[Federal Register Volume 68, Number 133 (Friday, July 11, 2003)]
[Notices]
[Pages 41409-41410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17588]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48129; File No. SR-ISE-2003-16]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange, Inc., Relating to Fee Changes

July 3, 2003.
    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 June 4, 2003, the International Securities Exchange, Inc. (``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 ISE. 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 Exchange is proposing changes to its Schedule of Fees in order 
to extend the term of certain existing fee waivers, to remove language 
to a fee waiver that has expired, and to eliminate the fee for the Rule 
11Ac1-6 Order Report.

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 Exchange 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 and is set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing changes to its Schedule of Fees in order 
to extend the term of certain existing fee waivers, to remove language 
referring to a certain fee waiver that is not being renewed and to 
eliminate the fee for the Rule 11Ac1-6 Order Report.
    With respect to the fee waivers, the Exchange is proposing to 
extend the terms, as follows: (i) the waiver of customer Execution Fees 
is extended through June 30, 2004; \3\ (ii) the waiver of firm 
proprietary Execution Fees in the iShares S&P 100 Index Fund is 
extended through June 30, 2004; \4\ (iii) the waiver of the firm 
proprietary Surcharge in the iShares S&P 100 Index Fund is extended 
through June 30, 2004;\5\ (iv) the waiver of the Marketing Fee is 
extended until December 31, 2003; \6\ (v) the waiver of the Comparison 
Fee for customer trades is extended through June 30, 2004; \7\ (vi) the 
waiver of the Click[reg]/Trade Review Terminal Software License & 
Maintenance Fee for a second and subsequent terminals is extended 
through June 30, 2004; \8\ and (vii) the waiver of the EAM/Trade Review 
Terminal Session/API Fee associated with a second and

[[Page 41410]]

subsequent Click terminals is extended through June 30, 2004.\9\ The 
Exchange represents that it is extending the term of the fee waivers 
for competitive purposes. The Exchange is also removing language in its 
Schedule of Fees that relates to a fee waiver that expired on May 31, 
2003 and has not been renewed--namely, firm proprietary Execution Fees 
for trades executed in the Block Order Mechanism.
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    \3\ Initial fee waiver made in Securities Exchange Act Release 
No. 42473 (February 29, 2000), 65 FR 11818 (March 6, 2000).
    \4\ Initial fee waiver made in Securities Exchange Act Release 
No. 46698 (October 21, 2002), 67 FR 65818 (October 28, 2002).
    \5\ Id.
    \6\ Initial fee waiver made in Securities Exchange Act Release 
No. 46189 (July 11, 2002), 67 FR 47587 (July 17, 2002).
    \7\ Initial fee waiver made in Securities Exchange Act Release 
No. 42473 (February 29, 2000), 65 FR 11818 (March 6, 2000).
    \8\ Initial fee waiver made in Securities Exchange Act Release 
No. 45840 (April 29, 2002), 67 FR 30408 (May 6, 2002).
    \9\ Id.
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    With respect to the fee elimination, the Exchange is proposing to 
eliminate the fee for preparing a Rule 11Ac1-6 Order Report, or 
specialized best execution report, that the Exchange currently offers 
to members who specifically request this report. The Exchange is 
eliminating the fee since the Exchange has recovered the technical 
development costs associated with producing the report, as well as for 
competitive purposes.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) of the Act that an exchange have an 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities.\10\
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    \10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.

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 foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \11\ and Rule 
19b-4(f)(2) thereunder.\12\ 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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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-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 proposal 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-2003-16 and should be submitted by August 1, 
2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17588 Filed 7-10-03; 8:45 am]
BILLING CODE 8010-01-P