Document ID: SEC-2006-1348-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: International Securities Exchange, LLC
Posted Date: 2006-10-18T04:00Z

[Federal Register: October 18, 2006 (Volume 71, Number 201)]
[Notices]               
[Page 61518-61519]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18oc06-105]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54589; File No. SR-ISE-2006-60]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fee Changes

October 11, 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 October 3, 2006, 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 prepared by the ISE. The ISE has 
filed the proposed rule change as one establishing or changing a due, 
fee, or other charge imposed by the ISE under 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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 (i) 
the surcharge fee for transactions in options on the Standard & Poor's 
Depository Receipts[supreg] (``SPDRs[supreg]''), and (ii) language 
relating to an expired fee waiver. The text of the proposed rule change 
is available on the Exchange's Internet Web site (http://www.iseoptions.com
), at the principal office of the ISE, and at the 

Commission's Public Reference Room.

[[Page 61519]]

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
    The Exchange is proposing to amend its Schedule of Fees to remove 
(i) the surcharge fee previously adopted \5\ for transactions in 
options on SPDRs[supreg], and (ii) language relating to an expired fee 
waiver. The Exchange is proposing to remove the surcharge fee from its 
Schedule of Fees because it no longer pays a license fee to Standard & 
Poor's, the owner of the index on which SPDRs are based, in connection 
with transactions in options on SPDRs. Accordingly, there is no longer 
a need for this surcharge fee. The Exchange will, however, continue to 
charge an execution fee and a comparison fee for transactions in 
options on SPDRs.
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    \5\ See Securities Exchange Act Release Nos. 51901 (June 22, 
2005), 70 FR 37455 (June 29, 2005) (Adopting a $0.10 per contract 
surcharge for certain transactions in options on SPDRs); and 52237 
(August 10, 2005), 70 FR 48454 (August 17, 2005) (Applying the $0.10 
per contract surcharge retroactively to January 10, 2005).
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    Additionally, the Exchange previously adopted a waiver on the 
surcharge for options on the Russell 1000 Index.\6\ That waiver expired 
on September 29, 2006. Therefore, the Exchange proposes to delete the 
reference to the waiver under the Notes section on its Schedule of 
Fees.
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    \6\ See Securities Exchange Act Release No. 53608 (April 6, 
2006), 71 FR 19222 (April 13, 2006).
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2. Statutory Basis
    The basis for the 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 its 
members and other persons using its facilities.
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    \7\ 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 establishes or changes a 
due, fee, or other charged imposed by the Exchange, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(2) \9\ thereunder. At any time within 60 days of the filing of the 
proposed rule change the Commission may summarily abrogate such 
proposed 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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 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-2006-60 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 No. SR-ISE-2006-60. 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 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 No. SR-
ISE-2006-60 and should be submitted on or before November 8, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
J. Lynn Taylor,
Assistant Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-17316 Filed 10-17-06; 8:45 am]

BILLING CODE 8011-01-P