Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Notices 60593 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Amendment No. 1 revises the text of the ISE’s 

Schedule of Fees to: (1) Explain when an order 

takes liquidity from the ISE’s complex order book; 

and (2) clarify that the proposed fee applies solely 

to Complex Orders that trade with other Complex 

Orders, and not to Complex Orders that trade with 

customer orders in the regular order book. 

4Complex Orders are defined in ISE Rule 722(a). 

5Premium Products are defined in the Schedule 

of Fees as the products enumerated therein. 6 15 U.S.C. 78f(b)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–545771; File No. SR–ISE–

2006–56] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of a Proposed 

Rule Change and Amendment No. 1 

Relating to Customer Fees for Certain 

Complex Orders 

October 4, 2006. 

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 

September 20, 2006, the International 

Securities Exchange, LLC (‘‘Exchange’’

or ‘‘ISE’’) 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 the Exchange. 

The ISE filed Amendment No. 1 to the 

proposal on October 4, 2006.3 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Schedule of Fees to adopt a customer 

fee for certain Complex Orders. The text 

of the proposed rule change is available 

on ISE’s Web site (http:// 

www.iseoptions.com), at the principal 

office of ISE, and at 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. 

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 ISE’s Schedule of 

Fees to adopt a customer fee for certain 

Complex Orders.4 The Exchange 

currently waives transaction fees for 

customers, except for customer 

transactions in Premium Products.5 The 

Exchange has noted an increase in 

volume in certain customer order 

transactions in Complex Orders. 

According to the ISE, customers that use 

highly developed trading systems are 

quickly able to hit the bid or lift an 

offer, thereby taking liquidity, i.e., 

interacting with Complex Orders 

resident on the complex order book. The 

Exchange thus proposes to charge an 

execution and comparison fee of $0.15 

and $0.03 per contract, respectively, for 

customer orders that take liquidity to 

put them on a more equal footing with 

broker-dealer orders that are currently 

subject to this fee. 

As with all Complex Order fees, only 

the largest leg of a Complex Order will 

be charged this fee if that leg is also 

taking liquidity away. The Exchange 

will not charge customers for Complex 

Orders if they are the liquidity provider, 

i.e., they are first on the complex order 

book. The Exchange will determine 

which side of a complex order is the 

liquidity taker and which is the 

liquidity provider based on the order 

time. The order that arrived first on the 

complex order book is the liquidity 

provider. This fee will only apply to 

customer Complex Orders that trade 

with other Complex Orders. If a 

Complex Order legs into the regular 

market, customer orders in the regular 

market that interact with the Complex 

Order will not be charged with fee, nor 

will a fee be charged to the Complex 

Order legging in. 

ISE believes that the proposed fee is 

objective in that it is based on the 

behavior of market participants and the 

type of orders submitted. As noted 

above, since the behavior of these 

customers is similar to the behavior of 

a broker-dealer, the ISE believes that it 

is fair for the Exchange to charge for 

these customer orders the same fees as 

those charged for broker-dealer orders. 

2. Statutory Basis 

The Exchange believes that the basis 

for the proposal under the Act is the 

requirement under Section 6(b)(4) of the 

Act 6 that an exchange have an equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. 

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 written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes it reasons for so finding or (ii) 

as to which the self-regulatory 

organization consents, the Commission 

will: 

A. by order approve such proposed 

rule change; or 

B. institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 rulecomments@sec.gov. Please include File 

No. SR–ISE–2006–56 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. 


ycherry on PROD1PC64 with NOTICES2
60594 Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Notices 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 In April 2006, the Commission approved 

Commentary .02 to NYSE Arca Equities Rule 8.200, 

which sets forth the rules related to listing and 

trading criteria for Investment Shares, and approved 

trading pursuant to UTP the shares of the DB 

Commodity Index Tracking Fund. See Securities 

Exchange Act Release No. 53736 (April 27, 2006), 

71 FR 26582 (May 5, 2006) (SR–PCX–2006–22). 

4The Fund and Master Fund were previously 

named the DB Currency Index Value Fund and DB 

Currency Index Value Master Fund, respectively. 

Telephone conversation between Michael Cavalier, 

Associate General Counsel, NYSE, and Ronesha A. 

Butler, Special Counsel, Division of Market 

Regulation (‘‘Division’’), Commission, on October 4, 

2006. 

5See Securities Exchange Act Release No. 54450 

(September 14, 2006) (SR–Amex–2006–44) (the 

‘‘Amex Order’’). See also Securities Exchange Act 

Release No. 54351 (August 23, 2006), 71 FR 51245, 

as corrected by 71 FR 53492 (September 11, 2006) 

(SR–Amex–2006–44). 

6The Managing Owner is registered as a 

commodity pool operator (the ‘‘CPO’’) and 

commodity trading advisor (the ‘‘CTA’’) with the 

Commodity Futures Trading Commission (‘‘CFTC’’) 

and is a member of the National Futures 

Association (‘‘NFA’’). The Managing Owner will 

serve as the CPO and CTA of the Fund and the 

Master Fund. 

7The use of long and short positions in the 

construction of the Index causes the Index to rise 

as a result of any upward price movement of Index 

Currencies expected to gain relative to the U.S. 

Dollar and to rise as a result of any downward price 

movement of Index Currencies expected to lose 

relative to the U.S. Dollar. 

All submissions should refer to File 

Number SR–ISE–2006–56. 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–2006–56 and should be 

submitted on or before November 3, 

2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. 06–8646 Filed 10–12–06; 8:45am] 

BILLING CODE 8011–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54569; File No. SR–

NYSEArca–2006–64] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change Relating to 

Trading Shares of the PowerShares DB 

G10 Currency Harvest Fund Pursuant 

to Unlisted Trading Privileges 

October 4, 2006. 

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 

September 21, 2006, NYSE Arca, Inc. 

(‘‘Exchange’’), through its wholly owned 

subsidiary NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’ or the 

‘‘Corporation’’), filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to trade 

shares (‘‘Shares’’) of the PowerShares 

DB G10 Currency Harvest Fund (the 

‘‘Trust’’ or ‘‘Fund’’) pursuant to unlisted 

trading privileges (‘‘UTP’’) under 

Commentary .02 to NYSE Arca Equities 

Rule 8.200. 

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 III below. The 

Exchange 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 

Pursuant to Commentary .02 to NYSE 

Arca Equities Rule 8.200, the Exchange 

may approve for listing and trading trust 

issued receipts (‘‘TIRs’’) investing in 

shares or securities (‘‘Investment 

Shares’’) that hold investments in any 

combination of futures contracts, 

options on futures contracts, forward 

contracts, commodities, swaps or high 

credit quality short-term fixed income 

securities or other securities.3 The 

Commission previously approved a 

proposal to list and trade the Shares of 

the Fund 4 by the American Stock 

Exchange LLC (the ‘‘Amex’’).5 The 

Exchange proposes to trade pursuant to 

UTP the Shares of the Fund pursuant to 

Commentary .02 to NYSE Arca Equities 

Rule 8.200. 

The Shares represent beneficial 

ownership interests in the Fund’s net 

assets, consisting solely of the common 

units of beneficial interests of the DB 

G10 Currency Harvest Master Fund (the 

‘‘Master Fund’’). The Master Fund is a 

statutory trust created under Delaware 

law whose investment portfolio will 

consist primarily of futures contracts on 

the currencies comprising the Deutsche 

Bank G10 Currency Future Harvest 

Index—Excess ReturnTM (the ‘‘DBCHI’’

or ‘‘Index’’) and will include cash and 

U.S Treasury securities for margin 

purposes and other high credit quality 

short-term fixed income securities. Both 

the Fund and the Master Fund will be 

commodity pools operated by DB 

Commodity Services LLC (the 

‘‘Managing Owner’’).6

The investment objective of the Fund 

and the Master Fund is to reflect the 

performance of the Index, over time, 

less the expenses of the operation of the 

Fund and the Master Fund. The Fund 

will pursue its investment objective by 

investing substantially all of its assets in 

the Master Fund. Each Share will 

correlate with a Master Fund share 

issued by the Master Fund and held by 

the Fund. The Master Fund will pursue 

its investment objective by taking long 

futures positions in the three (3) Index 

Currencies associated with the highest 

interest rates and short futures positions 

in the three (3) Index Currencies 

associated with the lowest interest 

rates 7 and will adjust its holdings 


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