Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 6753 

6The Exchange is expanding the application of 

the P order program due to the fact that HAL now 

processes market-maker orders in addition to 

broker-dealer orders. 

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

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange proposes to expand the 

program to apply to any non-customer 

order underlying a P order.6 Second, in 

order to recover the significant costs of 

this program, the Exchange proposes to 

pass through to the member that 

originated the underlying order the total 

amount of the credits paid by the 

Exchange to the DPM under the program 

(i.e., away exchange transaction fee, and 

OCC, clearing firm and Sales Value 

fees). The Exchange represents that 

members seeking to send orders to the 

Exchange that are not routed away 

through the Linkage (thereby avoiding 

any pass-through Linkage charges) may 

do so by marking orders sent to CBOE 

with an Immediate or Cancel (‘‘IOC’’) 

designation. IOC orders are not routed 

to other market centers, instead if they 

cannot be executed on CBOE they are 

cancelled. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with section 

6(b) of the Act 7 in general and furthers 

the objectives of section 6(b)(4) 8 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members and other 

persons using its facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act 9 and Rule 19b–4(f)(2) 10

thereunder because it establishes or 

changes a due, fee, or other charge 

applicable only to a member. At any 

time within 60 days of the filing of such 

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–CBOE–2007–152 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–CBOE–2007–152. 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 CBOE. 

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–CBOE–2007–152 and 

should be submitted on or before 

February 26, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2059 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57229; File No. SR–ISE–

2008–09] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change To Amend Exchange Rules 

Related to the Imposition of Fines for 

Minor Rule Violations 

January 29, 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 

18, 2008, 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 

ISE. 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 1614, ‘‘Imposition of Fines for 

Minor Rule Violations,’’ to add 

summary fines for violations of ISE Rule 

1100, ‘‘Exercise of Options Contracts.’’

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.ise.com), at the ISE’s 

principal office, 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 


rmajette on PROD1PC64 with NOTICES
6754 Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 

3See letter to Richard Holley, Senior Special 

Counsel, Division of Trading and Markets, 

Commission, from Nyieri Nazarian, Assistant 

General Counsel, American Stock Exchange LLC 

(‘‘Amex’’), dated October 29, 2007. 4See Amex Rule 590. 5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 7 17 CFR 240.19d–1(c)(2). 8 17 CFR 200.30–3(a)(12). 

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 add a 

summary fine schedule pursuant to its 

Minor Rule Violation Plan (‘‘MRVP’’) 

that will apply to any member who fails 

to submit to the Exchange in a timely 

manner, pursuant to ISE Rule 1100 (or 

a regulatory information circular issued 

pursuant to ISE Rule 1100), ‘‘Advice 

Cancel’’ or exercise instruction relating 

to the exercise or nonexercise of a 

noncash-settled equity option. The 

Exchange believes that imposing the 

fine levels specified with respect to both 

individual members and member 

organizations, and providing for a 

rolling 24-month surveillance period, 

will serve as an effective deterrent to 

such violative conduct. 

In addition, the Exchange, as a 

member of the Intermarket Surveillance 

Group, as well as certain other selfregulatory organizations (‘‘SROs’’), 

executed and filed with the 

Commission, on October 29, 2007, a 

final version of an Agreement pursuant 

to Section 17(d) of the Act (the ‘‘17d–

2 Agreement’’).3 As set forth in the 17d–

2 Agreement, the SROs have agreed that 

their respective rules concerning the 

filing of Expiring Exercise Declarations 

(also referred to as Contrary Exercise 

Advices) are common rules. As a result, 

the proposal to amend the ISE’s MRVP 

will further result in consistency in 

sanctions among the SROs that are 

signatories to the 17d–2 Agreement 

concerning Contrary Exercise Advice 

violations.4

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,5 in general, and 

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

of the Act,6 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices; to 

promote just and equitable principles of 

trade; and to protect investors and the 

public interest in that it is designed 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. Additionally, the 

Exchange believes that the proposed 

rule change will promote consistency in 

minor rule violations and respective 

SRO reporting obligations as set forth 

pursuant to Rule 19d–1(c)(2) under the 

Act,7 which governs minor rule 

violation plans. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ISE 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 neither solicited nor 

received comments on the proposal. 

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 such 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–2008–09 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–2008–09. 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 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–2008–09 and should be 

submitted on or before February 26, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1970 Filed 2–4–08; 8:45 am] 

BILLING CODE 8011–01–P 


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