[Federal Register Volume 72, Number 97 (Monday, May 21, 2007)]
[Notices]
[Pages 28531-28532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9664]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55764; File No. SR-ISE-2007-18]


Self-Regulatory Organizations; International Securities Exchange, 
LLC.; Order Approving Proposed Rule Change Relating to Information 
Regarding Customer Interest on the Book

May 15, 2007.

I. Introduction

    On March 5, 2007, the International Securities Exchange, LLC 
(``ISE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to allow the ISE to make 
available to all ISE members information regarding the quantity of 
public customer contracts included in the ISE's highest bid and lowest 
offer. The proposed rule change was published for comment in the 
Federal Register on April 12, 2007.\3\ The Commission received no 
comments regarding the proposal. This order approves the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55589 (April 5, 
2007), 72 FR 18498.
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II. Description of the Proposal

    Currently, the ISE provides information regarding the quantity of 
public customer contracts at the ISE's best bid and best offer 
(``BBO'') only to Primary Market Makers (``PMMs''). The ISE proposes to 
adopt ISE Rule 713, Supplementary Material .04, to allow the ISE to 
make such information available to all ISE members. According to the 
ISE, the Chicago Board Options Exchange (``CBOE'') currently provides 
its members with information regarding customer interest at the CBOE's 
BBO. The ISE believes that it is necessary to provide its members with 
similar information to remain competitive with the CBOE. In addition, 
the ISE notes that the information would allow an ISE member to know 
the number of customer contracts it would need to satisfy before the 
member could cross a large block-sized order. The ISE believes that 
such information is particularly useful for members seeking to execute 
larger-sized orders through the ISE's block and facilitation 
mechanisms.\4\
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    \4\ See ISE Rule 716.
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    In addition, the proposal corrects several cross-references in ISE 
Rule 713(a).

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III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\5\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the Act,\6\ which requires, among other things, that 
the rules of a national securities exchange be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest. Specifically, 
the proposal will allow the ISE to make available to all ISE members 
information regarding customer interest at the ISE's BBO that currently 
is available only to PMMs. In addition, the proposal will allow the ISE 
to provide its members with the same customer interest information that 
CBOE currently makes available to its members.
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    \5\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-ISE-2007-18) is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E7-9664 Filed 5-18-07; 8:45 am]
BILLING CODE 8010-01-P