Federal Register: March 19, 2008 (Volume 73, Number 54)
DOCID: fr19mr08-119 FR Doc E8-5519
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57488; File No. SR-ISE-2008-26]
NOTICE: NOTICES
DOCID: fr19mr08-119
ACTION: Self-Regulatory Organizations; Proposed Rule Changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Fee Changes
DOCUMENT SUMMARY:
March 13, 2008.
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 March 10, 2008, 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
Exchange. The Exchange designated this proposal as one establishing or
changing a due, fee, or other charge imposed by ISE 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
ISE proposes to amend its Schedule of Fees by adding to and
subtracting from its list of Premium Products.\5\ The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.ise.com.
\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 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. ISE has substantially 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 UltraShort Oil & Gas
ProShares (``DUG''),\6\ UltraShort Dow30 ProShares (``DXD''),\7\ and PowerShares DB Agriculture Fund (``DBA'').\8\ The
[[Page 14864]]
Exchange represents that DUG, DXD and DBA are eligible for options
trading because they constitute ``ExchangeTraded Fund Shares,'' as defined by ISE Rule 502(h).
\6\ ``Dow Jones'' and ``Dow Jones U.S. Oil & GasSM''
are service marks of Dow Jones & Company, Inc. (``Dow Jones'') and
has been licensed for use for certain purposes by ProFunds Trust.
All other trademarks and service marks are the property of their
respective owners. DUG is not sponsored, endorsed, issued, sold or
promoted by Dow Jones. Dow Jones 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 DUG; 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 DUG or with making disclosures concerning
options on DUG under any applicable federal or State laws, rules or
regulations. Dow Jones does not sponsor, endorse, or promote such
activity by ISE and is not affiliated in any manner with ISE.
\7\ ``The Dow 30SM,'' ``Dow Jones Industrial
Average,'' and ``DJIA,'' are service marks of Dow Jones, and have
been licensed for use for certain purposes by ProFunds Trust. All
other trademarks and service marks are the property of their
respective owners. DXD is not sponsored, endorsed, issued, sold or
promoted by Dow Jones. Dow Jones 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 DUG; 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 DUG or with making disclosures concerning
options on DUG under any applicable federal or State laws, rules or
regulations. Dow Jones does not sponsor, endorse, or promote such
activity by ISE and is not affiliated in any manner with ISE.
\8\ DBA is based on the Deutsche Bank Liquid Commodity Index
Optimum Yield Agriculture Excess Return\TM\ and managed by DB
Commodity Services LLC. DBLCI\TM\ and Deutsche Bank Liquid Commodity
Index\TM\ are trademarks of Deutsche Bank AG, London (``DB AG'').
PowerShares[reg] is a registered service mark of PowerShares Capital
Management LLC (``PowerShares''). DBA is not sponsored, endorsed,
sold or promoted by DB AG, and DB AG makes no representation
regarding the advisability of investing in DBA. Neither DB AG nor
PowerShares has licensed or authorized ISE to: (i) Engage in the
creation, listing, provision of a market for trading, marketing, and
promotion of options on DBA; 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 DBA or with making disclosures concerning options on DBA
under any applicable federal or state laws, rules or regulations. DB
AG and PowerShares do not sponsor, endorse, or promote such activity by ISE and are not affiliated in any manner with ISE.
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 DUG, DXD and DBA.\9\
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 \10\ 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.\11\ 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.\12\ Further, since options on
DUG, DXD and DBA are multiplylisted, 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.
\9\ 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 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 per contract
side and $0.15 per contract side, respectively. See Securities
Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August 1, 2007) (SRISE200755).
\10\ Public Customer Order is defined in ISE Rule 100(a)(39) as
an order for the account of a Public Customer. Public Customer is
defined in ISE Rule 100(a)(38) as a person that is not a broker or dealer in securities.
\11\ 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.
\12\ 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.
Further, as a matter of housekeeping, the Exchange proposes to
remove from its Schedule of Fees options on Regional Bank HOLDRS (RKH) and Enterra Energy Trust (ENT).\13\
\13\ These Premium Products were recently delisted and no longer
trade on the Exchange. The Exchange therefore proposes to remove them from its Schedule of Fees.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \14\ in general, and Section 6(b)(4) of
the Act \15\ in particular, because 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.
\14\ 15 U.S.C. 78f(b).
\15\ 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
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \16\ and Rule
19b4(f)(2) \17\ thereunder, because it establishes or changes a due,
fee, or other charge imposed by the Exchange. Accordingly, the proposal
took effect upon filing with the Commission. 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.
\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
\17\ 17 CFR 240.19b4(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 SRISE200826. 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 Exchange. 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 SRISE200826 and should be submitted on or before April 9, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\
\18\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E85519 Filed 31808; 8:45 am]
BILLING CODE 801101P
SUMMARY:
International Securities Exchange, LLC,
DOCUMENT BODY 2:
March 13, 2008.
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 March 10, 2008, 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
Exchange. The Exchange designated this proposal as one establishing or
changing a due, fee, or other charge imposed by ISE 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
ISE proposes to amend its Schedule of Fees by adding to and
subtracting from its list of Premium Products.\5\ The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.ise.com.
\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 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. ISE has substantially 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 UltraShort Oil & Gas
ProShares (``DUG''),\6\ UltraShort Dow30 ProShares (``DXD''),\7\ and PowerShares DB Agriculture Fund (``DBA'').\8\ The
[[Page 14864]]
Exchange represents that DUG, DXD and DBA are eligible for options
trading because they constitute ``ExchangeTraded Fund Shares,'' as defined by ISE Rule 502(h).
\6\ ``Dow Jones'' and ``Dow Jones U.S. Oil & GasSM''
are service marks of Dow Jones & Company, Inc. (``Dow Jones'') and
has been licensed for use for certain purposes by ProFunds Trust.
All other trademarks and service marks are the property of their
respective owners. DUG is not sponsored, endorsed, issued, sold or
promoted by Dow Jones. Dow Jones 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 DUG; 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 DUG or with making disclosures concerning
options on DUG under any applicable federal or State laws, rules or
regulations. Dow Jones does not sponsor, endorse, or promote such
activity by ISE and is not affiliated in any manner with ISE.
\7\ ``The Dow 30SM,'' ``Dow Jones Industrial
Average,'' and ``DJIA,'' are service marks of Dow Jones, and have
been licensed for use for certain purposes by ProFunds Trust. All
other trademarks and service marks are the property of their
respective owners. DXD is not sponsored, endorsed, issued, sold or
promoted by Dow Jones. Dow Jones 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 DUG; 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 DUG or with making disclosures concerning
options on DUG under any applicable federal or State laws, rules or
regulations. Dow Jones does not sponsor, endorse, or promote such
activity by ISE and is not affiliated in any manner with ISE.
\8\ DBA is based on the Deutsche Bank Liquid Commodity Index
Optimum Yield Agriculture Excess Return\TM\ and managed by DB
Commodity Services LLC. DBLCI\TM\ and Deutsche Bank Liquid Commodity
Index\TM\ are trademarks of Deutsche Bank AG, London (``DB AG'').
PowerShares[reg] is a registered service mark of PowerShares Capital
Management LLC (``PowerShares''). DBA is not sponsored, endorsed,
sold or promoted by DB AG, and DB AG makes no representation
regarding the advisability of investing in DBA. Neither DB AG nor
PowerShares has licensed or authorized ISE to: (i) Engage in the
creation, listing, provision of a market for trading, marketing, and
promotion of options on DBA; 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 DBA or with making disclosures concerning options on DBA
under any applicable federal or state laws, rules or regulations. DB
AG and PowerShares do not sponsor, endorse, or promote such activity by ISE and are not affiliated in any manner with ISE.
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 DUG, DXD and DBA.\9\
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 \10\ 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.\11\ 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.\12\ Further, since options on
DUG, DXD and DBA are multiplylisted, 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.
\9\ 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 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 per contract
side and $0.15 per contract side, respectively. See Securities
Exchange Act Release No. 56128 (July 24, 2007), 72 FR 42161 (August 1, 2007) (SRISE200755).
\10\ Public Customer Order is defined in ISE Rule 100(a)(39) as
an order for the account of a Public Customer. Public Customer is
defined in ISE Rule 100(a)(38) as a person that is not a broker or dealer in securities.
\11\ 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.
\12\ 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.
Further, as a matter of housekeeping, the Exchange proposes to
remove from its Schedule of Fees options on Regional Bank HOLDRS (RKH) and Enterra Energy Trust (ENT).\13\
\13\ These Premium Products were recently delisted and no longer
trade on the Exchange. The Exchange therefore proposes to remove them from its Schedule of Fees.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \14\ in general, and Section 6(b)(4) of
the Act \15\ in particular, because 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.
\14\ 15 U.S.C. 78f(b).
\15\ 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
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \16\ and Rule
19b4(f)(2) \17\ thereunder, because it establishes or changes a due,
fee, or other charge imposed by the Exchange. Accordingly, the proposal
took effect upon filing with the Commission. 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.
\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
\17\ 17 CFR 240.19b4(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 SRISE200826. 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 Exchange. 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 SRISE200826 and should be submitted on or before April 9, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\
\18\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E85519 Filed 31808; 8:45 am]
BILLING CODE 801101P