Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices 66271

11 In its initial submission to the Commission, the

BSE inadvertently requested that the Commission

grant accelerated effectiveness to the proposed rule

change. The BSE has indicated that, instead, it

requested accelerated approval of the proposal.

Telephone conversation between Esther Radovsky,

Listings Analyst, BSE, and Michael Gaw, AttorneyAdviser, Division of Market Regulation,

Commission, on October 24, 2000. 12See, e.g., Exchange Act Release No. 34–41664

(July 27, 1999), 64 FR 42424 (August 4, 1999)

(approval of BSE rule change to, among other

things, adopt certain disclaimers of liability with

respect to Nasdaq–100 Index Fund Shares);

Exchange Act Release NO. 34–41119 (February 26,

1999), 64 FR 11510 (March 9, 2000) (approval of

Amex rule change to, among other things, adopt

certain disclaimers of liability with respect to

Nasdaq–100 Index Fund Shares); Exchange Act

Release No. 34–35534 (March 24, 1995), 60 FR

16686 (March 31, 1995) (approval of Amex rule

change to, among other things, adopt certain

disclaimers of liability with respect to S&P MidCap

400 Index Fund Shares).

13 15 U.S.C. 78s(b)(2).

14 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 ‘‘streetTRACKS’’ is a registered service mark of

the State Street Corporation. ‘‘Dow Jones Global

Titans Index’’ is a trademark of the Dow Jones &

Co., Inc.

4See Securities Exchange Act Release No. 37589

(August 21, 1996), 61 FR 44370 (August 28, 1996)

(SR–CHX–96–12).

5See Securities Exchange Act Release Nos. 39117

(September 22, 1997), 62 FR 50973 (September 29,

1997) (SR–CHX–96–14) (WEBS); and 40950

(January 15, 1999), 64 FR 3730 (January 25, 1999)

(SR–CHX–98–31) (Select Sector SPDRs). ‘‘WEBBS’’

was a service mark of the Morgan Stanley Group,

Inc. ‘‘iShares’’ is a service mark of the Barclays

Global Investors. ‘‘MSCI Index Fund’’ is a

trademark of the Morgan Stanley Capital

International. ‘‘Select Sector SPDR’’ is a service

mark of The McGraw-Hill Companies, Inc.

6See Securities Exchange Act Release No. 42975

(June 22, 2000), 65 FR 40712 (June 30, 2000) (SR–

CHX–00–14).

7State Street Bank and Trust Company, through

its State Street Global Advisors division, (‘‘State

Street’’) is the adviser to the Trust and responsible

for management of the Fund. State Street is also the

administrator, custodian and transfer agent for the

Fund and may act as a lending agent for the Trust.

State Street Capital Markets, LLC is the distributor

of the Fund’s Shares. The Depository Trust

Company (‘‘DTC’’) acts an securities depositary for

the Shares.

8See Securities Exchange Act Release No. 43338

(September 25, 2000), 65 FR 59235 (October 4,

2000) (SR–Amex–00–53).

prior to the thirtieth day after

publication of the proposal in the

Federal Register.11 The Commission

does not believe that this proposal raises

any new regulatory issues and notes that

the proposed rule change is nearly

identical to others that have been

previously approved by the

Commission.12 Therefore, the

Commission finds that there is good

cause for approving the proposed rule

change prior to the thirtieth day after

publication of the proposal in the

Federal Register.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–BSE–00–17),

is hereby approved on an accelerated

basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28223 Filed 11–2–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43483; File No. SR–CHX–

00–33]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange; Incorporated

Relating to the Trading of the street

TracksSM Dow Jones Global Titans

Index Fund

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 October

16, 2000, the Chicago Stock Exchange,

Incorporated (‘‘Exchange’’ or ‘‘CHX’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items, I, II, and III below, which Items

have been prepared by the CHX. 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 CHX proposes to trade, pursuant

to unlisted trading privileges, shares of

the streetTRACKSSM Dow Jones Global

Titans IndexTM Fund,3 using the

procedures outlines in Rule 19b–4(e) of

the Act.

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

CHX 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 CHX 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

On August 21, 1996, the Commission

approved a new listing standard, Article

XXVIII, Rule 24, which allowed the

Exchange to list and trade Investment

Company Units.4 In general, Investment

Company Units represent an interest in

a registered investment company that

holds securities based on, or

representing an interest in, an index or

portfolio of securities.

Over time, the Commission has

approved amendments to Article

XXVIII, Rule 24, to permit the trading,

pursuant to unlisted trading privileges,

of investment company lists based on

certain Morgan Stanley Capital

International Indices (‘‘WEBSSM,’’ now

called ‘‘iSharesSM MSCI Index Fund

SeriesSM’’) and nine series of Select

Sector SPDRsSM.5

On June 22, 2000, the Commission

approved a proposed rule change that

added a new interpretation to the CHX’s

Investment Company Units listing

standard.6 This new provision permits

the Exchange to list or trade Investment

Company Units udder the expedited

procedures described in Rule 19b–4(e)

under the Act, so long as those

securities meet specific standards. The

Exchange has used these procedures to

trade, pursuant to unlisted trading

privileges, several Investment Company

Units, including series of the iShares

Trust based on domestic stock indices.

Through this filing, the Exchange

proposes to trade, pursuant to unlisted

trading privileges, shares of the

streetTRACKS (‘‘Shares’’) Dow Jones

Global Titans Index Fund (the ‘‘Fund’’).

The Fund is a series of the

streetTRACKS Series Trust (the

‘‘Trust’’), which is an open-end

investment company.7 As described

below, these Investment Company Units

are structurally similar to the

Investment Company Units already

approved for trading on the Exchange.

The Exchange has prepared the

following information about the Fund

based on the streetTRACKS Trust

Prospectus (the ‘‘Prospectus’’) and

Statement of Additional Information

dated September 25, 2000, as well as a

submission by the American Stock

Exchange, LLC (‘‘Amex’’), in which it

sought approval to list and trade these

securities (the ‘‘Amex Submission’’).8

a. The Dow Jones Global Titans Index.

The Dow Jones Global Titans Index (the

‘‘Index’’) is composed of 50 common

stocks, which are chosen by the Dow

Jones and Company (the ‘‘Dow’’). As

described in the Prospectus, a stock

66272 Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices

9As described in the Amex Submission, the

Index methodology described above is subject to an

annual review. A three-month window—March

through June—is used for stock evaluation. The

steps described above are repeated to build the

Final Pool and to calculate the final ranking with

respect to the four fundamental measures and

weighted average market value. Any noncomponents that fall into the top 25 of the new final

ranking are added to the Index automatically,

replacing the lowest ranked components. A 20%

buffer zone rule is applied, meaning that any

component stocks ranked higher than 20% above

the Index’s target number of stocks are retained,

while those ranked lower than 20% above the target

number are replaced by the top ranked noncomponent stocks.

must, in the opinion of the Dow, meet

all four of the following criteria to

qualify as a candidate for the Index: (1)

It must be a well established company

with a solid financial situation and a

broad client base; (2) it must be well

known to global investors for either its

long history of success or its widely

used products or services; (3) it must be

a market leader in its industry with

either a dominant position or a

competitive advantage; and (4) it must

be among the largest of blue-chip

companies in the global arena.

According to the Prospectus, in

constructing the Global Titans Index, a

multi-factor methodology is adopted.

First, the 3,000 stocks of the Dow Jones

Global Indexes are used as the Initial

Pool to ensure that all candidates are

investable, liquid and representative of

the global markets. Market

capitalization is then used as the first

screen to create the Final Pool by

selecting the top 100 companies.

According to the Amex’s filing, the

Dow’s rationale for this step is that

market value is a universal

measurement across industries, and also

that its use is most appropriate for an

index built for investment purposes.

Every company in the final pool of 100

musts derive some revenue from outside

its home country. This screen is

instituted to ensure that all stocks in the

Index selected are truly global

companies.

The Prospectus notes that the next

step in Index construction is to combine

the Final Pool components’ market

capitalization rankings with their

rankings according to four other

indicators of size and leadership. These

four indicators, two from the balance

sheet and two from the income

statement, are assets, book value, sales/

revenue, and net profit. The combined

rankings of these four fundamental

factors determine the fundamental rank

of each company. The fundamental rank

and the market capitalization rank are

used equally as the basis for selecting

the Index components.9

For purposes of calculation of the

Index value, securities for which the

primary market is outside of the United

States are valued based on the last sale

price on the primary market. During

periods when the primary market is

closed, these securities are valued based

on the last sale price, if any, of any

corresponding American Depositary

Receipt (‘‘ADR’’).

b. The streetTRACKS Dow Jones

Global Titans Index Fund. According to

the Prospectus, the Fund’s investment

objective is to replicate as closely as

possible, before expenses, the

performance of the Index. The Fund

uses a passive management strategy

designed to track the performance of the

Index. The Fund, using an ‘‘indexing’’

investment approach, attempts to

replicate, before expenses, the

performance of the Index. The Adviser

seeks a correlation of 0.95 or better

between the Fund’s performance and

the performance of the Index; a figure of

1.00 would represent perfect

correlation. The Fund generally will

invest in all of the stocks comprising the

Index in proportion to their weighings

in the Index. However, under various

circumstances, it may not be possible or

practicable to purchase all of those

stocks in those weighings. In those

circumstances, the Fund may purchase

a sample of the stocks in the Index in

proportions expected by the Adviser to

replicate generally the performance of

the Index as a whole. There may also be

instances in which the Adviser may

choose to overweight another stock in

the Index, purchase securities not in the

Index which the Adviser believes are

appropriate to substitute for the Index

Securities, or utilize various

combination of other available

investment techniques, in seeking to

track accurately the Index. The Fund

may sell stocks that are represented in

the Index, or purchase stocks that are

not yet represented in the Index, in

anticipation of their removal from or

addition to the Index. The Fund will

normally invest at least 95% of its total

assets in common stocks that comprise

the Index.

The Prospectus confirms that the

Fund will invest in foreign securities,

including non-U.S. dollar-denominated

securities traded outside of the United

States and dollar-denominated

securities of foreign issuers traded in the

United States. Foreign securities also

include investments such as ADRs,

which are U.S. dollar-denominated

receipts representing shares of foreignbased corporations. ADRs are issued by

U.S. banks or trust companies, and

entitle the holder to all dividends and

capital gains that are paid out on the

underlying foreign shares.

As described in the Amex

Submission, as of August 31, 2000, the

Index included 27 U.S. companies, 20

Western European companies and 3

Japanese companies, representing

68.17%, 27.45% and 4.38% of the Index

weight, respectively. Forty-four Index

components, representing 94.36% of the

Index weight, are listed on the New

York Stock Exchange, Inc. (‘‘NYSE’’) or

on the National Association of

Securities Dealers Automated

Quotations System (‘‘Nasdaq’’).

Seventeen of the 23 non-U.S. companies

in the Index have ADRs listed and

traded on the NYSE. The following five

non-U.S. companies in the Index, with

a combined Index weight of 5.07%,

have ADRs traded in the United States

in the over-the-counter ‘‘Pink Sheet’’

market: Credit Suisse Group, Lloyds/

TSB Group PLC, Nestle S.A., Roche

Holding AG, and Siemens AG. ADRs for

one non-U.S. company in the Index,

Allianz AG Holding, are not currently

available.

c. Creation and Redemption of Fund

Shares. The Fund will issue and redeem

Shares only in Creation Unit size

aggregations, with 50,000 Shares in each

Creation Unit. The Fund will issue and

sell Shares through the distributor on a

continuous basis at their net asset value.

Following issuance, Shares are traded

on the Exchange and on other exchanges

like other equity securities by

professionals, as well as retail and

institutional investors.

In order to create (i.e., purchase)

Creation Units of the Fund, an investor

must generally deposit a designated

portfolio of equity securities

constituting a substantial replication, or

a representation, of the stocks included

in the Index (the ‘‘Deposit Securities’’)

and generally make a small cash

payment referred to as the ‘‘Cash

Component.’’ The list of the names and

the number of shares of the Deposit

Securities is made available by the

custodian through the facilities of the

National Securities Clearing Corporation

(‘‘NSCC’’) immediately prior to the

opening of business on the Amex. The

Cash Component represents the

difference between the net asset value of

a Creation Unit and the market value of

the Deposit Securities.

Orders must be placed in proper form

by or through either (1) a ‘‘Participating

Party,’’ i.e., a broker-dealer or other

participant in the clearing process of the

Continuous Net Settlement System of

the NSCC; or (2) a DTC Participant, that,

in either case, has entered into an

agreement with the Trust, the

distributor and the transfer agent, with

Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices 66273

respect to creations and redemptions of

Creation Units. All orders must be

placed for one or more whole Creation

Units of Shares of the Fund and must be

received by the distributor in proper

form no later than the close of regular

trading on the NYSE (ordinarily 4 p.m.,

New York time) in order to receive that

day’s closing net asset value per Share.

Shares may be redeemed only in

Creation Units at their net value and

only on a day the NYSE is open for

business. The custodian makes available

immediately prior to the opening of

business on the Amex, through the

facilities of the NSCC, the list of names

and the number of Shares of the Fund’s

portfolio securities that will be

applicable that day to redemption

requests in proper form (‘‘Fund

Securities’’). Fund Securities received

on redemption may not be identical to

Deposit Securities which are applicable

to creations of Creation Units. Unless

cash redemptions are available or

specified for the Funds, the redemption

proceeds consist of the Fund Securities,

plus cash in an amount equal to the

difference between the net asset value

(‘‘NAV’’) of the Shares being redeemed

as next determined after receipt by the

transfer agent of a redemption request in

proper form, and the value of the Fund

Securities (the ‘‘Cash Redemption

Amount’’), less the applicable

redemption fee.

Shares cannot be redeemed

individually but must be redeemed in

Creation Units.

d. Availability of Information

Regarding Fund Shares and the Index.

The Exchange understands that Amex,

the primary exchange for these

products, intends to disseminate, every

15 seconds during regular Amex trading

hours, through the facilities of the

Consolidated Tape Association

(‘‘CTA’’), an updated value for Shares

on a per Share basis. Amex has

represented that this value will be based

on last sale price disseminated by

United States and applicable foreign

exchange markets, the price of foreign

issues being converted into U.S. dollars

based on current currency exchange

rates and/or reported ADR prices in the

United States (in U.S. dollars).

The Exchange also understands that

additional information will be available

to the public, including the Shares

outstanding and the Cash Component

per Creation Unit size aggregation

(which will be made available prior to

the opening on the Amex) and the

closing prices of the Fund’s Deposit

Securities (which is available from a

variety of market data vendors).

Moreover, as described above, the Fund

will make available on a daily basis the

names and required number of shares of

each of the Deposit Securities in a

Creation Unit Aggregation, as well as

information regarding the cash

balancing amount. Finally, the

Exchange understands that the NAV for

each Fund will be calculated and

disseminated daily.

e. Other Characteristics of the Fund.

Income dividend distributions, if any,

are distributed to shareholders

quarterly. Net capital gains are

distributed at least annually. The Trust

may declare and paid dividends more

frequently to improve Index tracking or

to comply with Internal Revenue Code

distribution requirements. Distributions

in cash may be invested automatically

in additional whole Shares if the broker

through which the investor purchased

the Shares makes this option available.

Broker-dealers may make available

the DTC book-entry Dividend

Reinvestment Service for use by

beneficial owners of the Fund through

DTC participants for reinvestment of

their dividend distributions. If this

service is available and used, dividend

distributions of both income and

realized gains will be automatically

reinvested in additional whole Shares

issued by the Fund based on a payable

date NAV.

f. Trading of Fund Shares on the

Exchange. Fund Shares are subject to

the criteria for initial and continued

listing of Investment Company Units

described in Article XXVIII, Rule 24.

The Exchange will require that a

minimum of 100,000 Shares be

outstanding when trading begins at the

CHX. This number of Shares is

comparable to the number of shares

outstanding when other Investment

Company Units or Portfolio Depositary

Receipts began trading on the Exchange.

The Exchange believes that the

proposed minimum number of Shares

required to be outstanding when trading

begins on the Exchange is sufficient to

provide market liquidity and to further

the Fund’s objective to seek to provide

investment results that correspond

generally to the price and yield

performance of the Index. The Exchange

understands that 150,000 Shares were

outstanding when trading began on the

Amex on September 29, 2000.

The minimum trading variation for

the Fund will be 1⁄64 of $1.00, until this

security is converted to decimal pricing

in accordance with the Decimals

Implementation Plan for the Equities

and Options Market submitted to the

Commission in July, 2000.

Fund Shares are considered

‘‘securities’’ under the Rules of the

Exchange and are subject to all

applicable trading rules, including the

provisions of Article XX, Rule 40 (‘‘ITS’’

‘Trade-Throughs’ and ‘Locked

Markets’ ’’), which prohibit CHX

members from initiating trade-throughs

for ITS securities, as well as rules

governing priority, parity and

precedence of orders, market volatility

related trading halt provisions and

responsibilities of the assigned

specialist firm. Exchange equity margin

rules will apply.

Funds Shares are also subject to the

Exchange’s rules relating to trading halts

due to extraordinary market volatility

(Article IX, Rule 10A) and the

Exchange’s rule which allows Exchange

officials to halt trading in specific

securities, under certain circumstances

(Article IX, Rule 10(b)). In exercising the

discretion described in Article IX, Rule

10(b), appropriate Exchange officials

may consider a variety of factors,

including the extent to which trading is

not occurring in a stock underlying the

index or portfolio and whether other

unusual conditions or circumstances

detrimental to the maintenance of a fair

and orderly market are present.

The Exchange’s surveillance

procedures for Fund Shares will be

similar to the procedures used for other

Investment Company Units and will

incorporate and rely upon existing CHX

surveillance systems.

The Exchange will issue a circular to

its members and member organizations,

prior to the commencement of trading,

alerting them to the characteristics of

Fund Shares, including the fact that

Shares are not individually redeemable,

but are redeemable only in Creation

Units. The circular with also confirm

that investors purchasing Fund Shares

will be required to receive a prospectus

prior to or concurrently with the

confirmation of a transaction in the

Shares; will inform members that the

procedures for purchases and

redemptions of Shares in Creation Unit

size are described in the Trust

Prospectus; and will confirm for

members that the Fund Shares are

subject to existing Exchange rules

relating to trading halts. Finally, the

circular will inform members that before

a member, member organization, or

person associated with a member

organization undertakes to recommend

a transaction in the Fund, the member

or member organization should make a

determination that the Fund is suitable

for the customer and the person making

the recommendation should have a

reasonable basis for believing, at the

time of making the recommendation,

that the customer has such knowledge

and experience in financial matters that

he may reasonably be expected to be

capable of evaluating the risks and the

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