Document ID: SEC-2008-0850-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2008-06-23T04:00Z

[Federal Register: June 23, 2008 (Volume 73, Number 121)]
[Notices]               
[Page 35427-35428]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23jn08-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57972; File No. SR-ISE-2008-44]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Regarding Fees for Enhanced Sentiment Market Data

June 16, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 9, 2008, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III 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.
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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 fees 
for enhanced sentiment market data. The text of the proposed rule 
change is available on the Exchange's Web site (http://www.ise.com), at 
the principal office of 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.

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

1. Purpose
    Pursuant to a filing previously approved by the Commission, the 
Exchange currently sells on a subscription basis, to both members and 
non-members, an enhanced sentiment market data offering that is geared 
primarily to retail investors.\3\ This offering is based on the ISE 
Sentiment Index[supreg], or ISEE[supreg], a calculation that represents 
an overall view of market sentiment. The ISEE provides an intra-day 
picture of how investors view stock prices by assessing customers' 
option

[[Page 35428]]

trading activity. Unlike the traditional put/call ratio, which makes no 
distinction between customer, market maker or firm transactions, the 
ISEE measures only opening long customer transactions on the ISE. The 
ISE updates the current ISEE value hourly during market hours and posts 
it for free on its Web site.\4\
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    \3\ See Securities Exchange Act Release Nos. 53532 (March 21, 
2006), 71 FR 15501 (March 28, 2006) (SR-ISE-2005-56) (Notice of 
Filing of Proposed Rule Change to Establish Fees for Enhanced 
Sentiment Market Data); 53756 (May 3, 2006), 71 FR 27526 (May 11, 
2006) (SR-ISE-2005-56) (Order Approving Proposed Rule Change to 
Establish Fees for Enhanced Sentiment Market Data) (the ``Initial 
Filing'').
    \4\ http://www.iseoptions.com/marketplace/statistics/sentiment_
index.asp.
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    This retail-oriented enhanced sentiment market data offering is 
available to on-line investors on a subscription basis and is also 
offered by third parties that participate in the Exchange's Marketing 
Alliance program.\5\
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    \5\ When the Commission published the Initial Filing, the 
Marketing Alliance program was known as the ISE Broker Marketing 
Alliance, and participation in it was limited to broker-dealers. 
Following the launch of the ISEE Select market data offering, and in 
response to the interest the Exchange received from many non-broker-
dealers wishing to participate in the Marketing Alliance program, 
the Exchange subsequently expanded the program by eliminating its 
limitation to only broker-dealers. See Securities Exchange Act 
Release Nos. 54508 (September 26, 2006), 71 FR 58459 (October 3, 
2006) (SR-ISE-2006-44) (Notice of Filing of Proposed Rule Change to 
Expand the Broker Marketing Alliance to Include Non-Broker-Dealers 
with Regard to Enhanced Sentiment Market Data Offering); 54704 
(November 3, 2006), 71 FR 65859 (November 9, 2006) (SR-ISE-2006-44) 
(Order Approving Proposed Rule Change to Expand the Broker Marketing 
Alliance to Include Non-Broker-Dealers with Regard to Enhanced 
Sentiment Market Data Offering).
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    The Exchange subsequently also introduced multi-product discounts 
for subscriptions to this offering.\6\
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    \6\ See Securities Exchange Act Release No. 55288 (February 13, 
2007), 72 FR 8219 (February 23, 2007) (SR-ISE-2007-09) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to 
Establish Fee Discounts for Enhanced Sentiment Market Data 
Offering).
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    The Exchange currently also sells on a subscription basis, to both 
members and non-members, an enhanced sentiment market data offering 
that is geared primarily to institutional subscribers.\7\ This 
institution-oriented enhanced sentiment market data offering is a data 
feed that provides a bulk delivery of up to 1,700 ISEE Select 
values.\8\
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    \7\ See Securities Exchange Act Release No. 56315 (August 24, 
2007), 72 FR 50148 (August 30, 2007) (SR-ISE-2007-58).
    \8\ Id.
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    The Exchange has now determined, for business reasons, to 
terminate, effective August 1, 2008, the retail-oriented enhanced 
sentiment market data offering. Accordingly, the Exchange proposes to 
remove reference to this product and associated fees from its fee 
schedule. The Exchange is not proposing to make any changes to the 
institution-oriented enhanced sentiment market data offering, known as 
the ISEE Select Data Feed, as that offering will continue to be sold by 
ISE.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4),\9\ 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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    \9\ 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 proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    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
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2008-44 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-2008-44. 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 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-2008-44 and should be 
submitted on or before July 14, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-14060 Filed 6-20-08; 8:45 am]

BILLING CODE 8010-01-P