Federal Register / Vol. 73, No. 168 / Thursday, August 28, 2008 / Notices 50847 

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). 

5The EEM Fund pilot program commenced on 

August 27, 2007, and has been renewed one time. 

The EEM Fund pilot program is scheduled to expire 

on August 27, 2008. See Securities Exchange Act 

Release No. 56324 (August 27, 2007), 72 FR 50426 

(August 31, 2007) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, To List and 

Trade Options on the iShares Emerging Markets 

Index Fund for a Six Month Pilot Program) (SR–

ISE–2007–72); See Securities Exchange Act Release 

No. 57399 (February 28, 2008), 73 FR 12241 (March 

6, 2008) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change Relating to 

the Extension of a Pilot Program To List and Trade 

Options on the iShares Emerging Markets Index 

Fund) (SR–ISE–2008–10). 

6The EEM Fund is an open-end investment 

company designed to hold a portfolio of securities 

that track the MSCI Emerging Markets Index (the 

‘‘Index’’). The Index is a capitalization-weighted 

index created and maintained by Morgan Stanley 

Capital International, Inc., and is designed to 

measure equity market performance in the global 

emerging markets. 

7 ISE Rules 502(h) and 503(h) set forth the initial 

listing and maintenance standards for registered 

investment companies (or series thereof) organized 

as open-end management investment companies, 

unit investment trusts, or other similar entities that 

are traded on a national securities exchange or 

through the facilities of a national securities 

exchange. 

8See Rule 502(h)(B)(1). 

9The National Commission for Banking and 

Securities, or ‘‘CNBV,’’ is Mexico’s regulatory body 

for financial markets and banking. The CNBV 

regulates the Bolsa Mexicana de Valores (‘‘Bolsa’’). 

10See supra note 5. The Commission permitted 

the Exchange to rely on the MOU, and the Exchange 

agreed to use its best efforts to obtain a CSSA with 

the Bolsa during the respective pilot periods, which 

to date has not been obtained. 

11The KRX was created on January 27, 2005, 

through the consolidation of three domestic Korean 

exchanges: Korea Stock Exchange (KSE), KOSDAQ 

Market and Korea Futures Market (KOFEX). See 

http://neg.krx.co.kr/index.html. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58400; File No. SR–ISE–

2008–66] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Retire a Pilot Program To 

List and Trade Options on the iShares 

Emerging Markets Index Fund 

August 20, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 

14, 2008, the International Securities 

Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’) 

filed with the Securities and Exchange 

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 

proposal 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 submits this rule filing 

to retire a pilot program that permits the 

Exchange to list options on the iShares 

MSCI Emerging Markets Index Fund 

(‘‘EEM Fund’’).5 The Exchange is 

proposing to retire the pilot program 

because the EEM Fund now meets all of 

the Exchange’s generic initial and 

maintenance listing standards, which 

permit the Exchange to list options on 

the EEM Fund without having to file for 

Commission approval. The text of the 

proposed rule change is available on the 

Exchange’s Web site http:// 

www.ise.com, at the principal office of 

the Exchange, 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 

self-regulatory organization 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 self-regulatory organization 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 purpose of this rule change is to 

retire the Pilot that permits the 

Exchange to list options on the EEM 

Fund.6 The Exchange is proposing to 

retire the Pilot because the EEM Fund 

now meets all of the Exchange’s generic 

initial and maintenance standards. 

Specifically, the Exchange has in place 

initial and maintenance listing 

standards set forth in Rules 502(h) and 

503(h), respectively (‘‘Listing 

Standards’’), which are designed to 

allow the Exchange to list funds 

structured as investment companies, 

such as the EEM Fund, without having 

to file for Commission approval to list 

for trading options on these types of 

funds.7

When the Exchange first sought to list 

options on the EEM Fund, the Exchange 

had determined that the EEM Fund met 

substantially all of the Exchange’s 

Listing Standards requirements, but did 

not meet the Listing Standards 

requirement that no more than 50% of 

the weight of the securities in the EEM 

Fund be comprised of securities that are 

not subject to a comprehensive 

surveillance sharing agreement 

(‘‘CSSA’’).8 The Exchange had in place 

CSSAs with foreign exchanges that 

covered 45.97% of the securities in the 

EEM Fund. In order to meet the 50% 

threshold, the Exchange requested the 

Commission’s approval to rely upon a 

memorandum of understanding that the 

Commission had entered into with the 

CNBV 9 (the ‘‘MOU’’) because the 

securities traded on the Bolsa 

represented 6.53% of the weight of the 

securities in the EEM Fund.10

The EEM Fund has now become 

compliant with ISE Rule 502(h)(B)(1) 

and more than 50% of the weight of the 

securities in the EEM Fund are now 

subject to a CSSA. Specifically, the 

Exchange represents that the Korean 

Exchange (‘‘KRX’’) 11 recently became a 

member of the Intermarket Surveillance 

Group and, therefore, securities and 

other products trading on its markets are 

now subject to a CSSA. As a result, the 

percentage of the weight of the EEM 

Fund represented by South Korean 

securities now renders the EEM Fund 

compliant with the Exchange’s Listing 

Standards requirements. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Act of 1934 (the ‘‘Act’’) and 

the rules and regulations under the Act 

applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the 

Act.12 Specifically, the Exchange 

believes the proposed rule change is 

consistent with Section 6(b)(5) of the 

Act’s 13 requirements that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, to prevent 

fraudulent and manipulative acts and, 

in general, to protect investors and the 

public interest. In particular, the 

proposed rule change will enable the 

Exchange to continue to provide a 

competitive marketplace for investors to 

trade options on the EEM Fund. 


jlentini on PROD1PC65 with NOTICES
50848 Federal Register / Vol. 73, No. 168 / Thursday, August 28, 2008 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Premium Product is defined in the Schedule of 

Fees as the products enumerated therein. 

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 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has designated the 

proposed rule change as one that: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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 public interest. 

Additionally, the Exchange provided 

the Commission with written notice of 

its intention to file the proposed rule 

change at least five business days before 

its filing. Therefore, the foregoing rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 14 and 

Rule 19b–4(f)(6) thereunder.15

A proposed rule change filed under 

Rule 19b–4(f)(6) under the Act normally 

may not become operative prior to 30 

days after the date of filing. However, 

Rule 19b–4(f)(6)(iii) under the Act 16

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, which 

would make the rule change effective 

and operative upon filing. The Exchange 

believes that waiver of the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest as it will allow the Exchange to 

continue to list options on the EEM 

Fund. For this reason, the Commission 

designates that the proposed rule 

change has become effective and 

operative immediately.17

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–2008–66 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, Station Place, 100 F Street, 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2008–66. 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 publicly available. All 

submissions should refer to File 

Number SR–ISE–2008–66 and should be 

submitted on or before September 18, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19943 Filed 8–27–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–58411; File No. SR–ISE–

2008–65] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

August 22, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 

12, 2008, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I, II, 

and III below, which items have been 

prepared by the self-regulatory 

organization. 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 ISE is proposing to amend its 

Schedule of Fees to establish fees for 

transactions in options on 12 Premium 

Products.3 The text of the proposed rule 

change is available at the Exchange. 

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 

self-regulatory organization 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 


jlentini on PROD1PC65 with NOTICES