Self-regulatory organizations; proposed rule changes: International Securities Exchange, LLC,

[Federal Register: September 12, 2007 (Volume 72, Number 176)]

[Notices]

[Page 52187-52188]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr12se07-130]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56368; File No. SR-ISE-2007-81]

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

September 6, 2007.

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 4, 2007, the International Securities Exchange, LLC (the ``Exchange'' or ``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 Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder \4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

\1\ 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).

1. 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 the surcharge fee for transactions in options on the iShares Lehman Brothers 1-3 Year Treasury Bond Fund, the iShares Lehman Brothers 7-10 Year Treasury Bond Fund and the iShares Lehman Brothers 20+ Year Treasury Bond Fund. The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and at the Exchange's Web site (http://www.ise.com).

2. 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.

   1. 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 the surcharge fee previously adopted for transactions in options on the iShares Lehman Brothers 1-3 Year Treasury Bond Fund (``SHY''), the iShares Lehman Brothers 7-10 Year Treasury Bond Fund (``IEF''), and the iShares Lehman Brothers 20+ Year Treasury Bond Fund (``TLT'').\5\ The Exchange is proposing to remove the surcharge fee from its Schedule of Fees because it no longer pays a license fee to Lehman Brothers, Inc. in connection with transactions in options on SHY, IEF, and TLT. 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 SHY, IEF and TLT.

         \5\ See Securities Exchange Act Release No. 49755 (May 21, 2004), 69 FR 30970 (June 1, 2004).

         [[Page 52188]]

      2. Basis

         The basis under the Act for this proposed rule change is the requirement under Section 6(b)(4) that an exchange have an equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities.

   2. 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.

   3. 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.

3. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

   Because it establishes or changes a due, fee, or other charge applicable only to a member, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b- 4(f)(2) \7\ 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.

   \6\ 15 U.S.C. 78s(b)(3)(A).

   \7\ 17 CFR 19b-4(f)(2).

4. 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-2007-81 on the subject line.

   Paper Comments

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

   All submissions should refer to File Number SR-ISE-2007-81. 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 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-2007-81 and should be submitted on or before October 3, 2007.

   For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\

   \8\ 17 CFR 200.30-3(a)(12).

   Florence E. Harmon, Deputy Secretary. [FR Doc. E7-17939 Filed 9-11-07; 8:45 am]

   BILLING CODE 8010-01-P