7348 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ISE Rule 100(a)(32) and (33). 

4 ISE Rule 100(a)(22) and (23). 

5The Exchange is also proposing to make nonsubstantive changes to correct cross references in 

Rule 100(a) to the Constitution, and to clarify that 

the term Public Customer means a person ‘‘or 

entity’’ that is not a broker or dealer securities. 

Copies of the 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–2006–26 and should be 

submitted on or before February 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2206 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57255; File No. SR–ISE–

2007–76] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change and Amendment No. 1 Thereto 

Relating to Voluntary Professionals 

February 1, 2008. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on August 

24, 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. On January 25, 2008, ISE 

filed Amendment No. 1 to the proposed 

rule change. 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 proposes to allow, on a 

purely voluntary basis, non-brokerdealer customers to designate their 

orders as ‘‘Voluntary Professional.’’

Voluntary Professional orders will be 

treated the same as non-customer orders 

for purposes of execution priority and 

the ISE schedule of fees. The text of the 

proposed rule change is available at ISE, 

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 

ISE 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 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Under ISE rules, a ‘‘Public Customer’’

is any person or entity that is not a 

broker or dealer in securities and a 

‘‘Public Customer Order’’ is an order for 

the account of a Public Customer.3 A 

‘‘Non-Customer’’ is any person or entity 

that is a broker or dealer in securities 

and a ‘‘Non-Customer Order’’ is an order 

for the account of a broker or dealer.4

These terms are used in specific ISE 

rules that provide certain marketplace 

advantages to Public Customer Orders 

over Non-Customer Orders. In 

particular, under ISE rules Public 

Customer Orders are given priority over 

Non-Customer Orders and market maker 

quotes at the same price, and subject to 

certain exceptions, members are not 

charged a transaction fee for the 

execution of Public Customer Orders, 

but are subject to cancellation fees 

related to the execution of Public 

Customer Orders. 

Members have indicated that certain 

of their non-broker-dealer customers 

employing sophisticated trading 

strategies that involve cancelling a large 

percentage of their orders before the 

orders are executed would prefer to 

have their orders categorized as NonCustomer Orders, thereby gaining relief 

from the Exchange’s cancellation fee 

that member firms pass through to these 

customers. Accordingly, the Exchange 

proposes to allow, on a purely voluntary 

basis, non-broker-dealer customers to 

instruct member firms, in writing, to 

designate their orders as Voluntary 

Professional.5 Such orders would be 

considered Non-Customer Orders for 

purposes of ISE Rules 713 (Priority of 

Quotes and Orders), 716 (Block Trades), 

722 (Complex Orders), and 723 (Price 

Improvement Mechanism for Crossing 

Transactions). For orders designated as 

Voluntary Professional, ISE would 

charge members standard transaction 

fees currently applicable to brokerdealer orders, which means that the 

cancellation fee will not be applicable to 

such orders. 

Under the proposal, Voluntary 

Professionals would participate in ISE’s 

allocation process on equal terms with 

broker-dealer orders and market maker 

quotes. The proposal would also result 

in members paying the same transaction 

fees for the execution of Voluntary 

Professional orders as they do for 

broker-dealer orders. By definition, the 

Voluntary Professional designation 

would not otherwise affect these nonbroker-dealer individuals or entities 

under the ISE rules. The Exchange notes 

that Voluntary Professional orders 

would continue to be treated the same 

as Public Customer Orders for purposes 

of linkage-related rules. For example, 

the ISE would provide the same awaymarket protection for orders designated 

as Voluntary Professional as it does for 

orders designated as Public Customer 

Orders by preventing incoming 

marketable orders from automatically 

executing at prices inferior to the best 

bid or offer on another national 

securities exchange. As provided in ISE 

Rule 714, such Voluntary Professional 

orders would be handled by the Primary 

Market Maker who may, according to 

ISE Rule 1901(c), send a P/A order to 

another exchange to get a better price for 

the customer. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 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 remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

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. 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Notices 7349 

6 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a et seq. 

3 17 CFR 240.19b–4. 

4 17 CFR 240.19b–4(f)(6). 

5 17 CFR 240.10a–1. 

6 17 CFR 242.200–203. 

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 

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 self-regulatory 

organization 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 

rule-comments@sec.gov. Please include 

File Number SR–ISE–2007–76 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–2007–76. 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 at (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 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–2007–76 and should be 

submitted on or before February 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–2267 Filed 2–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34—57251; File No. SR–NYSE–

2007–62] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Changes to NYSE 

Rules 104 (Dealings by Specialists); 

111 (Reports of Executions); 123A 

(Miscellaneous Reports); 123C (Market 

on the Close Policy and Expiration 

Procedures); 421(Periodic Reports); 

440B (Short Sales); 440C (Short Sale 

Borrowing and Delivery 

Requirements); 440F (Public Short 

Sale Transactions Effected on the 

Exchange); 440G (Transactions in 

Stocks and Warrants for the Accounts 

of Members, Allied Members and 

Member Organizations); 902 (Off-Hours 

Trading Orders); 1000 (Automatic 

Execution of Limit Orders Against 

Orders Reflected in NYSE Published 

Quotation); and 1003 (Application of 

Tick Tests) Relating to Recent 

Amendments to Rule 10a–1 and 

Regulation SHO 

February 1, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’)2 and Rule 19b–43 thereunder, 

notice is hereby given that on July 6, 

2007, the New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), and on 

December 5, 2007 amended, the 

proposed rule change as described in 

Items I and II below, which items have 

been substantially prepared by the 

Exchange. The Exchange filed the 

proposals as ‘‘non-controversial’’ rule 

changes under Rule 19b–4(f)(6)4 under 

the Act, which rendered the proposals 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule changes 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The NYSE proposes to make 

conforming amendments to certain of its 

rules in light of recent changes to short 

sale provisions in Rule 10a–15 of the Act 

and Regulation SHO.6 The rules the 

Exchange proposes to amend are the 

following: Rule 104 (Dealings by 

Specialists); Rule 111 (Reports of 

Executions); Rule 123A (Miscellaneous 

Reports); Rule 123C (Market on the 

Close Policy and Expiration 

Procedures); Rule 421(Periodic Reports); 

Rule 440B (Short Sales); Rule 440C 

(Short Sale Borrowing and Delivery 

Requirements); Rule 440F (Public Short 

Sale Transactions Effected on the 

Exchange); Rule 440G (Transactions in 

Stocks and Warrants for the Accounts of 

Members, Allied Members and Member 

Organizations); Rule 902 (Off-Hours 

Trading Orders); Rule 1000 (Automatic 

Execution of Limit Orders Against 

Orders Reflected in NYSE Published 

Quotation); and Rule 1003 (Application 

of Tick Tests). 

The text of the proposed rule change 

is available at the Exchange, on the 

Exchange’s Web site at http:// 

www.nyse.com, and in 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. The text of 

these statements may be examined at 


jlentini on PROD1PC65 with NOTICES