57720 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 19b–4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ISE began trading FX options on April 17, 2007 

pursuant to Commission approval. See Securities 

Exchange Act Release No. 55575 (April 3, 2007), 72 

FR 17963 (April 10, 2007). 

securities, regardless of which Tape 

they are reported to. The Exchange is 

proposing to implement these fee 

changes on October 1, 2008. 

Specifically, the Exchange proposes to 

implement a tiered rebate structure for 

securities priced at or above $1.00 

across all Tapes, averaged across an 

entire month, where the first five 

million maker shares executed on an 

average daily volume (ADV) basis 

receive a rebate of $0.0032 per share, 

with an increase in the rebate to $0.0035 

for each maker share executed above 

five million ADV. Additionally, the 

Exchange proposes to reinstate a single 

taker fee for securities priced at or above 

$1.00 of $0.0030 for executions on all 

securities, regardless of which Tape 

they are reported to. 

For shares executed on an order 

delivery basis in securities priced at or 

above $1.00, the Exchange proposes to 

rebate $0.0027 for all maker shares 

executed, regardless of which Tape they 

are reported to. 

The execution fee for equities priced 

under $1.00, regardless of which tape 

they are reported to, is 0.3% of trade 

value with no rebates for adding 

liquidity. 

For the avoidance of doubt, the 

Exchange proposes to add a note to the 

fee schedule stating that fees are based 

on ADV per member, per month. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,4

in general, and furthers the objectives of 

Section 6(b)(4),5 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 6 and Rule 19b–4(f)(2) 7

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–2008–69 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–2008–69. 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 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– 

2008–69 and should be submitted on or 

before October 24, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23364 Filed 10–2–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58645; File No. SR–ISE– 

2008–72] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Foreign Currency 

Options Closing Settlement Value 

September 25, 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 23, 2008, the International 

Securities Exchange, LLC (the 

‘‘Exchange’’ or the ‘‘ISE’’) 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 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 proposes to amend its rules 

regarding Foreign Currency Options 

(‘‘FX Options’’).3 The text of the 

proposed rule amendment is as follows, 

with deletions in [brackets] and 

additions in italics: 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 57721 

4Under ISE Rule 2212, in the event the Federal 

Reserve Bank of New York does not maintain or 

publish a Noon Buying Rate for an underlying 

currency, ISE will apply the WM/Reuters Closing 

Spot rate to determine the closing settlement value. 

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

6 15 U.S.C. 78f(b)(5). 

7 17 CFR 240.19b–4(f)(6). 

8The Commission notes that it does not approve 

rule changes filed under paragraph (f)(6) of Rule 

19b–4 of the Act. 

Rule 2212. Foreign Currency Options 

Closing Settlement Value 

(a) The closing settlement value shall 

be the day’s announced Noon Buying 

Rate, as determined by the Federal 

Reserve Bank of New York, on the last 

trading day during expiration week. If 

the Noon Buying Rate is not announced 

by [2] 5:00 p.m. Eastern time, the 

closing settlement value will be the 

most recently announced Noon Buying 

Rate, unless the Exchange determines to 

apply an alternative closing settlement 

value as a result of extraordinary 

circumstances. In the event the Noon 

Buying Rate is not published for an 

underlying currency, the Exchange will 

apply the WM/Reuters Closing Spot rate 

to determine the closing settlement 

value. If the Federal Reserve Bank of 

New York determines to publish a Noon 

Buying Rate in the future for a currency 

for which it currently does not publish 

such rate, the Exchange will apply the 

Noon Buying Rate in place of the WM/ 

Reuters Composite Spot rate to 

determine the closing settlement value 

for such currency. 

(b)–(c) No Change. 

* * * * * 

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 

(a) Purpose—ISE proposes to amend 

its rules regarding FX Options. 

Specifically, the Exchange proposes to 

amend its FX Options closing settlement 

value rule by changing the reference 

time from 2 p.m. Eastern time to 5 p.m. 

Eastern time. ISE’s current rule for 

determining closing settlement value for 

FX Options states that the closing 

settlement value shall be the day’s 

announced ‘‘Noon Buying Rate,’’ as 

determined by the Federal Reserve Bank 

of New York, on the last trading day 

during expiration week. ISE Rule 

2212(a) further states that if the Noon 

Buying Rate is not announced by 2 p.m. 

Eastern time, the closing settlement 

value will be the most recently 

announced Noon Buying Rate.4 The 

Exchange now proposes to amend its FX 

options closing settlement value rule by 

changing the reference time from 2 p.m. 

to 5 p.m. While the Noon Buying Rate 

is still established by the Federal 

Reserve Bank of New York, the Noon 

Buying Rate will soon be disseminated 

and displayed at a later time, albeit on 

the same day. This proposed rule 

change will allow the Exchange to 

continue to rely on this industryrecognized value and do so without 

causing any disruption in the 

calculation of the closing settlement 

value for FX Options. 

The Exchange is not proposing to 

make any changes to its FX Options 

rules other that to change the reference 

time found in ISE Rule 2212(a). 

(b) Basis—The Exchange believes the 

proposed rule change is consistent with 

the Securities Exchange 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.5 Specifically, the Exchange 

believes the proposed rule change is 

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

Act’s 6 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 allow the 

Exchange to continue to rely on an 

industry-recognized value to determine 

the closing settlement value for FX 

Options traded on the Exchange. 

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 

This proposed rule change does not 

significantly affect the protection of 

investors or the public interest, does not 

impose any significant burden on 

competition, and, by its terms, does not 

become operative for 30 days after the 

date of the filing, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest. The 

Exchange provided the Commission 

with written notice of its intent to file 

the proposed rule change, along with a 

brief description and text of the 

proposed rule change, at least five 

business days prior to the date of filing 

the proposed rule change as required by 

Rule 19b–4(f)(6).7 For the foregoing 

reasons, the Exchange believes the 

proposed rule filing qualifies for 

expedited approval as a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 of the 

Act.8

The Exchange believes the proposed 

rule change is non-controversial in that 

the only change proposed herein is to 

the reference time used by the Exchange 

to determine the closing settlement 

value for FX Options. The Exchange 

also believes that the proposed rule 

change does not raise any new, unique 

or substantive issues, and is beneficial 

for competitive purposes and to 

promote a free and open market for the 

benefit of investors. 

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 

mstockstill on PROD1PC66 with NOTICES

57722 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 If a member firm operates more than one EAM 

membership, the Exchange will aggregate the 

trading activity of firms for purposes of the sliding 

scale based on common ownership between firms 

as reflected on each firm’s Form BD. 

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

5 15 U.S.C. 78f(b)(4). 

Number SR–ISE–2008–72 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–2008–72. 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, on official business days between 

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

of the 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– 

2008–72 and should be submitted on or 

before October 24, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23409 Filed 10–2–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58671; File No. SR–ISE– 

2008–71] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by 

International Securities Exchange, LLC 

Relating to Fee Changes 

September 29, 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 23, 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 by (1) raising the fee 

for Firm Proprietary orders, and (2) 

adopting a sliding scale-based fee credit 

for the Exchange’s Electronic Access 

Members (‘‘EAMs’’). The text of the 

proposed rule change is available on the 

Exchange’s Internet Web site at 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 

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 

(a) Purpose—The Exchange proposes 

to amend its Schedule of Fees by 

increasing the firm proprietary 

transaction fee charged to members, 

currently set at $0.18 per contract, to 

$0.20 per contract. In connection with 

the proposed increase to the firm 

proprietary transaction fee, the 

Exchange also proposes to adopt a 

sliding scale-based fee credit for EAMs. 

Specifically, the Exchange proposes to 

create a sliding scale-based fee credit 

that rewards EAMs for the total amount 

of order flow sent to ISE, as follows (all 

volume figures are aggregate volume for 

a member per calendar month): 

• For the first 500,000 contracts 

traded on the Exchange during a 

calendar month, EAMs will not receive 

any credit. 

• For the next 2,500,000 contracts 

traded, EAMs will receive a credit of 

$0.005 per contract. 

• For the next 1,000,000 contracts 

traded, EAMs will receive a credit of 

$0.01 per contract. 

• Thereafter, EAMs will receive an 

incremental credit of $0.005 per 

contract per each 1,000,000 incremental 

contracts traded on the Exchange during 

a calendar month. 

The sliding scale will apply to all 

customer and firm proprietary orders in 

all products and will be calculated on 

a member firm basis,3 and will apply to 

non-discounted volume only, that is, it 

will not apply to orders previously 

discounted by other pricing incentives 

that currently appear on the Exchange’s 

Schedule of Fees. Under the proposal, 

credits will be capped at 100% of 

transaction charges. The Exchange 

believes the proposed fee credits will 

benefit order flow providers who send 

substantial non-market maker order 

flow to ISE while providing an incentive 

to those that do not currently send their 

non-market maker order flow to ISE to 

do so. 

The proposed fee changes will be 

operative on October 1, 2008. 

(b) Basis—The Exchange believes that 

the proposed rule change is consistent 

with the objectives of Section 6(b) of the 

Act,4 in general, and furthers the 

objectives of Section 6(b)(4),5 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. In particular, the 

proposed fee credit will allow the 

Exchange to compete more effectively 

with other options exchanges as it will 

serve as an incentive for order flow 

mstockstill on PROD1PC66 with NOTICES