Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Temporarily Increase the Number of Additional Quarterly Options Series, 69701-69703 [E8-27421]
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Federal Register / Vol. 73, No. 224 / Wednesday, November 19, 2008 / Notices
is not publishing the amendment for
comment.
Section IV.C is revised to read:
In its response to comments, FINRA
stated that it intended to implement the
proposed rule change at least 180 days
from the date of this approval order.1
For purposes of clarity, in Amendment
No. 2, FINRA requested that the
proposed rule change be implemented
at least six (6) months from the date of
SEC approval, but no later than nine (9)
months from SEC approval. The
Commission believes that this is an
appropriate time frame for members to
prepare to comply with the proposed
rules.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.2
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–27440 Filed 11–18–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58926; File No. SR–ISE–
2008–82]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Temporarily Increase the
Number of Additional Quarterly
Options Series
November 10, 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 November
6, 2008, the International Securities
Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
additional Quarterly Options Series
(‘‘QOS’’) in exchange-traded fund
(‘‘ETF’’) options from sixty (60) to one
hundred (100) that may be added by the
Exchange. The text of the proposed rule
change is as follows, with deletions in
[brackets] and additions in italics.
Rule 504. Series of Options Contracts
Open for Trading
*
*
*
*
*
Supplementary Material to Rule 504
.01–.02 No change.
.03 Quarterly Options Series Pilot
Program: The Exchange may list and
trade options series that expire at the
close of business on the last business
day of a calendar quarter (‘‘Quarterly
Options Series’’). The Exchange may list
Quarterly Options Series for up to five
(5) currently listed options classes that
are either index options or options on
exchange traded funds (‘‘ETF’’). In
addition, the Exchange may also list
Quarterly Options Series on any options
classes that are selected by other
securities exchanges that employ a
similar pilot program under their
respective rules.
(a)–(g) No change.
(h) During the last quarter of 2008
(and for the new expiration month being
added after December Quarterly
Options Series expiration), the
Exchange may list up to one hundred
(100) additional series per expiration
month for each Quarterly Options Series
in ETF options.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
self-regulatory organization has
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
cprice-sewell on PROD1PC64 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to amend
Supplementary Material .03 to Rule 504,
Quarterly Options Series Pilot Program,
to temporarily increase the number of
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 temporarily increase the
1 See
1 15
2 17
FINRA Letter, supra note 10.
CFR 200.30–3(a)(12).
2 17
VerDate Aug<31>2005
18:57 Nov 18, 2008
Jkt 217001
PO 00000
number of additional QOS in ETF
options from sixty (60) to one hundred
(100) that may be added by the
Exchange. To effect this change, the
Exchange is proposing to add new
subparagraph (h) to Supplementary
Material .03 to Rule 504.
Because of the current, unprecedented
market conditions, the Exchange has
received requests from market
participants to add lower priced strikes
for QOS in the Energy Select Sector
SPDR (‘‘XLE’’), the DIAMONDS Trust,
Series 1 (‘‘DIA’’) and the Standard and
Poor’s Depositary Receipts/SPDRs
(‘‘SPY’’). For example, for December
2008 expiration, there is demand for
strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging
from $60 up through and including $75
for DIA, and (c) ranging from $74 up
through and including $85 for SPY.
These strikes are much lower than those
currently listed for which there is open
interest.
However, under current Rule 504, the
Exchange cannot honor these requests
because the maximum number of
additional series, sixty (60), has already
been listed. The Exchange is therefore
seeking to temporarily increase the
number of additional QOS that may be
added to one hundred (100). The
increase of additional series would be
permitted immediately for expiration
months currently listed and for
expiration months added throughout the
last quarter of 2008, including the new
expiration month added after December
2008 expiration.
The Exchange believes that this
proposal is reasonable and will allow
for more efficient risk management. The
Exchange believes this proposal will
facilitate the functioning of the
Exchange’s market and will not harm
investors or the public interest. The
Exchange believes that user demand and
the recent downward price movements
in the underlying ETFs warrants a
temporary increase in the number of
strikes for all QOS in ETF options.
Currently, the Exchange list QOS in five
ETF options: (1) Nasdaq-100 Index
Tracking Stock (‘‘QQQQ’’); (2) iShares
Russell 2000 Index Fund (‘‘IWM’’); (3)
DIA; (4) SPY; and (5) XLE. The below
chart provides the historical closing
prices of these ETFs over the past
couple of months:
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00103
Fmt 4703
Sfmt 4703
69701
E:\FR\FM\19NON1.SGM
19NON1
69702
Federal Register / Vol. 73, No. 224 / Wednesday, November 19, 2008 / Notices
ETF
10/27/08
QQQQ ..............................................................................
IWM ..................................................................................
DIA ...................................................................................
SPY ..................................................................................
XLE ..................................................................................
The additional series will enable the
Exchange to list in-demand, lower
priced strikes.
The Exchange represents that it has
the necessary systems capacity to
support the new options series that will
result from this proposal. Further, as
proposed, the Exchange notes that these
series would temporarily become part of
the pilot program and will be
considered by the Commission when
the Exchange seeks to renew or make
permanent the pilot program in the
future. In addition, the Exchange states
that in the event that current market
volatility continues, it may seek to
continue (through a rule filing) the time
period during which the additional
series proposed by this filing may be
added.
2. Statutory Basis
Because the current rule proposal is
responsive to the current,
unprecedented market conditions, is
limited in scope as to QOS in ETF
options and as to time, and because the
additional new series can be added
without presenting capacity problems,
the Exchange believes the rule proposal
is consistent with the Act and the rules
and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.3
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 4
requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
28.69
44.86
80.26
83.95
40.86
10/13/08
35.13
56.98
95.03
101.35
50.55
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not:
(i) Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; or (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 proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 5 and Rule
19b–4(f)(6) thereunder.6
The Exchange has asked the
Commission to waive the operative
delay to permit the proposed rule
change to become operative prior to the
30th day after filing. The Commission
has determined that waiving the 30-day
operative delay of the Exchange’s
proposal is consistent with the
protection of investors and the public
interest because such waiver will enable
ISE to better meet customer demand in
light of recent increased volatility in the
marketplace.7 Therefore, the
Commission designates the proposal
operative upon filing.
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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide 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 of the proposed rule change, or such
shorter time as designated by the Commission. The
Commission deems this requirement to be met.
7 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
cprice-sewell on PROD1PC64 with NOTICES
6 17
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
15:14 Nov 18, 2008
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PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
9/30/08
34.86
59.72
99.90
104.72
54.89
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.
5 15
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.
10/6/08
38.91
68.00
108.36
115.99
63.30
8/29/08
46.12
73.87
115.45
128.79
74.65
7/31/08
45.46
71.32
113.70
126.83
74.40
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2008–82 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–2008–82. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
E:\FR\FM\19NON1.SGM
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Federal Register / Vol. 73, No. 224 / Wednesday, November 19, 2008 / Notices
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–ISE–2008–82 and should be
submitted on or before December 10,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–27421 Filed 11–18–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–58935; File No. SRndash;NSX–2008–19]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Exchange Rule 16 and the NSX Fee
Schedule for Order Delivery Mode
Transactions
November 13, 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 November
5, 2008, National Stock Exchange, Inc.
(‘‘NSX’’ 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 Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
cprice-sewell on PROD1PC64 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
Exchange Rule 16.2(b) and the NSX Fee
and Rebate Schedule (the ‘‘Fee
Schedule’’) issued pursuant to Exchange
Rule 16.1(c) in order to (i) eliminate the
rebate for adding liquidity in Order
Delivery mode of order interaction for
all securities and (ii) eliminate the trade
and quote market data revenue credit in
Order Delivery mode for all securities.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
15:14 Nov 18, 2008
Jkt 217001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant parts of such
statements.
1. Purpose
With this rule change, the Exchange is
proposing to eliminate all liquidity
adding rebates and market data revenue
credits in Order Delivery mode of order
interaction (‘‘Order Delivery Mode’’).3
In particular, for securities in Order
Delivery Mode, this rule change
proposes to reduce the rebate for adding
liquidity to zero across all Tapes and
regardless of the price at which the
securities are trading.4
In addition, with respect to Tape B
and C securities in Order Delivery
Mode, the instant filing proposes to
eliminate the market data revenue credit
in both trades and quotes. Currently in
Order Delivery Mode, ETP Holders
receive a credit of 50% of both trade and
quote market data revenues for Tape B
and C securities, regardless of price.
This credit is proposed to be eliminated
for all Tape B and C securities executed
in Order Delivery Mode, regardless of
price, which effectively eliminates tape
revenue sharing in Order Delivery
Mode.5
Because as a result of the proposed
rule change there would be no tape
credit sharing program under either
3 This rule change proposes no changes to the fees
and rebates applicable to securities executed in the
Automatic Execution (‘‘Auto Ex’’) mode of order
interaction under current NSX Rule 11.13(b)(1).
4 In particular, for securities trading at or above
one dollar in Order Delivery Mode, this rule change
proposes to reduce to zero the rebate for adding
liquidity from $0.0023 per share executed for Tape
A, and from $0.0025 per share executed for Tapes
B and C. For securities which trade under one
dollar in Order Delivery Mode, this rule change
proposes to reduce to zero the rebate for adding
liquidity from 0.10% of the trade value, where
‘‘trade value’’ means a dollar amount equal to the
price per share multiplied by the number of shares
executed.
5 Pursuant to SR–NSX–2008–17, the Exchange
previously eliminated the tape revenue sharing
credit program for all Tape A securities in Order
Delivery Mode.
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
69703
Order Delivery Mode or Automatic
Execution mode of order interaction
(‘‘AutoEx’’), the instant rule filing
proposes to simplify Rule 16.2 by
eliminating the text of Rule 16.2(b)
(‘‘Tape Credits’’) in its entirety. To the
extent that the Consolidated Tape
Association or the Nasdaq Securities
Information Processor subsequently
adjusts any Tape A, Tape B or Tape C
revenue earned by the Exchange for any
period(s) during which the tape revenue
credit program was in effect, credits
paid to ETP Holders would be adjusted,
as necessary, in accordance with the
rules in effect during such period,
including the ‘‘De Minimis Credits’’ rule
under current Rule 16.2(b)(5) which
establishes an eligibility threshold of
$250 per calendar quarter for
participation in the tape credit program.
No Changes to Automatic Execution
Mode
For purposes of clarity, the proposed
rule change proposes no modifications
to the fees and rebates relating to any
trades in AutoEx.
Rationale
The Exchange has determined that
these changes are necessary to increase
the revenue of the Exchange and to
adequately fund its regulatory and
general business functions. The
proposed modification is reasonable and
equitably allocated to those ETP Holders
that opt to provide liquidity in Order
Delivery Mode, and is not
discriminatory because ETP Holders are
free to elect whether to send orders in
all tapes through the Order Delivery
Mode, through AutoEx, and as liquidity
providing trades and quotes. Based
upon the information above, the
Exchange believes that the proposed
rule change is consistent with the
protection of investors and the public
interest.
Operative Date and Notice
The Exchange intends to make the
proposed credit and rebate structure
effective on filing of this proposed rule
for trading on November 6, 2008.
Pursuant to Exchange Rule 16.1(c), the
Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange’’ through the issuance of a
Regulatory Circular of the changes to the
Fee Schedule and will post a copy of the
rule filing on the Exchange’s Web site
(www.nsx.com).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
E:\FR\FM\19NON1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 224 (Wednesday, November 19, 2008)]
[Notices]
[Pages 69701-69703]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27421]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58926; File No. SR-ISE-2008-82]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Temporarily Increase the Number of Additional Quarterly
Options Series
November 10, 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 November 6, 2008, the International Securities Exchange, LLC
(``Exchange'' or ``ISE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE proposes to amend Supplementary Material .03 to Rule 504,
Quarterly Options Series Pilot Program, to temporarily increase the
number of additional Quarterly Options Series (``QOS'') in exchange-
traded fund (``ETF'') options from sixty (60) to one hundred (100) that
may be added by the Exchange. The text of the proposed rule change is
as follows, with deletions in [brackets] and additions in italics.
Rule 504. Series of Options Contracts Open for Trading
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
* * * * *
Supplementary Material to Rule 504
.01-.02 No change.
.03 Quarterly Options Series Pilot Program: The Exchange may list
and trade options series that expire at the close of business on the
last business day of a calendar quarter (``Quarterly Options Series'').
The Exchange may list Quarterly Options Series for up to five (5)
currently listed options classes that are either index options or
options on exchange traded funds (``ETF''). In addition, the Exchange
may also list Quarterly Options Series on any options classes that are
selected by other securities exchanges that employ a similar pilot
program under their respective rules.
(a)-(g) No change.
(h) During the last quarter of 2008 (and for the new expiration
month being added after December Quarterly Options Series expiration),
the Exchange may list up to one hundred (100) additional series per
expiration month for each Quarterly Options Series in ETF options.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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 purpose of this proposed rule change is to temporarily increase
the number of additional QOS in ETF options from sixty (60) to one
hundred (100) that may be added by the Exchange. To effect this change,
the Exchange is proposing to add new subparagraph (h) to Supplementary
Material .03 to Rule 504.
Because of the current, unprecedented market conditions, the
Exchange has received requests from market participants to add lower
priced strikes for QOS in the Energy Select Sector SPDR (``XLE''), the
DIAMONDS Trust, Series 1 (``DIA'') and the Standard and Poor's
Depositary Receipts/SPDRs (``SPY''). For example, for December 2008
expiration, there is demand for strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging from $60 up through and
including $75 for DIA, and (c) ranging from $74 up through and
including $85 for SPY. These strikes are much lower than those
currently listed for which there is open interest.
However, under current Rule 504, the Exchange cannot honor these
requests because the maximum number of additional series, sixty (60),
has already been listed. The Exchange is therefore seeking to
temporarily increase the number of additional QOS that may be added to
one hundred (100). The increase of additional series would be permitted
immediately for expiration months currently listed and for expiration
months added throughout the last quarter of 2008, including the new
expiration month added after December 2008 expiration.
The Exchange believes that this proposal is reasonable and will
allow for more efficient risk management. The Exchange believes this
proposal will facilitate the functioning of the Exchange's market and
will not harm investors or the public interest. The Exchange believes
that user demand and the recent downward price movements in the
underlying ETFs warrants a temporary increase in the number of strikes
for all QOS in ETF options. Currently, the Exchange list QOS in five
ETF options: (1) Nasdaq-100 Index Tracking Stock (``QQQQ''); (2)
iShares Russell 2000 Index Fund (``IWM''); (3) DIA; (4) SPY; and (5)
XLE. The below chart provides the historical closing prices of these
ETFs over the past couple of months:
[[Page 69702]]
----------------------------------------------------------------------------------------------------------------
ETF 10/27/08 10/13/08 10/6/08 9/30/08 8/29/08 7/31/08
----------------------------------------------------------------------------------------------------------------
QQQQ.............................. 28.69 35.13 34.86 38.91 46.12 45.46
IWM............................... 44.86 56.98 59.72 68.00 73.87 71.32
DIA............................... 80.26 95.03 99.90 108.36 115.45 113.70
SPY............................... 83.95 101.35 104.72 115.99 128.79 126.83
XLE............................... 40.86 50.55 54.89 63.30 74.65 74.40
----------------------------------------------------------------------------------------------------------------
The additional series will enable the Exchange to list in-demand,
lower priced strikes.
The Exchange represents that it has the necessary systems capacity
to support the new options series that will result from this proposal.
Further, as proposed, the Exchange notes that these series would
temporarily become part of the pilot program and will be considered by
the Commission when the Exchange seeks to renew or make permanent the
pilot program in the future. In addition, the Exchange states that in
the event that current market volatility continues, it may seek to
continue (through a rule filing) the time period during which the
additional series proposed by this filing may be added.
2. Statutory Basis
Because the current rule proposal is responsive to the current,
unprecedented market conditions, is limited in scope as to QOS in ETF
options and as to time, and because the additional new series can be
added without presenting capacity problems, the Exchange believes the
rule proposal is consistent with the Act and the rules and regulations
under the Act applicable to a national securities exchange and, in
particular, the requirements of Section 6(b) of the Act.\3\
Specifically, the Exchange believes that the proposed rule change is
consistent with the Section 6(b)(5) Act \4\ requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Because the foregoing rule does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; or (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 proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6)
thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide 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 of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission deems this requirement to be met.
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The Exchange has asked the Commission to waive the operative delay
to permit the proposed rule change to become operative prior to the
30th day after filing. The Commission has determined that waiving the
30-day operative delay of the Exchange's proposal is consistent with
the protection of investors and the public interest because such waiver
will enable ISE to better meet customer demand in light of recent
increased volatility in the marketplace.\7\ Therefore, the Commission
designates the proposal operative upon filing.
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\7\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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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.
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 No. SR-ISE-2008-82 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-2008-82. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying
[[Page 69703]]
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-ISE-2008-82 and should be submitted on or before December
10, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27421 Filed 11-18-08; 8:45 am]
BILLING CODE 8011-01-P
