[Federal Register Volume 66, Number 72 (Friday, April 13, 2001)]
[Notices]
[Pages 19266-19267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9117]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44151; File No. SR-ISE-01-09]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange LLC, Relating to Fees Related to Options on the Nasdaq-100 
Index Tracking Stock sm

April 4, 2001.
    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 March 6, 2001, 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 amend its fee schedule to impose a charge of 
$.10 per contract, per side, for transactions in options on the Nasdaq-
100 Index Tracking Stock sm (excluding transactions by 
public customers).

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 Exchange has entered into a license agreement to use various 
trademarks regarding the Nasdaq-100 Index in connection with 
its trading of options on the Nasdaq-100 Index Tracking Stock 
sm. The purpose of this proposed rule change is to adopt a 
fee for trading in these options to defray the licensing costs. The ISE 
believes that charging the participants that trade in the options on 
the Nasdaq-100 Index Tracking Stock sm is the most equitable 
means of recovering the costs of the license. However, because 
competitive pressures in the industry have resulted in a waiver of all 
transaction fees for customer transactions, the ISE does not propose to 
charge this additional fee with respect to customer transactions. The 
fee will be charged only with respect to non-customer transactions.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
to impose a charge of $.10 per contract, per side, for transactions in 
options on the Nasdaq-100 Index Tracking Stock sm (excluding 
transactions by public customers) is consistent with section 6(b) \3\ 
of the Act, in general, and section 6(b)(4) of the Act,\4\ in 
particular, because it provides for the equitable allocation of 
reasonable dues, fees and other charges among its 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) \5\ of the Act and subparagraph (f)(2) 
of Rule 19b-4 \6\ thereunder. 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).

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

[[Page 19267]]

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 also will be 
available for inspection and copying at the principal office of the 
ISE. All submissions should refer to File No. SR-ISE-01-09 and should 
be submitted by May 4, 2001.

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

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. 01-9117 Filed 4-12-01; 8:45 am]
BILLING CODE 8010-01-M