6008 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 

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

2 17 CFR 240.19b–4.

3Under the Plan and Exchange Rule 6.80(12) 

which tracks the language of the Plan, a ‘‘Linkage 

Order’’ means an Immediate or Cancel order routed 

through the Linkage as permitted under the Plan for 

the Purpose of Creating and Operating an Options 

Intermarket Linkage. There are three types of 

Linkage Orders: 

(i) ‘‘P/A Order,’’ which is an order for the 

principal account of a specialist (or equivalent 

entity on another Participant Exchange that is 

authorized to represent Public Customer orders), 

reflecting the terms of a related unexecuted Public 

Customer order for which the specialist is acting as 

agent; 

(ii) ‘‘P Order,’’ which is an order for the principal 

account of an Eligible Market Maker and is not a 

P/A Order; and 

(iii) ‘‘Satisfaction Order,’’ which is an order sent 

through the Linkage to notify a member of another 

Participant Exchange of a Trade-Through and to 

seek satisfaction of the liability arising from that 

Trade-Through.

4See Securities Exchange Act Release No. 47761 

(April 29, 2003), 68 FR 24042 (May 6, 2003) (SR–

CBOE–2003–11).

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

6 15 U.S.C. 78f(b)(4).

market funds from including a portfolio 

schedule in reports to shareholders, 

provided that the complete portfolio 

schedule is filed with the Commission 

and available to shareholders upon 

request; (4) require a registered 

management investment company to 

include a tabular or graphic 

presentation of a fund’s portfolio 

holdings in its reports to shareholders; 

and (5) require a registered open-end 

management investment company to 

include Management’s Discussion of 

Fund Performance in its annual report 

to shareholders. 

For further information, please 

contact Christopher Kaiser at (202) 942–

0724. 

3. The Commission will consider 

whether to propose amendments to 

Schedule 14A under the Securities 

Exchange Act of 1934, and to Forms N–

1A, N–2, and N–3 under the Securities 

Act of 1933 and the Investment 

Company Act of 1940. The proposals 

would require a registered management 

investment company to provide 

disclosure in its reports to shareholders 

regarding the basis for the board of 

directors’ approval of an investment 

advisory contract. They would also 

enhance existing disclosure 

requirements in the registration 

statements of registered management 

investment companies and in proxy 

statements regarding the basis for the 

board’s approval of, or recommendation 

that shareholders approve, an 

investment advisory contract. 

For further information, please 

contact Deborah D. Skeens at (202) 942–

0562. 

The subject matter of the Closed 

Meeting scheduled for Wednesday, 

February 11, 2004 will be: 

Post-argument discussion. 

The subject matters of the Closed 

Meeting scheduled for Thursday, 

February 12, 2004 will be: 

Formal orders of investigation; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

Institution and settlement of 

injunctive actions; 

Regulatory matters involving a 

financial institution; and 

Adjudicatory matter. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. For further 

information and to ascertain what, if 

any, matters have been added, deleted 

or postponed, please contact: 

The Office of the Secretary at (202) 

942–7070.

Dated: February 4, 2004. 

Jonathan G. Katz, 

Secretary.

[FR Doc. 04–2808 Filed 2–5–04; 12:05 pm] 

BILLING CODE 8010–01–U

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–49172; File No. SR–CBOE–

2004–06] 

Self-Regulatory Organizations; Notice 

of Filing and Order Granting 

Accelerated Approval of Proposed 

Rule Change by the Chicago Board 

Options Exchange, Inc. Relating to the 

Extension of a Linkage Fee Pilot 

Program 

February 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 

2, 2004, the Chicago Board Options 

Exchange, Inc. (‘‘Exchange’’ or ‘‘CBOE’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons and is 

approving the proposed rule change on 

an accelerated basis.

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The CBOE proposes to extend the 

current pilot program for six months 

until July 31, 2004 applicable to Options 

Intermarket Linkage (‘‘Linkage’’) fees. 

The proposed fee schedule is 

available at the Exchange and at the 

Commission. 

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 

CBOE 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 III below. The Exchange 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’s current fee structure 

for Principal (‘‘P’’) and Principal Acting 

as Agent (‘‘P/A’’) Orders 3 executed on 

the Exchange is operating under a pilot 

program scheduled to expire on January 

31, 2004.4 Currently, because all 

Linkage Orders received by CBOE are 

for the account of a broker-dealer market 

maker on another exchange, the fees 

applicable to P and P/A Orders are the 

same as fees applicable to market 

makers on other exchanges that submit 

orders to CBOE outside of the Linkage, 

taking into account how those orders are 

handled at CBOE. The Exchange now 

proposes to extend the pilot program to 

July 31, 2004.

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of dues, 

fees and charges is consistent with 

Section 6(b) of the Act 5 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 6 in particular, in that it is an 

equitable allocation of reasonable dues, 

fees, and other charges.

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 6009

7 In approving this rule, the Commission notes 

that it has considered its impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f).

8 15 U.S.C. 78f(b).

9 15 U.S.C. 78f(b)(4).

10 15 U.S.C. 78s(b)(2).

11 Id.

12 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 48889 

(December 5, 2003), 68 FR 69736.

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f).

5 15 U.S.C. 78o–3(b)(5).

6 15 U.S.C. 78s(b)(2).

7 17 CFR 200.30–3(a)(12).

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 with respect to the 

proposed rule change. 

III. 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: rule-comments@sec.gov. All 

comment letters should refer to File No. 

SR–CBOE–2004–06. 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 Exchange. All 

submissions should be submitted by 

March 1, 2004. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

After careful consideration, 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,7 and, 

in particular, with the requirements of 

Section 6(b) of the Act 8 and the rules 

and regulations thereunder. The 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,9 which requires that 

the rules of the Exchange provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and other persons using its 

facilities. The Commission believes that 

the extension of the CBOE’s Linkage fee 

pilot until July 31, 2004 will give the 

Exchange and the Commission further 

opportunity to evaluate whether such 

fees are appropriate.

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,10 for approving the proposed rule 

change prior to the thirtieth day after 

the date of publication of the notice of 

the filing thereof in the Federal 

Register. The Commission believes that 

granting accelerated approval will 

preserve the Exchange’s existing pilot 

program for Linkage fees without 

interruption as the CBOE and the 

Commission further consider the 

appropriateness of Linkage fees.

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–CBOE–2004–

06) is hereby approved on an 

accelerated basis for a pilot period to 

expire on July 31, 2004.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 04–2696 Filed 2–6–04; 8:45 am] 

BILLING CODE 8010–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–49169; File No. SR–NASD–

2003–178] 

Self-Regulatory Organizations; Order 

Granting Approval of Proposed Rule 

Change by the National Association of 

Securities Dealers, Inc. To Modify 

Certain Listing Fees for Foreign 

Issuers and To Make a Technical 

Change to the Rule Pertaining to 

Record-Keeping Fees for Issuers 

Listed on the Nasdaq SmallCap Market 

February 2, 2004. 

On December 3, 2003, the National 

Association of Securities Dealers, Inc. 

(‘‘NASD’’ or ‘‘Association’’), through its 

subsidiary, the Nasdaq Stock Market, 

Inc. (‘‘Nasdaq’’), filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

modify certain listing fees for foreign 

issuers and to make a technical change 

to the rule that pertains to recordkeeping fees for issuers listed on The 

Nasdaq SmallCap Market.

The proposed rule change was 

published for comment in the Federal 

Register on December 15, 2003.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change.

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 

association.4 In particular, the 

Commission believes that the proposed 

rule change is consistent with section 

15A(b)(5) of the Act,5 in particular, in 

that the proposal provides 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. Specifically, the 

Commission believes that the revised 

fee schedules should reduce the current 

disparity in the entry and annual fees 

that are paid by Nasdaq issuers.

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–NASD–2003–

178) be, and it hereby is, approved.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 04–2695 Filed 2–6–04; 8:45 am] 

BILLING CODE 8010–01–P