Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 5704-5706 [E9-2061]
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5704
Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices
100 F Street, NE., Washington, DC
20549–1090.
which enables them to compete with
Non-Customers who are registered
broker-dealers—the same transaction
fees that it charges to such NonCustomers.
C. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment Nos. 1 and 2
Pursuant to Section 19(b)(2) of the
Act,106 the Commission may not
approve any proposed rule change, or
amendment thereto, prior to the 30th
day after the date of publication of
notice of the filing thereof, unless the
Commission finds good cause for so
doing and publishes its reasons for so
finding. The Commission hereby finds
good cause for approving the proposed
rule change, as modified by Amendment
Nos. 1 and 2, before the 30th day after
the date of publication of notice of filing
thereof in the Federal Register.107 The
Commission notes that the proposal, as
modified by Amendment No. 1, was
published for comment in the Federal
Register on February 7, 2008. The
revisions made to the proposal in
Amendment No. 2 deleted proposed
changes to ISE Rules 715 and ISE Rule
723(d)(2). These revisions appropriately
clarify that the proposed rule change
would not limit a Public Customer’s
access to the Exchange’s PIM.
Accordingly, pursuant to Section
19(b)(2) of the Act,108 the Commission
finds good cause to approve the
proposed rule change, as modified by
Amendment Nos. 1 and 2, on an
accelerated basis.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as modified by Amendment
Nos. 1 and 2, 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–2006–26 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–ISE–2006–26. 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
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–ISE–2006–26 and should be
submitted on or before February 20,
2009.
[Release No. 34–59288; File No. SR–ISE–
2009–03]
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,109 that the
proposed rule change (SR–ISE–2006–
26), as modified by Amendment Nos. 1
and 2, be, and it hereby is, approved on
an accelerated basis.
By the Commission.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1979 Filed 1–29–09; 8:45 am]
BILLING CODE 8011–01–P
January 23, 2009.
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 January
15, 2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission the proposed
rule change, as described in Items I, II,
and III below, which items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees to establish fees for
transactions in options on 4 Premium
Products.3 The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.ise.com), at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Paper Comments
mstockstill on PROD1PC66 with NOTICES
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
1. Purpose—The Exchange is
proposing to amend its Schedule of Fees
1 15
U.S.C. 78s(b)(2).
107 See supra note 3.
108 15 U.S.C. 78s(b)(2).
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
106 15
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16:54 Jan 29, 2009
2 17
109 15
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PO 00000
U.S.C. 78s(b)(2).
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30JAN1
Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices
to establish fees for transactions in
options on the Short QQQ ProShares
(‘‘PSQ’’),4 the Short S&P500 ProShares
(‘‘SH’’),5 the UltraShort Lehman 20+
Year Treasury ProShares (‘‘TBT’’),6 and
the PowerShares DB U.S. Dollar Bearish
Fund (‘‘UDN’’).7 The Exchange
mstockstill on PROD1PC66 with NOTICES
4 ‘‘NASDAQ–100
Index’’ is a trademark of the
NASDAQ Stock Markets, Inc. (‘‘NASDAQ’’) and has
been licensed for use for certain purposes by
ProShares Trust. All other trademarks and service
marks are the property of their respective owners.
The Short QQQ ProShares (‘‘PSQ’’) is not
sponsored, endorsed, sold or promoted by
NASDAQ. NASDAQ 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 PSQ 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 PSQ or
with making disclosures concerning options on
PSQ under any applicable federal or state laws,
rules or regulations. NASDAQ does not sponsor,
endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE.
5 ‘‘Standard & Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’
‘‘Standard & Poor’s 500,’’ ‘‘500’’ are trademarks of
The McGraw-Hill Companies, Inc. (‘‘McGraw-Hill’’)
and have been licensed for use for certain purposes
by ProShares Trust. All other trademarks and
service marks are the property of their respective
owners. The Short S&P500 ProShares (‘‘SH’’) is not
sponsored, endorsed, sold or promoted by Standard
& Poor’s, (‘‘S&P’’), a division of McGraw-Hill. S&P
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 SH
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 SH or with making
disclosures concerning options on SH under any
applicable federal or state laws, rules or regulations.
S&P does not sponsor, endorse, or promote such
activity by ISE and is not affiliated in any manner
with ISE.
6 ‘‘Lehman Brothers’’ and ‘‘Lehman Brothers Inc.’’
are trademarks of Lehman Brothers Inc. (‘‘Lehman’’)
and have been licensed for use for certain purposes
by ProShares Trust. All other trademarks and
service marks are the property of their respective
owners. The UltraShort Lehman 20+ Year Treasury
ProShares (‘‘TBT’’) is not sponsored, endorsed, sold
or promoted by Lehman. Lehman 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 TBT 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
TBT or with making disclosures concerning options
on TBT under any applicable federal or state laws,
rules or regulations. Lehman 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 Bearish Fund
(‘‘UDN’’) is based on the Deutsche Bank Short U.S.
Dollar Index (USDX®) Futures IndexTM (‘‘DB Short
USD Futures Index’’). The sponsor of the DB Short
USD Futures Index is Deutsche Bank AG, London
(‘‘DB AG’’). UDN 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’’). UDN is not
sponsored, endorsed, sold or promoted by DB AG,
and DB AG makes no representation regarding the
advisability of investing in UDN. Neither DB AG
nor PowerShares has licensed or authorized ISE to
(i) engage in the creation, listing, provision of a
VerDate Nov<24>2008
16:54 Jan 29, 2009
Jkt 217001
represents that PSQ, SH, TBT and UDN
are eligible for options trading because
they constitute ‘‘Exchange-Traded Fund
Shares,’’ 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 PSQ, SH,
TBT and UDN.8 The amount of the
execution fee for products covered by
this filing shall be $0.18 per contract for
all Public Customer Orders 9 and $0.20
per contract for all Firm Proprietary
orders. The amount of the execution fee
for all ISE Market Maker transactions
shall be equal to the execution fee
currently charged by the Exchange for
ISE Market Maker transactions in equity
options.10 Finally, the amount of the
execution fee for all non-ISE Market
Maker transactions shall be $0.45 per
contract.11 Further, since options on
PSQ, SH, TBT and UDN are multiplylisted, 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,12 in general, and furthers the
objectives of Section 6(b)(4),13 in
particular, in that it is designed to
market for trading, marketing, and promotion of
options on UDN 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 UDN or
with making disclosures concerning options on
UDN 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 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).
9 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.
10 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.
11 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.
12 15 U.S.C. 78f.
13 15 U.S.C. 78f(b)(4).
PO 00000
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5705
provide for the equitable allocation of
reasonable dues, fees and other charges
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 14 and Rule 19b–4(f)(2) 15
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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal 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–2009–03 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–ISE–2009–03. This file number
should be included on the subject line
14 15
15 17
E:\FR\FM\30JAN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
30JAN1
5706
Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices
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 ISE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–ISE–2009–03 and should be
submitted on or before February 20,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2061 Filed 1–29–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59283; File No. SR–Phlx–
2009–01]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Margin Requirements for Foreign
Currency Options
mstockstill on PROD1PC66 with NOTICES
January 23, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on January
15, 2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:54 Jan 29, 2009
Jkt 217001
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
substantially prepared by the Exchange.
Phlx has filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange, pursuant to Section
19(b)(1) of the Act 5 and Rule 19b–4
thereunder,6 proposes to amend Phlx
Rule 721, Proper and Adequate Margin,
to add margin requirements for U.S.
dollar-settled foreign currency options
(‘‘FCOs’’).7
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings.
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 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 the proposed rule
change is to add margin requirements
for U.S. dollar-settled FCOs (‘‘FCO
margin requirements’’ or ‘‘FCO margin’’)
in Phlx Rule 721(c).
The FCO margin requirements
proposed are substantially similar to
prior Commentary .16 to Phlx Rule 722,
which was removed in a recent filing to
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4.
7 FCOs are currently traded on the Exchange
under the name World Currency Options.
4 17
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Frm 00073
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simplify Phlx’s margin rules.8 The FCO
margin requirements are also
substantially similar to current ISE Rule
1202(d).
Accordingly, under proposed Phlx
Rule 721(c), the Exchange will calculate
the margin requirement for customers
that assume short FCO positions by
adding a percentage of the current
market value of the underlying foreign
currency contract to the option
premium price less an adjustment for
the out-of-the-money amount of the
option contract. On a quarterly calendar
basis, the Exchange will review five-day
price changes over the preceding threeyear period for each underlying
currency and set the add-on percentage
at a level which would have covered
those price changes at least 97.5% of the
time (the ‘‘confidence level’’).
If the results of subsequent reviews
show that the current margin level
provides a confidence level below 97%,
the Exchange will increase the margin
requirement for that individual currency
up to a 98% confidence level. If the
confidence level is between 97% and
97.5%, the margin level will remain the
same but will be subject to monthly
follow-up reviews until the confidence
level exceeds 97.5% for two consecutive
months. If, during the course of the
monthly follow-up reviews, the
confidence level drops below 97%, the
margin level will be increased to a 98%
level and if it exceeds 97.5% for two
consecutive months, the currency will
be taken off monthly reviews and will
be put back on the quarterly review
cycle. If the currency exceeds 98.5%,
the margin level will be reduced to a
98% confidence level during the most
recent 3 year period.
Finally, in order to account for large
price movements outside the
established margin level, if the quarterly
review shows that the currency had a
price movement, either positive or
negative, greater than two times the
margin level during the most recent 3
year period, the margin requirement
will be set at a level to meet a 99%
confidence level (‘‘Extreme Outlier
Test’’).9 These parameters are identical
to prior Commentary .16 to Phlx Rule
722.
8 See Exchange Act Release No. 58340 (August 11,
2008), 73 FR 48268 (August 18, 2008) (SR–Phlx–
2007–33). Pursuant to this filing, Rule 721 was
amended to add subsection (b) requiring Exchange
members to make an election to be bound by either
CBOE or NYSE margin rules, and Phlx Rule 722
was shortened.
9 The Exchange will inform its members and the
public of the margin levels for each currency option
immediately following the quarterly reviews
described in Rule 721(c).
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]]>Agencies
[Federal Register Volume 74, Number 19 (Friday, January 30, 2009)]
[Notices]
[Pages 5704-5706]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2061]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59288; File No. SR-ISE-2009-03]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
January 23, 2009.
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 January 15, 2009, 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 4 Premium Products.\3\ 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.
---------------------------------------------------------------------------
\3\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text 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
[[Page 5705]]
to establish fees for transactions in options on the Short QQQ
ProShares (``PSQ''),\4\ the Short S&P500 ProShares (``SH''),\5\ the
UltraShort Lehman 20+ Year Treasury ProShares (``TBT''),\6\ and the
PowerShares DB U.S. Dollar Bearish Fund (``UDN'').\7\ The Exchange
represents that PSQ, SH, TBT and UDN are eligible for options trading
because they constitute ``Exchange-Traded Fund Shares,'' as defined by
ISE Rule 502(h).
---------------------------------------------------------------------------
\4\ ``NASDAQ-100 Index'' is a trademark of the NASDAQ Stock
Markets, Inc. (``NASDAQ'') and has been licensed for use for certain
purposes by ProShares Trust. All other trademarks and service marks
are the property of their respective owners. The Short QQQ ProShares
(``PSQ'') is not sponsored, endorsed, sold or promoted by NASDAQ.
NASDAQ 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 PSQ 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 PSQ or with making disclosures concerning options on PSQ
under any applicable federal or state laws, rules or regulations.
NASDAQ does not sponsor, endorse, or promote such activity by ISE
and is not affiliated in any manner with ISE.
\5\ ``Standard & Poor's,'' ``S&P,'' ``S&P 500,'' ``Standard &
Poor's 500,'' ``500'' are trademarks of The McGraw-Hill Companies,
Inc. (``McGraw-Hill'') and have been licensed for use for certain
purposes by ProShares Trust. All other trademarks and service marks
are the property of their respective owners. The Short S&P500
ProShares (``SH'') is not sponsored, endorsed, sold or promoted by
Standard & Poor's, (``S&P''), a division of McGraw-Hill. S&P 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 SH 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 SH or with
making disclosures concerning options on SH under any applicable
federal or state laws, rules or regulations. S&P does not sponsor,
endorse, or promote such activity by ISE and is not affiliated in
any manner with ISE.
\6\ ``Lehman Brothers'' and ``Lehman Brothers Inc.'' are
trademarks of Lehman Brothers Inc. (``Lehman'') and have been
licensed for use for certain purposes by ProShares Trust. All other
trademarks and service marks are the property of their respective
owners. The UltraShort Lehman 20+ Year Treasury ProShares (``TBT'')
is not sponsored, endorsed, sold or promoted by Lehman. Lehman 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 TBT 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 TBT or with making disclosures concerning options on TBT
under any applicable federal or state laws, rules or regulations.
Lehman 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 Bearish Fund (``UDN'') is
based on the Deutsche Bank Short U.S. Dollar Index (USDX[reg])
Futures Index\TM\ (``DB Short USD Futures Index''). The sponsor of
the DB Short USD Futures Index is Deutsche Bank AG, London (``DB
AG''). UDN is managed by DB Commodity Services LLC. U.S. Dollar
Index[reg] and USDX[reg] are registered service marks of
IntercontinentalExchange, Inc. PowerShares[reg] is a registered
service mark of PowerShares Capital Management LLC
(``PowerShares''). UDN is not sponsored, endorsed, sold or promoted
by DB AG, and DB AG makes no representation regarding the
advisability of investing in UDN. 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 UDN 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 UDN or
with making disclosures concerning options on UDN 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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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 PSQ, SH, TBT and UDN.\8\ The amount of
the execution fee for products covered by this filing shall be $0.18
per contract for all Public Customer Orders \9\ and $0.20 per contract
for all Firm Proprietary orders. The amount of the execution fee for
all ISE Market Maker transactions shall be equal to the execution fee
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\10\ Finally, the amount of the execution fee for all
non-ISE Market Maker transactions shall be $0.45 per contract.\11\
Further, since options on PSQ, SH, TBT and UDN 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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\8\ 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).
\9\ 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.
\10\ 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.
\11\ 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,\12\ in general,
and furthers the objectives of Section 6(b)(4),\13\ 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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\12\ 15 U.S.C. 78f.
\13\ 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 \14\ and Rule 19b-4(f)(2) \15\ 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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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-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 proposal 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-2009-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-ISE-2009-03. This file
number should be included on the subject line
[[Page 5706]]
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 ISE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-ISE-2009-03 and should be submitted on or before February
20, 2009.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2061 Filed 1-29-09; 8:45 am]
BILLING CODE 8011-01-P
