[Federal Register Volume 72, Number 108 (Wednesday, June 6, 2007)]
[Notices]
[Pages 31358-31359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10873]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55833; File No. SR-ISE-2007-28]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendment No. 1 Thereto Relating to the Expiration of an ISE 
Stock Exchange Fee Waiver and the Granting of a Fee Waiver for Certain 
Other Transactions

May 31, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 1, 2007, 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. On May 29, 2007, the ISE filed Amendment No. 1 to the 
proposed rule change. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, 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 reflect the 
expiration of a fee waiver related to all transactions executed on the 
ISE Stock Exchange (``ISE Stock'') and to allow for a waiver of certain 
transactions executed on ISE Stock. The text of the proposed rule 
change is available at http://www.iseoptions.com and the Commission's 
Public Reference Room.

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 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.

[[Page 31359]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend the Schedule 
of Fees to reflect the expiration of a fee waiver related to all 
MidPoint Match (``MPM'') transactions executed on ISE Stock, a facility 
of the Exchange, and to allow for a waiver of certain other MPM 
transactions executed on ISE Stock. The Exchange currently waives all 
execution fees for MPM transactions in an effort to promote trading on 
ISE Stock. The Exchange currently waives all execution fees in an 
effort to promote trading on ISE Stock.\3\ The fee waiver is scheduled 
to expire on May 1, 2007.\4\
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    \3\ See Securities Exchange Act Release No. 54561 (October 2, 
2006), 71 FR 59844 (October 11, 2006).
    \4\ See Securities Exchange Act Release No. 55560 (March 29, 
2007), 72 FR 16837 (April 5, 2007).
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    The Exchange proposes to waive the transaction fee applicable to 
executions in MPM when the same firm enters a MPM buy order which 
executes against that same firm's MPM sell order. However, the Exchange 
represents that, due to the configuration of session lines carrying 
orders for multiple firms, it is not always possible for the Exchange 
to determine who the originating firm is that entered the order. 
Accordingly, for a firm to avail itself of this waiver, the firm must 
ensure that the MPM order sent by it, or on its behalf, is marked with 
the firm's identifier or is uniquely identified by submission on a 
dedicated session. A firm may contact the Exchange to set up its own 
dedicated session line, whereby all MPM orders sent by it will be 
identified as that member's order and will be afforded the waiver 
anytime one of its MPM buy orders executes against one of its own MPM 
sell orders. Alternatively, a firm may contact a service bureau that is 
connected to ISE to have the service bureau allocate a session line 
solely for that firm's orders, i.e., creating a dedicated session line 
for that firm. In those situations where one firm submits MPM orders to 
the Exchange over different session lines, the Exchange represents that 
so long as the firm is identifiable as the originating firm on both 
sides of the MPM execution, the firm will be afforded the waiver, 
regardless of what line the MPM orders were submitted through.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) \5\ that the Exchange provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members and issuers and other persons using its facilities.
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    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that 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

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
thereunder,\7\ because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. Accordingly, the proposal will take 
effect upon filing with the Commission.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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    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.\8\
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    \8\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on May 29, 2007, the date on which the ISE filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 [email protected]. Please include 
File Number SR-ISE-2007-28 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2007-28. This file 
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. 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-2007-28 and should be submitted on or before June 
27, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-10873 Filed 6-5-07; 8:45 am]
BILLING CODE 8010-01-P