60740 Federal Register / Vol. 73, No. 199 / Tuesday, October 14, 2008 / Notices 

20 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition and capital formation. See 

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

21 15 U.S.C. 78s(b)(2). 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Premium Products is defined in the Schedule of 

Fees as the products enumerated therein. 

4 iShares is a registered trademark of Barclays 

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

subsidiary of Barclays Bank PLC. ‘‘Dow Jones’’ and 

‘‘Dow Jones U.S. Oil Equipment & Services Index’’ 

are trademarks and service marks of Dow Jones & 

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

licensed for use for certain purposes by BGI. All 

other trademarks and service marks are the property 

of their respective owners. The iShares Dow Jones 

U.S. Oil Equipment & Services Index Fund (‘‘IEZ’’) 

is not sponsored, endorsed, or promoted by Dow 

Jones. BGI and Dow Jones 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 IEZ 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 

IEZ or with making disclosures concerning options 

on IEZ under any applicable federal or state laws, 

rules or regulations. BGI and Dow Jones do not 

sponsor, endorse, or promote such activity by ISE, 

and are not affiliated in any manner with ISE. 

5 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

Information Technology ETF (‘‘VGT’’) tracks the 

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

Investable Market Information Technology Index. 

MSCI does not sponsor, endorse, or promote VGT 

and makes no representation regarding the 

advisability of investing in VGT. Vanguard 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 

VGT 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 VGT or with making 

disclosures concerning options on VGT under any 

applicable federal or state laws, rules or regulations. 

Vanguard and MSCI 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

Mid-Cap ETF (‘‘VO’’) tracks the Morgan Stanley 

Capital International (MSCI) U.S. Mid Cap 450 

Index. MSCI does not sponsor, endorse, or promote 

VO and makes no representation regarding the 

advisability of investing in VO. Vanguard 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 VO 

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 VO or with making 

disclosures concerning options on VO under any 

applicable federal or state laws, rules or regulations. 

Vanguard and MSCI do not sponsor, endorse, or 

promote such activity by ISE, and are not affiliated 

in any manner with ISE. 

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 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– 

2008–005 and should be submitted on 

or before November 4, 2008. 

V. Discussion and Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

amended, is consistent with the 

requirements of the Act, and the rules 

and regulations thereunder that are 

applicable to a national securities 

association.20 In particular, the 

Commission finds that the proposed 

rule change, as amended, is consistent 

with the provisions of Section 15A(b)(6) 

of the Act, which provides that the rules 

of a national securities association 

should be designed ‘‘in general, to 

protect investors and the public 

interest[.]’’ The Commission concludes 

that the proposed rule change would 

strictly limit the circumstances under 

which a party would be permitted to 

submit documents to arbitrators in 

closed cases, add transparency to the 

process for considering such requests 

and support a fair arbitration process. 

The Commission finds that it is in the 

public interest to approve the proposed 

rule change as soon as possible to 

expedite its implementation. 

Accordingly, the Commission believes 

good cause exists, consistent with 

Sections 6(b)(5) and 19(b)(2) of the Act 

to approve on an accelerated basis the 

proposed rule change as modified by 

Amendment No. 1. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,21 that the 

proposed rule change (SR–FINRA– 

2008–005), as modified by Amendment 

No. 1 thereto, be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24241 Filed 10–10–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58744; File No. SR–ISE– 

2008–76] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

October 7, 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 October 

3, 2008, 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 prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested parties. 

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 5 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 

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 iShares 

Dow Jones U.S. Oil Equipment & 

Services Index Fund (‘‘IEZ’’),4 the 

Vanguard Information Technology ETF 

(‘‘VGT’’),5 the Vanguard Mid-Cap ETF 

(‘‘VO’’),6 the SPDR S&P Biotech ETF 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 199 / Tuesday, October 14, 2008 / Notices 60741 

7 ‘‘Standard & Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’ 

‘‘Standard & Poor’s 500,’’ ‘‘Standard & Poor’s 

Depositary Receipts,’’ ‘‘SPDR,’’ and ‘‘the S&P

Biotechnology Select Industry Index’’ are 

trademarks of The McGraw-Hill Companies, Inc. 

(‘‘McGraw-Hill’’), and have been licensed for use by 

State Street Bank and Trust (‘‘State Street’’) in 

connection with the listing and trading of SPDR

S&P Biotech ETF (‘‘XBI’’). State Street and Standard 

& Poor’s (‘‘S&P’’), a division of McGraw-Hill, do not 

sponsor, endorse or promote XBI and make no 

representation regarding the advisability of 

investing in XME. State Street, McGraw-Hill and 

S&P 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 

XBI 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 XBI or with making 

disclosures concerning options on XBI under any 

applicable federal or state laws, rules or regulations. 

State Street, McGraw-Hill and S&P do not sponsor, 

endorse, or promote such activity by ISE and are 

not affiliated in any manner with ISE. 8 ‘‘Standard & Poor’s,’’ ‘‘S&P,’’ ‘‘S&P 500,’’ 

‘‘Standard & Poor’s 500,’’ ‘‘Standard & Poor’s 

Depositary Receipts,’’ ‘‘SPDR,’’ and ‘‘the S&P

Oil & Gas Equipment & Services Select Industry 

Index’’ are trademarks of The McGraw-Hill 

Companies, Inc. (‘‘McGraw-Hill’’), and have been 

licensed for use by State Street Bank and Trust 

(‘‘State Street’’) in connection with the listing and 

trading of SPDR S&P Oil & Gas Equipment & 

Services ETF (‘‘XES’’). State Street and Standard & 

Poor’s (‘‘S&P’’), a division of McGraw-Hill, do not 

sponsor, endorse or promote XES make no 

representation regarding the advisability of 

investing in XES. State Street, McGraw-Hill and 

S&P 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 

XES 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 XES or with making 

disclosures concerning options on XES under any 

applicable federal or state laws, rules or regulations. 

State Street, McGraw-Hill and S&P do not sponsor, 

endorse, or promote such activity by ISE and are 

not affiliated in any manner with ISE. 9These 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). 

10Public 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. 

11The execution fee for firm proprietary orders is 

$0.20 per contract, effective October 1, 2008. See 

Securities Exchange Act Release No. 34–58671 [sic] 

(September 29, 2008), 73 FR 57722 (October 3, 

2008) (SR–ISE–2008–71). 

12The 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. 

13The 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. 

14This Premium Product was recently delisted 

and no longer trades on the Exchange. Thus, the 

Exchange proposes to remove it from its fee 

schedule. ISE filed SR–ISE–2008–75 on September 

25, 2008 to, in part, delete IXX from its Schedule 

of Fees. However, in that filing the Exchange 

inadvertently failed to mark IXX as deleted text on 

its Schedule of Fees. ISE subsequently withdrew 

SR–ISE–2008–75 and is submitting the instant filing 

with the corrected rule text to replace that filing. 

The other fees covered by that filing, which took 

effect on September 25, remain unchanged. 

15The Exchange had previously filed to remove 

IXK from its Schedule of Fees when this product 

ceased trading on the Exchange. See Securities 

Exchange Act Release No. 57831 (May 16, 2008), 73 

FR 30176 (May 23, 2008) (SR–ISE–2008–39). The 

Exchange inadvertently failed to remove IXK from 

the Payment for Order Flow fee line item in that 

filing and thus, proposes to do so with the instant 

filing. 

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

17 15 U.S.C. 78f(b)(4). 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f)(2). 

(‘‘XBI’’),7 and the SPDR S&P Oil & Gas 

Equipment & Services ETF (‘‘XES’’).8

The Exchange represents that IEZ, VGT, 

VO, XBI and XES are eligible for options 

trading because they constitute 

‘‘Exchange-Traded Fund Shares,’’ 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 IEZ, VGT, 

VO, XBI and XES.9 The amount of the 

execution fee for products covered by 

this filing shall be $0.18 per contract for 

all Public Customer Orders 10 and Firm 

Proprietary orders.11 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 

transactions in equity options.12 Finally, 

the amount of the execution fee for all 

non-ISE Market Maker transactions shall 

be $0.45 per contract.13 Further, since 

options on IEZ, VGT, VO, XBI and XES 

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. 

Further, as a matter of housekeeping, 

the Exchange proposes to remove IXX 

from the list of Premium Products on its 

Schedule of fees.14 The Exchange also 

proposes to remove IXX and IXK 15 from 

the Payment for Order Flow fee line 

item on its Schedule of Fees. 

Additionally, the Exchange recently 

adopted a sliding scale-based fee credit 

applicable to the Exchange’s Electronic 

Access Members (SR–ISE–2008–71). 

The Exchange proposes to make a 

clarifying change to the rule text 

applicable to the sliding scale. 

Specifically, the Exchange proposes to 

add the word ‘‘Thereafter,’’ at the 

beginning of the last bullet under the 

Firm Proprietary fee line item to clarify, 

as it was stated in the purpose section 

of that filing, that the credit available to 

member firms under this bullet applies 

once member firms have achieved the 

criteria under the first three bullets. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6(b) of the 

Act,16 in general, and furthers the 

objectives of Section 6(b)(4),17 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)(A) 

of the Act 18 and subparagraph (f)(2) of 

Rule 19b–4 19 thereunder. 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 


jlentini on PROD1PC65 with NOTICES
60742 Federal Register / Vol. 73, No. 199 / Tuesday, October 14, 2008 / Notices 

20 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See SEC Release No. 34–56920 (Dec. 6, 2007) 

(SR–NYSE–2007–111). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–ISE–2008–76 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–2008–76. 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 (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 available publicly. All 

submissions should refer to File No. SRISE–2008–76 and should be submitted 

on or before November 4, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24237 Filed 10–10–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58743; File No. SR–NYSE– 

2008–102] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending Rule 

48 To Permit the Exchange To Declare 

an Extreme Market Volatility Condition 

and Suspend Certain NYSE 

Requirements Relating to the Closing 

of Securities at the Exchange 

October 7, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on October 

2, 2008, New York Stock Exchange LLC 

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

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 Exchange proposes to amend 

Rule 48 to permit the Exchange to 

declare an extreme market volatility 

condition and suspend certain NYSE 

requirements relating to the closing of 

securities at the Exchange. The text of 

the proposed rule change is available at 

NYSE, www.nyse.com, and 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 those 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 parts 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 

NYSE Rule 48 to provide the Exchange 

with the ability to suspend certain 

requirements at the closing when 

extremely high market volatility could 

negatively affect the ability to ensure a 

fair and orderly close. 

Based on what the markets have 

experienced in the past month, and in 

particular, at the close on September 29, 

2008, the Exchange believes that in 

addition to the open, an extreme market 

volatility condition can also impact the 

close at the Exchange. In particular, the 

Exchange believes that in an extreme 

market volatility condition at the close, 

the Exchange should be able to permit 

orders to be entered after 4 p.m. for the 

purpose of offsetting an imbalance that 

may exist as of that time and to cancel 

or reduce a market-on-close or limit-onclose order that is a legitimate error and 

would cause significant price 

dislocation at the close. 

NYSE Rule 48 Background 

The Exchange adopted NYSE Rule 48 

on December 5, 2007 in order to provide 

the Exchange with the ability to 

suspend the requirement to disseminate 

price indications and obtain Floor 

Official approval prior to the opening 

when extremely high market volatility 

could negatively impact the operation of 

the market by causing Floor-wide delays 

in the opening of securities on the 

Exchange.4

Under NYSE Rule 48, in the event of 

extremely high market volatility that 

would have a Floor-wide impact on the 

ability of specialists to arrange for the 

timely opening of trading at the 

Exchange under the normal rules, a 

qualified Exchange officer may declare 

an extreme market volatility condition. 

For purposes of the rule, a ‘‘qualified 

Exchange officer’’ means the Chief 

Executive Officer of NYSE Euronext, 

Inc. or his or her designee, or the Chief 

Executive Officer of NYSE Regulation, 

Inc., or his or her designee. While either 

may declare the extreme market 

volatility condition, each must make a 

reasonable effort to consult with the 

other prior to taking such action. 

NYSE Rule 48 is intended to be 

invoked only in those situations where 

the potential for extreme market 

volatility would likely impair Floorwide operations at the Exchange by 


jlentini on PROD1PC65 with NOTICES