Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 25823 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55493 

(March 20, 2007), 72 FR 14315. 

4See ISE Rule 716(c). 

5Supplementary Material .03 to ISE Rule 716 

prohibits members from entering Responses for the 

account of an options market maker from another 

options exchange. This is the only limitation 

regarding who may enter Responses. 

6 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(2). 

9 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). 

[FR Doc. 07–2194 Filed 5–4–07; 8:45 am] 

BILLING CODE 8010–01–C 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55683; File No. SR–ISE–

2006–77] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Order Granting Approval to 

Proposed Rule Change, as Modified by 

Amendment No. 1, Relating to Penny 

Increments for Block Mechanism 

Orders 

April 30, 2007. 

I. Introduction 

On December 13, 2006, the 

International Securities Exchange, LLC 

(‘‘ISE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

allow orders to be entered into the Block 

Mechanism in penny increments and to 

receive executions in penny increments. 

On March 19, 2007, the Exchange filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change was 

published for comment in the Federal 

Register on March 27, 2007.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change as 

modified by Amendment No. 1. 

II. Description of the Proposal 

The Exchange currently offers a Block 

Mechanism for the execution of singlesided, block-sized orders.4 The Block 

Mechanism exposes orders of at least 50 

contracts to all ISE members for three 

seconds, giving members an opportunity 

to respond with contra-side trading 

interest for their own account or on 

behalf of their customers.5 Currently, 

orders may be entered and executed 

using the Block Mechanism at the 

standard 5 and 10 cent increments and 

at ‘‘split prices’’ (2.5 cents for options 

trading in 5 cent standard increments 

and 5 cents for options trading in 10 

cent standard increments). The 

Exchange proposes to amend ISE Rule 

716 to allow these orders to be entered 

and executed in penny increments. 

Such orders would no longer be 

permitted to be executed at split prices. 

III. Discussion 

After careful review of the proposal, 

the Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.6 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,7 which requires, 

among other things, that the rules of an 

exchange be designed to prevent 

fraudulent and manipulative acts, 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. 

Specifically, the Commission believes 

that the proposed rule change is 

consistent with the Act because it will 

provide greater flexibility in the pricing 

of block-size orders and enhanced 

opportunities for block-size orders to 

receive price improvement. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–ISE–2006–

77), as modified by Amendment No. 1, 

be, and hereby is, approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8597 Filed 5–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55678; File No. SR–

NASDAQ–2007–044] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change to Increase the 

Nasdaq Trading Rights Fee 

April 27, 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 25, 

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 prepared substantially by 

Nasdaq. Nasdaq filed the proposal 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 3 and Rule 19b–4(f)(2) 4 thereunder, 

as establishing or changing a member 

due, fee, or other charge, which renders 

the proposed rule change 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 increase the 

monthly trading rights fee paid by 

Nasdaq members. Nasdaq will 

implement this proposed rule change on 

May 1, 2007. The text of the proposed 

rule change is available at 

Nasdaq, http://www.nasdaq.com, and 

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 is increasing its monthly 

trading rights fee, which is assessed on 

all Nasdaq members, from $200 to $500 

per month. The fee had initially been set 

at a level to ease the transition of the 

Nasdaq Market Center’s status as a 

facility of the NASD to a facility of a 

new self-regulatory organization 

(‘‘SRO’’). Now that Nasdaq has an 

established membership base, Nasdaq 

believes that the fee increase is 


pwalker on PROD1PC71 with NOTICES
25824 Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 

5See, e.g., New York Stock Exchange Price List 

2007 at http://www.nyse.com/pdfs/2007pricelist.pdf 

(itemizing numerous registration, regulation, and 

trading rights fees); NASD By-Laws Schedule A, 

Section 1 at http://nasd.complinet.com/n nasd/

display/display.html?rbid=1189&element_

id=1159000126; Chicago Stock Exchange Fees and 

Assessments at http://wallstreet.cch.com/CHXtools/ 

PlatformViewer.asp?SelectedNode=chp_1_

1&manual=/CHX/Admin/chx-feesandassessments/. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

warranted to ensure that its monthly 

and annual membership fees fund a 

greater portion of the cost of regulating 

the Nasdaq market. Nasdaq believes that 

even with the fee increase, the cost of 

Nasdaq membership is generally lower 

than the cost of membership in other 

SROs.5 In this regard, it is particularly 

notable that unlike other SROs, Nasdaq 

does not charge annual registration fees 

for each of a firm’s registered 

representatives. 

Nasdaq is also deleting language from 

Rule 7001 that waived the application 

fee for NASD members applying for 

Nasdaq membership prior to August 1, 

2006. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,6 in 

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

Act,7 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. Nasdaq 

believes that an increased monthly 

trading rights fee is a reasonable and 

equitable method of ensuring that its 

monthly and annual membership fees 

fund a greater portion of the cost of 

regulating the Nasdaq market, and that 

the overall cost of Nasdaq membership 

is reasonable as compared with the cost 

of membership in other SROs. 

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, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received form 

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 

The foregoing proposed rule change 

has become effective upon filing with 

the Commission pursuant to Section 

19(b)(3)(A)(ii) of the Act 8 and Rule 19b–

4(f)(2) thereunder,9 in that the proposed 

rule change establishes or changes a 

member due, fee, or other charge 

imposed by the self-regulatory 

organization. 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. 

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–NASDAQ–2007–044 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–NASDAQ–

2007–044. 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 Nasdaq. 

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–NASDAQ–2007–044 and 

should be submitted on or before May 

29, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8596 Filed 5–4–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55687; File No. SR–NYSE–

2007–27] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendment No. 3 to 

Proposed Rule Change and Order 

Granting Accelerated Approval to 

Proposed Rule Change, as Modified by 

Amendments No. 1, 2, and 3 Thereto, 

To Adopt Generic Listing Standards 

for Index-Linked Securities 

May 1, 2007. 

I. Introduction 

On March 9, 2007, the New York 

Stock Exchange LLC (‘‘NYSE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

adopt generic listing standards for 

equity index-linked securities (‘‘Equity 

Index-Linked Securities’’), commoditylinked securities (‘‘Commodity-Linked 

Securities’’), and currency-linked 

securities (‘‘Currency-Linked 

Securities’’ and, together with Equity 

Index-Linked Securities and 

Commodity-Linked Securities, ‘‘IndexLinked Securities’’). On April 4, 2007, 

Exchange filed Amendment No. 1 to the 

proposed rule change. On April 5, 2007, 

the Exchange filed Amendment No. 2 to 

the proposed rule change. The proposed 

rule change, as amended, was published 

for comment in the Federal Register on 


pwalker on PROD1PC71 with NOTICES