Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 19999 

4Other order-based manipulative activity might 

occur with the upcoming implementation of the 

new market data revenue allocation formula under 

Regulation NMS—which, in general, requires that 

market data revenue be allocated based upon both 

quoting and trading activity in each market. The 

entry of orders (which are designed not be 

executed) could be used to create a false, 

misleading, or artificial appearance of quoting 

activity in a particular security within a particular 

market. 

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

6 15 U.S.C. 78f(b)(5). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 replaces and supersedes the 

original filing in its entirety. 

4As set forth in ISE Rule 2127, a ‘‘Partnership 

Unit’’ means a security (a) that is issued by a 

partnership that invests in any combination of 

futures contracts, options on futures contracts, 

forward contracts, commodities and/or securities; 

and (b) that is issued and redeemed daily in 

specified aggregate amounts at net asset value. 

the bad actor may enter higher, nonmarketable bids (offers) in one market 

center in order to induce market 

participants to lift an offer (hit a bid) 

which he has posted in the same or 

different market center.4

Additionally, the Exchange believes 

that the proposed changes to the rule 

would appropriately establish that 

improper price manipulation could 

occur, in certain circumstances, when a 

single execution occurs (or a single 

order is entered) at a price higher than 

(or lower than) the current market. A 

single trade that is executed at a 

significantly higher or lower price at the 

end of the trading day, for example, 

could be used to establish a price which 

does not reflect the true state of the 

market in that security, to the benefit of 

a participant firm. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act,5 in general, and Section 

6(b)(5) of the Act,6 in particular, in that 

it is designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest by expanding the price 

manipulation rule to address additional 

instances of improper behavior. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange did not solicit or 

receive any written comments with 

respect to the proposed rule change. 

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 self-regulatory 

organization consents, the Commission 

will: 

A. By order approve the 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–CHX–2007–08 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–CHX–2007–08. 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 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 available publicly. All 

submissions should refer to File 

Number SR–CHX–2007–08 and should 

be submitted on or before May 11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7492 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55635; File No. SR–ISE–

2007–16] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change, as Modified by 

Amendment No. 1, Relating to Options 

Based on Commodity Pool ETFs 

April 16, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’)1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on February 

21, 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 

Exchange. On March 26, 2007, ISE filed 

Amendment No. 1 to the proposed rule 

change.3 This order provides notice of 

the proposed rule change as modified by 

Amendment No. 1 and approves the 

proposed rule change on an accelerated 

basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

certain rules to permit the listing and 

trading of options on equity interests 

issued by trust issued receipts (‘‘TIRs’’), 

partnership units (‘‘Partnership 

Units’’),4 and other entities (referred 

collectively herein as ‘‘Commodity Pool 


sroberts on PROD1PC70 with NOTICES
20000 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

5The proposal parallels one submitted by the 

American Stock Exchange LLC (‘‘Amex’’) and 

recently approved by the Commission. See 

Securities Exchange Act Release No. 55547 (March 

28, 2007), 72 FR 16388 (April 4, 2007) (SR–Amex–

2006–110). 

6A ‘‘commodity pool’’ is defined in CFTC 

Regulation 4.10(d)(1) as any investment trust, 

syndicate or similar form of enterprise operated for 

the purpose of trading commodity interests. CFTC 

regulations further provide that a ‘‘commodity 

interest’’ means a commodity futures contract and 

any contract, agreement or transaction subject to 

Commission regulation under Section 4c or 19 of 

the Act. See CFTC Regulation 4.10(a). 

7The manager or operator of a ‘‘commodity pool’’

is required to register, unless applicable exclusions 

apply, as a commodity pool operator (CPO) and 

commodity trading advisor (CTA) with the CFTC 

and become a member of the National Futures 

Association (‘‘NFA’’). 

ETFs’’) that hold or invest in commodity 

futures products.5

The text of the proposed rule change 

is available at the ISE, the Commission’s 

Public Reference Room, and http:// 

www.iseoptions.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 

ISE included statements concerning the 

purpose of and basis for the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item III 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 proposed rule change is to enable 

the listing and trading on the Exchange 

of options on interests in Commodity 

Pool ETFs that trade directly or 

indirectly commodity futures products. 

As a result, Commodity Pool ETFs are 

subject to the Commodity Exchange Act 

(the ‘‘CEA’’) due to their status as a 

commodity pool,6 and therefore, 

regulated by the Commodity Futures 

Trading Commission (‘‘CFTC’’).7

Commodity Pool ETFs may hold or 

trade in one or more types of 

investments that may include any 

combination of securities, commodity 

futures contracts, options on commodity 

futures contracts, swaps, and forward 

contracts. 

Currently, ISE Rule 502(h) provides 

securities deemed appropriate for 

options trading shall include shares or 

other securities (‘‘Fund Shares’’) that (i) 

Represent interests in registered 

investment companies (or series thereof) 

organized as open-end management 

investment companies, unit investment 

trusts or similar entities that are traded 

on a national securities exchange or 

through the facilities of a national 

securities association and are defined as 

an ‘‘NMS stock’’ under Rule 600 of 

Regulation NMS, and that hold 

portfolios of securities comprising or 

otherwise based on or representing 

investments in broad-based indexes or 

portfolios of securities (or that hold 

securities in one or more other 

registered investment companies that 

themselves hold such portfolios of 

securities) or (ii) represent interests in a 

trust that holds a specified non-U.S. 

currency deposited with the trust when 

aggregated in some specified minimum 

number may be surrendered to the trust 

by the beneficial owner to receive the 

specified non-U.S. currency and pays 

the beneficial owner interest and other 

distributions on the deposited non-U.S. 

currency, if any, declared and paid by 

the trust (‘‘Funds’’). 

The Exchange proposes to amend its 

Rule 502(h) to expand the type of 

options to include the listing and 

trading of options based on shares of 

Commodity Pool ETFs (the ‘‘Shares’’) 

that may hold or invest directly or 

indirectly in commodity futures 

products, including but not limited to, 

commodity futures contracts, options on 

commodity futures contracts, swaps, 

and forward contracts. As part of this 

revision, the Exchange proposes to add 

paragraph (h)(6) to ISE Rule 502(h) 

requiring that, for Commodity Pool 

ETFs, a comprehensive surveillance 

sharing agreement be in place with the 

marketplace or marketplaces with last 

sale reporting that represent(s) the 

highest volume in such commodity 

futures contracts and/or options on 

commodity futures contracts on the 

specified commodities or non-U.S. 

currency, which are utilized by the 

national securities exchange where the 

underlying Commodity Pool ETFs are 

listed and traded. 

As set forth in proposed ISE Rule 

502(h), Commodity Pool ETFs must be 

traded on a national securities exchange 

or through the facilities of a national 

securities association and must be an 

‘‘NMS stock’’ as defined under Rule 600 

of Regulation NMS. In addition, shares 

of Commodity Pool ETFs must meet 

either: (i) The criteria and guidelines 

under ISE Rule 502(b); or (ii) be 

available for creation or redemption 

each business day in cash or in kind 

from the commodity pool, trust or 

similar entity at a price related to net 

asset value. In addition, the commodity 

pool, trust or other similar entity shall 

provide that shares may be created even 

though some or all of the securities 

needed to be deposited have not been 

received by the commodity pool, trust 

or other similar entity, provided the 

authorized creation participant has 

undertaken to deliver the shares as soon 

as possible and such undertaking has 

been secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the commodity pool, trust or other 

similar entity which underlies the 

option as described in the prospectus. 

Under the applicable continued 

listing criteria in ISE Rule 503(h), the 

Fund Shares approved for options 

trading will not be deemed to meet the 

requirements for continued approval, 

and the Exchange will not open for 

trading any additional series of options 

contracts of the class covering such 

Fund Shares in any of the following 

circumstances: (i) Following the initial 

twelve-month period beginning upon 

the commencement of trading of the 

Fund Shares, there are fewer than 50 

record and/or beneficial holders of the 

Fund Shares for 30 or more consecutive 

trading days; (ii) the value of the index, 

non-U.S. currency, portfolio of 

commodities including commodity 

futures contracts, options on commodity 

futures contracts, swaps, forward 

contracts and/or options on physical 

commodities, or portfolio of securities 

on which the Fund Shares are based is 

no longer calculated or available; or (iii) 

such other event occurs or condition 

exists that in the opinion of the 

Exchange makes further dealing on the 

Exchange inadvisable. Additionally, the 

Fund Shares shall not be deemed to 

meet the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

such Fund Shares, if the Fund Shares 

are halted from trading on their primary 

market or if the Fund Shares are 

delisted in accordance with the terms of 

ISE Rule 503 or the value of the index 

or portfolio on which the Fund Shares 

are based is no longer calculated or 

available. 

The Exchange is also proposing to 

amend ISE Rule 408 to require members 

to establish, maintain and enforce 

written policies and procedures to 

prevent the misuse of material 

nonpublic information it might have or 

receive in a related security, option or 

derivative or in the applicable related 

commodity, commodity futures or 

options on commodity futures or any 

other related commodity derivatives. 

The Exchange is further proposing to 

amend ISE Rule 1400 to ensure that the 

Primary Market Maker handling the 

Fund Shares provide the Exchange with 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 20001 

8See ISE Rules 412 and 414. 

9See ISE Rule 1202. 

10See Securities Exchange Act Release Nos. 

53105 (January 11, 2006), 71 FR 3129 (January 19, 

2006) (approving the listing and trading of the DB 

Commodity Index Tracking Fund); 53582 (March 

31, 2006), 71 FR 17510 (April 6, 2006) (approving 

the listing and trading of Units of the United States 

Oil Fund, L.P.); and 54450 (September 14, 2006), 71 

FR 51245 (September 21, 2006) (approving the 

listing and trading of the PowerShares DB G10 

Currency Harvest Fund). 

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

12 15 U.S.C. 78f(b)(5). 

all necessary information relating to 

their trading in the applicable physical 

commodities, physical commodity 

options, commodity futures contracts, 

options on commodity futures contracts, 

any other derivatives based on such 

commodity. The Exchange is also 

proposing to amend Rule 807 to prohibit 

a Primary Market Maker engaging in 

physical commodities, physical 

commodity options, commodity futures 

contracts, options on commodity futures 

contracts, any other derivatives based 

on such commodity from trading in an 

account which has not been reported to 

the Exchange. 

The Exchange represents that it has an 

adequate surveillance program in place 

for options based on Commodity Pool 

ETFs. The Exchange may obtain trading 

information via the Intermarket 

Surveillance Group (‘‘ISG’’) from other 

exchanges who are members or affiliates 

of the ISG and has entered into 

numerous comprehensive surveillance 

sharing agreements with various 

commodity futures exchanges 

worldwide. Prior to listing and trading 

options on Commodity Pool ETFs, the 

Exchange represents that it will either 

have the ability to obtain specific 

trading information via ISG or through 

a comprehensive surveillance sharing 

agreement with the exchange or 

exchanges where the particular 

commodity futures and/or options on 

commodity futures are traded. 

The addition of Commodity Pool ETF 

options will not have any effect on the 

rules pertaining to position and exercise 

limits 8 or margin.9

This proposal is necessary to enable 

the Exchange to list and trade options 

on an expanding range of Commodity 

Pool ETFs currently approved for 

trading. The Exchange notes that The 

DB Commodity Index Tracking Fund 

(the ‘‘DBC Fund’’), the United States Oil 

Fund, L.P. (the ‘‘Oil Fund’’) and the 

PowerShares DB G10 Currency Harvest 

Fund (the ‘‘DBV Fund’’) are listed and 

traded on the Amex.10 The DBC Fund is 

a Commodity TIR and tracks the 

performance of the Deutsche Bank 

Liquid Commodity IndexTM—Excess 

Return while the Oil Fund is a 

Partnership Unit and tracks the spot 

price of West Texas Intermediate light, 

sweet crude oil delivered to Cushing, 

Oklahoma. 

The DBC Fund is a ‘‘feeder fund’’ that 

invests substantially all of its assets in 

the DB Commodity Index Tracking 

Master Fund, and the Master Fund in 

turn maintains a portfolio of exchangetraded futures on aluminum, gold, corn, 

wheat, heating oil and light, sweet crude 

oil. The Index is derived from the prices 

of those futures contracts. The Master 

Fund’s portfolio is managed on an 

ongoing basis by DB Commodity 

Services LLC, a registered CPO and 

CTA, so that the value of the portfolio 

closely tracks the value of the Index 

over time. 

The DBV Fund is a ‘‘feeder fund’’ that 

invests substantially all of its assets in 

the PowerShares DB G10 Currency 

Harvest Master Fund, and the Master 

Fund in turn maintains a portfolio of 

exchange-traded futures on foreign 

currencies that comprise the G–10 

countries. The Index is derived from the 

prices of those futures contracts. The 

Master Fund’s portfolio is managed on 

an ongoing basis by DB Commodity 

Services LLC, a registered CPO and 

CTA, so that the value of the portfolio 

closely tracks the value of the Index 

over time. 

Unlike the DBC and DBV Funds, the 

Oil Fund does not invest through a 

master-feeder structure but rather trades 

directly in futures on crude and heating 

oil, natural gas, gasoline and other 

petroleum-based fuels, options on such 

futures contracts, forward contracts on 

oil and other over-the-counter 

derivatives based on the price of oil, 

other petroleum-based fuels, the futures 

contracts described above, and the 

indexes based on any of the foregoing. 

The Oil Fund’s portfolio is managed by 

Victoria Bay Asset Management LLC 

with the aim of tracking the West Texas 

Intermediate light, sweet crude oil 

futures contract listed and traded on the 

New York Mercantile Exchange 

(‘‘NYMEX’’). 

The ISE believes that it is reasonable 

to expect other types of Commodity 

Pool ETFs to be introduced for trading 

in the near future. The proposed 

amendment to the Exchange’s listing 

criteria for options on Commodity TIRs 

and Partnership Units is necessary to 

ensure that the Exchange will be able to 

list options on Commodity Pool ETFs 

that have been recently launched as 

well as any other similar Commodity 

Pool ETFs that may be listed and traded 

in the future. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of Section 6(b) of the 

Act 11 in general, and furthers the 

objectives of Section 6(b)(5),12 of the Act 

in particular, in that it would promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanism of a free and open market in 

a manner consistent with the protection 

of investors and the public interest. 

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 states that no written 

comments were solicited or received 

with respect to the proposed rule 

change. 

III. 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–2007–16 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–2007–16. 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 


sroberts on PROD1PC70 with NOTICES
20002 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

13 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

14 15 U.S.C. 78f. 

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

16See ISE Rules 412 and 414. 

17See ISE Rule 1202. 

18 17 CFR 242.600(b)(47). 

19 17 CFR 240.19b–4(e). 

20 15 U.S.C. 78s(b)(2). 

21See Securities Exchange Act Release No. 55547 

(March 28, 2007), 72 FR 16388 (April 4, 2007) (SR–

Amex–2006–110). 

22 15 U.S.C. 78s(b)(5). 

23 15 U.S.C. 78s(b)(2). 

24 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

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 the 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–2007–16 and should be 

submitted on or before May 11, 2007. 

IV. Commission Findings and 

Accelerated Approval 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 13 and, in 

particular, the requirements of Section 6 

of the Act.14 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,15 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market in 

a manner consistent with the protection 

of investors and the public interest. 

Surveillance 

The Commission notes that Exchange 

has represented that it has an adequate 

surveillance program in place for 

options based on Commodity Pool ETFs. 

The Exchange may obtain trading 

information via the ISG from other 

exchanges who are members or affiliates 

of the ISG and has entered into 

numerous comprehensive surveillance 

sharing agreements with various 

commodity futures exchanges 

worldwide. Prior to listing and trading 

options on Commodity Pool ETFs, the 

Exchange represented that it will either 

have the ability to obtain specific 

trading information via ISG or through 

a comprehensive surveillance sharing 

agreement with the exchange or 

exchanges where the particular 

commodity futures and/or options on 

commodity futures are traded. In 

addition, the Exchange represented that 

the addition of Commodity Pool ETF 

options will not have any effect on the 

rules pertaining to position and exercise 

limits 16 or margin.17

Listing and Trading of Options on 

Commodity Pool ETFs 

The Commission notes that, pursuant 

to the proposed rule change, a 

Commodity Pool ETF will be subject to 

the provisions of ISE Rules 502 and 503, 

as applicable. These provisions include 

requirements regarding initial and 

continued listing standards, the 

creation/redemption process for 

Commodity Pool ETFs, and trading 

halts. All Commodity Pool ETFs must 

be traded through a national securities 

exchange or through the facilities of a 

national securities association, and must 

be ‘‘NMS stock’’ as defined under Rule 

600 of Regulation NMS. 18

The Commission believes that this 

proposal is necessary to enable the 

Exchange to list and trade options on an 

expanding range of Commodity Pool 

ETFs currently approved for trading and 

that it is reasonable to expect other 

types of Commodity Pool ETFs to be 

introduced for trading in the future. 

This proposal would help ensure that 

the Exchange will be able to list options 

on Commodity Pool ETFs that have 

been recently launched as well as any 

other similar Commodity Pool ETFs that 

may be listed and traded in the future 19

thereby offering investors greater option 

choices. 

Acceleration 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,20 for approving the proposed rule 

change, as amended, prior to the 

thirtieth day after the date of 

publication of notice in the Federal 

Register. The Commission notes that the 

proposal is consistent with the 

Exchange’s listing and trading standards 

in ISE Rules 502 and 503, and the 

Commission has recently approved a 

similar proposal, after publishing it for 

comment and receiving no comments.21

Therefore, the Commission does not 

believe that the proposed rule change, 

as amended, raises novel regulatory 

issues. Consequently, the Commission 

believes that it is appropriate to permit 

investors to benefit from the flexibility 

afforded by trading these products as 

soon as possible. 

Accordingly, the Commission finds 

that there is good cause, consistent with 

Section 6(b)(5) of the Act,22 to approve 

the proposal, as amended, on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,23 that the 

proposed rule change (SR–ISE–2007–

16), as modified by Amendment No. 1, 

be, and is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.24

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7489 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55634; File No. SR–

NASDAQ–2007–036] 

Self-Regulatory Organizations; the 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Pricing for Nasdaq Members Using the 

Nasdaq Market Center 

April 16, 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 30, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) 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 

Nasdaq. Pursuant to Section 

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

4(f)(2) thereunder,4 Nasdaq has 

designated this proposal as establishing 

or changing a due, fee, or other charge, 

which renders the proposed rule change 

effective immediately upon filing. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 


sroberts on PROD1PC70 with NOTICES