Document ID: SEC-2007-1732-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securities Exchange, LLC
Posted Date: 2007-12-19T05:00Z

[Federal Register: December 19, 2007 (Volume 72, Number 243)]
[Notices]               
[Page 71988-71989]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de07-137]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56957; File No. SR-ISE-2007-115]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Historical ISE Open/Close Trade Profile Fees

December 13, 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 December 11, 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 and II below, which Items have been substantially prepared by 
ISE. The Exchange filed the proposal pursuant to section 19(b)(3)(A) of 
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the 
proposal effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ISE proposes to amend its Schedule of Fees to: (1) Clarify the 
terms on which it offers the ISE Open/Close Trade Profile, a market 
data product described below; and (2) adopt a subscription fee for the 
sale of historical ISE Open/Close Trade Profile. The text of the 
proposed rule change is available at the Exchange, on the Exchange's 
Web site at http://www.ise.com, 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
    ISE currently creates volume data for each ISE listed option that 
consists of opening buys and opening sells and closing buys and closing 
sells.\5\ ISE currently uses a subset of this data, the customer 
``opening only'' trade data, for its calculation of investor sentiment, 
the ISE Sentiment Index[reg], or ISEE[reg], and for ISEE Select[reg]. 
The Commission recently approved a broader market data offering 
comprised of the entire opening and closing trade data of ISE listed 
options of both customers and firms, referred to by the Exchange as the 
ISE Open/Close Trade Profile.\6\ The ISE Open/Close Trade Profile 
offering is subdivided by origin code (i.e., customer or firm) and the 
customer data is then further subdivided by order size. The volume data 
is summarized by day and series (i.e., symbol, expiration date, strike 
price, call or put). ISE Open/Close Trade Profile is a subscription 
service, available to both members and non-members, and that enables 
subscribers to create their own proprietary put/call calculations. The 
data is compiled and formatted by ISE as an end of day file. The 
Exchange charges both members and non-members $600 per month based on 
an annual subscription \7\ for the ISE Open/Close Trade Profile market 
data offering.
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    \5\ An opening buy is a transaction that creates or increases a 
long position and an opening sell is a transaction that creates or 
increases a short position. A closing buy is a transaction made to 
close out an existing position. A closing sell is a transaction to 
reduce or eliminate a long position.
    \6\ See Securities Exchange Act Release No. 56254 (August 15, 
2007), 72 FR 47104 (August 22, 2007) (SR-ISE-2007-70).
    \7\ The Exchange notes that while historical ISE Open/Close 
Trade Profile is available on a month to month basis, the non-
historical ISE Open/Close Trade Profile offering is available only 
on an annual subscription basis, which the Exchange proposes to 
clarify by adding the words ``With an annual subscription'' under 
the Notes section on its Schedule of Fees.
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    ISE now proposes to sell historical ISE Open/Close Trade Profile, a 
market data offering comprised of the entire opening and closing trade 
data of both customers and firms that dates back to May 2005, to both 
members and non-members, on an ad-hoc basis or as a complete set that 
dates back to May 2005. Ad-hoc subscribers will be able to purchase 
this data for any number of months, beginning from May 2005 through the 
current month. Alternatively, subscribers will be able to purchase the 
entire set of this data, beginning from May 2005 through the

[[Page 71989]]

current month. The data will be compiled and formatted by ISE and sold 
as a zipped file. ISE proposes to charge ad-hoc subscribers $600 per 
request for each month of data. For subscribers that want the compete 
set of the data from May 2005 to the present, ISE proposes to charge a 
discounted fee of $500.00 for each month of data.
 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b)(4) of the Act,\8\ which requires that a national 
securities exchange have an equitable allocation of reasonable dues, 
fees and other charges among its members and other persons using its 
facilities. The Exchange states that the proposed rule filing will 
provide members and non-members with valuable market data, and that it 
has expended considerable resources, i.e., internal development costs, 
purchase of servers, etc., to bring this offering to market. The 
Exchange states that it took these costs into account in setting the 
fees proposed for the historical ISE Open/Close Trade Profile market 
data offering. This product is identical to one that the Chicago Board 
Options Exchange (``CBOE'') currently sells to the marketplace called 
Open/Close Data.\9\ Further, ISE states that its proposed fees for this 
new historical product are cheaper than or identical to the fees that 
CBOE currently charges for its Open/Close Data offering.\10\ Finally, 
the Exchange notes that the fees proposed by ISE for this product, 
which is available for purchase on a voluntary basis, are not 
discriminatory in that the Exchange proposes to charge both members and 
non-members an identical fee.
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    \8\ 15 U.S.C. 78(f)(b)(4).
    \9\ See Securities Exchange Act Release No. 55062 (January 8, 
2007), 72 FR 2048 (January 17, 2007) (SR-CBOE-2006-88).
    \10\ See id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
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 neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change does not: (1) Significantly 
affect the protection of investors or the public interest; (2) impose 
any significant burden on competition; and (3) become operative for 30 
days after the date of this filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\11\
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    \11\ In addition, Rule 19b-4(f)(6) requires a self-regulatory 
organization to give the Commission written notice of its intent to 
file the proposed rule change, along with a brief description and 
text of the proposed rule change, at least five business days prior 
to the date of filing of the proposed rule change, or such shorter 
time as designated by the Commission. ISE has satisfied this 
requirement.
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has requested that the Commission 
waive the 30-day operative delay. The Commission believes that waiving 
the 30-day operative delay is consistent with the protection of 
investors and the public interest because it will allow ISE to 
immediately offer the historical ISE Open/Close Trade Profile data to 
investors interested in subscribing.\12\ This market data product is 
substantially similar to one offered by CBOE, and it appears that it 
does not raise any novel regulatory issues. For these reasons, the 
Commission designates the proposed rule change to be effective and 
operative upon filing with the Commission.
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    \12\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 rule-comments@sec.gov. Please include 

File Number SR-ISE-2007-115 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-2007-115. 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-2007-115 and should be submitted on or before 
January 9, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-24583 Filed 12-18-07; 8:45 am]

BILLING CODE 8011-01-P