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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57032; File No. SR-ISE-2007-73]
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 Elimination of the Short Sale ``tick'' and Price Tests
DOCUMENT SUMMARY: December 21, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 [[Page 74384]]
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on August 21, 2007, the International Securities Exchange, LLC (``ISE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the Exchange. On October 26, 2007, ISE filed Amendment No. 1 to the
proposed rule change.\3\ The Exchange has designated the proposed rule
change as constituting a ``noncontroversial'' rule change under
paragraph (f)(6) of Rule 19b4 under the Act,\4\ which renders the
proposal effective upon receipt of this filing by the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ Amendment No. 1 supersedes and replaces the original filing in its entirety.
\4\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend various ISE rules to conform to recent SEC amendments to Rule 10a1 under the Act and Regulation SHO that eliminated SEC and selfregulatory organization (``SRO'') short sale ``tick'' and price tests. The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and http://www.ise.com. II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of Amendment No. 1 to this filing is to amend the proposed rule text to: (1) Allow for the execution of short sale orders during the opening process; (2) correct an incorrect cross reference to a Regulation SHO provision; and (3) to remove the text proposing to delete a provision of Rule 2129 (MidPoint Match).
On June 13, 2007, the SEC voted to adopt amendments to Rule 10a1 under the Act and Regulation SHO to remove the ``tick'' test of Rule 10a1 and any short sale price test of any SRO. As a result of the SEC's action, the ISE is seeking to conform its rules accordingly by rescinding ISE Rules 1407, which governs short sale transactions in Nasdaq Securities, and 2113(a) and (b), which contains a ``tick'' test applicable to short sales effected on the ISE, as well as to make conforming ``housekeeping'' changes to certain other rules. The Exchange proposes to remove references to the execution of short sale orders, as well as remove the ``short exempt'' marking requirements from the rules.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \5\ in general and furthers the objectives
of section 6(b)(5) \6\ in particular in that the Exchange's proposed
rules are designed to promote just and equitable principles of trade,
to 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.
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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
The foregoing rule change has become immediately effective pursuant
to section 19(b)(3)(A) of the Act\7\ and Rule 19b4(f)(6)\8\ thereunder
because it does not: (1) Significantly affect the protection of
investors or the public interest; (2) impose any significant burden on
competition; and (3) become operative for 30 days after the date of the
filing, or such shorter time as the Commission may designate. At any
time within sixty (60) days of the filing of the 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.
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b4(f)(6).
The Exchange requests that the Commission waive the 5day pre
filing notice requirement and the 30day operative delay period for
``noncontroversial'' proposals under Exchange Act Rule 19b4(f)(6) and
make the proposed rule change effective and operative upon filing with
the Commission. The Commission believes such waivers are consistent
with the protection of investors and the public interest because the
proposed rule change conforms ISE rules to currently effective
Commission rules.\9\ For this reason, the Commission designates the proposal to be operative upon filing with the Commission.
\9\ For purposes of waiving the 30day preoperative period, the
Commission has considered the impact of the proposed rule change on
efficiency, competition and capital formation. 15 U.S.C. 78c(f). 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 SRISE200773. 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
[[Page 74385]]
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 SRISE200773 and should be submitted on or before January 22, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
\10\ 17 CFR 200.303(a)(12).
[FR Doc. E725369 Filed 122807; 8:45 am]
BILLING CODE 801101P
SUMMARY: International Securities Exchange, LLC,
DOCUMENT BODY 2: December 21, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 [[Page 74384]]
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on August 21, 2007, the International Securities Exchange, LLC (``ISE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the Exchange. On October 26, 2007, ISE filed Amendment No. 1 to the
proposed rule change.\3\ The Exchange has designated the proposed rule
change as constituting a ``noncontroversial'' rule change under
paragraph (f)(6) of Rule 19b4 under the Act,\4\ which renders the
proposal effective upon receipt of this filing by the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ Amendment No. 1 supersedes and replaces the original filing in its entirety.
\4\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend various ISE rules to conform to recent SEC amendments to Rule 10a1 under the Act and Regulation SHO that eliminated SEC and selfregulatory organization (``SRO'') short sale ``tick'' and price tests. The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and http://www.ise.com. II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of Amendment No. 1 to this filing is to amend the proposed rule text to: (1) Allow for the execution of short sale orders during the opening process; (2) correct an incorrect cross reference to a Regulation SHO provision; and (3) to remove the text proposing to delete a provision of Rule 2129 (MidPoint Match).
On June 13, 2007, the SEC voted to adopt amendments to Rule 10a1 under the Act and Regulation SHO to remove the ``tick'' test of Rule 10a1 and any short sale price test of any SRO. As a result of the SEC's action, the ISE is seeking to conform its rules accordingly by rescinding ISE Rules 1407, which governs short sale transactions in Nasdaq Securities, and 2113(a) and (b), which contains a ``tick'' test applicable to short sales effected on the ISE, as well as to make conforming ``housekeeping'' changes to certain other rules. The Exchange proposes to remove references to the execution of short sale orders, as well as remove the ``short exempt'' marking requirements from the rules.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \5\ in general and furthers the objectives
of section 6(b)(5) \6\ in particular in that the Exchange's proposed
rules are designed to promote just and equitable principles of trade,
to 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.
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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
The foregoing rule change has become immediately effective pursuant
to section 19(b)(3)(A) of the Act\7\ and Rule 19b4(f)(6)\8\ thereunder
because it does not: (1) Significantly affect the protection of
investors or the public interest; (2) impose any significant burden on
competition; and (3) become operative for 30 days after the date of the
filing, or such shorter time as the Commission may designate. At any
time within sixty (60) days of the filing of the 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.
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b4(f)(6).
The Exchange requests that the Commission waive the 5day pre
filing notice requirement and the 30day operative delay period for
``noncontroversial'' proposals under Exchange Act Rule 19b4(f)(6) and
make the proposed rule change effective and operative upon filing with
the Commission. The Commission believes such waivers are consistent
with the protection of investors and the public interest because the
proposed rule change conforms ISE rules to currently effective
Commission rules.\9\ For this reason, the Commission designates the proposal to be operative upon filing with the Commission.
\9\ For purposes of waiving the 30day preoperative period, the
Commission has considered the impact of the proposed rule change on
efficiency, competition and capital formation. 15 U.S.C. 78c(f). 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 SRISE200773. 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
[[Page 74385]]
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 SRISE200773 and should be submitted on or before January 22, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
\10\ 17 CFR 200.303(a)(12).
[FR Doc. E725369 Filed 122807; 8:45 am]
BILLING CODE 801101P
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14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 26 CFR Part 1 40 CFR Part 180 47 CFR Part 73 50 CFR Part 17 33 CFR Part 117 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 33 CFR Part 100 40 CFR Part 63 50 CFR Part 622 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 50 CFR Part 660 44 CFR Part 65 40 CFR Parts 52 and 81 40 CFR Part 271 47 CFR Part 64 50 CFR Part 665 47 CFR Part 76 50 CFR Part 229 14 CFR Part 23 14 CFR Part 25 21 CFR Part 522