Document ID: SEC-2009-1186-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify Certain Exchange Rules
Posted Date: 2009-08-21T04:00Z

[Federal Register: August 21, 2009 (Volume 74, Number 161)]
[Notices]               
[Page 42345-42346]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21au09-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60500; File No. SR-ISE-2009-62]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Clarify Certain Exchange Rules

August 13, 2009.
    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 August 7, 2009, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') 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 
Exchange. 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 International Securities Exchange, LLC (the ``Exchange'' or the 
``ISE'') to amend (sic) certain rules in order to clarify the 
definition of an options class, to clarify that exercise limit 
exemptions will apply to all members, and to clarify how a member may 
aggregate its long or short positions for purposes of filing these 
limits with the Exchange. The text of the proposed rule change is 
available on the Exchange's Web site, http://www.ise.com, at the 
Exchange's Office of the Secretary, 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 self-regulatory organization 
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 self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below.

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

1. Purpose
    The purpose of the proposed rule change is to amend Rules 
100(a)(6), 100(a)(12), 414, 415, and 504 to clarify the definition of 
an options class, to clarify that exercise limit exemptions will apply 
to all members, and to clarify how a member may aggregate its long or 
short positions for purposes of filing its reports of these limits with 
the Exchange. The proposed rule changes are similar to the rules of 
other SROs \3\ and will provide consistency and clarity. The proposed 
rule makes no substantive changes to the rules.
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    \3\ See American Stock Exchange Rule 906; Nasdaq OMX PHLX Rule 
1003; FINRA Rule 2360(b)(5).
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    The Exchange is seeking to amend the definition of options class in 
Rule 100(a)(6) to mean all options contracts covering the same 
underlying security. Currently, the definition defines an options class 
to be all contracts of the same type, which is either puts or calls on 
the same underlying security. This change will make the definition 
consistent with the way the term is used throughout the rest of the 
Exchange rules. Additionally, the Exchange is seeking to amend the 
definition of a covered short position in Rule 100(a)(12) and to amend 
Rule 504 regarding series listings so that the proposed change to the 
definition of options class in 100(a)(6) does not

[[Page 42346]]

change the substance of those provisions.
    Additionally, the Exchange is seeking to amend Rule 414(c) to 
clarify that the exercise limit exemptions will apply to any member 
that is granted an exemption to position limits under the rule.
    Lastly, the Exchange is seeking to amend Rule 415 to specify that 
when calculating an aggregate long or short position in options, 
members need to combine (i) long positions in put options with short 
positions in call options, and (ii) short positions in put options with 
long positions in call options.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\4\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act,\5\ in particular, in that 
it is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and to 
protect investors and the public interest in that it is designed to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism for a free and open market and a national market 
system, and, in general, to protect investors and the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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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 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 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 from the date on which it was 
filed, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest, 
provided that the Exchange has given the Commission written notice of 
its intent to file the proposed rule change at least five business days 
prior to the date of filing of the proposed rule change or such shorter 
time as designated by the Commission, the proposed rule change has 
become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and 
Rule 19b-4(f)(6) \7\ thereunder.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    The proposed rule change makes no substantive changes to the rules. 
The Exchange believes that this proposed rule change does not raise any 
new, unique or substantive issues. For the foregoing reasons, this rule 
filing qualifies for immediate effectiveness as a ``noncontroversial'' 
rule change under paragraph (f)(6) of Rule 19b-4.
    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-2009-62 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2009-62. 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 the filing also will be available for 
inspection and copying at the principal office of 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-2009-62 and should be 
submitted on or before September 11, 2009.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20061 Filed 8-20-09; 8:45 am]

BILLING CODE 8010-01-P