Use of the Magneto-Optic Spatial Light Modulator (MOSLM) in the filter plane of optical correlators is attractive because it is capable of high frame rates. This has led to the design of several different types of Binary Phase-Only Filters (BPOFs) and Ternary Filters matched to a single reference. To further increase the throughput of an optical correlator employing the MOSLM, attempts at designing Binary Phase-Only Composite Filters have been made. In this paper, we introduce a new iterative technique to design such Composite Filters in which we simultaneously maximize the peak sharpness and minimize the deviation of the actual correlation peak intensities from their desired values.