Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to its Cancellation Fee, 67238-67239 [E8-26884]
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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change will protect the
investing public by preventing firms
from utilizing non-public advance
knowledge of the timing or content of a
research report to benefit its own
trading to the detriment of its
customers. The proposed rule change
further would clarify and streamline
NASD IM–2110–4 for adoption as a
FINRA Rule in the new Consolidated
FINRA Rulebook. NASD IM–2110–4 has
previously have been found to meet the
statutory requirements, and FINRA
believes that rule has since proven
effective in achieving the statutory
mandates.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will 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.
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.
mstockstill on PROD1PC66 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:
VerDate Aug<31>2005
17:13 Nov 12, 2008
Jkt 217001
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–2008–054 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58898; File No. SR–ISE–
2008–81]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to its Cancellation
Fee
November 4, 2008.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
All submissions should refer to File
Number SR–FINRA–2008–054. This file notice is hereby given that on October
31, 2008, International Securities
number should be included on the
subject line if e-mail is used. To help the Exchange, LLC (the ‘‘ISE’’ or the
‘‘Exchange’’) filed with the Securities
Commission process and review your
and Exchange Commission
comments more efficiently, please use
only one method. The Commission will (‘‘Commission’’) the proposed rule
post all comments on the Commission’s change as described in Items I, II and III
below, which Items have been prepared
Internet Web site (https://www.sec.gov/
by the Exchange. The ISE filed the
rules/sro.shtml). Copies of the
proposal pursuant to section 19(b)(3)(A)
submission, all subsequent
of the Act 3 and Rule 19b–4(f)(2)
amendments, all written statements
thereunder,4 which renders the proposal
with respect to the proposed rule
effective upon filing with the
change that are filed with the
Commission. The Commission is
Commission, and all written
publishing this notice to solicit
communications relating to the
comments on the proposed rule change
proposed rule change between the
from interested persons.
Commission and any person, other than
I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
The ISE is proposing to amend its
the Commission’s Public Reference
Schedule of Fees regarding its
Room, 100 F Street, NE., Washington,
cancellation fee. The text of the
DC 20549, on official business days
proposed rule change is available on the
between the hours of 10 a.m. and 3 p.m. Exchange’s Web site (https://
www.ise.com), at the principal office of
Copies of such filing also will be
the Exchange, and at the Commission’s
available for inspection and copying at
Public Reference Room.
the principal office of FINRA. All
comments received will be posted
II. Self-Regulatory Organization’s
without change; the Commission does
Statement of the Purpose of, and
not edit personal identifying
Statutory Basis for, the Proposed Rule
information from submissions. You
Change
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All
self-regulatory organization included
submissions should refer to File
statements concerning the purpose of,
Number SR–FINRA–2008–054 and
and basis for, the proposed rule change
should be submitted on or before
and discussed any comments it received
December 4, 2008.
on the proposed rule change. The text
For the Commission, by the Division of
of these statements may be examined at
Trading and Markets, pursuant to delegated
the places specified in Item IV below.
6
authority.
The self-regulatory organization has
Florence E. Harmon,
prepared summaries, set forth in
sections A, B, and C below, of the most
Acting Secretary.
significant aspects of such statements.
[FR Doc. E8–26883 Filed 11–12–08; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
6 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00121
Fmt 4703
Sfmt 4703
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
are calculated is necessary to allow the
Exchange to target cancellations that do
not have a valid justification.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on PROD1PC66 with NOTICES
1. Purpose
The purpose of this proposed rule
change is to amend the ISE’s
cancellation fee. The Exchange
currently has a cancellation fee of $2.00
that applies to Electronic Access
Members (‘‘EAMs’’) that cancelled at
least 500 orders in a month, for each
order cancellation in excess of the total
number of orders such member
executed that month. Further, all orders
from the same clearing EAM executed in
the same series on the same side of the
market at the same price within a 30
second period are aggregated and
counted as one executed order for
purposes of this fee. This fee is
currently charged only to customer
orders; broker-dealer orders, including
non-member market maker (FARMM)
orders, are excluded from this fee.
Recognizing that order cancellations
often happen in large numbers, the
purpose of this fee is to ease system
congestion and to fairly allocate costs
among members according to system
use. Some members recently have
sought to circumvent the fee by breaking
up their orders into a range of deep out
of the money options series in the same
underlying name that trade at the same
premium; in another [sic] words,
executing multiple orders within 30
seconds, but in related—not the same—
series of options. As noted above, ISE
currently aggregates executions only in
the same series, not related series. In
order to prevent market participants
from circumventing this fee, ISE
proposes to amend the current
execution-offset provision of the
cancellation fee. Specifically, in
calculating this fee, the Exchange will
aggregate together and count as one
cancelled order orders that are entered
and traded within 30 seconds, at the
same price, in the same underlying
symbol. The Exchange believes this
proposed fee change is justified to
counter the level of cancellation activity
and its effect on congestion.
This proposed fee change will be
operative on November 3, 2008.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(4) that an exchange
have an equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities. In particular, the
Exchange believes amending the
manner by which its cancellation fees
VerDate Aug<31>2005
17:13 Nov 12, 2008
Jkt 217001
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 5 and Rule 19b–4(f)(2) 6
thereunder. 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:
67239
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2008–81 and should be
submitted on or before December 4,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26884 Filed 11–12–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–58906; File No. SR–Phlx–
2008–76]
• 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–2008–81 on the subject
line.
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
NASDAQ OMX PHLX, Inc. Relating to
an Increase in the Maximum Number of
Quoters Permitted in an Option
Paper Comments
November 6, 2008.
• 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–2008–81. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
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 November
4, 2008, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
5 15
U.S.C. 78s(b)(3)(A).
6 17 CFR 19b–4(f)(2) [sic].
PO 00000
Frm 00122
Fmt 4703
1 15
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E:\FR\FM\13NON1.SGM
13NON1
]]>Agencies
[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Pages 67238-67239]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26884]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58898; File No. SR-ISE-2008-81]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to its Cancellation Fee
November 4, 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 October 31, 2008, International Securities Exchange, LLC (the
``ISE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
Exchange. The ISE filed the proposal pursuant to section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 regarding its
cancellation fee. 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.
[[Page 67239]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend the ISE's
cancellation fee. The Exchange currently has a cancellation fee of
$2.00 that applies to Electronic Access Members (``EAMs'') that
cancelled at least 500 orders in a month, for each order cancellation
in excess of the total number of orders such member executed that
month. Further, all orders from the same clearing EAM executed in the
same series on the same side of the market at the same price within a
30 second period are aggregated and counted as one executed order for
purposes of this fee. This fee is currently charged only to customer
orders; broker-dealer orders, including non-member market maker (FARMM)
orders, are excluded from this fee.
Recognizing that order cancellations often happen in large numbers,
the purpose of this fee is to ease system congestion and to fairly
allocate costs among members according to system use. Some members
recently have sought to circumvent the fee by breaking up their orders
into a range of deep out of the money options series in the same
underlying name that trade at the same premium; in another [sic] words,
executing multiple orders within 30 seconds, but in related--not the
same--series of options. As noted above, ISE currently aggregates
executions only in the same series, not related series. In order to
prevent market participants from circumventing this fee, ISE proposes
to amend the current execution-offset provision of the cancellation
fee. Specifically, in calculating this fee, the Exchange will aggregate
together and count as one cancelled order orders that are entered and
traded within 30 seconds, at the same price, in the same underlying
symbol. The Exchange believes this proposed fee change is justified to
counter the level of cancellation activity and its effect on
congestion.
This proposed fee change will be operative on November 3, 2008.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) that an exchange have an equitable
allocation of reasonable dues, fees and other charges among its members
and other persons using its facilities. In particular, the Exchange
believes amending the manner by which its cancellation fees are
calculated is necessary to allow the Exchange to target cancellations
that do not have a valid justification.
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 \5\ and Rule 19b-4(f)(2) \6\ thereunder. 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 19b-4(f)(2) [sic].
---------------------------------------------------------------------------
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-2008-81 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-2008-81. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2008-81 and should be
submitted on or before December 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26884 Filed 11-12-08; 8:45 am]
BILLING CODE 8011-01-P
