Document ID: SEC-2007-1747-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securities Exchange, LLC
Posted Date: 2007-12-21T05:00Z

[Federal Register: December 21, 2007 (Volume 72, Number 245)]
[Notices]               
[Page 72808-72809]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de07-136]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56973; File No. SR-ISE-2007-109]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment 
No. 1 Thereto, Relating to Rule 2213, Market Maker Trading Licenses

 December 17, 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 14, 2007, 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 substantially 
prepared by the ISE. On December 13, 2007, the Exchange filed Amendment 
No. 1 to the proposed rule change. The Commission is publishing this 
notice to solicit comments on the proposed rule change, as modified by 
Amendment No. 1, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Rule 2213, ``Market Maker Trading 
Licenses,'' to eliminate the limitation that a foreign exchange options 
primary market maker (``FXPMM'') in the Exchange's foreign currency 
options (``FX options'') cannot make a market in more than four (4) 
currency pairs. The text of the proposed rule change is available on 
the Exchange's Web site (http://www.iseoptions.com), at the Exchange, 

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 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.

[[Page 72809]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    ISE proposes to amend its Rule 2213, ``Market Maker Trading 
Licenses,'' to eliminate the limitation that an FXPMM in the Exchange's 
FX options cannot make a market in more than four currency pairs.\3\ 
Under the Exchange's current rules, FXPMMs are limited to making a 
market in no more than four currency pairs.\4\ All four of the FX 
options currently listed by the Exchange are served by the same FXPMM. 
As a result of the limitation in ISE Rule 2213, that FXPMM is prevented 
from serving as a primary market maker in additional currency pairs. 
The Exchange intends to launch additional currency pairs in the near 
future. In order for the Exchange to allow the current FXPMM to 
participate in the auction for those additional currency pairs, ISE 
proposes to eliminate the limitation in Rule 2213 that a FXPMM cannot 
act as a primary market maker in more than four currency pairs. The 
Exchange believes that removing this limitation from its rules will (1) 
allow the Exchange to launch additional currency pairs, (2) permit the 
current FXPMM to participate in the auction for the additional currency 
pairs the Exchange intends to launch, and (3) provide market 
participants with an opportunity to trade those additional currency 
pairs as a means to diversify their portfolio.
---------------------------------------------------------------------------

    \3\ The Exchange began trading FX options on the euro, the 
British pound, the Japanese yen and the Canadian dollar on April 17, 
2007. See Securities Exchange Act Release No. 55575 (April 3, 2007), 
72 FR 17963 (April 10, 2007) (SR-ISE-2006-59).
    \4\ FXPMMs are permitted to quote and trade in FX options only.
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for this proposed rule change is found in 
Section 6(b)(5),\5\ in that the proposed change is designed to promote 
just and equitable principles of trade, will serve to remove 
impediments to and perfect the mechanisms of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest, by permitting members to become market makers in a 
greater number of the Exchange's FX options.
---------------------------------------------------------------------------

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

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

    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 Exchange 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 rule-comments@sec.gov. Please include 

File Number SR-ISE-2007-109 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-2007-109. 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 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-2007-109 and should be 
submitted on or before January 11, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-24800 Filed 12-20-07; 8:45 am]

BILLING CODE 8011-01-P