[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Notices]
[Page 5246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1480]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57182; File No. SR-ISE-2007-109]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Order Approving Proposed Rule Change, as Modified by Amendment No. 
1 Thereto, Relating to Rule 2213, Market Maker Trading Licenses

January 22, 2008.

I. Introduction

    On November 14, 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 eliminate the limitation in 
ISE Rule 2213, ``Market Maker Trading Licenses,'' that a foreign 
exchange options primary market maker (``FXPMM'') in the Exchange's 
foreign currency options (``FX options'') cannot hold FXPMM trading 
licenses in more than four currency pairs. On December 13, 2007, the 
Exchange filed Amendment No. 1 to the proposed rule change. The 
proposed rule change, as modified by Amendment No. 1, was published for 
comment in the Federal Register on December 21, 2007.\3\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change, as modified by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 72808 (December 17, 
2007), 72 FR 72808.
---------------------------------------------------------------------------

II. Description of the Proposal

    ISE Rule 2213 currently provides that an FXPMM in the Exchange's FX 
options will be limited to holding no more than four FXPMM trading 
licenses across all currency pairs. The Exchange proposes to eliminate 
this restriction on the number of FXPMM trading licenses that a member 
can hold. The Exchange states that there is currently only one FXPMM 
trading in the four FX options presently listed on the Exchange.\4\ As 
such, this FXPMM is precluded from serving as an FXPMM in any 
additional currency pairs. The Exchange represents that it intends to 
launch additional currency pairs in the near future and would like to 
allow the current FXPMM to participate in the auction for FXPMM trading 
licenses in these additional currency pairs.
---------------------------------------------------------------------------

    \4\ The Exchange currently lists options on the euro, the 
British pound, the Japanese yen, and the Canadian dollar. See 
Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 
17963 (April 10, 2007) (SR-ISE-2006-59).
---------------------------------------------------------------------------

III. Discussion

    After careful review, the Commission finds that the proposed rule 
change, as amended, is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange and, in particular, with Section 6(b)(5) of the 
Act,\5\ 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.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)(5).
    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    The Commission believes that eliminating the limitation in ISE Rule 
2213 prohibiting a member from acting as an FXPMM in more than four 
currency pairs could assist the Exchange in listing additional currency 
pairs by allowing the only current FXPMM to participate in the auction 
for FXPMM trading licenses in these additional currency pairs. At the 
same time, the Commission believes that the existing process for 
obtaining FXPMM trading licenses in ISE Rule 2213(f) pursuant to a 
sealed bid auction should continue to ensure that trading licenses are 
awarded in a fair and reasonable manner and provide fair access to the 
exchange.\7\
---------------------------------------------------------------------------

    \7\ See ISE Rule 2213(f). See also Securities Exchange Act 
Release No. 55575 (April 3, 2007), 72 FR 17963, 17966 (April 10, 
2007) (SR-ISE-2006-59) (noting that the Commission believed that the 
sealed bid auction for FXPMM trading licenses was reasonably 
calculated to award trading licenses in a fair and reasonable manner 
and provide fair access to the Exchange).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-ISE-2007-109), as modified by 
Amendment No. 1, be, and hereby is, approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1480 Filed 1-28-08; 8:45 am]
BILLING CODE 8011-01-P