Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 57179 

7 15 U.S.C. 78o–3(b)(6). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Premium Product [sic] is defined in the 

Schedule of Fees as the products enumerated 

therein. 

• Technical analyses concerning the 

demand and supply for a sector, index 

or industry based on trading volume 

and price; 

• Statistical summaries of multiple 

companies’ financial data, including 

listings of current ratings; 

• Recommendations regarding 

increasing or decreasing holdings in 

particular industries or sectors; and 

• Notices of ratings or price target 

changes (subject to certain disclosure 

requirements). 

FINRA proposes to define market 

letters by reference to an exception from 

the definition of ‘‘research report’’ 

under NASD Rule 2711 and 

Incorporated NYSE Rule 472 to make 

clear that a firm may not supervise as 

correspondence communications that 

fall within the definition of ‘‘research 

report.’’ The proposed rule change 

would, however, increase a firm’s 

flexibility in supervising market letter 

communications that do not qualify as 

research reports. 

FINRA would announce the 

implementation date of the proposed 

rule change in a Regulatory Notice to be 

published no later than 60 days 

following Commission approval. The 

implementation date would be the date 

FINRA publishes the Regulatory Notice 

announcing Commission approval. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,7 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. The proposed 

amendment would allow firms to 

distribute market letters in a timely and 

expedient manner, while still requiring 

firms to review and supervise these 

communications to ensure that they are 

fair, balanced and not misleading. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change would 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 

Written comments were neither 

solicited nor received. 

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 rulecomments@sec.gov. Please include File 

Number SR–FINRA–2008–044 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2008–044. 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 FINRA. 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–FINRA–2008–044 and 

should be submitted on or before 

October 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23047 Filed 9–30–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58635; File No. SR–ISE– 

2008–68] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes. 

September 24, 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 

September 16, 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 selfregulatory 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 8 Premium 

Products.3 The text of the proposed rule 

change is available at the Exchange. 


jlentini on PROD1PC65 with NOTICES
57180 Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 

4The PowerShares DB Commodity Index 

Tracking Fund (‘‘DBC’’) is based on the Deutsche 

Bank Liquid Commodity Index—Optimum Yield 

Excess Return TM. DBC is managed by DB 

Commodity Services LLC. DBLCI TM and Deutsche 

Bank Liquid Commodity Index TM are trademarks of 

Deutsche Bank AG, London (‘‘DB AG’’). 

PowerShares is a registered service mark of 

PowerShares Capital Management LLC 

(‘‘PowerShares’’). DBC is not sponsored, endorsed, 

sold or promoted by DB AG, and DB AG makes no 

representation regarding the advisability of 

investing in DBC. Neither DB AG nor PowerShares 

has licensed or authorized ISE to (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on DBC or (ii) 

to use and refer to any of their trademarks or service 

marks in connection with the listing, provision of 

a market for trading, marketing, and promotion of 

options on DBC or with making disclosures 

concerning options on DBC under any applicable 

federal or state laws, rules or regulations. DB AG 

and PowerShares do not sponsor, endorse, or 

promote such activity by ISE and are not affiliated 

in any manner with ISE. 

5The PowerShares DB Base Metals Fund (‘‘DBB’’) 

is based on the Deutsche Bank Liquid Commodity 

Index—Optimum Yield Industrial Metals Excess 

Return TM. DBB is managed by DB Commodity 

Services LLC. DBLCI TM and Deutsche Bank Liquid 

Commodity Index TM are trademarks of Deutsche 

Bank AG, London (‘‘DB AG’’). PowerShares is a 

registered service mark of PowerShares Capital 

Management LLC (‘‘PowerShares’’). DBB is not 

sponsored, endorsed, sold or promoted by DB AG, 

and DB AG makes no representation regarding the 

advisability of investing in DBB. Neither DB AG nor 

PowerShares has licensed or authorized ISE to (i) 

engage in the creation, listing, provision of a market 

for trading, marketing, and promotion of options on 

DBB or (ii) to use and refer to any of their 

trademarks or service marks in connection with the 

listing, provision of a market for trading, marketing, 

and promotion of options on DBB or with making 

disclosures concerning options on DBB under any 

applicable federal or state laws, rules or regulations. 

DB AG and PowerShares do not sponsor, endorse, 

or promote such activity by ISE and are not 

affiliated in any manner with ISE. 

6 Vanguard, Vanguard ETFs and Vanguard ETF 

are trademarks of The Vanguard Group, Inc. 

(‘‘Vanguard’’). All other marks are the exclusive 

property of their respective owners. The Vanguard

Total Stock Market ETF (‘‘VTI’’) tracks the Morgan 

Stanley Capital International (MSCI) U.S. Broad 

Market Index. MSCI does not sponsor, endorse, or 

promote VTI and makes no representation regarding 

the advisability of investing in VTI. Vanguard has 

not licensed or authorized ISE to (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on VTI or (ii) 

to use and refer to any of their trademarks or service 

marks in connection with the listing, provision of 

a market for trading, marketing, and promotion of 

options on VTI or with making disclosures 

concerning options on VTI under any applicable 

federal or state laws, rules or regulations. Vanguard 

does not sponsor, endorse, or promote such activity 

by ISE, and is not affiliated in any manner with ISE. 

7The PowerShares DB U.S. Dollar Bullish Fund 

(‘‘UUP’’) is based on the Deutsche Bank Long U.S. 

Dollar Index (USDX) Futures Index TM (‘‘DB Long 

USD Futures Index’’). The sponsor of the DB Long 

USD Futures Index is Deutsche Bank AG, London 

(‘‘DB AG’’). UUP is managed by DB Commodity 

Services LLC. U.S. Dollar Index and USDX are 

registered service marks of 

IntercontinentalExchange, Inc. PowerShares is a 

registered service mark of PowerShares Capital 

Management LLC (‘‘PowerShares’’). UUP is not 

sponsored, endorsed, sold or promoted by DB AG, 

and DB AG makes no representation regarding the 

advisability of investing in UUP. Neither DB AG nor 

PowerShares has licensed or authorized ISE to (i) 

engage in the creation, listing, provision of a market 

for trading, marketing, and promotion of options on 

UUP or (ii) to use and refer to any of their 

trademarks or service marks in connection with the 

listing, provision of a market for trading, marketing, 

and promotion of options on UUP or with making 

disclosures concerning options on UUP under any 

applicable federal or state laws, rules or regulations. 

DB AG and PowerShares do not sponsor, endorse, 

or promote such activity by ISE and are not 

affiliated in any manner with ISE. 

8 iShares is a registered trademark of Barclays 

Global Investors, N.A. (‘‘BGI’’), a majority owned 

subsidiary of Barclays Bank PLC. ‘‘Lehman Brothers 

U.S. Treasury TIPS Index’’ is a trademark of 

Lehman Brothers and has been licensed for use for 

certain purposes by BGI. All other trademarks and 

service marks are the property of their respective 

owners. iShares Lehman TIPS Bond Fund (‘‘TIP’’) 

is not sponsored, endorsed, issued, sold or 

promoted by Lehman. BGI and Lehman have not 

licensed or authorized ISE to (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on TIP or (ii) 

to use and refer to any of their trademarks or service 

marks in connection with the listing, provision of 

a market for trading, marketing, and promotion of 

options on TIP or with making disclosures 

concerning options on TIP under any applicable 

federal or state laws, rules or regulations. BGI and 

Lehman do not sponsor, endorse, or promote such 

activity by ISE, and are not affiliated in any manner 

with ISE. 

9 iShares is a registered trademark of Barclays 

Global Investors, N.A. (‘‘BGI’’), a majority owned 

subsidiary of Barclays Bank PLC. ‘‘MSCI Pacific ExJapan Index’’ is a service mark of Morgan Stanley 

Capital International (‘‘MSCI’’) and has been 

licensed for use for certain purposes by BGI. All 

other trademarks and service marks are the property 

of their respective owners. iShares MSCI Pacific ExJapan Index Fund (‘‘EPP’’) is not sponsored, 

endorsed, issued, sold or promoted by MSCI. BGI 

and MSCI have not licensed or authorized ISE to 

(i) engage in the creation, listing, provision of a 

market for trading, marketing, and promotion of 

options on EPP or (ii) to use and refer to any of their 

trademarks or service marks in connection with the 

listing, provision of a market for trading, marketing, 

and promotion of options on EPP or with making 

disclosures concerning options on EPP under any 

applicable federal or state laws, rules or regulations. 

BGI and MSCI do not sponsor, endorse, or promote 

such activity by ISE, and are not affiliated in any 

manner with ISE. 

10 ‘‘Dow Jones’’ and ‘‘Dow Jones U.S. Real 

Estate SM’’ are service marks of Dow Jones & 

Company, Inc. (‘‘Dow Jones’’) and have been 

licensed for use for certain purposes by ProShares. 

MSCI, Morgan Stanley Capital International and 

EAFE are service marks of MSCI and have been 

licensed for use for certain purposes by ProShares. 

All other trademarks and service marks are the 

property of their respective owners. The Ultra Real 

Estate ProShares (‘‘URE’’) and the UltraShort MSCI 

EAFE ProShares (‘‘EFU’’) are not sponsored, 

endorsed, issued, sold or promoted by Dow Jones 

or MSCI. Dow Jones and MSCI have not licensed 

or authorized ISE to (i) engage in the creation, 

listing, provision of a market for trading, marketing, 

and promotion of options on URE and EFU or (ii) 

to use and refer to any of their trademarks or service 

marks in connection with the listing, provision of 

a market for trading, marketing, and promotion of 

options on URE and EFU or with making 

disclosures concerning options on URE and EFU 

under any applicable federal or state laws, rules or 

regulations. Dow Jones and MSCI do not sponsor, 

endorse, or promote such activity by ISE and is not 

affiliated in any manner with ISE. 

11These fees will be charged only to Exchange 

members. Under a pilot program that is set to expire 

on July 31, 2009, these fees will also be charged to 

Linkage Principal Orders (‘‘Linkage P Orders’’) and 

Linkage Principal Acting as Agent Orders (‘‘Linkage 

P/A Orders’’). The amount of the execution fee 

charged by the Exchange for Linkage P Orders and 

Linkage P/A Orders is $0.24 per contract side and 

$0.15 per contract side, respectively. See Securities 

Exchange Act Release No. 58143 (July 11, 2008), 73 

FR 41388 (July 18, 2008) (SR–ISE–2008–52) 

12Public Customer Order is defined in Exchange 

Rule 100(a)(39) as an order for the account of a 

Public Customer. Public Customer is defined in 

Exchange Rule 100(a)(38) as a person or entity that 

is not a broker or dealer in securities. 

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 Exchange is 

proposing to amend its Schedule of Fees 

to establish fees for transactions in 

options on the PowerShares DB 

Commodity Index Tracking Fund 

(‘‘DBC’’),4 the PowerShares DB Base 

Metals Fund (‘‘DBB’’),5 the Vanguard

Total Stock Market ETF (‘‘VTI’’),6 the 

PowerShares DB U.S. Dollar Bullish 

Fund (‘‘UUP’’),7 the iShares Lehman 

TIPS Bond Fund (‘‘TIP’’),8 the iShares 

MSCI Pacific Ex-Japan Index Fund 

(‘‘EPP’’),9 the Ultra Real Estate 

ProShares (‘‘URE’’) and the UltraShort 

MSCI EAFE ProShares (‘‘EFU’’).10 The 

Exchange represents that DBC, DBB, 

VTI, UUP, TIP, EPP, URE, and EFU are 

eligible for options trading because they 

constitute ‘‘Exchange-Traded Fund 

Share,’’ as defined by ISE Rule 502(h). 

All of the applicable fees covered by 

this filing are identical to fees charged 

by the Exchange for all other Premium 

Products. Specifically, the Exchange is 

proposing to adopt an execution fee for 

all transactions in options on DBC, DBB, 

VTI, UUP, TIP, EPP, URE, and EFU.11

The amount of the execution fee for 

products covered by this filing shall be 

$0.18 per contract for all Public 

Customer Orders 12 and Firm 

Proprietary orders. The amount of the 

execution fee for all ISE Market Maker 

transactions shall be equal to the 

execution fee currently charged by the 

Exchange for ISE Market Maker 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 191 / Wednesday, October 1, 2008 / Notices 57181 

13The Exchange applies a sliding scale, between 

$0.01 and $0.18 per contract side, based on the 

number of contracts an ISE market maker trades in 

a month. 

14The amount of the execution fee for non-ISE 

Market Maker transactions executed in the 

Exchange’s Facilitation and Solicitation 

Mechanisms is $0.19 per contract. 

15 15 U.S.C. 78f. 

16 15 U.S.C. 78f(b)(4). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 19b–4(f)(2). 

19 17CFR 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)(1). 

4 17 CFR 240.19b–4. 

5See Securities Exchange Act Release No. 54538 

(September 28, 2006), 71 FR 59184 (October 6, 

2006) (SR–Phlx–2006–43) (Order approving XLE). 

transactions in equity options.13 Finally, 

the amount of the execution fee for all 

non-ISE Market Maker transactions shall 

be $0.45 per contract.14 Further, since 

options on DBC, DBB, VTI, UUP, TIP, 

EPP, URE, and EFU are multiply-listed, 

the Exchange’s Payment for Order Flow 

fee shall apply to all these products. The 

Exchange believes the proposed rule 

change will further the Exchange’s goal 

of introducing new products to the 

marketplace that are competitively 

priced. 

(b) Basis—The Exchange believes that 

the proposed rule change is consistent 

with the objectives of Section 6 of the 

Act,15 in general, and furthers the 

objectives of Section 6(b)(4),16 in 

particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities. 

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 foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 17 and Rule 19b–4(f)(2) 18

thereunder. 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–ISE–2008–68 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2008–68. 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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– 

2008–68 and should be submitted on or 

before October 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–22967 Filed 9–30–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58613; File No. SR–Phlx– 

2008–65] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Administration and Enforcement of 

Certain Rules Pertaining to XLE 

September 22, 2008. 

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

Securities Exchange Act of 1934,1 and 

Rule 19b–4 2 thereunder, notice is 

hereby given that on September 5, 2008, 

NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II and III, 

below, which Items have been prepared 

by Phlx. 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, pursuant to Section 

19(b)(1) of the Act 3 and Rule 19b–4 

thereunder,4 proposes to change the 

administration and enforcement of 

certain rules in light of the fact that the 

Exchange will cease operation of the 

technology used to operate XLE,5 the 

Exchange’s equity trading system, on or 

before October 24, 2008 (the 

‘‘Shutdown’’). At this time, the 

Exchange is not proposing to amend the 

text of any rules, but simply to change 

the administration and enforcement of 

certain rules, as described below. The 

Shutdown will not affect any other 

trading systems or markets at Phlx. 


jlentini on PROD1PC65 with NOTICES