67 FR 78 pgs. 19786-19787 - Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange LLC to Establish a $.10 Surcharge for Non-Customer Transactions in Options on Nasdaq Biotech Index® iShares
Type: NOTICEVolume: 67Number: 78Pages: 19786 - 19787
Docket number: [Release No. 34-45765; File No. SR-ISE-2002-10]
FR document: [FR Doc. 02-9884 Filed 4-22-02; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-45765; File No. SR-ISE-2002-10]
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the International Securities Exchange LLC to Establish a $.10 Surcharge for Non-Customer Transactions in Options on Nasdaq Biotech Index® iShares
April 16, 2002.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 ("Act"),1and Rule 19b-42thereunder, notice is hereby given that on April 15, 2002, the International Securities Exchange LLC ("ISE" or "Exchange") filed with the Securities and Exchange Commission (the "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 Exchange proposes to establish a $.10 surcharge for non-customer transactions in options on Nasdaq Biotech Index® iShares.
The text of the proposed rule change appears below. New text is in italics.
| Electronic Market Place | Amount | Billable Unit | Frequency | Notes |
|---|---|---|---|---|
| ******* | ||||
| Execution Fees | ||||
| ******* | ||||
| • Surcharge for Options on Nasdaq 100 Index Tracking Stocksm and the Nasdaq Biotech Index ® iShares | $0.10 | contract/side | Transaction | Excludes customers |
| ******* |
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 Exchange 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 Exchange 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 Exchange states that it has entered into a license agreement to use various trademarks regarding the Nasdaq Biotech Index® in connection with its trading of options on the Nasdaq-100 Index Tracking iShares®. The purpose of this proposed rule change is to adopt a fee for trading in these options to defray the licensing costs. The Exchange believes that charging the participants that trade in options on this instrument is the most equitable means of recovering the costs of the license. However, because competitive pressures in the industry have resulted in the waiver of all transaction fees for customer transactions, the Exchange does not propose to charge this additional fee with respect to customer transactions. The fee will be charged only with respect to non-customer transactions.
(2) Statutory Basis
The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,3in general, and furthers the objectives of Section 6(b)(4),4in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities.
Footnotes:
3 15 U.S.C. 78f(b).
4 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 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 foregoing rule change establishes or changes a due, fee, or charge imposed by the Exchange and, therefore, has become effective upon filing pursuant to section 19(b)(3)(A)(ii) of the Act5and Rule 19b-4(f)(2) thereunder.6At 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.
Footnotes:
5 15 U.S.C. 78(s)(b)(3)(A)(ii).
6 17 CFR 240.19b-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 Section. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All submissions should refer to File No. SR-ISE-2002-10 and should be submitted by May 14, 2002.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7
Footnotes:
7 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-9884 Filed 4-22-02; 8:45 am]
BILLING CODE 8010-01-P