Document ID: SEC-2006-0869-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securities Exchange, Inc.
Posted Date: 2006-07-10T04:00Z

[Federal Register: July 10, 2006 (Volume 71, Number 131)]
[Notices]               
[Page 38917-38918]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jy06-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54074; File No. SR-ISE-2006-30]

 
Self-Regulatory Organizations; International Securities Exchange, 
Inc.; Notice of Filing of Proposed Rule Change, and Amendment No. 1 
Thereto, To Increase the Linkage Inbound Principal Order Fee

June 30, 2006.
    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 June 5, 2006, the International Securities Exchange, Inc. (``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 ISE. On June 29, 
2006, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange proposed to delete certain 
language in its Schedule of Fees.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Schedule of Fees to change the 
Linkage Inbound Principal Order (``P Order'') fee. The text of the 
proposed rule change is available at the Commission's Public Reference 
Room, at the Exchange and at the Exchange's Web site (http://www.iseoptions.com/
 legal/proposed--rule-- changes.asp).

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 as 
amended 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 Exchange proposes to amend its Schedule of Fees to increase 
from $0.15 to $0.24, per contract, the P Order fee for orders sent to 
the Exchange via the Intermarket Options Linkage pursuant to the Plan 
for the Purpose of Creating and Operating an Intermarket Option Linkage 
(``Plan'').\4\ This proposed rule change will remain in effect as part 
of an existing pilot program, which is scheduled to expire on July 31, 
2006.\5\ Additionally, in order to implement this proposed rule change, 
the Exchange is creating two new line items in its Schedule of Fees: 
one for Linkage P Orders and one for Linkage P/A Orders.\6\

[[Page 38918]]

Both these fees are currently found in the Schedule of Fees under the 
Firm Proprietary line item.
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    \4\ See Exchange Act Release No. 43086 (July 28, 2000), 65 FR 
48023 (August 4, 2000) (order approving the Plan and ISE as a 
participant in the Plan).
    \5\ Fees for Linkage P and P/A Orders are currently subject to a 
pilot program scheduled to expire on July 31, 2006. See Exchange Act 
Release No. 52168 (July 29, 2005), 70 FR 45454 (August 5, 2005) (SR-
ISE-2005-32).
    \6\ The fee for Linkage P/A Orders is not subject to change 
pursuant to this filing, and would remain at $0.15 per contract. As 
before, (1) both Linkage P and Linkage P/A Orders shall remain 
subject to a comparison fee of $0.03 per contract, and (2) 
Satisfaction Orders are excluded from these fees.
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2. Statutory Basis
    The Exchange states that the basis for this proposed rule change is 
the requirement under section 6(b)(4) of the Act,\7\ which requires 
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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    \7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change would 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 written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule 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 self-regulatory organization 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, as amended, 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-2006-30 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-2006-30. 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. 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-2006-30 and should be submitted on or before July 
31, 2006.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
[FR Doc. E6-10682 Filed 7-7-06; 8:45 am]

BILLING CODE 8010-01-P