Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10279 

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

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange revised the 

proposed rule text to clarify its meaning. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6See ISE Rule 2100(c)(16). 

7See ISE Rule 2100(c)(20). 

8For example, Not Routable orders are limit 

orders that are to be executed in whole or in part 

upon receipt, and if not fully executed, displayed 

on the ISE Stock Exchange if possible. If a Not 

Routable limit order is not fully executed and is not 

displayable on the ISE, the order is cancelled back 

to the member. See ISE Rule 2104(i). 

9See ISE Rule 2210. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12As required under Rule 19b–4(f)(6)(iii), ISE 

provided the Commission with notice of its intent 

to file the proposed rule change at least five 

business days prior to the date of filing of the 

proposal. 

13 17 CFR 240.19b–4(f)(6)(iii). 

14 Id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55376; File No. SR–ISE–

2007–14] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change as Modified by Amendment 

No. 1 Thereto Relating to Re-Price 

Orders 

February 28, 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 February 

6, 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 and II below, which Items have 

been substantially prepared by the ISE. 

On February 16, 2007, ISE filed 

Amendment No. 1 to the proposed rule 

change.3 The Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 4 and Rule 

19b–4(f)(6) thereunder,5 which renders 

the proposal effective upon filing with 

the Commission. 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 ISE is proposing to add a new 

order type for the ISE Stock Exchange 

that would prevent orders from being 

cancelled back to Equity Electronic 

Access Members (‘‘Equity EAMs’’) when 

the order would either cause a locked or 

crossed market if displayed or cause a 

trade-through if executed. The text of 

the proposed rule change is available at 

ISE, the Commission’s Public Reference 

Room, and http://www.ise.com. 

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 ISE Stock Exchange has several 

order types that may result in orders 

being cancelled back to Equity EAMs 

when the orders cannot be displayed on 

the ISE Stock Exchange because the 

order would create a violation of ISE 

Rule 2112 by locking or crossing the 

Protected Quotation 6 of another Trading 

Center 7 or would cause a violation of 

ISE Rule 2107(b) by trading-through the 

Protected Quotation of another Trading 

Center.8

The purpose of this filing is to add an 

order type that will give Equity EAMs 

the choice of whether to have orders repriced instead of cancelled. Re-price 

orders and the unexecuted balance of 

Re-price orders will be automatically repriced within the minimum price 

variation 9 for display on the ISE Stock 

Exchange instead of being cancelled. 

For example, if the National Best Bid 

and Offer is $4.06 × $4.10 and the ISE 

Best Bid and Offer is $4.05 × $4.10 when 

an Equity EAM enters a Not Routable 

limit order to sell with a limit price of 

$4.05, the order will be cancelled back 

to the member unless it is marked ‘‘RePrice.’’ If the order is marked ‘‘RePrice,’’ the order will be placed on the 

ISE Stock Exchange’s limit order book at 

$4.07, the lowest possible offer price 

that the ISE can display without 

creating a locked or crossed market. 

2. Statutory Basis 

The ISE believes that the proposed 

rule change is consistent with the Act 

and the rules and regulations under the 

Act applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the 

Act.10 Specifically, the Exchange 

believes the proposed rule change is 

consistent with the Section 6(b)(5) 11

requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, serve 

to remove impediments to and perfect 

the mechanism for a free and open 

market and a national market system, 

and, in general, to protect investors and 

the public interest. In particular, the 

Exchange believes that this filing will 

provide investors with more flexibility 

in entering orders and receiving 

executions of such orders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will 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 proposed rule 

change does not: (1) Significantly affect 

the protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, 

provided that the Exchange has given 

the Commission written notice of its 

intent to file the proposed rule change 

at least five business days prior to the 

filing date of the proposal.12

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.13 However, Rule 19b–

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day preoperative period, which would make the 

rule change operative immediately. The 


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10280 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 

15See Nasdaq Rule 4751(f)(8). 

For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

16For 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 February 16, 2007, the 

date on which ISE filed Amendment No. 1. See 15 

U.S.C. 78s(b)(3)(C). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 51058 

(January 19, 2005), 70 FR 3749 (January 26, 2005) 

(SR–Amex–2004–38). 

4On November 16, 2006, the Commission 

approved a rule filing by Nasdaq to adopt Rule 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, because the proposed 

rule change is substantially similar to a 

rule previously approved by the 

Commission.15 For this reason, the 

Commission designates that the 

proposal become operative immediately. 

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.16

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 

Number SR–ISE–2007–14 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–2007–14. 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–2007–14 and should be 

submitted on or before March 28, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4042 Filed 3–6–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55380; File No. SR–

NASDAQ–2007–014] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change 

Relating to the Trading of the iShares 

COMEX Gold Trust Pursuant to 

Unlisted Trading Privileges 

March 1, 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 February 

28, 2007, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by Nasdaq. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons and is approving the proposed 

rule change on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq is proposing to trade shares 

(‘‘Shares’’) of the iShares COMEX Gold 

Trust (‘‘Trust’’) pursuant to unlisted 

trading privileges (‘‘UTP’’). The text of 

the proposed rule change is available 

from Nasdaq’s Web site at 

nasdaq.complinet.com, at Nasdaq’s 

principal office, 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, 

Nasdaq 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 

Nasdaq is proposing to trade the 

Shares on a UTP basis. Nasdaq is 

submitting this filing because its current 

listing standards do not extend to the 

Shares. However, systems operated by 

Nasdaq and its affiliates currently trade 

the Shares on an over-the-counter basis 

as facilities of NASD. This filing will 

allow Nasdaq to trade the Shares as an 

exchange. 

The Shares represent units of 

fractional undivided beneficial interest 

in and ownership of the Trust. The 

purpose of the Trust is to hold gold 

bullion, and the investment objective of 

the Trust is for the Shares to reflect the 

performance of the price of gold, less 

the Trust’s expenses. The Trust is not an 

investment company under the 

Investment Company Act of 1940. 

The Commission previously approved 

the listing and trading of the Shares on 

the American Stock Exchange LLC 

(‘‘Amex’’).3 Nasdaq deems the Shares to 

be equity securities, thus rendering 

trading in the Shares subject to Nasdaq’s 

existing rules governing the trading of 

equity securities, including Nasdaq Rule 

4630.4 The trading hours for the Shares 


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