[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Notices]
[Pages 30176-30178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11523]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57831; File No. SR-ISE-2008-39]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Amend its Schedule of Fees To Establish Fees for Transactions
in Options on Five Premium Products
May 16, 2008.
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 9, 2008, International Securities Exchange, LLC (``ISE'' or
the ``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 prepared by ISE. The Exchange has
designated this proposal as one establishing or changing a member due,
fee, or other charge imposed by ISE under section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
ISE is proposing to amend its Schedule of Fees to establish fees
for transactions in options on five Premium Products.\5\ The text of
the proposed rule
[[Page 30177]]
change is available at http://www.ise.com, the principal offices of the
Exchange, and the Commission's Public Reference Room.
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\5\ Premium Products is defined in the Schedule of Fees as the
products enumerated therein.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, ISE 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 prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory 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 CurrencyShares\SM\
Australian Dollar Trust (``FXA''), the CurrencyShares\SM\ British Pound
Sterling Trust (``FXB''), the CurrencyShares\SM\ Euro Trust (``FXE''),
the CurrencyShares\SM\ Japanese Yen Trust (``FXY'') \6\ and the iShares
MSCI Taiwan Index Fund (``EWT'').\7\ The Exchange represents that FXA,
FXB, FXE, FXY and EWT are eligible for options trading because they
constitute ``Exchange-Traded Fund Shares,'' as defined by ISE Rule
502(h).
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\6\ CurrencyShares\SM\ Australian Dollar Trust,
CurrencyShares\SM\ British Pound Sterling Trust, CurrencyShares\SM\
Euro Trust, and CurrencyShares\SM\ Japanese Yen Trust are service
marks of their respective owner(s). Rydex Distributors, Inc., an
affiliate of Rydex Investments and Rydex Specialized Products, is
the distributor of Rydex funds. Rydex Specialized Products LLC, d/b/
a Rydex Investments (``Rydex''), is the sponsor of the
CurrencyShares\SM\ Australian Dollar Trust (``FXA''), the
CurrencyShares\SM\ British Pound Sterling Trust (``FXB''), the
CurrencyShares\SM\ Euro Trust (``FXE'') and the CurrencyShares\SM\
Japanese Yen Trust (``FXY''). Rydex 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 FXA, FXB, FXE
and FXY or (ii) to use and refer to any trademarks or service marks
in connection with the listing, provision of a market for trading,
marketing, and promotion of options on FXA, FXB, FXE and FXY or with
making disclosures concerning options on FXA, FXB, FXE and FXY under
any applicable federal or state laws, rules or regulations. Rydex
does not sponsor, endorse, or promote such activity by ISE, and is
not affiliated in any manner with ISE.
\7\ iShares[supreg] is a registered trademark of Barclays Global
Investors, N.A. (``BGI''), a majority owned subsidiary of Barclays
Bank PLC. ``MSCI Taiwan Index'' is a service mark of Morgan Stanley
Capital International (``MSCI'') and has been licensed for use for
certain purposes by BGI. All other trademarks and service marks are
the property of their respective owners. iShares MSCI Taiwan Index
Fund (``EWT'') is not sponsored, endorsed, issued, sold or promoted
by MSCI. BGI and MSCI have not licensed or authorized ISE to (i)
engage in the creation, listing, provision of a market for trading,
marketing, and promotion of options on EWT 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 EWT or with making disclosures concerning options on
EWT under any applicable federal or state laws, rules or
regulations. BGI and MSCI do not sponsor, endorse, or promote such
activity by ISE, and are not affiliated in any manner with ISE.
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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 FXA, FXB, FXE, FXY
and EWT.\8\ 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 \9\ 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.\10\ Finally, the amount of the
execution fee and comparison fee for all non-ISE Market Maker
transactions shall be $0.37 and $0.03 per contract, respectively.\11\
Further, since options on FXA, FXB, FXE, FXY and EWT are multiply-
listed, 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.
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\8\ 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) (SR-ISE-2007-55).
\9\ Public Customer Order is defined in Exchange Rule 100(a)(39)
as an order for the account of a Public Customer. Public Customer is
defined in Exchange Rule 100(a)(38) as a person or entity that is
not a broker or dealer in securities.
\10\ 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.
\11\ The amount of the execution and comparison fee for non-ISE
Market Maker transactions executed in the Exchange's Facilitation
and Solicitation Mechanisms is $0.16 and $0.03 per contract,
respectively.
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Further, the Exchange proposes to remove IXK from its Schedule of
Fees.\12\
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\12\ This Premium Product was recently delisted and no longer
trades on the Exchange. Thus, the Exchange proposes to remove it
from its fee schedule.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of section 6 of the Act,\13\ in general, and
furthers the objectives of section 6(b)(4),\14\ in particular, in that
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.
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\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory 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. 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 been designated as a fee
change pursuant to section 19(b)(3)(A)(ii) of the Act \15\ and Rule
19b-4(f)(2) \16\ thereunder, because it establishes or changes a due,
fee, or other charge imposed on members by ISE. Accordingly, the
proposal is effective upon filing with the Commission. At any time
within 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.
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-4(f)(2).
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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:
[[Page 30178]]
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-2008-39 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2008-39. 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, 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 publicly available. All
submissions should refer to File Number SR-ISE-2008-39 and should be
submitted on or before June 13, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-11523 Filed 5-22-08; 8:45 am]
BILLING CODE 8010-01-P