[Federal Register Volume 65, Number 185 (Friday, September 22, 2000)]
[Notices]
[Page 57412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24351]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43298; File No. SR-ISE-00-06]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange LLC, Relating to Equipment Rental Fees and Annual Access Fee

September 15, 2000.
    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 3, 2000, the International Securities Exchange LLC (``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 Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The ISE proposes to adopt monthly rental fees for computer 
equipment that ISE supplies to its members. The ISE also is clarifying 
that it applies its existing annual access fee for competitive and 
primary market makers on a per membership basis.

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 rule change is to adopt a monthly rental fee for 
computer equipment ISE supplies to members that enables members to 
communicate with the Exchange. The Exchange is adopting a monthly fee 
of $1,400 for members that receive a cabinet (consisting of various 
components) and $200 for members that only receive a router from the 
Exchange. These fees will be used to cover the costs of the equipment 
to the Exchange.
    The ISE also is clarifying that the annual access fee for primary 
and competitive market makers currently contained in its fee schedule 
is applied on a per-membership basis. In the case where a single member 
firm has multiple ISE memberships, the annual access fee is charged for 
each membership. For example, if a single member firm is both an 
electronic access member and a competitive market maker, the firm is 
subject to the annual access fee for both memberships. Also, if a firm 
owns multiple market maker memberships, it is subject to an annual 
access fee for each of those memberships.
2. Statutory Basis
    The ISE believes that the proposed rule change is consistent with 
section 6(b) of the Act,\3\ in general, and furthers the objectives of 
section 6(b)(4) of the Act,\4\ in particular, in that it is designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among ISE members and other persons using its facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    Written comments were neither solicited nor received.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph 
(f)(2) of Rule 19b-4 thereunder.\6\ 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 pubic interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2). At the Exchange's request, the 
inadvertent citation to paragraph (e) of Rule 19b-4 in the filing 
originally received by the Commission on August 3, 2000, has been 
changed to the correct citation--paragraph (f)(2). Telephone 
conversation between Katherine Simmons, Vice President and Associate 
General Counsel, ISE, and Geoffrey Pemble, Attorney, Division of 
Market Regulation, Commission, on September 15, 2000.
---------------------------------------------------------------------------

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 the File No. SR-ISE-00-06 and 
should be submitted by October 13, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 240 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-24351 Filed 9-21-00; 8:45 am]
BILLING CODE 8010-01-M