66274 Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices

10 15 U.S.C. 78f(b)(5).

11 15 U.S.C 78s(b)(30(A).

12 17 CFR 240.19b–4(f)(6).

13As required under Rule 19b–4(f)(6)(iii), the

Exchange provided the Commission with written

notice of its intent to file the proposed rule change.

14For pusposes only of accelerating the operative

date of this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

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

15 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 73s(b)(1).

2 17 CFR 240.19b–4.

special characteristics of the

recommended transaction and is

financially able to bear the risks of the

recommended transaction.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b)(5) 10 of the Act, which

requires that an exchange have rules

that are designed to prevent fraudulent

and manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest.

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 purpose of the Act. The CHX

seeks to trade issues already trading on

another exchange and believes that this

increased competition among markets

can benefit investors.

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.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; and

(3) does not become operative for 30

days from the date of filing, or such

shorter time as the Commission may

designate if consistent with the

protection of investors and the public

interest; provided that the CHX has

given written notice of its intent to file

the proposed rule change, along with a

brief description and text of the

proposed rule change, at least five

business days prior to the date of filing

the rule change, or such shorter time as

designated by the Commission, the

proposed rule change has become

effective pursuant to Section

19(b)(3)(A) 11 of the Act and Rule 19b–

4(f)(6) 12 thereunder.13

A proposed rule change filed under

Rule 19b–4(f)(6) may not become

operative prior to 30 days after the date

of filing. However, Rule 19b–4(f)(6)(iii)

permits the Commission to designate a

shorter time if such action is consistent

with the protection of investors and the

public interest. The CHX seeks to have

the proposed rule change become

operative on October 16, 2000, in order

to allow the CHX to immediately trade,

pursuant to unlisted trading privileges,

shares of streetTRACKS Dow Jones

Global Titans Index Fund. The Shares

are already being traded on the Amex.

The Commission believes that it is

consistent with the protection of

investors and the public interest that the

proposed rule change become operative

immediately as of October 16, 2000.14

At any time within 60 days of the filing

of 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.

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. Copies of

the submission, all subsequent

amendments, all written statement 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 CHX. All

submissions should refer to File No.

SR–CHX–00–33 and should be

submitted by November 24, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28221 Filed 11–2–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43485; File No. SR–ISE–

00–08]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

International Securities Exchange LLC,

Relating to Fee Changes

October 26, 2000.

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

September 12, 2000, the International

Securities Exchange LLC (the

‘‘Exchange’’ or the ‘‘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. 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

The ISE is proposing various changes

to its fee schedule: (i) To provide

discounts for multiple ‘‘Click’’

terminals; (ii) to establish a fee for

‘‘trade review terminals’’; (iii) to clarify

the application of execution fee

discounts; (iv) to reflect that the ISE

collects its ‘‘membership’’ or access fee

on a monthly, rather than quarterly,

basis; and (v) to permit the ISE to collect

its regulatory fee on an annual, rather

than quarterly, basis. The text of the

proposed rule change is available at the

ISE 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

ISE included statements concerning the

purpose of, and basis for, the proposed

rule change and discussed any

Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices 66275

3 15 U.S.C. 78f(b)(4).

4 15 U.S.C. 78s(b)(3)(A).

5 17 CFR 240.19b–4(f)(2).

6 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

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

The purpose of the proposed rule

change is to effect the following changes

in the ISE’s fees:

Discounts: A Click terminal is a

device that ISE Electronic Access

Members (‘‘EAMs’’) can use to enter

orders on the ISE. The current ISE fee

schedule imposes a flat monthly fee of

$500 per terminal and $250 for each

application program interface (‘‘API’’)

associated with a terminal. This

structure can act as a disincentive for

EAMs to utilize multiple Click

terminals. The ISE is adopting a tiered

fee schedule with volume discounts for

Clicks and APIs that would lower the

software fees to half the current charges

(from $500 to $250) for the sixth Click

terminal and all subsequent terminals,

and the API fee (from $250 to $100) for

the sixth and subsequent APIs.

Trade review devices: These devices

allow a member to ‘‘listen’’ to the

broadcast of ISE messages confirming

executions effected by the member.

Members use these devices for

analytical, hedging, risk management,

back-office processing and similar

purposes. The ISE is establishing

monthly ‘‘trade review device’’ fees,

including multiple-terminal discounts,

that are the same as the Click fees: $500

for the first five terminals and $250 per

terminal thereafter.

Execution Fees: The ISE fee schedule

provides for lower execution fees as the

Exchange’s average daily volume (ADV)

increases. There are discounts at ADV of

300,000, 500,000 and 700,000 contracts

a day. The amendment to the fee

schedule clarifies that the reduced fees

apply only to executions above the

break-points. For example, at ADV of

550,000 contracts; the $.21 fee will

apply for the first 300,000 contracts; the

$.17 fee will apply for the next 200,000

contracts; and the $.14 fee will apply for

the last 50,000 contracts.

Membership Dues: ISE Rule 205

authorizes the Exchange to charge

‘‘membership dues,’’ payable on the first

day of a calendar quarter. The fee

schedule, however, includes monthly

‘‘access fees,’’ rather than specific

membership dues. The ISE is amending

ISE Rule 205 to reflect this, and is not

proposing any changes to the access fees

themselves.

Regulatory Fees: The ISE fee schedule

contains a provision for an annual

$3,500 regulatory fee. ISE Rule 208

currently states that this fee is to be

collected on a quarterly basis. The ISE

believes that it is an unnecessary

administrative burden to bill for and

collect this relatively small fee on a

quarterly basis. Accordingly, the ISE is

eliminating the word ‘‘quarterly’’ from

this rule so that it can collect the fee on

an annual basis. There are no changes

to the fee itself.

The basis for this proposed rule

change is the requirement under section

6(b)(4) of the Act 3 that an exchange

provide 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 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 ISE has designated the

foregoing proposed rule change as a fee

change pursuant to section 19(b)(3)(A)

of the Act 4 and Rule 19b–4(f)(2)

thereunder,5 the proposal has taken

effect upon filing with the Commission.

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.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule 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. 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 offices of the ISE. All

submissions should refer to SR–ISE–00–

08 and should be submitted by

November 24, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28222 Filed 11–2–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43380; File Nos. SR–PHLX–

00–86 and SR–PHLX–00–87]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Changes by the

Philadelphia Stock Exchange, Inc.

Relating to an Amendment to the

Exchange’s Payment for Order Flow

Fee and a Rebate for Certain Fees

Incurred

October 25, 2000.

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

September 11, 2000, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ of the

‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) the proposed rule

changes as described in Items I, II, and

III below, which Items have been

prepared by the Phlx. The Commission

is publishing this notice to solicit

comments on the proposed rule changes

from interested persons.