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

Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 57723 

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

7 17 CFR 240.19b-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. 3See Phlx Rule 136(e)(1). 

providers to send their non-market 

maker flow to ISE. 

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)(A) 

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–2008–71 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–2008–71. 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–2008–71 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. E8–23410 Filed 10–2–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58658; File No. SR–Phlx– 

2008–64] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt a 

Trading Halt Rule in Connection With 

the Dissemination of Net Asset Value 

and Disclosed Portfolio for Certain 

Derivative Securities Products 

September 26, 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 

September 18, 2008, NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been 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 Exchange proposes to amend 

Phlx Rule 136 to state that the Exchange 

will halt trading in New Derivative 

Securities Products 3 listed on the 

Exchange for which a net asset value 

(and in the case of managed fund shares 

or actively managed exchange-traded 

funds, a ‘‘disclosed portfolio’’) is 

disseminated if the Exchange becomes 

aware that the net asset value and, if 

applicable, the disclosed portfolio is not 

being disseminated to all market 

participants at the same time. The text 

of the proposed rule change is available 

on the Exchange’s Website at http:// 

www.phlx.com/regulatory/ 

reg_rulefilings.aspx , at the Exchange’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 

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 the proposed rule 

change is to address trading halts for 

New Derivative Securities Products 

listed on the Exchange for which a net 

asset value and/or a disclosed portfolio 

is disseminated. Net asset values and 

disclosed portfolios, when applicable, 

are calculated daily and disseminated to 

all market participants at the same time. 

In this proposed rule change, the 

Exchange is amending its rules to state 

that the Exchange will halt trading in 

New Derivative Securities Products 

listed on the Exchange for which a net 

asset value and/or a disclosed portfolio 

mstockstill on PROD1PC66 with NOTICES