

[Federal Register: March 15, 2007 (Volume 72, Number 50)]
[Notices]               
[Page 12240]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr07-114]                         


[[Page 12240]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55426; File No. SR-ISE-2007-01]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Order Approving a Proposed Rule Change Relating to Rule 2113 (Long 
and Short Sales)

March 8, 2007.
    On January 5, 2007, pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ 
the International Securities Exchange, LLC (the ``Exchange'' or the 
``ISE'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change relating to NASD Rule 2113 
(Long and Short Sales). The proposed rule change was published for 
comment in the Federal Register on February 5, 2007.\3\ The Commission 
received no comments regarding this proposal. This order approves the 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55191 (January 29, 
2007), 72 FR 5305 (February 5, 2007).
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Discussion and Commission Findings

    The Exchange proposes to amend ISE Rule 2113 (Long and Short Sales) 
to conform its language to Rule 10a-1(a)(1)(i) promulgated under the 
Act. Specifically, Rule 2113 (Long and Short Sales) currently provides 
that the Exchange will not execute a short sale order below the price 
at which the last sale was effected on the Exchange. The Exchange 
proposes to amend ISE Rule 2113 to conform its language to Rule 10a-
1(a)(1)(i) promulgated under the Act, whereby the Exchange will not 
execute a short sale order below the price at which the last sale was 
reported pursuant to an effective transaction reporting plan, as 
defined in Rule 242.600 under the Act.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and in 
particular Section 6(b)(5) of the Act \4\ which requires that the rules 
of an exchange be designed to promote just and equitable principles of 
trade, serve 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.\5\
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    \4\ 15 U.S.C. 78f(b)(5).
    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-ISE-2007-01) be, and it hereby is, 
approved.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4691 Filed 3-14-07; 8:45 am]

BILLING CODE 8010-01-P
