Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 6225 

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

2 17 CFR 240.19b–4. 

3Amendment No. 2 replaces the original filing 

and Amendment No. 1 in their entirety. 

4Amendment No. 3 clarifies portions of the 

purpose section of the proposed rule change. 

5See ISE Rule 713 and Supplementary Material 

.01 thereto. 

6See NYSE Arca Rule 6.76(a). 

7See Securities Exchange Act Release No. 55667 

(April 25, 2007), 72 FR 23869 (May 1, 2007) (SR–

NASDAQ–2007–004) (Notice of Filing of Proposed 

Rule Change and Amendment No. 1 To Establish 

Rules Governing the Trading of Options on the 

NASDAQ Options Market). 

Martinson, 6432 General Green Way, 

Alexandria, VA 22312; or send an email to: PRA_Mailbox@sec.gov. 

Comments must be submitted to OMB 

within 30 days of this notice. 

Dated: January 28, 2008. 

Nancy M. Morris, 

Secretary. 

[FR Doc. E8–1844 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57207; File No. SR–ISE–

2007–95] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of a Proposed 

Rule Change, as Modified by 

Amendment Nos. 2 and 3, Relating to 

Reserve Orders 

January 25, 2008. 

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 

12, 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 ISE filed Amendment 

Nos. 1 and 2 to the proposal on January 

17, 2008.3 On January 25, 2008, the ISE 

filed Amendment No. 3 to the proposed 

rule change.4 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 Exchange proposes to add a new 

order type called Reserve Orders. The 

text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.ise.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. 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 Exchange proposes to implement 

a new order type called Reserve Orders. 

A Reserve Order is a single-sided limit 

order that resides in the Exchange’s 

regular limit order book and has both a 

displayed portion and a non-displayed 

or reserve portion. The displayed 

portion would behave exactly like a 

regular order and would trade in 

accordance with the Exchange’s 

standard allocation rules, i.e., time 

priority for customers and pro-rata for 

non-customers.5 The following 

examples illustrate how Reserve Orders 

will trade on the Exchange: 

Example 1: 

The Exchange’s order book shows the 

following at the Best Bid: 

10 contracts (100 contracts in reserve)—

Customer 1 

12 contracts—Customer 2 

25 contracts—Competitive Market 

Maker 

20 contracts (500 contracts in reserve)—

Broker/Dealer 

An order comes in to sell 50 contracts 

at market. This order would be executed 

with the displayed customer orders 

trading in time priority followed by 

non-customers pro-rata, as follows: 

10 contracts trade with Customer 1 

12 contracts trade with Customer 2 

16 contracts trade with Competitive 

Market Maker (‘‘CMM’’): This 

allocation is calculated as follows: 

(25/45) × 28, where the numerator 

(25) is the number of contracts that a 

CMM is willing to trade, and the 

denominator (45) is the number of 

contracts that are available for 

execution. The resulting number 

(0.5555) is then multiplied by the 

number of contracts that have not 

been executed (28). 

The remaining 11 contracts trade with 

the Broker/Dealer. 

Example 2: 

The Exchange’s order book shows the 

same at the Best Bid as in Example 1: 

An order to sell 200 contracts at market 

will be executed as follows: 

10 contracts trade with Customer 1 

12 contracts trade with Customer 2 

25 contracts trade with CMM 

20 contracts trade with the Broker/ 

Dealer 

100 contracts (the entire reserve portion 

of Customer 1) trade with Customer 1 

33 contracts (from the 500 contracts in 

reserve) trade with the Broker/Dealer 

When the displayed portion of a 

Reserve Order is decremented, either in 

full or in part, it shall be refreshed from 

the non-displayed portion of the resting 

Reserve Order. If the displayed portion 

is refreshed in part, the new displayed 

portion shall include the previously 

displayed portion. Upon any refresh, the 

entire displayed portion shall be ranked 

at the specified limit price, assigned a 

new entry time and given priority in 

accordance with Rule 713. 

The non-displayed portion of Reserve 

Orders shall be ranked based on the 

specified limit price and the time of 

order entry. Upon any refresh, any 

remaining non-displayed portion shall 

be assigned a new time stamp, same as 

that assigned to the newly displayed 

portion. The non-displayed portion of 

any Reserve Order is available for 

execution only after all displayed 

interest has been executed. 

The Exchange notes that the full size, 

i.e., both the displayed and nondisplayed portions, of an incoming 

Reserve Order will be available for 

execution if that incoming order is 

marketable. Further, in the event an 

incoming order is large enough to trade 

through all displayed quantities, the 

non-displayed quantities of all resting 

Reserve Orders will be eligible to trade, 

again in accordance with the Exchange’s 

standard allocation rules. 

The Exchange believes that the new 

order type proposed in this rule change 

will provide greater flexibility to 

members to control their orders. By 

offering this new order type, members 

will be able to determine how much of 

their order they want disseminated at 

any point in time and help them 

eliminate the need to enter multiple 

orders in one series. The Exchange 

states that this new functionality will be 

purely voluntary and is similar to that 

currently offered 6 or proposed 7 by 

other options exchanges. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

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6226 Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

6(b) of the Act,8 in general, and furthers 

the objectives of Section 6(b)(5) of the 

Act,9 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts, promote just and equitable 

principles of trade, 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. The Exchange believes 

that this new order type will offer 

market participants new trading 

opportunities on the Exchange and 

enhance the Exchange’s competitive 

position. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that 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 Exchange 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–ISE–2007–95 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–2007–95. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

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–ISE–2007–95 and should be 

submitted on or before February 22, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1834 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57204; File No. SR–NYSE–

2008–05] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Eliminate the One-Year Minimum Life 

Requirement From the Listing 

Standards for ‘‘Other Securities’’

January 25, 2008. 

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 January 

15, 2008, the New York Stock Exchange 

LLC (‘‘NYSE’’ 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 substantially by NYSE. 

This order provides notice of the 

proposed rule change 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 

Section 703.19 of the Exchange’s Listed 

Company Manual (‘‘Manual’’), which 

sets forth the initial listing standards for 

‘‘Other Securities,’’ to eliminate the 

requirement that securities listed 

thereunder must have a minimum life of 

one year. The text of the proposal is 

available at NYSE, the Commission’s 

Public Reference Room, and http:// 

www.nyse.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 III below, and 

the most significant aspects of such 

statements are set forth in Sections A, B, 

and C below. 

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