[Federal Register: August 15, 2003 (Volume 68, Number 158)]
[Notices]
[Page 48969-48970]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15au03-126]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48304; File No. SR-Amex-2003-73]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange
LLC to Extend the Suspension of Transaction Charges for Certain iShares
Funds
August 8, 2003.
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 1, 2003, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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.
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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 Amex proposes to extend until August 31, 2003 the suspension of
Exchange transaction charges for specialist, Registered Trader, and
broker-dealer orders for the iShares Lehman 1-3 year Treasury Bond Fund
and the iShares Lehman 7-10 year Treasury Bond Fund. Proposed new
language is italicized; proposed deletions are in [brackets].
* * * * *
Amex Equity Fee Schedule
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I. Transaction Charges
No change.
II. Regulatory Fee
No Change.
Notes:
1. and 2. No change.
3. Customer transaction charges for the following Portfolio
Depositary Receipts, Index Fund Shares, and Trust Issued Receipts
have been suspended:
DIA--DIAMONDS[reg] BHH--B2B Internet HOLDRsTM.
QQQ--Nasdaq-100[reg] Index Tracking Stock BBH--Biotech HOLDRs.
SPY--SPDRs[reg] BDH--Broadband HOLDRs.
IVV--iShares S&P 500 EKH--Europe 2001 HOLDRs.
MDY--MidCap SPDRs IAH--Internet Architecture
HOLDRs.
XLY--Select Sector SPDR-Consumer HHH--Internet HOLDRs
Discretionary IIH--Internet Infrastructure
HOLDRs.
XLP--Select Sector SPDR-Consumer Staples MKH--Market 2000+ HOLDRs.
XLE--Select Sector SPDR-Energy OIH--Oil Service HOLDRs.
XLF--Select Sector SPDR-Financial PPH--Pharmaceutical HOLDRs.
XLV--Select Sector SPDR-Health Care RKH--Regional Bank HOLDRs.
XLI--Select Sector SPDR-Industrial RTH--Retail HOLDRs.
XLB--Select Sector SPDR-Materials SMH--Semiconductor HOLDRs.
XLK--Select Sector SPDR-Technology SWH--Software HOLDRs
XLU--Select Sector SPDR-Utilities TTH--Telecom HOLDRs.
UTH--Utilities HOLDRs.
WMH--Wireless HOLDRs.
SHY--iShares Lehman 1-3 Year
Treasury Bond Fund.
IEF--iShares Lehman 7-10
Year Treasury Bond Fund.
TLT--iShares Lehman 20+ Year
Treasury Bond Fund.
LQD--iShares GS $ InvesTop
Corporate Bond Fund.
Customer transaction charges for the iShares S&P 100 Index Fund are
$.0015 per share ($.15 per 100 shares), capped at $100 per trade.
Until [July 31] August 31, 2003, transaction charges also have been
suspended in SHY and IEF for specialist, Registered Trader and broker
dealer orders.
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* * * * *
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 Amex 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is extending until August 31, 2003 the suspension of
transaction charges in iShares Lehman 1-3 year Treasury Bond Fund
(Symbol: SHY) and iShares Lehman 7-10 year
[[Page 48970]]
Treasury Bond Fund (Symbol: IEF) for specialist, Registered Trader and
broker-dealer orders. The Exchange previously filed a suspension of
such charges until November 30, 2002,\3\ December 31, 2002,\4\ January
31, 2003,\5\ February 28, 2003,\6\ March 31, 2003,\7\ April 30,
2003,\8\ May 31, 2003,\9\ June 30, 2003,\10\ and July 31, 2003.\11\
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\3\ See Securities Exchange Act Release No. 46765 (November 1,
2002), 67 FR 68893 (November 13, 2002) (SR-Amex-2002-91).
\4\ See Securities Exchange Act Release No. 46996 (December 13,
2002), 67 FR 78264 (December 23, 2002) (SR-Amex-2002-98).
\5\ See Securities Exchange Act Release No. 47141 (January 8,
2003), 68 FR 2090 (January 15, 2003) (SR-Amex-2002-115).
\6\ See Securities Exchange Act Release No. 47361 (February 13,
2003), 68 FR 8534 (February 21, 2003) (SR-Amex-2003-04).
\7\ See Securities Exchange Act Release No. 47455 (March 6,
2003), 68 FR 12111 (March 13, 2003) (SR-Amex-2003-15).
\8\ See Securities Exchange Act Release No. 47668 (April 11,
2003), 68 FR 19241 (April 18, 2003) (SR-Amex-2003-22).
\9\ See Securities Exchange Act Release No. 47858 (May 14,
2003), 68 FR 27872 (May 21, 2003) (SR-Amex-2003-40).
\10\ See Securities Exchange Act Release No. 47974 (June 4,
2003), 68 FR 35030 (June 11, 2003) (SR-Amex-2003-57).
\11\ See Securities Exchange Act Release No. 48240 (July 28,
2003), 68 FR 45866 (August 4, 2003) (SR-Amex-2003-67).
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The Exchange believes that a suspension of fees for the SHY and IEF
is appropriate to enhance the competitiveness of executions in these
securities on the Amex. The Exchange will reassess the fee suspension
as appropriate, and will file any modification to the fee suspension
with the Commission pursuant to Section 19(b)(3)(A) of the 1934
Act.\12\
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\12\ 15 U.S.C. 78s(b)(3)(A).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \13\ in general, and furthers the
objectives of Section 6(b)(4) \14\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among its members and other persons using its facilities.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) \15\ thereunder because the
proposal: (i) Does not significantly affect the protection of investors
or the public interest; (ii) does not impose any significant burden on
competition; and (iii) does not become operative prior to 30 days after
the date of filing 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 notice of its
intent to file the proposed rule change, along with a brief description
and text of 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. 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.
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\15\ 17 CFR 240.19b-4(f)(6).
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The Amex has requested that the Commission waive the five-day pre-
filing notice and the 30-day operative delay. The Commission believes
that waiving the five-day pre-filing notice and the 30-day operative
delay is consistent with the protection of investors and the public
interest. The Commission notes that fee suspensions for the exchange-
trade funds that are the subject of this filing have been previously
filed with the Commission.\16\ Further, extension of the fee suspension
for specialist, Registered Trader, and broker-dealer orders will permit
the fee suspensions to continue uninterrupted. For these reasons, the
Commission designates the proposal to be effective and operative upon
filing with the Commission.\17\
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\16\ See supra notes 3-10.
\17\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
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 at the
Commission's Public Reference Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
Exchange. All submissions should refer to File No. SR-Amex-2003-73 and
should be submitted by September 5, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-20905 Filed 8-14-03; 8:45 am]
BILLING CODE 8010-01-P