Federal Register / Vol. 69, No. 24 / Thursday, February 5, 2004 / Notices 5629

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3See letter from Michael Simon, Senior Vice 

President and General Counsel, ISE, to Nancy 

Sanow, Assistant Director, Division of Market 

Regulation, Commission, dated January 2, 2004 

(‘‘Amendment No. 1’’). Amendment No. 1 replaces 

the original proposal in its entirety.

4 15 U.S.C. 78f(b).

5 15 U.S.C. 78f(b)(4).

6 15 U.S.C. 78s(b)(3)(A)(ii).

7 17 CFR 19b–4(f)(2).

8For purposes of calculating the sixty-day 

abrogation period, the Commission considers the 

abrogation period to have begun on January 2, 2004, 

the date on which the Commission received 

Amendment No. 1.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jill M. Peterson, 

Assistant Secretary.

[FR Doc. 04–2336 Filed 2–4–04; 8:45 am] 

BILLING CODE 8010–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–49147; File No. SR–ISE–

2003–32] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change and 

Amendment No. 1 Thereto by the 

International Securities Exchange, Inc. 

Relating to a Fee Reduction and Fee 

Cap 

January 29, 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 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. On 

January 2, 2004, the ISE filed 

Amendment No. 1 to the proposed rule 

change.3 The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons.

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

ISE is proposing, on a pilot basis from 

December 1, 2003 through May 31, 

2004, a reduction in and a cap on 

execution fees, and a cap on comparison 

fees for options on the Nasdaq 100 

Index Tracking Stocksm (‘‘QQQ’’). 

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. 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 is proposing to amend its 

Schedule of Fees to impose, on a pilot 

basis through May 31, 2004, both a 

reduction in and a cap on execution 

fees, and a cap on comparison fees for 

QQQ options. Specifically, any member 

with monthly average daily trading 

volume (‘‘ADV’’) of 8,000 contracts in 

QQQ options would receive a $.10 

discount from the standard execution 

fees (excluding surcharge fees) for 

contracts traded above that amount, up 

to ADV of 10,000 contracts. For 

contracts in QQQ options traded in 

excess of 10,000 ADV for a month, the 

Exchange will waive all execution fees 

(excluding surcharge fees) and 

comparison fees. Current ISE execution 

fees (excluding surcharge fees) range 

from $.21 to $.12 a contract, depending 

on the exchange’s trading volume; the 

comparison fee is $.03 a contract. The 

proposed fee changes are intended to 

increase the Exchange’s competitiveness 

in trading the QQQ options. 

2. Basis 

The ISE believes that the proposal is 

consistent with section 6(b) of the Act,4

and in particular, with the requirements 

of section 6(b)(4) of the Act,5 in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities.

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 

The ISE has neither solicited nor 

received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective pursuant to section 

19(b)(3)(A)(ii) of the Act 6 and Rule 19b–

4(f)(2)7 thereunder, in that it establishes 

or changes a due, fee, or other charge 

imposed by the self-regulatory 

organization, which renders the 

proposal effective upon filing. At any 

time within 60 days of the filing of 

Amendment No. 1 to 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

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal, as 

amended, 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: rule-comments@sec.gov. All 

comment letters should refer to File No. 

SR–ISE–2003–32. 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 

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 ISE. All 

submissions should refer to file number 

SR–ISE–2003–32 and should be 

submitted by February 26, 2004.

5630 Federal Register / Vol. 69, No. 24 / Thursday, February 5, 2004 / Notices 

9 17 CFR 200.30–3(a)(12).

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)(1).

5 15 U.S.C. 78o–3(b)(5). 6 15 U.S.C. 78o–3(b)(6). 7 15 U.S.C. 78o–3(b)(5).

8 15 U.S.C. 78s(b)(3)(A)(i).

9 17 CFR 240.19b–4(f)(1).

10 15 U.S.C. 78s(b)(3)(A).

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Jill M. Peterson, 

Assistant Secretary.

[FR Doc. 04–2337 Filed 2–4–04; 8:45 am] 

BILLING CODE 8010–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–49133; File No. SR–NASD–

2003–198] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

National Association of Securities 

Dealers, Inc. Relating to Waiver of 

Certain Listing Fees 

January 28, 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 December 

29, 2003, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), 

through its subsidiary, The Nasdaq 

Stock Market, Inc. (‘‘Nasdaq’’), 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 Nasdaq. Nasdaq 

filed this proposal pursuant to section 

19(b)(3)(A) of the Exchange Act 3 and 

Rule 19b–4(f)(1) 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.

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to waive certain 

listing fees. Below is the text of the 

proposed rule change. Proposed new 

language is underlined.

* * * * *

4500 Issuer Listing Fees 

IM–4500–1 Waiver of Fees Upon 

Application in Certain Merger 

Situations 

Rules 4510(c)(2), 4510(d)(3), and 

4520(c)(3) provide Nasdaq with the 

discretion to waive all or part of the 

annual listing fees prescribed in this 

Rule 4500 series. Pursuant to that 

authority, Nasdaq has determined to 

permit a Nasdaq issuer that completes 

a merger with another Nasdaq issuer 

during the first 90 days of a calendar 

year to apply for and receive a waiver 

for 75% of the annual fees assessed to 

the acquired Nasdaq issuer. Issuers 

must apply for the credit no later than 

June 30 of the year in which the merger 

occurred. Applications should be 

addressed to: Finance Department CCG 

Billing Operations, The Nasdaq Stock 

Market Inc., 9513 Key West Avenue, 4th 

Floor, Rockville, Maryland 20850.

* * * * *

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq 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. Nasdaq 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 

NASD Rules 4510(c)(2), 4510(d)(3), 

and 4520(c)(3) provide Nasdaq with the 

discretion to waive all or part of the 

annual listing fees prescribed in this 

NASD Rule 4500 series. Pursuant to that 

authority, Nasdaq has determined to 

permit a Nasdaq issuer that completes a 

merger with another Nasdaq issuer 

during the first 90 days of a calendar 

year to apply for and receive a waiver 

for 75% of the annual fees assessed to 

the acquired Nasdaq issuer. Issuers must 

apply for the credit no later than June 

30 of the year in which the merger 

occurred. Nasdaq has determined to 

take this action because it believes that 

it is equitable to provide a partial credit 

for annual listing fees in order to avoid 

the assessment of two fees where a 

merger between two currently listed 

Nasdaq issuers has occurred within the 

first 90 days of a billing year. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of section 15A(b)(5)5 and 

15A(b)(6)6 of the Act. Section 15A(b)(5) 

of the Act 7 requires that the rules of the 

NASD provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among members and 

issuers and other persons using any 

facility or system which the NASD 

operates or controls. Nasdaq believes 

that this proposal, which provides for a 

partial waiver of annual fees in certain 

merger situations, is an equitable 

allocation of fees.

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in 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 

Nasdaq neither solicited nor received 

written comments with respect to the 

proposed rule change. 

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)(i) of the Act 8 and Rule 19b–

4(f)(1) thereunder,9 because it 

constitutes a stated policy, practice or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule, and 

therefore the proposed rule change is 

effective immediately upon filing.

At any time within 60 days of the 

filing of a rule change pursuant to 

section 19(b)(3)(A) of the Act,10 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.

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 should be submitted 

electronically at the following e-mail 

address: rule-comments@sec.gov.