Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)  and Rule 19b-4 thereunder, notice is hereby given that on May 1, 2007, 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 the Exchange. On May 29, 2007, the ISE filed Amendment No. 1 to the proposed rule change. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.
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 reflect the expiration of a fee waiver related to all transactions executed on the ISE Stock Exchange (“ISE Stock”) and to allow for a waiver of certain transactions executed on ISE Stock. The text of the proposed rule change is available at http://www.iseoptions.com and 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 Exchange 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 Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. Start Printed Page 31359
A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
The purpose of this proposed rule change is to amend the Schedule of Fees to reflect the expiration of a fee waiver related to all MidPoint Match (“MPM”) transactions executed on ISE Stock, a facility of the Exchange, and to allow for a waiver of certain other MPM transactions executed on ISE Stock. The Exchange currently waives all execution fees for MPM transactions in an effort to promote trading on ISE Stock. The Exchange currently waives all execution fees in an effort to promote trading on ISE Stock. The fee waiver is scheduled to expire on May 1, 2007.
The Exchange proposes to waive the transaction fee applicable to executions in MPM when the same firm enters a MPM buy order which executes against that same firm's MPM sell order. However, the Exchange represents that, due to the configuration of session lines carrying orders for multiple firms, it is not always possible for the Exchange to determine who the originating firm is that entered the order. Accordingly, for a firm to avail itself of this waiver, the firm must ensure that the MPM order sent by it, or on its behalf, is marked with the firm's identifier or is uniquely identified by submission on a dedicated session. A firm may contact the Exchange to set up its own dedicated session line, whereby all MPM orders sent by it will be identified as that member's order and will be afforded the waiver anytime one of its MPM buy orders executes against one of its own MPM sell orders. Alternatively, a firm may contact a service bureau that is connected to ISE to have the service bureau allocate a session line solely for that firm's orders, i.e., creating a dedicated session line for that firm. In those situations where one firm submits MPM orders to the Exchange over different session lines, the Exchange represents that so long as the firm is identifiable as the originating firm on both sides of the MPM execution, the firm will be afforded the waiver, regardless of what line the MPM orders were submitted through.
2. Statutory Basis
The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4)  that the Exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities.
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
The foregoing proposed rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act  and Rule 19b-4(f)(2) thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission.
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.
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:
- Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
- Send an e-mail to email@example.com. Please include File Number SR-ISE-2007-28 on the subject line.
- 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-2007-28. 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-2007-28 and should be submitted on or before June 27, 2007.Start Signature
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.
Florence E. Harmon,
3. See Securities Exchange Act Release No. 54561 (October 2, 2006), 71 FR 59844 (October 11, 2006).Back to Citation
4. See Securities Exchange Act Release No. 55560 (March 29, 2007), 72 FR 16837 (April 5, 2007).Back to Citation
8. 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 May 29, 2007, the date on which the ISE filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).Back to Citation
[FR Doc. E7-10873 Filed 6-5-07; 8:45 am]
BILLING CODE 8010-01-P