Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 8594-8596 [E9-3979]
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Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices
settlements.26 Because CBOE, for the
most part, has not set any average
pricing parameters, the Commission is
unclear what the potential market
impact could be on or around
Expiration Friday. Therefore, it is
reasonable and consistent with Section
6(b)(5) of the Act 27 for CBOE to restrict
average pricing during the Blackout
Period until it sets forth a specific
proposal and the potential market
impact can be adequately addressed.28
Based on the above, the Commission
finds good cause for approving the
CBOE’s proposal, as modified by
Amendments No. 1 and 2, on an
accelerated basis, pursuant to Section
19(b)(2) of the Act.
V. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendments No.
1 and 2 to File No. SR–CBOE–2008–115,
including whether Amendments No. 1
and 2 are 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–CBOE–2008–115 on the
subject line.
pwalker on PROD1PC71 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
and 100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CBOE–2008–115. 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
26 The expiration of the contracts for stock index
futures, stock index options, and stock options all
expire on the same days occurring on the third
Friday of March, June, September, and December
(which is referred to as ‘‘triple witching’’). The
Exchange’s proposed limitations on p.m. exercise
settlement values and exercise settlement values
based on a specified average would apply during
triple witching expirations, as well as on all other
Expiration Fridays.
27 15 U.S.C. 78f(b)(5).
28 See supra note 21.
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18:09 Feb 24, 2009
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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 Amex. 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–CBOE–2008–115 and
should be submitted on or before March
18, 2009.
VI. Conclusion
For the foregoing reasons, the
Commission finds that the proposed
rule changes are consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,29 that the
proposed rule change (SR–CBOE–2008–
115), as modified by Amendments No.
1 and 2 thereto, be and hereby is
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–4036 Filed 2–24–09; 8:45 am]
BILLING CODE 8011–01–P
11, 2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change, as described in Items I, II, and
III below, which items have been
prepared by the 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 7 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
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59410; File No. SR–ISE–
2009–06]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
February 17, 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 February
29 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
30 17
PO 00000
Frm 00099
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The Exchange is proposing to amend
its Schedule of Fees to establish fees for
transactions in options on the ProShares
Ultra DJ–AIG Crude Oil ETF (‘‘UCO’’),
the ProShares UltraShort DJ–AIG Crude
Oil ETF (‘‘SCO’’),4 the ProShares
3 Premium Products is defined in the Schedule of
Fees as the products enumerated therein.
4 ‘‘Dow Jones,’’ AIG‘‘®’’, ‘‘The Dow Jones–AIG
Crude Oil Sub-Index SM’’ and ‘‘DJ–AIGCL SM’’ are
service marks of Dow Jones & Company, Inc. and
American International Group, Inc. (‘‘American
International Group’’), as the case may be, and have
been licensed for use by ProShares Capital
Management. The ProShares UltraShort DJ–AIG
Crude Oil ETF (‘‘SCO’’) and the ProShares Ultra DJ–
AIG Crude Oil ETF (‘‘UCO’’) are based on the Dow
Jones-AIG Crude Oil Index SM and are not
sponsored, endorsed, sold or promoted by Dow
Jones, AIG Financial Products Corp. (‘‘AIG–FP’’),
American International Group, or any of their
respective subsidiaries or affiliates. Dow Jones,
E:\FR\FM\25FEN1.SGM
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Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices
pwalker on PROD1PC71 with NOTICES
UltraShort MidCap 400 ETF (‘‘MZZ’’),5
the ProShares UltraShort 7–10 Year
Treasury ETF (‘‘PST’’),6 the iShares
GSCI Commodity Indexed Trust ETF
(‘‘GSG’’),7 the ProShares Ultra Gold ETF
(‘‘UGL’’) and the ProShares UltraShort
AIG–FP, and American International Group have
not licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on SCO and
UCO 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 SCO and UCO or with
making disclosures concerning options on SCO and
UCO under any applicable federal or state laws,
rules or regulations. Dow Jones, AIG–FP, and
American International Group do not sponsor,
endorse, or promote such activity by ISE and are
not affiliated in any manner with ISE.
5 ‘‘Standard & Poor’s’’, ‘‘S&P’’, ‘‘S&P 400’’, and
‘‘Standard & Poor’s 400’’ 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 ProShares UltraShort MidCap 400 ETF
(‘‘MZZ’’) 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 MZZ 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 MZZ or
with making disclosures concerning options on
MZZ 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 ‘‘Barclays Capital’’ and ‘‘Barclays Capital Inc.’’
are trademarks of Barclays Capital Inc. (‘‘Barclays’’)
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 ProShares UltraShort 7–10 Treasury
ETF (‘‘PST’’) is not sponsored, endorsed, sold or
promoted by Barclays. Barclays 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 PST 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
PST or with making disclosures concerning options
on PST under any applicable federal or state laws,
rules or regulations. Barclays does not sponsor,
endorse, or promote such activity by ISE and is not
affiliated in any manner with ISE.
7 iShares ® is a registered trademark of Barclays
Global Investors, N.A. (‘‘BGI’’), a wholly owned
subsidiary of Barclays Bank PLC. ‘‘GSCI ®’’ is a
registered trademark of Goldman, Sachs & Co.
(‘‘Goldman’’) and has been licensed for use for
certain purposes by BGI. All other trademarks and
service marks are the property of their respective
owners. The iShares GSCI Commodity Indexed
Trust (‘‘GSG’’) is not sponsored, sold, endorsed or
promoted by Goldman. Goldman and BGI have not
licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading,
marketing, and promotion of options on GSG 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 GSG or with making disclosures
concerning options on GSG under any applicable
federal or state laws, rules or regulations. Goldman
and BGI do not sponsor, endorse, or promote such
activity by ISE and are not affiliated in any manner
with ISE.
VerDate Nov<24>2008
18:09 Feb 24, 2009
Jkt 217001
Gold ETF (‘‘GLL’’). The Exchange
represents that UCO, SCO, MZZ, PST,
GSG, UGL and GLL 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 UCO,
SCO, MZZ, PST, GSG, UGL and GLL.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
UCO, SCO, MZZ, PST, GSG, UGL and
GLL 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.
2. Statutory 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
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 [sic] per contract side
and $0.15 [sic] per contract side, respectively. See
Securities Exchange Act Release No. 58143 (July 11,
2008), 73 FR 41388 (July 18, 2008) (SR–ISE–2008–
52). The Commission notes that the Exchange failed
to accurately reflect the increased execution fees for
linkage orders, which are now $0.27 for Linkage P
orders and $0.18 for Linkage P/A orders. See
Securities Exchange Act Release No. 58139 (July 10,
2008), 73 FR 41142 (July 17, 2008) (SR–ISE–2008–
54).
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.
PO 00000
Frm 00100
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8595
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.
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–2009–06 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–2009–06. This file number
13 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(2).
14 15
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25FEN1
8596
Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices
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 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–2009–06 and should be
submitted on or before March 18, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–3979 Filed 2–24–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59419; File No. SR–BX–
2009–011]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Eliminate
the $3 Underlying Price Requirement
for Continued Listing and Listing of
Additional Series on the Boston
Options Exchange Facility
pwalker on PROD1PC71 with NOTICES
February 19, 2009.
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 February
18, 2009, NASDAQ OMX BX, Inc. (the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Exchange filed the 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 proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter IV, Section 4 (Withdrawal of
Approval of Underlying Securities) of
the Rules of the Boston Options
Exchange Group, LLC (‘‘BOX’’) to
eliminate the $3 market price per share
requirement from the requirements for
continued approval of an underlying
security and the prohibition against
listing additional series of options on an
underlying security at any time when
the price per share of such underlying
security is less than $3. The text of the
proposed rule change is available from
the principal office of the Exchange, at
the Commission’s Public Reference
Room and also on the Exchange’s
Internet Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
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 purpose of this proposed rule
change is to eliminate the $3 market
price per share requirement from the
requirements for continued approval for
an underlying security from Chapter IV,
Section 4(b)(iv) of the BOX Rules. This
proposed rule change also amends
Chapter IV, Section 4(c) by eliminating
the prohibition against listing additional
series or options on an underlying
security at any time when the price per
share of such underlying security is less
than $3. The Exchange also proposes to
make technical changes throughout
Section 4 to eliminate references to
Section 4(b)(iv).
The BOX rules require that the market
price for a security be at least $3 on the
previous trading day for the continued
listing of options on that underlying
security. If the price of an underlying
security falls below $3, BOX can
continue to trade then-listed series on
that underlying security, but is unable
to list new series of options. The
Exchange believes that the $3 market
price per share requirement is no longer
necessary or appropriate, and that only
those underlying securities meeting the
remaining continued listing criteria set
forth in Chapter IV, Section 4 will be
eligible for continued listing and the
listing of additional options series. The
Exchange believes that the current $3
market price per share requirement
could have a negative effect on
investors. For example, in the current
volatile market environment in which
the market price for a large number of
securities has fallen below $3, BOX is
currently unable to list new series on
underlying securities trading below $3.
If there is market demand for series
below $3, BOX would be unable to
accommodate such requests and
investors would be unable to hedge
their positions with options series with
strikes below $3.
2. Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,5
in general, and Section 6(b)(5) of the
Act,6 in particular, in that it is designed
to foster cooperation and coordination
with persons engaged in regulating,
clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In particular, the
proposed rule change will permit BOX
to make options on underlying
securities available even if the price of
the underlying security is less than $3,
16 17
1 15
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18:09 Feb 24, 2009
3 15
4 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00101
Fmt 4703
5 15
6 15
Sfmt 4703
E:\FR\FM\25FEN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
25FEN1
]]>Agencies
[Federal Register Volume 74, Number 36 (Wednesday, February 25, 2009)]
[Notices]
[Pages 8594-8596]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3979]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59410; File No. SR-ISE-2009-06]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
February 17, 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 February 11, 2009, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission (the ``Commission'') the proposed rule change, as
described in Items I, II, and III below, which items have been prepared
by the 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 7 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 to
establish fees for transactions in options on the ProShares Ultra DJ-
AIG Crude Oil ETF (``UCO''), the ProShares UltraShort DJ-AIG Crude Oil
ETF (``SCO''),\4\ the ProShares
[[Page 8595]]
UltraShort MidCap 400 ETF (``MZZ''),\5\ the ProShares UltraShort 7-10
Year Treasury ETF (``PST''),\6\ the iShares GSCI Commodity Indexed
Trust ETF (``GSG''),\7\ the ProShares Ultra Gold ETF (``UGL'') and the
ProShares UltraShort Gold ETF (``GLL''). The Exchange represents that
UCO, SCO, MZZ, PST, GSG, UGL and GLL are eligible for options trading
because they constitute ``Exchange-Traded Fund Shares,'' as defined by
ISE Rule 502(h).
---------------------------------------------------------------------------
\4\ ``Dow Jones,'' AIG``[supreg]'', ``The Dow Jones-AIG Crude
Oil Sub-Index SM'' and ``DJ-AIGCL SM'' are
service marks of Dow Jones & Company, Inc. and American
International Group, Inc. (``American International Group''), as the
case may be, and have been licensed for use by ProShares Capital
Management. The ProShares UltraShort DJ-AIG Crude Oil ETF (``SCO'')
and the ProShares Ultra DJ-AIG Crude Oil ETF (``UCO'') are based on
the Dow Jones-AIG Crude Oil Index SM and are not
sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial
Products Corp. (``AIG-FP''), American International Group, or any of
their respective subsidiaries or affiliates. Dow Jones, AIG-FP, and
American International Group have not licensed or authorized ISE to
(i) engage in the creation, listing, provision of a market for
trading, marketing, and promotion of options on SCO and UCO 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 SCO and UCO or with making
disclosures concerning options on SCO and UCO under any applicable
federal or state laws, rules or regulations. Dow Jones, AIG-FP, and
American International Group do not sponsor, endorse, or promote
such activity by ISE and are not affiliated in any manner with ISE.
\5\ ``Standard & Poor's'', ``S&P'', ``S&P 400'', and ``Standard
& Poor's 400'' 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 ProShares
UltraShort MidCap 400 ETF (``MZZ'') 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 MZZ 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 MZZ or with making disclosures concerning options on MZZ
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\ ``Barclays Capital'' and ``Barclays Capital Inc.'' are
trademarks of Barclays Capital Inc. (``Barclays'') 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 ProShares UltraShort 7-10 Treasury ETF (``PST'') is not
sponsored, endorsed, sold or promoted by Barclays. Barclays 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 PST 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 PST or
with making disclosures concerning options on PST under any
applicable federal or state laws, rules or regulations. Barclays
does not sponsor, endorse, or promote such activity by ISE and is
not affiliated in any manner with ISE.
\7\ iShares [supreg] is a registered trademark of Barclays
Global Investors, N.A. (``BGI''), a wholly owned subsidiary of
Barclays Bank PLC. ``GSCI [supreg]'' is a registered trademark of
Goldman, Sachs & Co. (``Goldman'') and has been licensed for use for
certain purposes by BGI. All other trademarks and service marks are
the property of their respective owners. The iShares GSCI Commodity
Indexed Trust (``GSG'') is not sponsored, sold, endorsed or promoted
by Goldman. Goldman and BGI have not licensed or authorized ISE to
(i) engage in the creation, listing, provision of a market for
trading, marketing, and promotion of options on GSG 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 GSG or with making disclosures concerning
options on GSG under any applicable federal or state laws, rules or
regulations. Goldman and BGI 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 UCO, SCO, MZZ, PST, GSG, UGL and GLL.\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 UCO, SCO, MZZ, PST, GSG,
UGL and GLL 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 [sic] per
contract side and $0.15 [sic] per contract side, respectively. See
Securities Exchange Act Release No. 58143 (July 11, 2008), 73 FR
41388 (July 18, 2008) (SR-ISE-2008-52). The Commission notes that
the Exchange failed to accurately reflect the increased execution
fees for linkage orders, which are now $0.27 for Linkage P orders
and $0.18 for Linkage P/A orders. See Securities Exchange Act
Release No. 58139 (July 10, 2008), 73 FR 41142 (July 17, 2008) (SR-
ISE-2008-54).
\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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2. Statutory 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-2009-06 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-2009-06. This file
number
[[Page 8596]]
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 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-2009-06 and should be submitted on or
before March 18, 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. E9-3979 Filed 2-24-09; 8:45 am]
BILLING CODE 8011-01-P
