26662 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(i). 

3 17 CFR 240.19b–4(f)(1). 

4The Commission has modified the text of the 

summaries prepared by FICC. 

5Securities Exchange Act Release No. 54487 

(September 22, 2006), 71 FR 58025 (October 2, 

2006) [File No. SR–FICC–2005–17]. 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78s(b)(3)(A)(i). 

8 17 CFR 240.19b–4(f)(1). 

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 CHX. 

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–2007–05 and should 

be submitted on or before May 31, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8960 Filed 5–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55701; File No. SR–FICC–

2007–02] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Clarify the 

Rules of Its Government Securities 

Division With Respect to Obligations 

Associated With Brokered Repo 

Trades 

May 3, 2007 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

March 12, 2007, the Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I, II, and III below, which items have 

been prepared primarily by FICC. FICC 

filed the proposed rule change pursuant 

to Section 19(b)(3)(A)(i) of the Act 2 and 

Rule 19b–4(f)(1) thereunder 3 so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the proposed rule 

change is to add language to Section 3 

to Rule 19 (Special Provisions for 

Brokered Repo Transactions) of FICC’s 

Government Securities Division 

(‘‘GSD’’) Rules to make explicit that 

blind broker repo trades assumed by 

FICC are included in the calculation of 

the parties to such trades’ receive and 

deliver obligations to FICC. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FICC 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. FICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In 2006, the Commission approved a 

clarifying change to FICC’s Rules 

relating to a longstanding practice by 

FICC of assuming brokers’ positions in 

certain blind broker repo transactions.5

As part of that filing, a new Section 5 

was added to Rule 19 of the GSD Rules 

to expressly provide for this practice. 

FICC has determined that an additional 

change as set forth below is necessary to 

further clarify the GSD Rules with 

respect to obligations associated with 

brokered repo trades. 

Section 3 of GSD Rule 19 allows FICC 

to deem a repo brokered trade as 

compared based solely upon the 

submission of trade data by the broker 

despite an untimely submission of data 

by the dealer and states that such a trade 

would be included in the calculation of 

the margin and mark-to-market 

payments of the parties to the trade. 

FICC is adding language to Section 3 to 

make it clear that such a trade is also 

included in the calculation of the 

parties’ receive and deliver obligations, 

which is consistent with the language in 

Section 5 of Rule 19. The proposed 

change is technical in nature and does 

not reflect a change in the practices or 

policies of GSD. 

The proposed rule change is 

consistent with the requirements of 

Section 17A of the Act 6 and the rules 

and regulations thereunder applicable to 

FICC because the proposed change is a 

clarification that does not adversely 

affect the safeguarding of securities and 

funds in the custody or control of the 

clearing agency or for which it is 

responsible and does not adversely 

affect the respective rights or obligations 

of the clearing agency or its members. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

FICC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(i) of the Act 7 and Rule 19b–

4(f)(1) 8 thereunder because it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of FICC. 

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 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 26663 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 makes clarifications to the 

purpose section of the proposed rule change and 

technical formatting corrections to the Schedule of 

Fees contained in Exhibit 5. 

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

5 17 CFR 240.19b–4(f)(2). 

6 ‘‘Premium Products’’ is defined in the Schedule 

of Fees as the products enumerated therein. 

7See Securities Exchange Act Release No. 55575 

(April 3, 2007), 72 FR 17963 (April 10, 2007) (SR–

ISE–2006–59) (order approving the listing and 

trading of foreign currency options). 

8These fees will be charged only to Exchange 

members. 

9The execution fee is currently between $.21 and 

$.12 per contract side, depending on the Exchange 

Average Daily Volume, and the comparison fee is 

currently $.03 per contract side. 

10 ‘‘Public Customer Order’’ is defined in 

Exchange Rule 100(a)(39) as an order for the 

account of a Public Customer. ‘‘Public Customer’’

is defined in Exchange Rule 100(a)(38) as a person 

that is not a broker or dealer in securities. 

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–FICC–2007–02 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–FICC–2007–02. 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 

Section, 100 F Street, NE., Washington, 

DC 20549. The text of the proposed rule 

change is available at FICC, the 

Commission’s Public Reference Room, 

and http://www.ficc.com/commondocs/ 

rule.filings/rule.filing.07–02.pdf. 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–FICC–2007–02 and should 

be submitted on or before May 31, 2007. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8913 Filed 5–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55704; File No. SR–ISE–

2007–25] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change as Modified by Amendment 

No. 1 Thereto Relating to Fee Changes 

May 3, 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 17, 

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 prepared substantially by the 

Exchange. On May 2, 2007, the ISE 

submitted Amendment No. 1 to the 

proposed rule change.3 ISE has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge imposed by ISE under 

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

Rule 19b–4(f)(2) 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 amend its 

Schedule of Fees to establish fees for 

transactions in options on a new 

category of Premium Products.6 The text 

of the proposed rule change is available 

at the Exchange, 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 

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. 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 Exchange is proposing to amend 

its Schedule of Fees to establish fees for 

transactions in options on a new 

category of Premium Products, foreign 

currency options, referred to in the 

Exchange’s Schedule of Fees as FX 

options.7 The Exchange began trading in 

FX options on April 17, 2007. All of the 

applicable execution fees covered by 

this filing are identical to fees charged 

by the Exchange for all other Premium 

Products. Specifically, the Exchange is 

proposing to adopt an execution fee and 

a comparison fee for all transactions in 

FX options.8 The amount of the 

execution fee and comparison fee for all 

ISE Market Maker transactions shall be 

equal to the execution fee and 

comparison fee currently charged by the 

Exchange for ISE Market Maker 

transactions in equity options.9 The 

amount of the execution fee and 

comparison fee for products covered by 

this filing shall be $0.15 and $0.03 per 

contract, respectively, for all Public 

Customer Orders 10 and Firm 

Proprietary orders. Finally, the amount 

of the execution fee and comparison fee 

for all non-ISE Market Maker 

transactions shall be $0.16 and $0.03 

per contract, respectively. Since FX 

options are not multiply-listed, the 

Payment for Order Flow fee shall not 

apply. 

In addition to the execution fees 

noted above, the Exchange also 

proposes to charge ISE market makers a 

monthly access fee of $500 for the right 

to quote in FX options. In order to 

promote trading in FX options, the 

Exchange proposes to waive, through 

October 17, 2007: (1) All transaction 


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