[Federal Register Volume 68, Number 24 (Wednesday, February 5, 2003)]
[Notices]
[Page 5947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2673]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47289; File No. SR-ISE-2002-28]


Self-Regulatory Organizations; International Securities Exchange 
LLC; Order Granting Approval to Proposed Rule Change To Increase the 
Number of Authorized Shares of Class B Common Stock, Series B-2 From 
100 to 130

January 30, 2003.
    On November 21, 2002, the International Securities Exchange LLC 
(``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to increase the number of authorized shares of 
Class B Common Stock, Series B-2 from 100 to 130. This increase would 
result in the creation of 30 additional Competitive Market Maker 
(``CMM'') Memberships.\3\ The proposed rule change was published for 
comment in the Federal Register on December 27, 2002.\4\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ CMMs are market makers that compete with a Primary Market 
Maker and other CMMs to provide liquidity on the Exchange.
    \4\ See Securities Exchange Act Release No. 47035 (December 19, 
2002), 67 FR 79202.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange,\5\ and in 
particular, the requirements of Section 6 of the Act \6\ and the rules 
and regulations thereunder. The Commission finds that the proposal to 
increase the number of authorized shares of Class B Common Stock, 
Series B-2 from 100 to 130, resulting in the creation of 30 additional 
CMM Memberships, is consistent with Section 6(b)(5) of the Act \7\ 
because it is designed to promote just and equitable principals of 
trade, to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Commission believes that the sale of 30 
additional CMM Memberships may increase the depth and liquidity of the 
Exchange's market. It may also provide more broker-dealers with an 
opportunity to participate on the Exchange. The Exchange also 
represented that it has carefully evaluated its systems capacity and 
believes that it has more than sufficient capacity to handle the 
increased number of CMM Members without any adverse effects. 
Furthermore, the Exchange noted that it would require a purchaser of 
one of these new Memberships that is not already a CMM to meet all 
Exchange requirements currently applicable to CMM Members.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-ISE-2002-28) be, and 
it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-2673 Filed 2-4-03; 8:45 am]
BILLING CODE 8010-01-P