[Federal Register Volume 65, Number 88 (Friday, May 5, 2000)]
[Notices]
[Page 26256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11229]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42370; File No. SR-ISE-00-02]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the International Securities Exchange LLC 
Relating to Its Fee Schedule

April 28, 2000.

I. Introduction

    On February 25, 2000, the International Securities Exchange LLC 
(``ISE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``SEC'' or ``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 adopt a fee schedule.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on March 6, 2000.\3\ No comments were received on the 
proposal. This order approves the proposal.
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    \3\ Securities Exchange Act Release No. 42473 (February 29, 
2000), 65 FR 11818.
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II. Description of the Proposal

    ISE's proposed fee schedule itemizes fees for the services it will 
offer to its members and others. This schedule includes membership 
fees, trading fees, and fees for a variety of other services, including 
the installation and maintenance of certain equipment. ISE stated in 
its proposal that it intends to use revenues from these fees to recover 
its costs of operating a trading market and to build a reserve for 
future needs. ISE further stated that it does not intend to use these 
fees to generate an operating profit to distribute to its members, and 
will adjust its fees to maintain the appropriate balance between costs 
and expenses, as ISE gains experience in the operation of its market.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and rules and regulations thereunder 
applicable to a national securities exchange,\4\ and in particular, 
with the requirements of section 6 of the Act.\5\ Specifically, the 
Commission finds that the proposal is consistent with section 6(b)(4) 
of the Act.\6\
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    \4\ In approving this rule, the Commission has considered its 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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    Under section 6(b)(4),\7\ a registered national securities exchange 
must promulgate rules that provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities. The Commission finds that ISE's fee 
schedule is not unreasonable and should not discriminate unfairly among 
market participants.
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    \7\ Id.
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IV. Conclusion

    It Is Therefore Ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-ISE-00-02) is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 00-11229 Filed 5-4-00; 8:45 am]
BILLING CODE 8010-01-M