18498 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices 

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

2 17 CFR 240.19b–4. 

3The proposed rule change also will correct some 

cross-references in ISE Rule 713. 

4See ISE Rule 716. 

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55589; File No. SR–ISE–

2007–18] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change Relating to Customer Orders 

on the Book 

April 5, 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 March 5, 

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, II, and III below, which Items 

have been substantially prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to include in 

an automated information feed to 

members the aggregate quantity of 

customer interest at the Exchange’s best 

bid and offer (‘‘BBO’’).3

The text of the proposed rule change 

is available at the Exchange’s principal 

office, at http://www.iseoptions.com/

legal/proposed_rule_changes.asp, 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 the proposed rule 

change is to provide all ISE members 

with information regarding orders of 

public customers at the ISE BBO. 

Currently, the ISE provides full 

customer information only to its 

Primary Market Makers (‘‘PMMs’’), who 

effectively act as specialists on the 

Exchange. Other ISE members do not 

have this information. Because the ISE 

provides customer orders with priority 

over broker-dealer orders and market 

maker quotations, having access to 

customer order information would 

allow members to know how many 

customer contracts first would need to 

be satisfied in order to have certainty of 

knowledge before crossing a large block. 

This is particularly useful for brokerdealers attempting to execute largersized orders through the ISE’s Block and 

Facilitation Mechanisms.4

The ISE recently confirmed that at 

least one other exchange—the Chicago 

Board Options Exchange (‘‘CBOE’’)—

provides all its members with full 

information regarding customer orders 

at that exchange’s BBO. The information 

is available through the CBOE’s 

electronic data feed to its members. In 

order to remain competitive with the 

CBOE, we believe it is necessary to 

provide our members with similar 

information. Thus, we propose to make 

available to our members the full 

quantity of public customer interest 

included in the Exchange’s BBO. 

2. Statutory Basis 

The Exchange believes that the basis 

under the Act for this proposed rule 

change is the requirement under Section 

6(b)(5) 5 that an exchange have rules that 

are 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 for a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. In 

particular, the proposal will provide 

members with additional information to 

help them execute their orders. 

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 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 its reasons for so finding, or 

(ii) as to which the ISE 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 

Number SR–ISE–2007–18 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–2007–18. 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 


rmajette on PROD1PC67 with NOTICES
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices 18499 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 4 17 CFR 240.19b–4(f)(6). 

5Telephone conversation between John Yetter, 

Vice President and Deputy General Counsel, 

Nasdaq, and Sara Gillis, Attorney, Division of 

Market Regulation, Commission, on April 5, 2007. 6See Securities Exchange Act Release No. 55576 

(April 3, 2007) (SR–NASDAQ–2007–026). 7 17 CFR 242.610(c)(2). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

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 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–2007–18 and should be 

submitted on or before May 2, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6870 Filed 4–11–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55588; File No. SR–

NASDAQ–2007–038] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Nasdaq Market Center Fees 

April 5, 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 April 3, 

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. 

Nasdaq has designated the proposal as 

constituting a ‘‘non-controversial’’

proposed rule change under Section 

19(b)(3)(A) of the Act 3 and Rule 19b–

4(f)(6) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify the 

pricing for Nasdaq members using the 

Nasdaq Market Center. Nasdaq proposes 

to make the proposed rule change 

retroactively effective with respect to 

the Nasdaq Market Center’s invoices for 

executions of non-Nasdaq securities 

priced under $1 during the period from 

March 5, 2007 to March 21, 2007.5 The 

text of the proposed rule change is 

available at Nasdaq, on the Exchange’s 

Web site at http://www.nasdaq.com, and 

in 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 IV below. Nasdaq 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 recently reduced its fee for 

executing orders in non-Nasdaq 

securities priced under $1 to 0.1% of 

the cost of the transaction, effective 

March 22, 2007, on an immediately 

effective basis; this is the same as the 

comparable fee for Nasdaq-listed 

securities that had previously been in 

effect.6 Prior to this change, the 

execution fee for non-Nasdaq securities 

priced under $1 had ranged from 

$0.0026 to $0.003 per share executed. 

Nasdaq notes, however, that Rule 

610(c)(2) of Regulation NMS 7 limits the 

fee on an execution of an order against 

a protected quotation, if the price of the 

protected quotation is less than $1, to 

0.3% of the quotation’s price per share. 

Accordingly, Nasdaq is proposing to 

reduce the execution fee for non-Nasdaq 

securities to 0.25% of the transaction 

cost for the period from March 5, 2007 

(the effective date of Rule 610) through 

March 21, 2007 (the day before the 

effectiveness of SR–NASDAQ–2007–

026). The change will result, in all 

circumstances, in a reduction of the 

execution fees previously payable with 

respect to orders in non-Nasdaq 

securities priced under $1. Nasdaq is 

not, however, proposing to modify the 

routing fees or liquidity provider rebates 

applicable to transactions in these 

securities during the same time period. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,8 in 

general, and with Section 6(b)(4) of the 

Act,9 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among 

members and issuers and other persons 

using any facility or system which 

Nasdaq operates or controls. This 

change will reduce execution fees for 

trading non-Nasdaq securities at prices 

under $1 in a manner consistent with 

the requirements of Rule 610 of 

Regulation NMS. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change: (1) 

Does not significantly affect the 

protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days after the date of the filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, the proposed rule change has 

become effective pursuant to Section 


rmajette on PROD1PC67 with NOTICES