designed to promote just and
equitable principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. This rule will enable the
Exchange to remain competitive with
other options markets that permit orders
and quotes to be entered and executed
in penny increments.
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
Exchange Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
7 ISE Rule 716, Supplementary Material .06
(regarding split prices in the Facilitation and
Solicited Order Mechanisms).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
53299
as the Commission may designate if
consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
the proposed rule change, along with a
brief description and text of the
proposed rule change, at least five
business days prior to the date of filing
the proposed rule change as required by
Rule 19b–4(f)(6).8
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the rule change if it appears to the
Commission that the action is necessary
or appropriate in the public interest, for
the protection of investors, or would
otherwise further 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 Exchange
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–2008–36 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–2008–36. 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
8 17
E:\FR\FM\15SEN1.SGM
CFR 240.19b–4(f)(6).
15SEN1
53300
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
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 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–2008–36 and should be
submitted on or before October 6, 2008.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq is filing a proposed rule
change to trade, pursuant to unlisted
trading privileges (‘‘UTP’’), shares
(‘‘Shares’’) of 12 funds (each a ‘‘Fund’’)
of the WisdomTree Trust (‘‘Trust’’)
under Nasdaq Rule 4420(o) (Managed
Fund Shares). The text of the proposed
rule change is available from Nasdaq’s
Web site at https://
nasdaq.cchwallstreet.com, at Nasdaq’s
principal office, and at the
Commission’s Public Reference Room.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–21391 Filed 9–12–08; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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 III below. Nasdaq had prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58489; File No. SR–
NASDAQ–2008–073]
Self-Regulatory Organizations; the
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Trade
Shares of 12 Funds of the WisdomTree
Trust Pursuant to Unlisted Trading
Privileges
September 8, 2008.
mstockstill on PROD1PC66 with NOTICES
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
29, 2008, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘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 Nasdaq. Nasdaq has
designated the proposed rule change as
constituting a rule change under 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.
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 C.F.R. 240.19b–4(f)(6).
1 15
VerDate Aug<31>2005
20:22 Sep 12, 2008
Jkt 214001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to trade the Funds
on a UTP basis under Nasdaq Rule
4420(o), which governs the trading of
‘‘Managed Fund Shares’’ on the
Exchange. The Shares will be offered by
the Trust, which was established as a
Delaware statutory trust on December
15, 2005. The Trust is registered with
the Commission as an investment
company.5 The Commission recently
approved the listing and trading of these
same Funds by NYSE Arca, Inc. on its
exchange.6
Description of the Shares and the Funds
WisdomTree Asset Management, Inc.
(‘‘WisdomTree Asset Management’’) is
the investment adviser to each Fund.7
WisdomTree Asset Management is not
affiliated with any broker-dealer. Mellon
5 See Post-Effective Amendment No. 14 to
Registration Statement on Form N–1A for the Trust
(File Nos. 333–132380 and 811–21864)
(‘‘Registration Statement’’). The descriptions of the
Funds and the Shares contained herein are based
on information in the Registration Statement.
6 See Securities Exchange Act Release No. 57801
(May 8, 2008), 73 FR 27878 (May 14, 2008) (order
approving SR–NYSEArca–2008–31).
7 WisdomTree Investments, Inc. (‘‘WisdomTree
Investments’’) is the parent company of
WisdomTree Asset Management.
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
Capital Management serves as the subadviser for the Current Income Fund.
The Dreyfus Corporation serves as the
subadviser to each International
Currency Income Fund. The Bank of
New York is the administrator,
custodian, and transfer agent for each
Fund. ALPS Distributors, Inc. serves as
the distributor for the Funds.
The Current Income Fund
The Current Income Fund seeks to
earn current income while preserving
capital and maintaining liquidity by
investing primarily in very short term,
high-quality money market securities
denominated in U.S. dollars. Eligible
investments include commercial paper,
time deposits and certificates of
deposits, asset-backed securities,
government bills, government notes,
corporate notes, and repurchase
agreements. The Current Income Fund
intends to maintain an average portfolio
maturity of 90 days or less and will not
purchase any money market security
with a remaining maturity of more than
397 calendar days.
The International Currency Income
Funds
Each of the Australian Dollar Fund,
British Pound Sterling Fund, Canadian
Dollar Fund, Euro Fund, and Japanese
Yen Fund: (i) Seeks to earn current
income reflective of money market rates
available to foreign investors in the
specified country or region, and (ii)
seeks to maintain liquidity and preserve
capital measured in the currency of the
specified country or region. Each of
these Funds intends to invest primarily
in very short term, investment grade
money market securities denominated
in the non-U.S. currency specified in its
name. Eligible investments include
short-term securities issued by non-U.S.
governments, agencies or
instrumentalities, bank debt obligations
and time deposits, bankers’ acceptances,
commercial paper, short-term corporate
debt obligations, mortgage backed
securities, and asset-backed securities.
Each of the Brazilian Real Fund,
Chinese Yuan Fund, Indian Rupee
Fund, New Zealand Dollar Fund, South
African Rand Fund, and South Korean
Won Fund seeks: (i) To earn current
income reflective of money market rates
available to foreign investors in the
specified country; and (ii) to provide
exposure to changes in the value of the
designated non-U.S. currency relative to
the U.S. Dollar. Each of these Funds
intends to achieve exposure to the nonU.S. market designated by its name
using the following strategy. Each of the
Funds will invest primarily in short
term U.S. money market securities. In
E:\FR\FM\15SEN1.SGM
15SEN1
]]>Agencies
[Federal Register Volume 73, Number 179 (Monday, September 15, 2008)]
[Notices]
[Pages 53298-53300]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21391]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58486; File No. SR-ISE-2008-36)
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Non-Displayed Penny Quotes and Orders
September 8, 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 August 28, 2008, the International Securities
Exchange, LLC (the ``Exchange'' or the ``ISE'') filed with the
Securities and Exchange Commission (the ``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the Exchange. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to allow non-displayed penny quotes and orders
in options that trade in minimum pricing increments greater than one
cent. The text of the proposed rule change is available on the
Exchange's Web site (https://www.ise.com), at the principal office of
the Exchange, and at 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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission has approved rules with respect to the Nasdaq
Options
[[Page 53299]]
Exchange (``NOM'') and the Chicago Board Options Exchange (``CBOE'')
that permit the entry of orders and quotes in penny increments in
options series that have a minimum trading increment greater than one
cent.\3\ Under these rules, the actual firm price of the order or quote
is not displayed to market participants or the public. Rather, the
penny price is hidden on the exchange and displayed at the next closest
allowable trading increment. To avoid being competitively
disadvantaged, the ISE proposes to adopt rules that similarly permit
its members to enter orders and quotes in penny increments (``non-
displayed penny orders'' and ``non-displayed penny quotes'').
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 57478 (March 12, 2008),
73 FR 14521 (March 18, 2008) (order approving SR-NASDAQ-2007-004 and
SR-NASDAQ-2007-080); Securities Exchange Act Release No. 57716
(April 25, 2008), 73 FR 24329 (May 2, 2008) (order approving SR-
CBOE-2007-39).
---------------------------------------------------------------------------
The Exchange proposes to allow both Electronic Access Members and
market makers to enter non-displayed penny orders. In addition,
Exchange market makers will be permitted to enter non-displayed penny
quotes. Orders and quotes will be permitted in one-cent price
increments in selected options where the applicable minimum price
increment is larger than one-cent.\4\ The penny price of such orders
will be firm for incoming orders.\5\ Non-displayed penny orders and
quotes will be displayed at the nearest minimum trading increment for
the security, and the penny price of non-displayed penny orders and
quotes will not be disclosed to any market participants.
---------------------------------------------------------------------------
\4\ The Exchange will issue a circular to notify members of the
options series in which non-displayed penny quotes and order may be
entered.
\5\ Incoming orders will receive the firm, non-displayed penny
price. For example, if the non-displayed price of a limit order to
buy is 2.02, an incoming limit order to sell at 2.01 will be
executed at 2.02.
---------------------------------------------------------------------------
Non-displayed penny orders will participate in executions effected
through the Block, Facilitation, Solicited Order and Price Improvement
Mechanisms. Both the Block and the Price Improvement Mechanism
currently allow members to enter orders and responses in penny
increments.\6\ Accordingly, a non-displayed penny order will
participate in executions effected through the Block and Price
Improvement Mechanisms at the penny price. However, when entering
orders and responses into the Facilitation and Solicited Order
Mechanisms, members currently are limited to the regular trading
increment for the security and the split price for the regular trading
increment.\7\ In order to be consistent with the current rule, the
proposal specifies that non-displayed penny orders also will be
executed only at the regular increment or split price, as applicable.
For example, if the displayed market is $2.00 by $2.05 and there is a
hidden penny order to buy at 2.03, the hidden penny order will
participate in the execution algorithms applied by the Facilitation and
Solicited Order Mechanisms at the split price of $2.025. If the hidden
penny price in this example is $2.02, the hidden penny order will
participate in the execution algorithms at the regular trading
increment of $2.00.
---------------------------------------------------------------------------
\6\ ISE Rule 716, Supplementary Material .09 (regarding penny
prices in the Block Mechanism); ISE Rule 723(b)(2) and (c)(2)
(regarding penny prices in the Price Improvement Mechanism).
\7\ ISE Rule 716, Supplementary Material .06 (regarding split
prices in the Facilitation and Solicited Order Mechanisms).
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Exchange Act for this proposed rule change is
found in Section 6(b)(5), in that the proposed rule change is designed
to promote just and equitable principles of trade, remove impediments
to and perfect the mechanisms of a free and open market and a national
market system and, in general, to protect investors and the public
interest. This rule will enable the Exchange to remain competitive with
other options markets that permit orders and quotes to be entered and
executed in penny increments.
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 Exchange Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the proposed rule change as one that
does not: (i) Significantly affect the protection of investors or the
public interest; (ii) impose any significant burden on competition; and
(iii) 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. The Exchange
provided the Commission with written notice of its intent to file the
proposed rule change, along with a brief description and text of the
proposed rule change, at least five business days prior to the date of
filing the proposed rule change as required by Rule 19b-4(f)(6).\8\
---------------------------------------------------------------------------
\8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that the action is necessary or appropriate
in the public interest, for the protection of investors, or would
otherwise further 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 Exchange 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-2008-36 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-2008-36. 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
[[Page 53300]]
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 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-
2008-36 and should be submitted on or before October 6, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-21391 Filed 9-12-08; 8:45 am]
BILLING CODE 8010-01-P
