Document ID: SEC-2007-0839-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes:  International Securities Exchange, LLC
Posted Date: 2007-06-18T04:00Z

[Federal Register: June 18, 2007 (Volume 72, Number 116)]
[Notices]               
[Page 33546-33547]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn07-89]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55897; File No. SR-ISE-2007-41]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Non-ISE Market Maker Fees

June 12, 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 June 1, 2007, the International Securities Exchange, LLC (``ISE'' or 
``Exchange'') submitted to 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 ISE. ISE 
has designated this proposal as one establishing or changing a due, 
fee, or other charge imposed by the self-regulatory organization under 
Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders it effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 increase the 
fee for non-ISE market maker orders (``FARMM orders'') from $0.19 per 
contract to $0.40 per contract.
    The text of the proposed rule change is available on ISE's Web site 
at http://www.iseoptions.com/legal/proposed_rule_changes.asp, at the 

principal office of ISE, 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, 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. ISE has prepared summaries, set forth in Sections A, B,

[[Page 33547]]

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 purpose of this proposed rule change is to increase the 
execution fee for FARMM orders. FARMM orders are orders that are sent 
to the Exchange for execution by an Electronic Access Member (``EAM''), 
an ISE member, on behalf of a non-ISE market maker. The Exchange 
currently charges FARMM orders $0.19 per contract comprised of an 
execution fee and a comparison fee of $0.16 and $0.03 per contract, 
respectively.\5\ FARMM orders do not include Linkage Orders. The 
Exchange proposes to increase the fee for all FARMM orders to $0.40 per 
contract, comprised of an execution fee and a comparison fee of $0.37 
and $0.03 per contract, respectively. The Exchange believes that the 
proposed increase to the execution fee will still leave ISE as one of 
the least expensive venues for executing FARMM orders through an 
electronic trading system.\6\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 53630 (April 11, 
2006), 71 FR 19918 (April 18, 2006) (SR-ISE-2006-18).
    \6\ The Exchange notes that the American Stock Exchange imposes 
a ``Non-Member Market Maker'' fee of $.50 per contract side for 
Auto-Ex FARMM orders, and the Philadelphia Stock Exchange imposes a 
``Broker/Dealer'' fee of $.45 per contract for AUTOM-delivered FARMM 
orders. Telephone conversation between Samir Patel, Assistant 
General Counsel, ISE, Richard Holley, Senior Special Counsel, 
Division of Market Regulation, Commission, and Rahman Harrison, 
Special Counsel, Division of Market Regulation, Commission on June 
7, 2007.
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) of the Act \7\ that an exchange have 
an equitable allocation of reasonable dues, fees, and other charges 
among exchange members and other persons using its facilities.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 written comments from members or other interested parties.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) thereunder,\9\ 
because it establishes or changes a due, fee, or other charge imposed 
by the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2007-41 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-2007-41. 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-2007-41 and should be submitted on or before July 9, 
2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E7-11657 Filed 6-15-07; 8:45 am]

BILLING CODE 8010-01-P