[Federal Register Volume 66, Number 122 (Monday, June 25, 2001)]
[Notices]
[Pages 33730-33731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15800]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44438; File No. SR-ISE-2001-13]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange LLC Relating to Fee Changes

June 18, 2001.
    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 May 15, 2001, the International Securities Exchange LLC (``ISE'' or 
``Exchange'') 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 Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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1. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The ISE is proposing the following changes to its fee schedule: (i) 
To extend its customer fee waiver; (ii) to provide for waivers of fees 
for multiple ``Click'' terminals; (iii) to impose certain ``cabinet'' 
and ``router'' fees; and (iv) to provide discounts for multiple 
``session'' fees.

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. 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

1. Purpose
    The purpose of the proposed rule change is to effect the following 
changes in the ISE's fees.
    Customer fee waiver: the ISE currently waives customer transaction 
fees. This waiver is scheduled to expire on May 26, 2001. Because 
customer fee waivers continue to be part of the competitive landscape, 
the ISE is proposing to extend this waiver through May 2002.
    ``Click'' fee waiver: ``Clicks'' are ISE order-entry terminals. The 
Exchange is proposing a one-year pilot program waiving all terminal and 
related fees for multiple Click order-entry terminals. While the ISE 
has provided multiple-terminal discounts for Clicks, it believes that a 
more aggressive program of waiving all fees for the second and 
subsequent terminals will help generate significant incremental order 
flow and enhance the Exchange's competitive posture.
    Cabinet and router fees: The ISE is proposing: (1) a $2,000 fee to 
remove computer cabinets from member firms and (2) a $500 fee for 
installing or removing routers. These fees will recoup the ISE's costs.
    ``Session'' fees: The ISE currently charges market makers $1,000 
for each ``log-on'' session. Because some members now have a high 
number of such sessions, it is proposing a multiple-session discount to 
$750 for the 21st to 40th session and $500 per session thereafter.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
as specified above is consistent with Section 6(b) \3\ of the Act, in 
general, and Section 6(b)(4) of the Act,\4\ in particular, because it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its members and other persons using its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement of the Burden on 
Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

[[Page 33731]]

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) \5\ of the Act and subparagraph (f)(2) 
of Rule 19b-4 \6\ thereunder. 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).
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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 
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 at the 
Commission's Public Reference Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
ISE. All submissions should refer to File No. SR-ISE-2001-13 and should 
be submittd by July 16, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-15800 Filed 6-22-01; 8:45 am]
BILLING CODE 8010-01-M