[Federal Register: July 11, 2003 (Volume 68, Number 133)]
[Notices]
[Page 41409-41410]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11jy03-98]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48129; File No. SR-ISE-2003-16]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the International Securities
Exchange, Inc., Relating to Fee Changes
July 3, 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 June 4, 2003, 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
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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 Exchange is proposing changes to its Schedule of Fees in order
to extend the term of certain existing fee waivers, to remove language
to a fee waiver that has expired, and to eliminate the fee for the Rule
11Ac1-6 Order Report.
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 and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing changes to its Schedule of Fees in order
to extend the term of certain existing fee waivers, to remove language
referring to a certain fee waiver that is not being renewed and to
eliminate the fee for the Rule 11Ac1-6 Order Report.
With respect to the fee waivers, the Exchange is proposing to
extend the terms, as follows: (i) the waiver of customer Execution Fees
is extended through June 30, 2004; \3\ (ii) the waiver of firm
proprietary Execution Fees in the iShares S&P 100 Index Fund is
extended through June 30, 2004; \4\ (iii) the waiver of the firm
proprietary Surcharge in the iShares S&P 100 Index Fund is extended
through June 30, 2004;\5\ (iv) the waiver of the Marketing Fee is
extended until December 31, 2003; \6\ (v) the waiver of the Comparison
Fee for customer trades is extended through June 30, 2004; \7\ (vi) the
waiver of the Click[reg]/Trade Review Terminal Software License &
Maintenance Fee for a second and subsequent terminals is extended
through June 30, 2004; \8\ and (vii) the waiver of the EAM/Trade Review
Terminal Session/API Fee associated with a second and
[[Page 41410]]
subsequent Click terminals is extended through June 30, 2004.\9\ The
Exchange represents that it is extending the term of the fee waivers
for competitive purposes. The Exchange is also removing language in its
Schedule of Fees that relates to a fee waiver that expired on May 31,
2003 and has not been renewed--namely, firm proprietary Execution Fees
for trades executed in the Block Order Mechanism.
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\3\ Initial fee waiver made in Securities Exchange Act Release
No. 42473 (February 29, 2000), 65 FR 11818 (March 6, 2000).
\4\ Initial fee waiver made in Securities Exchange Act Release
No. 46698 (October 21, 2002), 67 FR 65818 (October 28, 2002).
\5\ Id.
\6\ Initial fee waiver made in Securities Exchange Act Release
No. 46189 (July 11, 2002), 67 FR 47587 (July 17, 2002).
\7\ Initial fee waiver made in Securities Exchange Act Release
No. 42473 (February 29, 2000), 65 FR 11818 (March 6, 2000).
\8\ Initial fee waiver made in Securities Exchange Act Release
No. 45840 (April 29, 2002), 67 FR 30408 (May 6, 2002).
\9\ Id.
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With respect to the fee elimination, the Exchange is proposing to
eliminate the fee for preparing a Rule 11Ac1-6 Order Report, or
specialized best execution report, that the Exchange currently offers
to members who specifically request this report. The Exchange is
eliminating the fee since the Exchange has recovered the technical
development costs associated with producing the report, as well as for
competitive purposes.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) of the Act that an exchange have an
equitable allocation of reasonable dues, fees and other charges among
its members and other persons using its facilities.\10\
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\10\ 15 U.S.C. 78f(b)(4).
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B. 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.
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 been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \11\ and Rule
19b-4(f)(2) thereunder.\12\ Accordingly, the proposal will take effect
upon filing with the Commission. At any time within 60 days of the
filing of the 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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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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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 proposal 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 in the Commission's
Public Reference Room.
Copies of such filing will also be available for inspection and
copying at the principal office of the ISE. All submissions should
refer to File No. SR-ISE-2003-16 and should be submitted by August 1,
2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17588 Filed 7-10-03; 8:45 am]
BILLING CODE 8010-01-P