[Federal Register: December 29, 2003 (Volume 68, Number 248)]
[Notices]
[Page 75007-75008]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de03-105]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48955; File No. SR-ISE-2003-31]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by International Securities
Exchange, Inc., Extending the Waiver of Its Marketing Fee
December 18, 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 November 20, 2003, the International Securities Exchange, Inc.
(``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 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 to extend the waiver of its marketing fee
until June 30, 2004.
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 ISE 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 ISE 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 purpose of the proposed rule change is to amend the ISE's
Schedule of Fees to extend the waiver of its marketing fee until June
30, 2004.\3\ That waiver currently is scheduled to expire on December
31, 2003.
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\3\ The Commission notes that the ISE's marketing fee is $.10
per contract and applies to market makers only for each public
customer contract executed. In its filing initially adopting this
fee, the ISE stated that the purpose of the fee is to provide the
ISE with a source of funding for marketing efforts aimed at
increasing order flow from Electronic Access Members to the
Exchange. See Securities Exchange Act Release No. 44101 (March 26,
2001), 66 FR 17590 (April 2, 2001) (SR-ISE-01-06) (implementing the
marketing fee). The marketing fee was first waived in SR-ISE-2002-
16. Securities Exchange Act Release No. 46189 (July 11, 2002), 67 FR
27587 (July 19, 2002). The waiver has subsequently been extended
twice. See Securities Exchange Act Release Nos. 46976 (December 9,
2002), 67 FR 72116 (December 16, 2002) (SR-ISE-2002-26); and 48129
(July 3, 2003), 68 FR 41409 (July 11, 2003) (SR-ISE-2003-16).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirement of section 6(b)(4) of the Act \4\ that an exchange
have an equitable allocation of reasonable dues, fees and other charges
among its members and other persons using its facilities. The Exchange
believes that by extending the fee waiver it is lessening the cost of
trading on the ISE and thus encouraging greater competition between
exchanges.
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\4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The ISE does not believe that the proposed rule change will impose
any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
No written comments were either solicited or received.
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 \5\ and Rule 19b-4(f)(2) \6\ 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.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 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. Comments
may also be
[[Page 75008]]
submitted electronically at the following e-mail address: rule-
comments@sec.gov. All comment letters should refer to File No. SR-ISE-
2003-31. 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, comments should be sent in hardcopy or by e-mail but
not by both methods.
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. ISE-2003-31 and should be
submitted by January 20, 2004.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-31806 Filed 12-24-03; 8:45 am]
BILLING CODE 8010-01-P