Document ID: SEC-2008-0117-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2008-01-23T05:00Z

[Federal Register: January 23, 2008 (Volume 73, Number 15)]
[Notices]               
[Page 4035-4036]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja08-97]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57153; File No. SR-ISE-2008-04]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change, as Modified by Amendment No. 1 Thereto, Relating to Fee Waiver

January 15, 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 January 2, 2008, 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, 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 applicable only to a member 
under Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. On January 15, 2008, ISE submitted Amendment No. 1 to 
the proposed rule change.\5\ 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
    \5\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on January 15, 2008, the date on which the Exchange 
filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ISE is proposing a one-time waiver of the annual renewal fee for 
Registered Representatives.

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. 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 ISE Rules 601, 602, and 603, members are required to 
electronically file a Uniform Application for Securities Industry 
Registration or Transfer (Form U4) with the Web CRD System operated by 
the Financial Industry Regulatory Authority, Inc. (``FINRA'') when 
registering, transferring, or terminating a registered person. Pursuant 
to the Exchange's Schedule of Fees, members pay fees related to these 
U4 filings, which are collected by FINRA on behalf of the Exchange. In 
particular, members are assessed an annual renewal fee of $55 for each 
Registered Representative.
    The purpose of this rule filing is to grant a one-time waiver of 
the $55 annual renewal fee for Registered Representatives for 2008. The 
Exchange updated its rules regarding its registration requirements in 
June 2007,\6\ which resulted in some members registering a substantial 
number of representatives with the Exchange for the first time in the 
later part of 2007.
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    \6\ See Securities Exchange Act Release No. 55899 (June 12, 
2007), 72 FR 33794 (June 19, 2007) (SR-ISE-2007-30).
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    Specifically, the Exchange initially requested that members comply 
with the revised registration requirements by no later than October 31, 
2007, but subsequently extended this date until January 31, 2008. 
Because the 2008 annual renewal fee is assessed based on the number of 
Registered Representatives a member has registered with the ISE on the 
Web CRD system at the beginning of 2008, any member that registered its 
representatives prior to the end of 2007 would be assessed the annual 
renewal fee for each Registered Representative, whereas those firms 
that waited until after January 1, 2008 to register their 
representatives would not

[[Page 4036]]

incur the 2008 annual renewal fee. In effect, assessing the 2008 annual 
renewal fee would penalize those members that complied with the 
Exchange's registration requirements more timely. The Exchange 
therefore believes it is appropriate to waive the 2008 annual renewal 
fee for all members.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\7\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\8\ in 
particular, in that it is designed to provide for the 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).
    \8\ 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(2) \10\ thereunder because 
it establishes or changes a due, fee, or other charge imposed by the 
Exchange. 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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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 No. SR-ISE-2008-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2008-04. 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 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-
2008-04 and should be submitted on or before February 12, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-1011 Filed 1-22-08; 8:45 am]

BILLING CODE 8011-01-P