55642 Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices 

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 17 CFR 240.19b–4(f)(6). 

5On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option 

linkage proposed by the American Stock Exchange 

LLC, the Chicago Board Options Exchange, 

Incorporated, and the ISE. See Securities Exchange 

Act Release No. 43086 (July 28, 2000), 65 FR 48023 

(August 4, 2000) (‘‘Linkage Plan’’). Subsequently, 

upon separate requests by the Philadelphia Stock 

Exchange, Inc., the Pacific Exchange, Inc., and the 

Boston Stock Exchange, Inc., the Commission 

issued orders to permit these exchanges to 

participate in the Linkage Plan. See Securities 

Exchange Act Release Nos. 43573 (November 16, 

2000), 65 FR 70851 (November 28, 2000); 43574 

(November 16, 2000), 65 FR 70850 (November 28, 

2000); and 49198 (February 5, 2004), 69 FR 7029 

(February 12, 2004). 6The Exchange defines ‘‘Linkage’’ in ISE Rule 

1900(9). 7See Securities Exchange Act Release No. 52418 

(September 13, 2005) (order approving SR–ISE–

2005–33). 8The Exchange defines ‘‘Linkage Order’’ in ISE 

Rule 1900(10). 9 15 U.S.C. 78f(b)(5). 

DTC–2005–07) be and hereby is 

approved. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18896 Filed 9–21–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52451; File No. SR–ISE–

2005–44] 

Self-Regulatory Organizations; 

International Securities Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Primary Market 

Maker Obligations 

September 15, 2005. 

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 

September 14, 2005, the International 

Securities Exchange, Inc. (‘‘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 prepared 

by the Exchange. The Exchange has 

filed the proposed rule change as a 

‘‘non-controversial’’ rule change 

pursuant to 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 

The Exchange proposes to amend ISE 

Rule 803 regarding Primary Market 

Maker obligations in consideration of a 

recently approved change to the ISE 

Rules relating to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage.5

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.iseoptions.com), at the 

Exchange’s Office of the Secretary, 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 

In file number SR–ISE–2005–33, 

which was recently approved by the 

Commission, the Exchange proposed to 

amend its rules governing Linkage 6

trading with respect to trade-throughs 

and locked markets.7 SR–ISE–2005–33 

provided that an Exchange member may 

trade an order at a price that is one 

minimum quoting increment inferior to 

the national best bid and offer 

(‘‘NBBO’’) if the member 

contemporaneously transmits to the 

market(s) disseminating the NBBO 

Linkage Order(s) 8 to satisfy all interest 

at the NBBO price (‘‘trade and ship’’). 

Under trade and ship, pursuant to 

agency obligations, any execution the 

member receives from the market 

disseminating the NBBO must be 

reassigned to any customer order 

underlying the Linkage Order that was 

transmitted to trade with the market 

disseminating the NBBO. 

The purpose of this proposed rule 

change is to reflect the change made in 

SR–ISE–2005–33 in ISE Rule 803(c), 

which specifies the obligations of a 

Primary Market Maker when handling a 

Public Customer Order. Specifically, the 

Exchange proposes to amend ISE Rule 

803(c) to specify that a Primary Market 

Maker may trade and ship as described 

above. This proposed rule change is 

necessary to assure that the Exchange’s 

rules are consistent with respect to the 

handling of Public Customer Orders. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 9 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 foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. In 

particular, the proposed rule change 

will help implement the Linkage Plan 

by facilitating the ability of market 

makers to execute their customer orders 

and assuring that the Exchange’s rules 

in this respect are consistent. 

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 

Because the foregoing proposed rule 

change effects a change that 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 

Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices 55643 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For the purpose only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

16See supra note 7. 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 superseded and replaced the 

filing in its entirety. In Amendment No. 1, Nasdaq 

clarified that securities that are listed on a national 

securities exchange and not designated by Nasdaq 

as Nasdaq national market system securities are 

exempt from the proposed Substitution Listing 

Event notice and fee requirements. Amendment No. 

1 also corrected typographical errors and clarified 

certain other non-material terms related to the 

scope of the proposed Substitution Listing Event fee 

and notice requirements. 

4Amendment No. 2 superseded and replaced the 

amended filing in its entirety. In Amendment No. 

2, Nasdaq clarified that securities that are listed on 

a national securities exchange and not designated 

by Nasdaq as Nasdaq national market system 

securities are exempt from only the proposed 

Substitution Listing Event fee requirement and, 

therefore, would be subject to the proposed notice 

requirement. Amendment No. 2 also made certain 

conforming changes and representations regarding 

the collection and dissemination of substitution 

listing event information and the proposed rules 

impact on Nasdaq’s regulatory functions. 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11 As 

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

the Exchange provided the Commission 

with written notice of the Exchange’s 

intent to file the proposed rule change 

at least five business days prior to the 

filing date of the proposed rule change. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally may not 

become operative prior to 30 days after 

the date of its filing. 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 

operative delay, as specified in Rule 

19b–4(f)(6)(iii), and designate the 

proposed rule change operative upon 

filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest,15

because accelerating the operative date 

immediately eliminates the 

inconsistency in the Exchange Rules 

with respect to Primary Market Makers 

Obligations to Public Customer Orders 

that otherwise exists as a result of the 

approval of trade and ship.16 For this 

reason, the Commission designates that 

the proposal is operative upon filing. 

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–ISE–2005–44 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9303. 

All submissions should refer to File 

Number SR–ISE–2005–44 . 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 the 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–ISE–2005–44 and should be 

submitted on or before October 13, 

2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18895 Filed 9–21–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52430; File No. SR–NASD–

2004–162] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing of 

Proposed Rule Change and 

Amendment Nos. 1 and 2 Thereto To 

Establish Fee and Notice 

Requirements for Substitution Listing 

Events and To Provide Additional 

Transparency for Changes Requiring a 

Record-keeping Fee 

September 14, 2005. 

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 October 

26, 2004, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), 

through its subsidiary, The Nasdaq 

Stock Market, Inc. (‘‘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 by Nasdaq. On May 

11, 2005, Nasdaq filed Amendment No. 

1 to the proposed rule change.3 On 

August 18, 2005, Nasdaq filed 

Amendment No. 2 to the proposed rule 

change.4 The Commission is publishing 

this notice to solicit comments on the 

proposal, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

Nasdaq proposes to amend NASD 

Rules 4200(a), 4310, 4320, 4510, and 

4520 to establish fee and notice 

requirements for substitution listing