[Federal Register Volume 62, Number 198 (Tuesday, October 14, 1997)]
[Notices]
[Pages 53356-53357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27041]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39191; File No. SR-AMEX-97-34]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by American Stock Exchange, Inc. 
Relating to Revised Equity Fee Schedule

October 3, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ notice is hereby given that on September 24, 
1997, the American Stock Exchange, Inc. (``Amex'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
fee change as described in Items I, II, and III below, which Items have 
been prepared by the self-regulatory organization. The Commission is 
publishing this notice to solicit comments on the fee change from 
interested persons.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The American Stock Exchange has revised its schedule of fees 
imposed on trades in exchange-traded fund products (``EXTRA Funds'') 
executed on the Exchange.

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 self-regulatory organization 
included statements concerning the purpose of and basis for the fee 
change and discussed any comments it received on the fee change. The 
text of these statements may be examined at the places specified in 
Item IV below. The self-regulatory organization 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange currently imposes a transaction charge and a 
regulatory fee on trades in equity securities executed on the Exchange. 
The Exchange's equity transaction charge is a two-part fee consisting 
of a share charge and a value charge, based on the total number of 
shares traded and the value of such shares, respectively. All equity 
trades executed through the Exchange's Post Execution Reporting 
(``PER'') order routing system up to 1,099 shares are exempt from 
Exchange equity transaction charges (excluding only those for the 
account of nonmember competing dealers). The Exchange also imposes a 
separate regulatory fee on all equity trades calculated at $.00005 
times the value of shares traded.
    The Exchange currently lists a number of exchange-traded fund 
products, which are subject to the Exchange's equity fee schedule. 
Standard & Poor's Depositary Receipts (``SPDRs'') is a fund product 
based on the S&P 500 Index that has traded on the Exchange since 1993. 
MidCap SPDRs and World Equity Benchmark Shares (``WEBS'') are also 
currently traded, with additional fund products expected to be traded 
in the future.
    The Exchange is revising its schedule of equity fees to exempt 
customer (i.e., non broker-dealer) PER trades in exchange-traded fund 
products up to 5,099 shares from both the equity transaction charge and 
the regulatory fee. We believe that these changes are necessary in 
order to make the cost of trading on the Exchange comparable to the 
economics of trading these products in other markets.
    The revised equity fee schedule will be implemented starting with 
transactions effected on September 26, 1997 or as soon as practical 
thereafter. The Exchange will notify member firms as to the date of 
effectiveness and as to any necessary modifications to provide for 
proper identification of orders entitled to the fee exemption.
(2) Statutory Basis
    The fee change is consistent with Section 6(b) of the Exchange Act 
in general and furthers the objectives of Section 6(b)(4) \2\ in 
particular in that is intended to assure the equitable allocation of 
reasonable dues, fees, and other charges among members, issuers, and 
other persons using the Exchange's facilities.
---------------------------------------------------------------------------

    \2\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The fee change will impose no burden on competition.

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 
fee change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The fee change has become effective pursuant to Section 19(b)(3)(A) 
of the Exchange Act \3\ and subparagraph (e)(2) of Exchange Act Rule 
19b-4.\4\ At any time within 60 days of the filing of such fee change, 
the Commission may summarily abrogate such fee 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 Exchange Act.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(e).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the fee change that are filed with the 
Commission, and all written communications relating to the fee 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 in Washington, D.C. Copies of such filing will 
also be available for inspection and copying at the principal office of 
the Amex. All submissions should refer to file number SR-AMEX-97-34 and 
should be submitted by November 4, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.30-3(a)(12).

---------------------------------------------------------------------------

[[Page 53357]]

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-27041 Filed 10-10-97; 8:45 am]
BILLING CODE 8010-01-M