[Federal Register Volume 68, Number 169 (Tuesday, September 2, 2003)]
[Notices]
[Pages 52244-52245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22233]



[[Page 52244]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48410; File No. SR-Amex-2003-76]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC to Extend a Suspension of Transaction Charges for Certain Exchange 
Traded Funds

August 26, 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 August 22, 2003, the American Stock Exchange LLC (``Amex'' 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 
Exchange filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange provided the Commission with notice of its 
intention to file this proposed rule change on August 20, 2003. The 
Commission reviewed the pre-filing notice and advised the Amex to 
file the proposed rule change. August 20, 2003 conversation between 
Michael Cavalier, Associate General Counsel (``AGC''), Amex, and 
Joseph P. Morra, Special Counsel, Division of Market Regulation 
(``Division''), Commission. On August 26, 2003, the Amex asked the 
Commission to waive the 30-day operative delay. August 26, 2003 
telephone conversation between Michael Cavalier, AGC, Amex, and 
Joseph P. Morra, Special Counsel, Division, Commission. See Rule 
19b-4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to extend until September 30, 2003, the 
suspension of Amex transaction charges for the iShares Lehman 1-3 year 
Treasury Bond Fund and iShares Lehman 7-10 year Treasury Bond Fund for 
specialist, Registered Trader and broker-dealer orders. The text of the 
proposed rule change is available at the Amex and at the Commission.

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 its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The Amex 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 Amex is extending until September 30, 2003, the suspension of 
transaction charges in iShares Lehman 1-3 year Treasury Bond Fund 
(Symbol: SHY) and iShares Lehman 7-10 year Treasury Bond Fund (Symbol: 
IEF), for specialist, Registered Trader and broker-dealer orders. The 
Exchange initially filed a suspension in such charges until November 
30, 2002 in SR-Amex-2002-91. The fee suspension has subsequently been 
extended, most recently until August 30, 2003, in SR-Amex-2003-73. No 
other changes are proposed with this filing.
    The Exchange believes a suspension of fees for the two iShares 
Funds is appropriate to enhance the competitiveness of executions in 
these securities on the Amex. The Exchange will reassess the fee 
suspension as appropriate, and will file any modification to the fee 
suspension with the Commission pursuant to section 19(b)(3)(A) of the 
Act.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act \6\ in general, and furthers the objectives of section 
6(b)(4) \7\ in particular in that it is intended to assure the 
equitable allocation of reasonable dues, fees, and other charges among 
the Amex's members and issuers and other persons using its facilities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will not impose 
a burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action
    Because the foregoing proposed rule change does not:
    (i) significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) thereunder.\9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    The Amex has requested that the Commission waive the 30-day 
operative delay. The Commission believes waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Acceleration of the operative date will permit the Amex to 
suspend these fees immediately. For these reasons, the Commission 
designates the proposal to be effective and operative upon filing with 
the Commission.\10\
---------------------------------------------------------------------------

    \10\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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

[[Page 52245]]

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 Amex. All 
submissions should refer to file number SR-Amex-2003-76 and should be 
submitted by September 23, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-22233 Filed 8-29-03; 8:45 am]
BILLING CODE 8010-01-P