Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Notices 13145 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See SR–Amex–2007–23 filed on February 22, 

2007 and SR–Amex–2007–28 filed on March 1, 

2007. 

4A competing market maker is defined for 

purposes of the Equity and ETF Fee Schedules as 

a specialist or market maker registered as such on 

a registered stock exchange (other than Amex), or 

a market maker bidding and offering over-thecounter, in an Amex-traded security. 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(6). 

8Rule 19b–4(f)(6) also requires the self-regulatory 

organization to give the Commission notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designed by the Commission. The 

Commission has determined to waive the five-day 

pre-filing requirement. 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of Amex. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–Amex–2007–28 and should 

be submitted on or before April 10, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4977 Filed 3–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55460; File No. SR–Amex–

2007–30] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Relating to 

Transaction Charges for Equities and 

ETFs 

March 13, 2007. 

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 March 8, 

2007, the American Stock Exchange LLC 

(‘‘Amex’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to revise 

Equities and Exchange Traded Funds 

and Trust Issued Receipts (‘‘ETFs’’) Fee 

Schedules (collectively, the ‘‘Fee 

Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.amex.com), at the 

Exchange’s principal office, and at the 

Commission’s Public Reference Room. 

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 recently revised its 

Equities, ETFs, and Nasdaq UTP Fee 

Schedules.3 The Exchange is now 

proposing to make some additional 

changes to the Equities and ETFs Fee 

Schedules. The Equity Fee Schedule 

currently provides a waiver of 

transaction charges for orders of up to 

500 shares entered electronically into 

the Amex Order File from off the floor 

(‘‘System Orders’’). This transaction 

charge waiver does not apply to the 

System Orders of a member or member 

organization trading as an agent for the 

account of a non-member competing 

market maker.4 The Exchange is now 

proposing to extend the transaction 

charge waiver to System Orders for the 

accounts of non-member competing 

market makers. Thus, the Equity Fee 

Schedule is being amended to eliminate 

the second and third sentences of Item 

3 on the schedule. 

The ETF Fee Schedule also provides 

a waiver of transaction charges for 

orders entered electronically into the 

Amex Order File from off the floor. 

However for ETFs, orders up to 2,400 

shares are deemed to be System Orders 

for which transaction charges are 

waived. Again, the transaction charge 

waiver currently does not apply to the 

System Orders of a member or member 

organization trading as an agent for the 

account of a non-member competing 

market maker. The Exchange is now 

proposing to extend the transaction 

charge waiver to System Orders for the 

accounts of non-member competing 

market makers. Thus, the ETF Fee 

Schedule is being amended to eliminate 

the second and third sentences of Note 

1 on the schedule. 

The Exchange is also proposing to 

apply the waiver of transaction charges 

for System Orders in equities and ETFs 

for the accounts of non-member 

competing market makers retroactively, 

beginning March 1, 2007. 

2. Statutory Basis 

The proposed fee change is consistent 

with Section 6(b)(4) of the Act 5

regarding the equitable allocation of 

reasonable dues, fees, and other charges 

among exchange members and other 

persons using exchange facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective immediately pursuant to 

Section 19(b)(3)(A)(iii) of the Act 6 and 

Rule 19b–4(f)(6) 7 thereunder because it 

does not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate.8

The Commission has determined to 

waive the 30-day operative delay. The 

Commission believes that doing so is 

consistent with the protection of 

investors and the public interest 

because eligible parties will be able to 

obtain the benefit of the fee waivers 

immediately. Accordingly, the 


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13146 Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Notices 

9For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the propose rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Release Act 55179 

(January 26, 2007), 72 FR 05091 (February 2, 2007). 

4See Letter from Christopher Cornette, Member, 

Amex, to Florence E. Harmon, Deputy Secretary, 

Commission, received February 14, 2007. 

5See Letter from Claire P. McGrath, Senior Vice 

President & General Counsel, Amex, to Nancy M. 

Morris, Secretary, Commission, dated March 12, 

2007 (‘‘Amex Response Letter’’). 

6See Securities Exchange Act Release No. 54552 

(September 29, 2006), 71 FR 59546 (October 10, 

2006). 

7For example, assume that a Specialist’s bid for 

1,000 shares is part of the Amex best bid and there 

are no better-priced protected quotations at other 

trading centers. The Specialist has a PPI order to 

buy 3,000 shares priced one tick better than the 

Amex best bid. Assume that an incoming market 

order to sell 3,000 shares is received by AEMI. The 

system would execute 1,000 shares against the 

Specialist’s PPI order, and the remainder would 

execute one tick down at the Amex best bid (based 

on the Exchange’s rules of priority and parity). The 

remaining size of the PPI order (2,000 shares) is 

ignored because the PPI order may execute only up 

to the size of the Specialist’s displayed bid at the 

APQ. 

Commission designates the proposal to 

be operative upon filing with the 

Commission.9

At 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 of appropriate in the public 

interest, for the protection of investors, 

or otherwise in the furtherance of the 

purposes of the Act. 

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. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–Amex–2007–30 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Amex–2007–30. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). 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 the filing also will be 

available for inspection and copying at 

the principal office of Amex. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–Amex–2007–30 and should 

be submitted on or before April 10, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4978 Filed 3–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55464; File No. SR–Amex–

2007–08] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Granting Approval of a Proposed Rule 

Change to Establish a Passive Price 

Improvement Order for Specialists and 

Registered Traders 

March 13, 2007. 

I. Introduction 

On January 19, 2007, the American 

Stock Exchange LLC (‘‘Amex’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change pursuant to Section 19(b)(1) of 

the Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The proposed rule change was 

published for comment in the Federal 

Register on February 2, 2007.3 The 

Commission received one comment 

letter.4 On March 12, 2007, Amex 

submitted a response to the comment 

letter.5 This order approves the 

proposed rule change. 

II. Description of the Proposal 

Amex proposes to amend the rules for 

its AEMI trading platform 6 to add a 

Passive Price Improvement (‘‘PPI’’) 

order type. PPI orders are undisplayed 

orders that, to execute, would have to be 

inside the automated best bid and offer 

of the Exchange (also referred to as the 

‘‘Amex Published Quote’’ or ‘‘APQ’’) by 

at least a tick. They would be the only 

method for Specialists and Registered 

Traders to offer price improvement 

electronically. A Specialist or Registered 

Trader would have to have at least one 

active quote on a particular side of a 

security on the AEMI book to enter and 

maintain a PPI order in the same 

security on the same side. A Specialist 

or Registered Trader that meets this 

quoting requirement could enter only 

one PPI order on each side for a 

security. A PPI order could not form 

part of the APQ and would be visible 

only to the entering Specialist or 

Registered Trader (or his firm). 

AEMI would make a PPI order eligible 

for execution if at least one of the 

following conditions were met: 

1. The Specialist’s or Registered 

Trader’s displayed quote is at the APQ 

on the side of the PPI order that would 

be executed. In this case, the PPI order 

would be executed up to (a) the size of 

the Specialist’s or Registered Trader’s 

displayed quote on that side or (b) the 

size of the incoming order, whichever is 

smaller. 

2. The Specialist’s or Registered 

Trader’s displayed quote is one tick 

away from the APQ on the side of the 

PPI order that would be executed. In 

this case, the PPI order would be 

executed up to (a) half of the size of the 

Specialist’s or Registered Trader’s 

displayed quote on that side or (b) the 

size of the incoming order, whichever is 

smaller. 

The AEMI system would ignore (i.e., 

make ineligible for execution against an 

otherwise marketable aggressing order, 

without canceling) the remaining size of 

a PPI order beyond the thresholds 

described above.7 The AEMI system 

would also ignore a PPI order in the 

following circumstances: 

• The PPI order locks or crosses the 

automated NBBO or APQ as a result of 

a change in the automated NBBO or 

APQ; 

• The PPI order equals the APQ on 

the same side of the market; 


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