73 FR 45 pgs. 12238-12240 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes
Type: NOTICEVolume: 73Number: 45Pages: 12238 - 12240
Docket number: [Release No. 34-57397; File No. SR-ISE-2008-13]
FR document: [FR Doc. E8-4311 Filed 3-5-08; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57397; File No. SR-ISE-2008-13]
Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes
February 28, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the "Act"),1and Rule 19b-4 thereunder,2notice is hereby given that on February 11, 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 ISE. The ISE has designated this proposal as one establishing or changing a due, fee, or other charge applicable only to a member under Section 19(b)(3)(A)(ii) of the Act3and Rule 19b-4(f)(2) thereunder,4which 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.
Footnotes:
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).
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 establish fees for transactions in options on five Premium Products.5The text of the proposed rule change is available at the ISE, at the Commission's Public Reference Room, and on the ISE's Web site ( http://www.iseoptions.com/legal/proposed_rule_changes.asp ).
Footnotes:
5 "Premium Products" is defined in the Schedule of Fees as theproducts enumerated therein.
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 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. The 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 UltraShort FTSE/Xinhua China 25 ProShares ("FXP"),6UltraShort MSCI Emerging Markets ProShares ("EEV"),7iShares Russell 1000 Growth Index Fund ("IWF"),8SPDR SP Retail Select ETF ("XRT"),9and The Market Vectors-Agribusiness ETF ("MOO").10The Exchange represents that FXP, EEV, IWF, XRT and MOO are eligible for options trading because they constitute "Exchange-Traded Fund Shares," as defined by ISE Rule 502(h).
Footnotes:
6 "FTSE®" is a trademark jointly owned by the London StockExchange PLC and The Financial Times Limited and is used by FTSE/Xinhua Index Limited ("FXI") under license. "Xinhua(r)" is a trademark of Xinhua Finance Limited and is used by FXI under license. All other trademarks and service marks are the property of their respective owners. The UltraShort FTSE/Xinhua China 25 ProShares ("FXP") are not sponsored, endorsed, issued, sold or promoted by FXI. FXI 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 FXP 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 FXP or with making disclosures concerning options on FXP under any applicable federal or state laws, rules or regulations. FXI does not sponsor, endorse, or promote such activity by ISE and is not affiliated in any manner with ISE.
7 "MSCI Emerging Markets Index" and "MSCI" areservice marks of Morgan Stanley Capital International ("MSCI") 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. The UltraShort MSCI Emerging Markets ProShares ("EEV") are not sponsored, endorsed, issued, sold or promoted by MSCI. MSCI 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 EEV 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 EEV or with making disclosures concerning options on EEV under any applicable federal or state laws, rules or regulations. MSCI does not sponsor, endorse, or promote such activity by ISE and is not affiliated in any manner with ISE.
8 iShares® is a registered trademark of Barclays Global Investors, N.A.("BGI"), a wholly owned subsidiary of Barclays Bank PLC. "Russell 1000® Growth Index" is a trademark of Frank Russell Company ("Russell") 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 Russell 1000 Growth Index Fund ("IWF") is not sponsored, sold or endorsed by Russell. Russell and BGI 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 IWF 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 IWF or with making disclosures concerning options on IWF under any applicable federal or state laws, rules or regulations. Russell and BGI do not sponsor, endorse, or promote such activity by ISE and are not affiliated in any manner with ISE.
9 "Standard Poor's®," "SP®,""Standard Poor's Depositary Receipts®," "SPDR®" and "the SP® Retail Select Industry Index," are trademarks of The McGraw-Hill Companies, Inc. ("McGraw-Hill"), and have been licensed for use by SSgA Fund Management, Inc., and streetTRACKS® Series Trust in connection with the listing and trading of SPDR® SP Retail Select ETF ("XRT"). XRT is not sponsored, sold or endorsed by Standard Poor's, ("SP"), a division of McGraw-Hill, and SP makes no representation regarding the advisability of investing in XRT. McGraw-Hill and SP 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 XRT 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 XRT or with making disclosures concerning options on XRT under any applicable federal or state laws, rules or regulations. McGraw-Hill and SP do not sponsor, endorse, or promote such activity by ISE and are not affiliated in any manner with ISE.
10 The Market Vectors-Agribusiness ETF ("MOO") isdistributed by Van Eck Securities Corporation and seeks to track the DAXglobal® Agribusiness Index, which is published by Deutsche Börse AG ("Deutsche Börse"). The DAXglobal® Agribusiness Index is a trademark of Deutsche Börse and is licensed for use by Van Eck Associates Corporation ("Van Eck") in connection with MOO. Deutsche Börse does not sponsor, endorse, or promote MOO and makes no representation regarding the advisability of investing in MOO. Van Eck 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 MOO 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 MOO or with making disclosures concerning options on MOO under any applicable federal or state laws, rules or regulations. Van Eck does not sponsor, endorse, or promote such activity by ISE and is 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 FXP, EEV, IWF, XRT and MOO.11The 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 Orders12and 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.13Finally, 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.14Further, since options on FXP, EEV, IWF, XRT and MOO are multiply-listed, the Exchange's Payment for Order Flow fee shall apply to all of 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.
Footnotes:
11 These fees will be charged only to Exchange members. Under a pilotprogram 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).
12 Public Customer Order is defined in Exchange Rule 100(a)(39) as anorder for the account of a Public Customer. Public Customer is defined in Exchange Rule 100(a)(38) as a person that is not a broker or dealer in securities.
13 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.
14 The amount of the execution and comparison fee for non-ISE Market Makertransactions executed in the Exchange's Facilitation and Solicitation Mechanisms is $0.16 and $0.03 per contract, respectively.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,15in general, and furthers the objectives of Section 6(b)(4),16in 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.
Footnotes:
15 15 U.S.C. 78f.
16 15 U.S.C. 78f(b)(4).
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
Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3)(A) of the Act17and Rule 19b-4(f)(2)18thereunder. 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.
Footnotes:
17 15 U.S.C. 78s(b)(3)(A).
18 17 CFR 19b-4(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
• Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
• Send an e-mail to rule-comments@sec.gov. Please include File No. SR-ISE-2008-13 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-2008-13. 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 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-2008-13 and should be submitted on or before March 27, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19
Footnotes:
19 17 CFR 200.30-3(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4311 Filed 3-5-08; 8:45 am]
BILLING CODE 8011-01-P