On February 25, 2000, the International Securities Exchange LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), and Rule 19b-4 thereunder, a proposed rule change to adopt a fee schedule.
The proposed rule change was published for comment in the Federal Register on March 6, 2000. No comments were received on the proposal. This order approves the proposal.
II. Description of the Proposal
ISE's proposed fee schedule itemizes fees for the services it will offer to its members and others. This schedule includes membership fees, trading fees, and fees for a variety of other services, including the installation and maintenance of certain equipment. ISE stated in its proposal that it intends to use revenues from these fees to recover its costs of operating a trading market and to build a reserve for future needs. ISE further stated that it does not intend to use these fees to generate an operating profit to distribute to its members, and will adjust its fees to maintain the appropriate balance between costs and expenses, as ISE gains experience in the operation of its market.
The Commission finds that the proposed rule change is consistent with the requirements of the Act and rules and regulations thereunder applicable to a national securities exchange, and in particular, with the requirements of section 6 of the Act. Specifically, the Commission finds that the proposal is consistent with section 6(b)(4) of the Act.
Under section 6(b)(4), a registered national securities exchange must promulgate rules that provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. The Commission finds that ISE's fee schedule is not unreasonable and should not discriminate unfairly among market participants.
It Is Therefore Ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SR-ISE-00-02) is approved.Start Signature
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.
Jonathan G. Katz,
4. In approving this rule, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).Back to Citation
7. Id.Back to Citation
[FR Doc. 00-11229 Filed 5-4-00; 8:45 am]
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