Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes., 57179-57181 [E8-22967]
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Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices
• Technical analyses concerning the
demand and supply for a sector, index
or industry based on trading volume
and price;
• Statistical summaries of multiple
companies’ financial data, including
listings of current ratings;
• Recommendations regarding
increasing or decreasing holdings in
particular industries or sectors; and
• Notices of ratings or price target
changes (subject to certain disclosure
requirements).
FINRA proposes to define market
letters by reference to an exception from
the definition of ‘‘research report’’
under NASD Rule 2711 and
Incorporated NYSE Rule 472 to make
clear that a firm may not supervise as
correspondence communications that
fall within the definition of ‘‘research
report.’’ The proposed rule change
would, however, increase a firm’s
flexibility in supervising market letter
communications that do not qualify as
research reports.
FINRA would announce the
implementation date of the proposed
rule change in a Regulatory Notice to be
published no later than 60 days
following Commission approval. The
implementation date would be the date
FINRA publishes the Regulatory Notice
announcing Commission approval.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,7 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The proposed
amendment would allow firms to
distribute market letters in a timely and
expedient manner, while still requiring
firms to review and supervise these
communications to ensure that they are
fair, balanced and not misleading.
jlentini on PROD1PC65 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change would result in
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
Written comments were neither
solicited nor received.
7 15
U.S.C. 78o–3(b)(6).
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18:22 Sep 30, 2008
Jkt 214001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2008–044 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–FINRA–2008–044. 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.
PO 00000
Frm 00133
Fmt 4703
Sfmt 4703
57179
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–2008–044 and
should be submitted on or before
October 22, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–23047 Filed 9–30–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58635; File No. SR–ISE–
2008–68]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes.
September 24, 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
September 16, 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 selfregulatory 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 8 Premium
Products.3 The text of the proposed rule
change is available at the Exchange.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Premium Product [sic] is defined in the
Schedule of Fees as the products enumerated
therein.
1 15
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57180
Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices
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.
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 PowerShares DB
Commodity Index Tracking Fund
(‘‘DBC’’),4 the PowerShares DB Base
Metals Fund (‘‘DBB’’),5 the Vanguard
4 The PowerShares DB Commodity Index
Tracking Fund (‘‘DBC’’) is based on the Deutsche
Bank Liquid Commodity Index—Optimum Yield
Excess Return TM. DBC is managed by DB
Commodity Services LLC. DBLCI TM and Deutsche
Bank Liquid Commodity Index TM are trademarks of
Deutsche Bank AG, London (‘‘DB AG’’).
PowerShares is a registered service mark of
PowerShares Capital Management LLC
(‘‘PowerShares’’). DBC is not sponsored, endorsed,
sold or promoted by DB AG, and DB AG makes no
representation regarding the advisability of
investing in DBC. Neither DB AG nor PowerShares
has licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on DBC 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 DBC or with making disclosures
concerning options on DBC under any applicable
federal or state laws, rules or regulations. DB AG
and PowerShares do not sponsor, endorse, or
promote such activity by ISE and are not affiliated
in any manner with ISE.
5 The PowerShares DB Base Metals Fund (‘‘DBB’’)
is based on the Deutsche Bank Liquid Commodity
Index—Optimum Yield Industrial Metals Excess
Return TM. DBB is managed by DB Commodity
Services LLC. DBLCI TM and Deutsche Bank Liquid
Commodity Index TM are trademarks of Deutsche
Bank AG, London (‘‘DB AG’’). PowerShares is a
registered service mark of PowerShares Capital
Management LLC (‘‘PowerShares’’). DBB is not
sponsored, endorsed, sold or promoted by DB AG,
and DB AG makes no representation regarding the
advisability of investing in DBB. Neither DB AG nor
PowerShares has licensed or authorized ISE to (i)
engage in the creation, listing, provision of a market
for trading, marketing, and promotion of options on
DBB 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 DBB or with making
disclosures concerning options on DBB under any
applicable federal or state laws, rules or regulations.
DB AG and PowerShares do not sponsor, endorse,
or promote such activity by ISE and are not
affiliated in any manner with ISE.
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Total Stock Market ETF (‘‘VTI’’),6 the
PowerShares DB U.S. Dollar Bullish
Fund (‘‘UUP’’),7 the iShares Lehman
TIPS Bond Fund (‘‘TIP’’),8 the iShares
MSCI Pacific Ex-Japan Index Fund
(‘‘EPP’’),9 the Ultra Real Estate
6 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
Total Stock Market ETF (‘‘VTI’’) tracks the Morgan
Stanley Capital International (MSCI) U.S. Broad
Market Index. MSCI does not sponsor, endorse, or
promote VTI and makes no representation regarding
the advisability of investing in VTI. 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 VTI 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 VTI or with making disclosures
concerning options on VTI 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.
7 The PowerShares DB U.S. Dollar Bullish Fund
(‘‘UUP’’) is based on the Deutsche Bank Long U.S.
Dollar Index (USDX) Futures Index TM (‘‘DB Long
USD Futures Index’’). The sponsor of the DB Long
USD Futures Index is Deutsche Bank AG, London
(‘‘DB AG’’). UUP is managed by DB Commodity
Services LLC. U.S. Dollar Index and USDX are
registered service marks of
IntercontinentalExchange, Inc. PowerShares is a
registered service mark of PowerShares Capital
Management LLC (‘‘PowerShares’’). UUP is not
sponsored, endorsed, sold or promoted by DB AG,
and DB AG makes no representation regarding the
advisability of investing in UUP. Neither DB AG nor
PowerShares has licensed or authorized ISE to (i)
engage in the creation, listing, provision of a market
for trading, marketing, and promotion of options on
UUP 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 UUP or with making
disclosures concerning options on UUP under any
applicable federal or state laws, rules or regulations.
DB AG and PowerShares do not sponsor, endorse,
or promote such activity by ISE and are not
affiliated in any manner with ISE.
8 iShares is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a majority owned
subsidiary of Barclays Bank PLC. ‘‘Lehman Brothers
U.S. Treasury TIPS Index’’ is a trademark of
Lehman Brothers and has been licensed for use for
certain purposes by BGI. All other trademarks and
service marks are the property of their respective
owners. iShares Lehman TIPS Bond Fund (‘‘TIP’’)
is not sponsored, endorsed, issued, sold or
promoted by Lehman. BGI and Lehman 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 TIP 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 TIP or with making disclosures
concerning options on TIP under any applicable
federal or state laws, rules or regulations. BGI and
Lehman do not sponsor, endorse, or promote such
activity by ISE, and are not affiliated in any manner
with ISE.
9 iShares is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a majority owned
subsidiary of Barclays Bank PLC. ‘‘MSCI Pacific ExJapan Index’’ is a service mark of Morgan Stanley
Capital International (‘‘MSCI’’) and has been
licensed for use for certain purposes by BGI. All
other trademarks and service marks are the property
of their respective owners. iShares MSCI Pacific Ex-
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
ProShares (‘‘URE’’) and the UltraShort
MSCI EAFE ProShares (‘‘EFU’’).10 The
Exchange represents that DBC, DBB,
VTI, UUP, TIP, EPP, URE, and EFU are
eligible for options trading because they
constitute ‘‘Exchange-Traded Fund
Share,’’ 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 DBC, DBB,
VTI, UUP, TIP, EPP, URE, and EFU.11
The amount of the execution fee for
products covered by this filing shall be
$0.18 per contract for all Public
Customer Orders 12 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
Japan Index Fund (‘‘EPP’’) is not sponsored,
endorsed, issued, sold or promoted by MSCI. BGI
and MSCI 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 EPP 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 EPP or with making
disclosures concerning options on EPP under any
applicable federal or state laws, rules or regulations.
BGI and MSCI do not sponsor, endorse, or promote
such activity by ISE, and are not affiliated in any
manner with ISE.
10 ‘‘Dow Jones’’ and ‘‘Dow Jones U.S. Real
Estate SM’’ are service marks of Dow Jones &
Company, Inc. (‘‘Dow Jones’’) and have been
licensed for use for certain purposes by ProShares.
MSCI, Morgan Stanley Capital International and
EAFE are service marks of MSCI and have been
licensed for use for certain purposes by ProShares.
All other trademarks and service marks are the
property of their respective owners. The Ultra Real
Estate ProShares (‘‘URE’’) and the UltraShort MSCI
EAFE ProShares (‘‘EFU’’) are not sponsored,
endorsed, issued, sold or promoted by Dow Jones
or MSCI. Dow Jones and MSCI 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 URE and EFU 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 URE and EFU or with making
disclosures concerning options on URE and EFU
under any applicable federal or state laws, rules or
regulations. Dow Jones and MSCI do not sponsor,
endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE.
11 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)
12 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.
E:\FR\FM\01OCN1.SGM
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Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices
57181
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–22967 Filed 9–30–08; 8:45 am]
transactions in equity options.13 Finally,
the amount of the execution fee for all
non-ISE Market Maker transactions shall
be $0.45 per contract.14 Further, since
options on DBC, DBB, VTI, UUP, TIP,
EPP, URE, and EFU are multiply-listed,
the Exchange’s Payment for Order Flow
fee shall apply to all these products. The
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,15 in general, and furthers the
objectives of Section 6(b)(4),16 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.
IV. Solicitation of Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 and
All submissions should refer to File
Rule 19b–4 2 thereunder, notice is
Number SR–ISE–2008–68. This file
hereby given that on September 5, 2008,
number should be included on the
NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
Commission process and review your
and Exchange Commission (‘‘SEC’’ or
comments more efficiently, please use
‘‘Commission’’) the proposed rule
only one method. The Commission will change as described in Items I, II and III,
post all comments on the Commission’s below, which Items have been prepared
Internet Web site (https://www.sec.gov/
by Phlx. The Commission is publishing
rules/sro.shtml). Copies of the
this notice to solicit comments on the
submission, all subsequent
proposed rule change from interested
amendments, all written statements
persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
The Exchange, pursuant to Section
Commission and any person, other than 19(b)(1) of the Act 3 and Rule 19b–4
those that may be withheld from the
thereunder,4 proposes to change the
public in accordance with the
administration and enforcement of
provisions of 5 U.S.C. 552, will be
certain rules in light of the fact that the
available for inspection and copying in
Exchange will cease operation of the
the Commission’s Public Reference
technology used to operate XLE,5 the
Room, 100 F Street, NE., Washington,
Exchange’s equity trading system, on or
DC 20549, on official business days
before October 24, 2008 (the
between the hours of 10 a.m. and 3 p.m. ‘‘Shutdown’’). At this time, the
Copies of the filing will also be available Exchange is not proposing to amend the
for inspection and copying at the
text of any rules, but simply to change
principal office of the self-regulatory
the administration and enforcement of
organization. All comments received
certain rules, as described below. The
will be posted without change; the
Shutdown will not affect any other
Commission does not edit personal
trading systems or markets at Phlx.
identifying information from
submissions. You should submit only
19 17CFR 200.30–3(a)(12).
information that you wish to make
1 15 U.S.C. 78s(b)(1).
available publicly. All submissions
2 17 CFR 240.19b–4.
should refer to File Number SR–ISE–
3 15 U.S.C. 78s(b)(1).
2008–68 and should be submitted on or
4 17 CFR 240.19b–4.
before October 22, 2008.
5 See Securities Exchange Act Release No. 54538
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
jlentini on PROD1PC65 with NOTICES
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 17 and Rule 19b–4(f)(2) 18
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.
13 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.
14 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.
15 15 U.S.C. 78f.
16 15 U.S.C. 78f(b)(4).
17 15 U.S.C. 78s(b)(3)(A).
18 17 CFR 19b–4(f)(2).
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18:22 Sep 30, 2008
Jkt 214001
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–2008–68 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.
PO 00000
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58613; File No. SR–Phlx–
2008–65]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Administration and Enforcement of
Certain Rules Pertaining to XLE
September 22, 2008.
(September 28, 2006), 71 FR 59184 (October 6,
2006) (SR–Phlx–2006–43) (Order approving XLE).
Frm 00135
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]]>Agencies
[Federal Register Volume 73, Number 191 (Wednesday, October 1, 2008)]
[Notices]
[Pages 57179-57181]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22967]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58635; File No. SR-ISE-2008-68]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes.
September 24, 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 September 16, 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.
---------------------------------------------------------------------------
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 8 Premium Products.\3\ The text of
the proposed rule change is available at the Exchange.
---------------------------------------------------------------------------
\3\ Premium Product [sic] is defined in the Schedule of Fees as
the products enumerated therein.
---------------------------------------------------------------------------
[[Page 57180]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose--The Exchange is proposing to amend its Schedule of Fees
to establish fees for transactions in options on the PowerShares DB
Commodity Index Tracking Fund (``DBC''),\4\ the PowerShares DB Base
Metals Fund (``DBB''),\5\ the Vanguard[supreg] Total Stock Market ETF
(``VTI''),\6\ the PowerShares DB U.S. Dollar Bullish Fund (``UUP''),\7\
the iShares Lehman TIPS Bond Fund (``TIP''),\8\ the iShares MSCI
Pacific Ex-Japan Index Fund (``EPP''),\9\ the Ultra Real Estate
ProShares (``URE'') and the UltraShort MSCI EAFE ProShares
(``EFU'').\10\ The Exchange represents that DBC, DBB, VTI, UUP, TIP,
EPP, URE, and EFU are eligible for options trading because they
constitute ``Exchange-Traded Fund Share,'' as defined by ISE Rule
502(h).
---------------------------------------------------------------------------
\4\ The PowerShares DB Commodity Index Tracking Fund (``DBC'')
is based on the Deutsche Bank Liquid Commodity Index--Optimum Yield
Excess Return TM. DBC is managed by DB Commodity Services
LLC. DBLCI TM and Deutsche Bank Liquid Commodity Index
TM are trademarks of Deutsche Bank AG, London (``DB
AG''). PowerShares[supreg] is a registered service mark of
PowerShares Capital Management LLC (``PowerShares''). DBC is not
sponsored, endorsed, sold or promoted by DB AG, and DB AG makes no
representation regarding the advisability of investing in DBC.
Neither DB AG nor PowerShares has licensed or authorized ISE to (i)
engage in the creation, listing, provision of a market for trading,
marketing, and promotion of options on DBC 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 DBC or with making disclosures concerning options on
DBC under any applicable federal or state laws, rules or
regulations. DB AG and PowerShares do not sponsor, endorse, or
promote such activity by ISE and are not affiliated in any manner
with ISE.
\5\ The PowerShares DB Base Metals Fund (``DBB'') is based on
the Deutsche Bank Liquid Commodity Index--Optimum Yield Industrial
Metals Excess Return TM. DBB is managed by DB Commodity
Services LLC. DBLCI TM and Deutsche Bank Liquid Commodity
Index TM are trademarks of Deutsche Bank AG, London (``DB
AG''). PowerShares[supreg] is a registered service mark of
PowerShares Capital Management LLC (``PowerShares''). DBB is not
sponsored, endorsed, sold or promoted by DB AG, and DB AG makes no
representation regarding the advisability of investing in DBB.
Neither DB AG nor PowerShares has licensed or authorized ISE to (i)
engage in the creation, listing, provision of a market for trading,
marketing, and promotion of options on DBB 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 DBB or with making disclosures concerning options on
DBB under any applicable federal or state laws, rules or
regulations. DB AG and PowerShares do not sponsor, endorse, or
promote such activity by ISE and are not affiliated in any manner
with ISE.
\6\ 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]
Total Stock Market ETF (``VTI'') tracks the Morgan Stanley Capital
International[supreg] (MSCI[supreg]) U.S. Broad Market Index. MSCI
does not sponsor, endorse, or promote VTI and makes no
representation regarding the advisability of investing in VTI.
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 VTI 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 VTI or with making disclosures concerning options on VTI
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.
\7\ The PowerShares DB U.S. Dollar Bullish Fund (``UUP'') is
based on the Deutsche Bank Long U.S. Dollar Index (USDX[supreg])
Futures Index TM (``DB Long USD Futures Index''). The
sponsor of the DB Long USD Futures Index is Deutsche Bank AG, London
(``DB AG''). UUP is managed by DB Commodity Services LLC. U.S.
Dollar Index[supreg] and USDX[supreg] are registered service marks
of IntercontinentalExchange, Inc. PowerShares[supreg] is a
registered service mark of PowerShares Capital Management LLC
(``PowerShares''). UUP is not sponsored, endorsed, sold or promoted
by DB AG, and DB AG makes no representation regarding the
advisability of investing in UUP. Neither DB AG nor PowerShares has
licensed or authorized ISE to (i) engage in the creation, listing,
provision of a market for trading, marketing, and promotion of
options on UUP 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 UUP or
with making disclosures concerning options on UUP under any
applicable federal or state laws, rules or regulations. DB AG and
PowerShares do not sponsor, endorse, or promote such activity by ISE
and are not affiliated in any manner with ISE.
\8\ iShares[supreg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a majority owned subsidiary of Barclays
Bank PLC. ``Lehman Brothers U.S. Treasury TIPS Index'' is a
trademark of Lehman Brothers and has been licensed for use for
certain purposes by BGI. All other trademarks and service marks are
the property of their respective owners. iShares Lehman TIPS Bond
Fund (``TIP'') is not sponsored, endorsed, issued, sold or promoted
by Lehman. BGI and Lehman 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 TIP 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 TIP or with making disclosures concerning options on
TIP under any applicable federal or state laws, rules or
regulations. BGI and Lehman do not sponsor, endorse, or promote such
activity by ISE, and are not affiliated in any manner with ISE.
\9\ iShares[supreg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a majority owned subsidiary of Barclays
Bank PLC. ``MSCI Pacific Ex-Japan Index'' is a service mark of
Morgan Stanley Capital International (``MSCI'') and has been
licensed for use for certain purposes by BGI. All other trademarks
and service marks are the property of their respective owners.
iShares MSCI Pacific Ex-Japan Index Fund (``EPP'') is not sponsored,
endorsed, issued, sold or promoted by MSCI. BGI and MSCI 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 EPP 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 EPP or
with making disclosures concerning options on EPP under any
applicable federal or state laws, rules or regulations. BGI and MSCI
do not sponsor, endorse, or promote such activity by ISE, and are
not affiliated in any manner with ISE.
\10\ ``Dow Jones'' and ``Dow Jones U.S. Real Estate
SM'' are service marks of Dow Jones & Company, Inc.
(``Dow Jones'') and have been licensed for use for certain purposes
by ProShares. MSCI, Morgan Stanley Capital International and EAFE
are service marks of MSCI and have been licensed for use for certain
purposes by ProShares. All other trademarks and service marks are
the property of their respective owners. The Ultra Real Estate
ProShares (``URE'') and the UltraShort MSCI EAFE ProShares (``EFU'')
are not sponsored, endorsed, issued, sold or promoted by Dow Jones
or MSCI. Dow Jones and MSCI 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 URE and EFU 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 URE and EFU or with making
disclosures concerning options on URE and EFU under any applicable
federal or state laws, rules or regulations. Dow Jones and MSCI do
not sponsor, endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE.
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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 DBC, DBB, VTI, UUP, TIP, EPP, URE, and
EFU.\11\ The amount of the execution fee for products covered by this
filing shall be $0.18 per contract for all Public Customer Orders \12\
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
[[Page 57181]]
transactions in equity options.\13\ Finally, the amount of the
execution fee for all non-ISE Market Maker transactions shall be $0.45
per contract.\14\ Further, since options on DBC, DBB, VTI, UUP, TIP,
EPP, URE, and EFU are multiply-listed, the Exchange's Payment for Order
Flow fee shall apply to all these products. The 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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\11\ 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)
\12\ 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.
\13\ 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.
\14\ 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,\15\ in general,
and furthers the objectives of Section 6(b)(4),\16\ 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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\15\ 15 U.S.C. 78f.
\16\ 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 \17\ and Rule 19b-4(f)(2) \18\ 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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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 19b-4(f)(2).
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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-2008-68 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-2008-68. 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-
2008-68 and should be submitted on or before October 22, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Florence E. Harmon,
Acting Secretary.
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\19\ 17CFR 200.30-3(a)(12).
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[FR Doc. E8-22967 Filed 9-30-08; 8:45 am]
BILLING CODE 8011-01-P
