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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-56919; File No. SR-ISE-2007-114]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY: Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes
DOCUMENT SUMMARY: December 6, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on December 3, 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 ISE. The ISE has designated this proposal as one
establishing or changing a due, fee, or other charge imposed by the
CBOE under section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b4(f)(2)
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. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory 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 1 Premium Product.\5\ The text of
the proposed rule change is available on the ISE's Web site (http://www.ise.com ), at the principal office of the ISE, and at the
Commission's Public Reference Room.
\5\ ``Premium Products'' is defined in the Schedule of Fees as the products enumerated therein.
II. SelfRegulatory 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. SelfRegulatory 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 PowerShares Golden
Dragon Halter USX China Portfolio (``PGJ'').\6\ The Exchange represents
that PGJ \7\ is eligible for options trading because it constitutes ``Fund Shares,'' as defined by ISE Rule 502(h).
\6\ PowerSharesTM and PGJTM are trademarks
of PowerShares Capital Management LLC (``PowerShares'' or the
``Adviser''). Halter Financial Group, Inc. (``Halter Financial'') is
the index provider for the Golden Dragon Halter USX China Portfolio
(``PGJ''). The ``USX China Index'' is a trademark of Halter
Financial and has been licensed for use for certain purposes by the
Adviser. All other trademarks and service marks are the property of
their respective owners. PGJ is not sponsored, endorsed, sold or
promoted by Halter Financial, and Halter Financial makes no
representation regarding the advisability of investing in PGJ.
Halter Financial and PowerShares 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 PGJ 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 PGJ or with making disclosures concerning
options on PGJ under any applicable federal or state laws, rules or
regulations. Halter Financial and PowerShares do not sponsor,
endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE.
\7\ The Exchange inadvertently included a reference to ILF
options and requested that the Commission correct this error.
Telephone conversation between Samir Patel, Assistant General
Counsel, CBOE, and Sonia Trocchio, Special Counsel, Division of Trading and Markets, Commission (December 6, 2007).
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 PGJ.\8\ 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 \9\ 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 [[Page 70915]]
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\10\ Finally, the amount of the execution fee and
comparison fee for all nonISE Market Maker transactions shall be $0.37
and $0.03 per contract, respectively.\11\ Further, since options on PGJ
are multiplylisted, the Payment for Order Flow fee shall apply to this
product. The Exchange believes the proposed rule change will further
the Exchange's goal of introducing new products to the marketplace that are competitively priced.
\8\ These fees will be charged only to Exchange members. Under a
pilot program that is set to expire on July 31, 2008, these fees
will also be charged to Linkage Orders (as defined in ISE Rule
1900). See Securities Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August 1, 2007) (SRISE200755).
\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 that is not a broker or dealer in securities.
\10\ 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.
\11\ The amount of the execution and comparison fee for nonISE
Market Maker transactions executed in the Exchange's Facilitation
and Solicitation Mechanisms is $0.16 and $0.03 per contract, respectively.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under section 6(b)(4) of the Act \12\ that an exchange have
an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities.
\12\ 15 U.S.C. 78f(b)(4).
B. SelfRegulatory 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. SelfRegulatory 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, it has become effective
pursuant to section 19(b)(3) of the Act \13\ and Rule 19b4(f)(2) \14\
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.
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRISE2007114. This file number should be included on the subject line if email 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 SRISE2007114 and should be submitted on or before January 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\
\15\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E724088 Filed 121207; 8:45 am]
BILLING CODE 801101P
SUMMARY: International Securities Exchange, LLC,
DOCUMENT BODY 2: December 6, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on December 3, 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 ISE. The ISE has designated this proposal as one
establishing or changing a due, fee, or other charge imposed by the
CBOE under section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b4(f)(2)
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. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory 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 1 Premium Product.\5\ The text of
the proposed rule change is available on the ISE's Web site (http://www.ise.com ), at the principal office of the ISE, and at the
Commission's Public Reference Room.
\5\ ``Premium Products'' is defined in the Schedule of Fees as the products enumerated therein.
II. SelfRegulatory 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. SelfRegulatory 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 PowerShares Golden
Dragon Halter USX China Portfolio (``PGJ'').\6\ The Exchange represents
that PGJ \7\ is eligible for options trading because it constitutes ``Fund Shares,'' as defined by ISE Rule 502(h).
\6\ PowerSharesTM and PGJTM are trademarks
of PowerShares Capital Management LLC (``PowerShares'' or the
``Adviser''). Halter Financial Group, Inc. (``Halter Financial'') is
the index provider for the Golden Dragon Halter USX China Portfolio
(``PGJ''). The ``USX China Index'' is a trademark of Halter
Financial and has been licensed for use for certain purposes by the
Adviser. All other trademarks and service marks are the property of
their respective owners. PGJ is not sponsored, endorsed, sold or
promoted by Halter Financial, and Halter Financial makes no
representation regarding the advisability of investing in PGJ.
Halter Financial and PowerShares 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 PGJ 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 PGJ or with making disclosures concerning
options on PGJ under any applicable federal or state laws, rules or
regulations. Halter Financial and PowerShares do not sponsor,
endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE.
\7\ The Exchange inadvertently included a reference to ILF
options and requested that the Commission correct this error.
Telephone conversation between Samir Patel, Assistant General
Counsel, CBOE, and Sonia Trocchio, Special Counsel, Division of Trading and Markets, Commission (December 6, 2007).
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 PGJ.\8\ 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 \9\ 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 [[Page 70915]]
currently charged by the Exchange for ISE Market Maker transactions in
equity options.\10\ Finally, the amount of the execution fee and
comparison fee for all nonISE Market Maker transactions shall be $0.37
and $0.03 per contract, respectively.\11\ Further, since options on PGJ
are multiplylisted, the Payment for Order Flow fee shall apply to this
product. The Exchange believes the proposed rule change will further
the Exchange's goal of introducing new products to the marketplace that are competitively priced.
\8\ These fees will be charged only to Exchange members. Under a
pilot program that is set to expire on July 31, 2008, these fees
will also be charged to Linkage Orders (as defined in ISE Rule
1900). See Securities Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August 1, 2007) (SRISE200755).
\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 that is not a broker or dealer in securities.
\10\ 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.
\11\ The amount of the execution and comparison fee for nonISE
Market Maker transactions executed in the Exchange's Facilitation
and Solicitation Mechanisms is $0.16 and $0.03 per contract, respectively.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under section 6(b)(4) of the Act \12\ that an exchange have
an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities.
\12\ 15 U.S.C. 78f(b)(4).
B. SelfRegulatory 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. SelfRegulatory 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, it has become effective
pursuant to section 19(b)(3) of the Act \13\ and Rule 19b4(f)(2) \14\
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.
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRISE2007114. This file number should be included on the subject line if email 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 SRISE2007114 and should be submitted on or before January 3, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\
\15\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E724088 Filed 121207; 8:45 am]
BILLING CODE 801101P
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