[Federal Register Volume 70, Number 109 (Wednesday, June 8, 2005)]
[Notices]
[Pages 33569-33570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2937]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51775; File No. SR-ISE-2005-24]


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

June 2, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on May 16, 2005, 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 ISE has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the ISE under Section 
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees to extend two 
fee waivers. The text of the proposed rule change is available on the 
ISE's Web site (http://www.iseoptions.com/legal/proposed_rule_changes.asp), at the principal office of the ISE, and at the 
Commission's Public Reference Room.

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 ISE states that the purpose of this proposed rule change is to 
amend the ISE's Schedule of Fees to extend two fee waivers. First, the 
ISE's current waivers on certain customer transaction fees are set to 
expire on June 30, 2005.\5\ According to the ISE, in order for it to 
remain competitive in the market place, the ISE is proposing to extend 
these waivers for an additional year, through June 30, 2006. Second, 
the ISE is proposing to extend a fee waiver regarding its CLICK 
terminal, which is the front-end order-entry terminal the ISE provides 
to its members. Currently, the ISE waives software license and 
maintenance fees, as well as API/Session fees (based on member log-
ins), for an ISE member's second and subsequent CLICK terminals. This 
waiver also is scheduled to expire on June 30, 2005. The ISE believes 
that this waiver program encourages firms to install and use multiple 
CLICKs, and therefore it proposes to extend this waiver for an 
additional year.
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    \5\ The Commission notes that the ISE's Schedule of Fees 
provides for, among other things: (1) Execution Fees on certain 
customer orders (other than options on certain indices listed in the 
ISE's Schedule of Fees) of $0.05 per contract/side per transaction, 
and (2) Comparison Fees of $0.03 per contract/side per transaction. 
The Execution Fees are currently waived except for transactions in 
options on certain indices listed in the ISE's Schedule of Fees. The 
Commission further notes that the Comparison Fee applies to P Orders 
and P/A Orders for a pilot period expiring on July 31, 2005, and is 
subject to a fee waiver for Public Customer Orders except for 
transactions in options on certain indices listed in the ISE's 
Schedule of Fees. See ISE Rule 100(32) (defining ``Public Customer'' 
as a person who is not a broker or dealer in securities); and ISE 
Rule 1900(10) (for a definition of P Orders and P/A Orders).
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2. Statutory Basis
    The Exchange believes that the proposed rule change 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 will permit 
the Exchange to maintain an equitable allocation of reasonable dues, 
fees and other charges among its members and other persons using its 
facilities. In particular, the ISE states that this proposed rule 
change would extend current waivers, thus effectively maintaining low 
fees.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that 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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) 
\9\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

[[Page 33570]]

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File No. SR-ISE-2005-24 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE, Washington, DC 20549-0609.
    All submissions should refer to File Number SR-ISE-2005-24. 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, please use only one method. The Commission will post all 
comments on the Commissions Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 also will be available for inspection and copying at the 
principal office of the ISE. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-ISE-2005-24 and should be submitted by June 29, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2937 Filed 6-7-05; 8:45 am]
BILLING CODE 8010-01-P