[Federal Register Volume 70, Number 184 (Friday, September 23, 2005)]
[Notices]
[Pages 55932-55933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19035]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52462; File No. SR-ISE-2005-43]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
September 19, 2005.
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 September 1, 2005, 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 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.
---------------------------------------------------------------------------
\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 establish
fees for transactions in options on the DIAMONDS[supreg] Trust, Series
1, an exchange-traded fund.\5\ The text of the proposed rule change is
available on the ISE's Web site (http://www.iseoptions.com/legal/proposed_rule_changes.asp), at the principal office of the ISE, and
at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ DIAMONDS[supreg] is a registered trademark of Dow Jones &
Company, Inc. (``Dow Jones'') for securities issued by the
Diamonds[supreg] Trust, Series 1 and has been licensed for use for
certain purposes by Dow Jones to PDR Services Corporation (``PDR'')
and the American Stock Exchange LLC (``Amex'') pursuant to a license
agreement with Dow Jones. DIAMONDS and options which have DIAMONDS
as their sole underlying interest (``DIAMONDS Options'') are not
sponsored, endorsed, sold, or promoted by Dow Jones. Dow Jones, PDR,
and Amex have not licensed or authorized ISE to (i) engage in the
creation, listing, provision of a market for trading, marketing, and
promotion of DIAMONDS Options or (ii) to use and refer to the
DIAMONDS[supreg] trademark in connection with the listing, provision
of a market for trading, marketing, and promotion of DIAMONDS
Options or with making disclosures concerning DIAMONDS Options under
any applicable federal or state laws, rules or regulations, and do
not sponsor, endorse, or promote such activity by ISE. ISE is not
affiliated in any manner with Dow Jones, PDR, or Amex.
---------------------------------------------------------------------------
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
establish fees for transactions in options on the DIAMONDS[supreg]
Trust, Series 1 (``DIA''), an exchange-traded fund.\6\ Specifically,
the Exchange is proposing to adopt an execution fee and a comparison
fee for all transactions in options on DIA.\7\ The amount of the
execution fee and comparison fee for the product covered by this filing
shall be the same for all order types on the Exchange--that is, orders
for Public Customers \8\ and Non-Customers \9\ (which include Market
Makers and Firm Proprietary)--and shall be equal to the execution fee
and comparison fee, respectively, that are currently charged by the
Exchange for transactions by Non-Customers in equity options.\10\ The
Exchange believes the proposed rule change will further the Exchange's
goal of introducing new products to the marketplace that are
competitively priced.
---------------------------------------------------------------------------
\6\ The ISE represents that DIA constitutes ``Fund Shares,'' as
defined in ISE Rule 502(h). Telephone conversation between Samir
Patel, Assistant General Counsel, ISE, and Richard Holley III,
Special Counsel, Division of Market Regulation, Commission, on
September 8, 2005.
\7\ The ISE represents that these fees will be charged only to
Exchange members. Telephone conversation between Samir Patel,
Assistant General Counsel, ISE, and Richard Holley III, Special
Counsel, Division of Market Regulation, Commission, on September 8,
2005.
\8\ See ISE Rule 100(32) (defining ``Public Customer'' as a
person that is not a broker or dealer in securities).
\9\ See ISE Rule 100(22) (defining ``Non-Customer'' as a person
or entity that is a broker or dealer in securities).
\10\ The Commission notes that the applicable execution fee is
currently between $.21 and $.12 per contract side, depending on the
Exchange Average Daily Volume, and the comparison fee is currently
$.03 per contract per side.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(4) of the Act,\11\ which requires that an exchange
have an equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that 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 rule change establishes or changes a due,
fee, or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(2)
\13\ thereunder. 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
[[Page 55933]]
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 [email protected]. Please include
File No. SR-ISE-2005-43 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-ISE-2005-43. 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-2005-43 and should be submitted on or before October
14, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 05-19035 Filed 9-22-05; 8:45 am]
BILLING CODE 8010-01-P