[Federal Register Volume 68, Number 82 (Tuesday, April 29, 2003)]
[Notices]
[Pages 22764-22765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10455]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47719; File No. SR-ISE-2003-11]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the International Securities Exchange, Inc., Relating to a 
One-Year Pilot for Options Intermarket Linkage Fees

April 23, 2003.
    On March 6, 2003, the International Securities Exchange, Inc. 
(``ISE'' or ``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 amend its fee structure to 
clarify which fees apply to trades pertaining to the options 
intermarket linkage (``Linkage'') and to specify that such fees are for 
a one-year pilot.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The Commission published the proposal rule change for comment in 
the Federal Register on March 19, 2003.\3\ The Commission received no 
comments on the proposal. This order approves the proposal rule change.
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    \3\ See Securities Exchange Act Release No. 47484 (March 11, 
2003), 68 FR 13354.

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[[Page 22765]]

    Three ISE fees would apply to Linkage trades other than 
satisfaction orders: A trade execution fee ($.12, $.14, $.17, or $.21, 
depending on average daily volume); a $.10 surcharge for options traded 
pursuant to licensing agreements (but only for executions in options 
specifically subject to the surcharge); and a $.03 comparison fee. Each 
of these Linkage-related fees would be implemented as a one-year pilot, 
expiring on January 30, 2004.
    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 \4\ and, in 
particular, the requirements of section 6 of the Act.\5\ The Commission 
finds that the proposed rule change is consistent with section 6(b)(4) 
of the Act,\6\ which requires that the rules of an exchange provide 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities. The Commission 
believes the one-year pilot will give the Exchange and the Commission 
the opportunity to evaluate whether these fees are appropriate.
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    \4\ 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).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change is approved on a pilot basis 
until January 30, 2004.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-10455 Filed 4-28-03; 8:45 am]
BILLING CODE 8010-01-P