[Federal Register: August 3, 2007 (Volume 72, Number 149)]
[Notices]
[Page 43307-43309]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03au07-109]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56165; File No. SR-ISE-2007-64]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
July 30, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 43308]]
notice is hereby given that on July 24, 2007, the International
Securities Exchange, LLC (``Exchange'' or ``ISE'') 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 Exhange. 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.
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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 amend its Schedule of Fees to establish
fees for transactions in options on 3 Premium Products.\3\ The text of
the proposed rule change is available on the ISE's Web site (http://www.iseoptions.com
), at the principal office of the ISE, and at the
Commission's Public Reference Room.
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\3\ ``Premium Products'' is defined in the Schedule of Fees as
the products enumerated therein.
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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 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
The Exchange is proposing to amend its Schedule of Fees to
establish fees for transactions in options on the following 3 Premium
Products: First Trust ISE Chindia Index Fund (``FNI''), iShares MSCI
Brazil Index Fund (``EWZ'') and the iShares MSCI Korea Index Fund
(``EWY'').\4\ The Exchange represents that FNI, EWZ and EWY are
eligible for options trading because they constitute ``Fund Shares,''
as defined by ISE Rule 502(h).
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\4\ iShares[reg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a wholly owned subsidiary of Barclays
Bank PLC. ``MSCI Korea Index'' and ``MSCI Brazil Index'' are service
marks of Morgan Stanley Capital International (``MSCI'') and have
been licensed for use for certain purposes by BGI. All other
trademarks and service marks are the property of their respective
owners. Neither EWY nor EWZ are sponsored, endorsed, issued, sold or
promoted by MSCI. BGI and MSCI 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 EWY and EWZ 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 EWY and EWZ or with making
disclosures concerning options on EWY and EWZ under any applicable
federal or state laws, rules or regulations. BGI and MSCI 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 and a
comparison fee for all transactions in options on FNI, EWZ and EWY.\5\
The amount of the execution fee and comparison fee for products covered
by this filing shall be $0.15 and $0.03 per contract, respectively, for
all Public Customer Orders \6\ and Firm Proprietary orders. The amount
of the execution fee and comparison fee for all ISE Market Maker
transactions shall be equal to the execution fee and comparison fee
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\7\ Finally, the amount of the execution fee and
comparison fee for all non-ISE Market Maker transactions shall be $0.37
and $0.03 per contract, respectively. Further, since options on EWZ and
EWY are multiply-listed, the Payment for Order Flow fee shall apply
only to these two 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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\5\ These fees will be charged only to Exchange members. Under a
pilot program that is set to expire on July 31, 2007, these fees
will also be charged to Linkage Orders (as defined in ISE Rule
1900). See Securities Exchange Act Release No. 54204 (July 25,
2006), 71 FR 43548 (August 1, 2006) (SR-ISE-2006-38).
\6\ ``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 that is not a broker or dealer in securities.
\7\ The execution fee is currently between $.21 and $.12 per
contract side, depending on the Exchange Average Daily Volume, and
the comparison fee is currently $.03 per contract side.
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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,\8\ in general, and
furthers the objectives of section 6(b)(4),\9\ 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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\8\ 15 U.S.C. 78f.
\9\ 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
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, the foregoing rule change
has become effective pursuant to section 19(b)(3)(A) of the Act \10\
and Rule 19b-4(f)(2) \11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 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 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-2007-64 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-2007-64. This file
[[Page 43309]]
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-2007-64 and should be
submitted on or before August 24, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-15093 Filed 8-2-07; 8:45 am]
BILLING CODE 8010-01-P