Document ID: SEC-2007-1557-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securites Exchange LLC
Posted Date: 2007-11-15T05:00Z

[Federal Register: November 15, 2007 (Volume 72, Number 220)]
[Notices]               
[Page 64264-64265]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15no07-112]                         

[[Page 64264]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56773; File No. SR-ISE-2007-104]

 
Self-Regulatory Organizations; International Securities Exchange 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fee Changes

November 8, 2007.
    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 November 1, 2007, the International Securities Exchange, LLC 
(``Exchange'' or ``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 prepared by the ISE. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 remove the 
surcharge fee for transactions in options on 10 Premium Products.\3\ 
The text of the proposed rule change is available on the ISE's Web site 
(http://www.ise.com), at the principal office of the ISE, and at the 

Commission's Public Reference Room.
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    \3\ Premium Products is defined in the Schedule of Fees as the 
products enumerated therein.
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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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to amend its Schedule of Fees to remove 
the surcharge fee previously adopted for transactions in options on the 
iShares S&P 100 Index Fund (``OEF''),\4\ the Financial Select Sector 
SPDR Fund (``XLF''), the Technology Select Sector SPDR Fund (``XLK''), 
the Utilities Select Sector SPDR Fund (``XLU''),\5\ the Materials 
Select Sector SPDR Fund (``XLB''), the Industrial Select Sector SPDR 
Fund (``XLI''), the Health Care Select Sector SPDR Fund (``XLV''), the 
Consumer Discretionary Select Sector SPDR Fund (``XLY''),\6\ the Energy 
Select Sector SPDR Fund (``XLE''), and the Consumer Staples Select 
Sector SPDR Fund (``XLP'').\7\ The Exchange is proposing to remove the 
surcharge fee for these products from its Schedule of Fees because it 
no longer pays a license fee to Standard and Poor's, Inc. in connection 
with transactions in options on OEF, XLF, XLK, XLU, XLB, XLI, XLV, XLY, 
XLE and XLP. Accordingly, there is no longer a need for this surcharge 
fee. The Exchange will, however, continue to charge an execution fee 
and a comparison fee for transactions in options on OEF, XLF, XLK, XLU, 
XLB, XLI, XLV, XLY, XLE and XLP.
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    \4\ See Securities Exchange Act Release No. 46189 (July 11, 
2002), 67 FR 47587 (July 19, 2002).
    \5\ See Securities Exchange Act Release No. 47243 (January 24, 
2003), 68 FR 5066 (January 31, 2003).
    \6\ See Securities Exchange Act Release No. 47536 (March 19, 
2003), 68 FR 14727 (March 26, 2003).
    \7\ See Securities Exchange Act Release No. 47564 (March 24, 
2003), 68 FR 15256 (March 28, 2003).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) of the Act \8\ that an exchange have 
an equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities.
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    \8\ 15 U.S.C. 78f(b)(4).
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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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3) of the Act \9\ and Rule 19b-4(f)(2) \10\ 
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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 19b-4(f)(2).
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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 No. SR-ISE-2007-104 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-2007-104. 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

[[Page 64265]]

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-
2007-104 and should be submitted on or before December 6, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22338 Filed 11-14-07; 8:45 am]

BILLING CODE 8011-01-P