[Federal Register Volume 69, Number 29 (Thursday, February 12, 2004)]
[Notices]
[Page 7061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3026]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49195; File No. SR-ISE-2003-38]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the International Securities Exchange, Inc. To 
Increase the Number of Authorized Shares of Class B Common Stock, 
Series B-2 From 130 to 160

February 5, 2004.
    On December 11, 2003, the International Securities Exchange, Inc. 
(``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ to increase the number of authorized shares of Class B 
Common Stock, Series B-2 from 130 to 160. This increase would result in 
the creation of 30 additional Competitive Market Maker (``CMM'') 
Memberships. The proposed rule change was published for comment in the 
Federal Register on December 30, 2003.\3\ 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\ See Securities Exchange Act Release No. 48959 (December 18, 
2003), 68 FR 75296.
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    After careful review, 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\ 
Specifically, the Commission believes that the proposal is consistent 
with section 6(b)(5) of the Act which requires, among other things, 
that the Exchange's rule be designed to promote just and equitable 
principles of trade, 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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    \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).
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    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,\5\ that the proposed rule change (SR-ISE-2003-38) is approved.
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-3026 Filed 2-11-04; 8:45 am]
BILLING CODE 8010-01-P