Document ID: SEC-2006-0759-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securities Exchange, Inc.
Posted Date: 2006-06-15T04:00Z

[Federal Register: June 15, 2006 (Volume 71, Number 115)]
[Notices]               
[Page 34651-34652]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn06-65]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53954; File No. SR-ISE-2006-29]

 
Self-Regulatory Organization; International Securities Exchange, 
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fee Waiver Extensions

June 7, 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 May 26, 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. The ISE has 
designated this proposal as one establishing or changing a due, fee, or 
other charge imposed by a self-regulatory organization pursuant to 
section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
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.
---------------------------------------------------------------------------

    \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 proposes to amend its Schedule of Fees to extend two fee 
waivers. The text of the proposed rule change is available at the 
Exchange, at the Exchange's Web site (http://www.iseoptions.com/legal/proposed_rule_changes.asp
) 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 proposal. The text of these 
statements may be examined at the places specified in item IV below. 
The Exchange has prepared summaries, set forth in Section 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 purpose of this proposed rule change is to extend two fee 
waivers. First the Exchange currently waives most customer transaction 
fees, with such waiver scheduled to expire on June 30, 2006.\5\ To 
remain competitive in the market place, the Exchange proposes to extend 
this waiver through June 30, 2007.
---------------------------------------------------------------------------

    \5\ See Exchange Act Release No. 34-51775 (June 2, 2005), 70 FR 
33569 (June 8, 2005).
---------------------------------------------------------------------------

    Second, the Exchange proposes to extend a fee waiver regarding its 
``CLICK terminal,'' which is the front-end order-entry terminal we 
provide to members. Currently, the Exchange waives software license and 
maintenance fees, as well as Session/API fees (based on member log-
ins), for a member's second and subsequent CLICK terminals. This waiver 
also is scheduled to expire on June 30, 2006.\6\ The Exchange believes 
that this waiver program encourages firms to install and use multiple 
CLICKs and the Exchange proposes to extend this waiver for an 
additional year. The Exchange recently rolled out a new front-end 
order-entry terminal, PrecISE Trade, which will eventually replace all 
existing CLICK terminals.\7\ Once all of the CLICK terminals are 
phased-out, the ISE will submit a proposed rule change to remove CLICK 
fees from its fee schedule.
---------------------------------------------------------------------------

    \6\ See id.
    \7\ See Exchange Act Release No. 34-53788 (May 11, 2006), 71 FR 
28728 (May 17, 2006).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange states that the basis under the Act for this proposed 
rule change is the requirement under section 6(b)(4) \8\ that an 
exchange have an equitable allocation of reasonable dues, fees and 
other charges among its members and other persons using its facilities. 
In particular, these fees would extend current waivers, thus 
effectively maintaining low fees.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange states 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 unsolicited written comments from members or other interested 
parties.

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

    The foregoing proposed rule change has become effective pursuant to 
section

[[Page 34652]]

19(b)(3)(A)(ii) of the Act,\9\ and paragraph (f)(2) of Rule 19b-4 
thereunder \10\ because it establishes or changes a due, fee, or other 
charge among its members. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2006-29 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-2006-29. 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 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 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-2006-29 
and should be submitted on or before July 6, 2006.

    For the Commission, by the Division of Market Regulations, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06-5420 Filed 6-14-06; 8:45 am]

BILLING CODE 8010-01-M