[Federal Register Volume 68, Number 248 (Monday, December 29, 2003)]
[Notices]
[Pages 75007-75008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31806]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48955; File No. SR-ISE-2003-31]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by International Securities 
Exchange, Inc., Extending the Waiver of Its Marketing Fee

December 18, 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 November 20, 2003, the International Securities Exchange, Inc. 
(``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 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 to extend the waiver of its marketing fee 
until June 30, 2004.

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 amend the ISE's 
Schedule of Fees to extend the waiver of its marketing fee until June 
30, 2004.\3\ That waiver currently is scheduled to expire on December 
31, 2003.
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    \3\ The Commission notes that the ISE's marketing fee is $.10 
per contract and applies to market makers only for each public 
customer contract executed. In its filing initially adopting this 
fee, the ISE stated that the purpose of the fee is to provide the 
ISE with a source of funding for marketing efforts aimed at 
increasing order flow from Electronic Access Members to the 
Exchange. See Securities Exchange Act Release No. 44101 (March 26, 
2001), 66 FR 17590 (April 2, 2001) (SR-ISE-01-06) (implementing the 
marketing fee). The marketing fee was first waived in SR-ISE-2002-
16. Securities Exchange Act Release No. 46189 (July 11, 2002), 67 FR 
27587 (July 19, 2002). The waiver has subsequently been extended 
twice. See Securities Exchange Act Release Nos. 46976 (December 9, 
2002), 67 FR 72116 (December 16, 2002) (SR-ISE-2002-26); and 48129 
(July 3, 2003), 68 FR 41409 (July 11, 2003) (SR-ISE-2003-16).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirement of section 6(b)(4) of the Act \4\ that an exchange 
have an equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities. The Exchange 
believes that by extending the fee waiver it is lessening the cost of 
trading on the ISE and thus encouraging greater competition between 
exchanges.
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    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The ISE does not believe that the proposed rule change will impose 
any inappropriate 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 either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(2) \6\ thereunder. At any 
time within 60 days of the filing of such 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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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 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. Comments 
may also be

[[Page 75008]]

submitted electronically at the following e-mail address: [email protected]. All comment letters should refer to File No. SR-ISE-
2003-31. This file number should be included on the subject line if e-
mail is used. To help the Commission process and review your comments 
more efficiently, comments should be sent in hardcopy or by e-mail but 
not by both methods.
    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. ISE-2003-31 and should be 
submitted by January 20, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-31806 Filed 12-24-03; 8:45 am]
BILLING CODE 8010-01-P