[Federal Register: August 3, 2007 (Volume 72, Number 149)]
[Notices]
[Page 43306-43307]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03au07-108]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56155; File No. SR-ISE-2007-67]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Directed Orders System Change
July 27, 2007.
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 July 24, 2007, the International Securities Exchange, LLC
(``ISE'' or ``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 substantially
prepared by the ISE. The proposed rule change has been filed by the ISE
as effecting a change in an existing order-entry or trading system
pursuant to section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(5)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to extend the pilot period for the system
change that identifies to a Directed Market Maker (``DMM'') the
identity of the firm entering a Directed Order until January 31, 2008.
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 ISE included statements
concerning the
[[Page 43307]]
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 ISE 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
On January 5, 2006, the ISE initiated a system change to identify
to a DMM the identity of the firm entering a Directed Order. The ISE
filed this system change on a pilot basis under section 19(b)(3)(A) of
the Exchange Act of 1934 (the ``Exchange Act'') and Rule 19b-4(f)(5)
thereunder \5\ so that it would be effective while the Commission
considered a separate proposed rule change filed under section 19(b)(2)
of the Exchange Act to amend the ISE's rules to reflect the system
change on a permanent basis (the ``Permanent Rule Change'').\6\ The
current pilot expires on July 31, 2007,\7\ but the Commission has not
yet taken action with respect to the Permanent Rule Change.
Accordingly, the Exchange proposes to extend the pilot until January
31, 2008, so that the system change will remain in effect while the
Commission continues to evaluate the Permanent Rule Change.\8\
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\5\ See Securities Exchange Act Release No. 53104 (January 11,
2006), 71 FR 3142 (January 19, 2006) (Notice of Filing and Immediate
Effectiveness for SR-ISE-2006-02).
\6\ See Securities Exchange Act Release No. 53103 (January 11,
2006), 71 F.R. 3144 (January 19, 2006) (Notice of Filing for SR-ISE-
2006-01).
\7\ See Securities Exchange Act Release No. 55144 (January 22,
2007), 72 FR 3890 (January 26, 2007) (Notice of Filing and Immediate
Effectiveness for SR-ISE-2007-05).
\8\ The ISE anticipated that extension of the pilot might be
necessary and included this in the filing for the initial pilot. See
supra note 5, at footnote 5.
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2. Statutory Basis
The Exchange believes that the basis under the Act is found in
section 6(b)(5), in that the propose rule change is designed to promote
just and equitable principles of trade, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
Extension of the pilot program will allow the Exchange to continue
operating under the pilot while the Commission considers the Permanent
Rule Change.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that 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 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 proposed rule change effects a change in an
existing order entry or trading system that (i) Does not significantly
affect the protection of investors or the public interest; (ii) does
not impose any significant burden on competition; and (iii) does not
have the effect of limiting access to or availability of the system, it
has become effective pursuant to section 19(b)(3)(A)(iii) of the Act
\9\ and Rule 19b-4(f)(5) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 19b-4(f)(5).
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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 (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2007-67 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2007-67. 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 (http://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 Number SR-ISE-2007-67 and should be
submitted on or before August 24, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
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\11\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-15070 Filed 8-2-07; 8:45 am]
BILLING CODE 8010-01-P