[Federal Register Volume 66, Number 204 (Monday, October 22, 2001)]
[Notices]
[Pages 53461-53462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26485]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44927; File No. SR-ISE-2001-25]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange LLC Modifying Certain Fees Relating to Servers and Cabinets 
Located on Members' Sites and Imposing a Fee for the Production of 
Certain Reports

October 12, 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 September 20, 2001, the International Securities Exchange LLC 
(``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 
Exchange. 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 ISE is proposing changes to its fee schedule (i) to replace a 
$1,650 ``enhanced cabinet charge'' with a $250 incremental fee per 
server in an enhanced cabinet; (ii) to broaden the definition of 
``cabinet removal'' and ``router installation/removal'' charges to 
include ``moves, adds or changes''; and (iii) to impose a fee for 
providing reports to brokers on quarterly statistics relating to their 
order routing practices.

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 effect the following 
changes in the ISE's fees:
    Cabinets: One method by which ISE members connect to the Exchange 
is through ISE equipment located in cabinets on the members' sites. The 
ISE charges for this equipment based on, among other things, the number 
of servers in a cabinet. To provide more flexibility in this pricing, 
the ISE proposes to replace its ``enhanced cabinet charge'' with an 
incremental charge per server that is added to the base cabinet. The 
incremental fee will be $250 per server, equivalent to the $250 
incremental fee per server in an enhanced cabinet. This will permit 
members to add more than one additional server per cabinet.
    Also, the ISE is sometimes requested to reconfigure and relocate 
member equipment. Thus, the ISE proposes to broaden the definition of 
the ``cabinet removal'' and ``router installation/removal'' charges. 
These fees would encompass any ``moves, adds or changes'' to ISE 
equipment at a members' site, and would cover the Exchange's costs for 
providing these services.
    Reports: Newly-adopted Commission Rule 11Ac1-6 \3\ under the Act 
requires brokers to disclose certain quarterly statistics regarding 
their order routing practices. The ISE proposes to provide requesting 
members with a report that will facilitate their compliance with this 
rule. The Exchange represents that its proposed $500 monthly fee would 
cover the costs of providing this report.
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    \3\ 17 CFR 240.11Ac1-6.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Section 6(b)(4),\5\ in particular, because it is an 
equitable allocation of reasonable fees among the Exchange's members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 that is not necessary or appropriate 
in furtherance of the purposes of the Act.

[[Page 53462]]

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 Exchange has designated the proposed rule change as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-
4(f)(2) thereunder.\7\ 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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 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 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-2001-25 and should 
be submitted by November 13, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-26485 Filed 10-19-01; 8:45 am]
BILLING CODE 8010-01-M