66 FR 204 pgs. 53461-53462 - Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange LLC Modifying Certain Fees Relating to Servers and Cabinets Located on Members' Sites and Imposing a Fee for the Production of Certain Reports
Type: NOTICEVolume: 66Number: 204Pages: 53461 - 53462
Docket number: [Release No. 34-44927; File No. SR-ISE-2001-25]
FR document: [FR Doc. 01-26485 Filed 10-19-01; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-44927; File No. SR-ISE-2001-25]
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange LLC Modifying Certain Fees Relating to Servers and Cabinets Located on Members' Sites and Imposing a Fee for the Production of Certain Reports
October 12, 2001.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act"),1and Rule 19b-4 thereunder,2notice is hereby given that on September 20, 2001, the International Securities Exchange LLC ("Exchange" or "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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
Footnotes:
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The ISE is proposing changes to its fee schedule (i) to replace a $1,650 "enhanced cabinet charge" with a $250 incremental fee per server in an enhanced cabinet; (ii) to broaden the definition of "cabinet removal" and "router installation/removal" charges to include "moves, adds or changes"; and (iii) to impose a fee for providing reports to brokers on quarterly statistics relating to their order routing practices.
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:
Cabinets: One method by which ISE members connect to the Exchange is through ISE equipment located in cabinets on the members' sites. The ISE charges for this equipment based on, among other things, the number of servers in a cabinet. To provide more flexibility in this pricing, the ISE proposes to replace its "enhanced cabinet charge" with an incremental charge per server that is added to the base cabinet. The incremental fee will be $250 per server, equivalent to the $250 incremental fee per server in an enhanced cabinet. This will permit members to add more than one additional server per cabinet.
Also, the ISE is sometimes requested to reconfigure and relocate member equipment. Thus, the ISE proposes to broaden the definition of the "cabinet removal" and "router installation/removal" charges. These fees would encompass any "moves, adds or changes" to ISE equipment at a members' site, and would cover the Exchange's costs for providing these services.
Reports: Newly-adopted Commission Rule 11Ac1-63under the Act requires brokers to disclose certain quarterly statistics regarding their order routing practices. The ISE proposes to provide requesting members with a report that will facilitate their compliance with this rule. The Exchange represents that its proposed $500 monthly fee would cover the costs of providing this report.
Footnotes:
3 17 CFR 240.11Ac1-6.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,4in general, and furthers the objectives of Section 6(b)(4),5in particular, because it is an equitable allocation of reasonable fees among the Exchange's members.
Footnotes:
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(4).
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.
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
The Exchange has designated the proposed rule change as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act6and Rule 19b-4(f)(2) thereunder.7Accordingly, the proposal will take effect upon filing with the Commission. 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.
Footnotes:
6 15 U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 19b-4(f)(2).
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 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 ISE. All submissions should refer to File No. SR-ISE-2001-25 and should be submitted by November 13, 2001.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8
Footnotes:
8 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-26485 Filed 10-19-01; 8:45 am]
BILLING CODE 8010-01-M