[Federal Register Volume 69, Number 47 (Wednesday, March 10, 2004)]
[Notices]
[Pages 11471-11472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5379]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49354; File No. SR-ISE-2004-03]


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

March 2, 2004.
    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 February 23, 2004, 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 the ISE has prepared. 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 proposes to amend its Schedule of Fees to eliminate 
the Marketing Fee.

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 had 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 Exchange proposes to amend its Schedule of Fees to eliminate 
the Marketing Fee. The Marketing Fee is a $.10 per contract execution 
fee that is charged to a market maker for each contract it executes 
against a public customer. The fee was used to support Exchange-wide 
marketing efforts.\3\ The fee is currently waived until June 30, 
2004.\4\ The Exchange is proposing to eliminate this fee to reduce its 
fees for members; the Exchange will support marketing efforts out of 
general revenues.
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    \3\ The Commission notes that the ISE's marketing fee received 
approval by the Commission for implementation in 2001. See 
Securities Exchange Act Release No. 44101 (March 26, 2001), 66 FR 
17590 (April 2, 2001) (SR-ISE-01-06).
    \4\ The Commission notes that the marketing fee was first waived 
in SR-ISE-2002-16. See Securities Exchange Act Release No. 46189 
(July 11, 2002), 67 FR 47587 (July 19, 2002). The waiver has 
subsequently been extended three times. See Securities Exchange Act 
Release Nos. 46976 (December 9, 2002), 67 FR 77116 (December 16, 
2002) (SR-ISE-2002-26); 48219 (July 3, 2002), 68 FR 41409 (July 11, 
2002) (SR-ISE-2003-16); and 48955 (December 18, 2003), 68 FR 75007 
(December 29, 2003) (SR-ISE-2003-31).
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2. Statutory Basis
    The Exchange believes that this proposal to amend its schedule of 
dues, fees and charges would be an equitable allocation of reasonable 
fees among ISE members, and that the proposal is consistent with 
Section 6(b) of the Act \5\ and furthers the objectives of Section 
6(b)(4) of the Act.\6\
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The ISE neither solicited nor received written comments on this 
proposal.

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 \7\ and Rule 19b-
4(f)(2) \8\ thereunder. Accordingly, the proposal has taken effect upon 
filing with the Commission. At any time within 60 days after the filing 
of the proposed rule change, the Commission may summarily abrogate the 
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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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 proposed rule 
change 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 submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-ISE-2004-03. 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 hard 
copy 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

[[Page 11472]]

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-2004-03 and should be 
submitted by March 31, 2004.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-5379 Filed 3-9-04; 8:45 am]
BILLING CODE 8010-01-P