[Federal Register Volume 66, Number 95 (Wednesday, May 16, 2001)]
[Notices]
[Pages 27187-27188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12281]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44286; File No. SR-Amex-2001-22]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Amendments to Fee Schedules

May 9, 2001.
    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 April 9, 2001, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change, and amended such 
proposed rule change on May 3, 2001,\3\ as described in Items I, II, 
and III below, which Items have been prepared by the Amex. The Amex has 
designated this proposal as one constituting the establishment or 
change of a due, fee or other charge imposed by the Amex under Section 
19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2),\5\ which renders 
the rule effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 substituted the words ``Membership 
Registration'' for ``CRD'' in the CRD and IDC Fee Schedule in 
Exhibit A of the original rule filing. See letter from Michael 
Cavalier, Associate General Counsel, the Amex, to Katherine England, 
Assistant Director, Division of Market Regulation, the SEC (May 3, 
2001).
    \4\ 15 U.S.C. 78s(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to amend the Amex Member Fees Schedule; Floor 
Fees Schedule; Booth Rental and Order Pads Schedule; and CFD and IDC 
Fees Schedule. The text of the proposed rule change is available at the 
Office of the Secretary, the Amex, and the Commission.

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 Amex 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 Amex 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 Amex proposes to amend certain Exchange fees imposed on Amex 
members and member organizations as set forth below.
    (1) Member Fees:
    The Exchange incurs certain expenses in connection with the 
administering applications for Exchange membership. In order to better 
align Amex's fees with the actual costs of delivering these services, 
the Exchange is increasing from $500 to $2,000 the fee for processing 
membership applications. In addition, the Exchange is imposing a $500 
fee for each qualifying exam taken by an applicant for membership 
beyond the first attempt. These fees will be imposed beginning May 1, 
2001.
    (2) Floor Fees:
    The Exchange is eliminating the current $500 annual Specialist Post 
Privilege Fee, which is imposed on each individual specialist, and will 
impose a new annual post fee per podium of $750 beginning July 1, 2001. 
This fee will be increased to $1,000 for each podium beginning January 
1, 2002. These new fees better reflect the maintenance costs borne by 
the Exchange.
    To improve reliability, the Amex recently replaced its wireless 
telephone system with a SpectraLink system.\6\ The new annual charge 
for all wireless handsets will be phased in as follows: $1,700 per 
handset from July 2, 2001 to June 30, 2002 and $2,100 per handset 
beginning July 1, 2002.
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    \6\ The SpectraLink system is a system of wireless phones used 
by members on the floor for communication on the trading floor. 
Telephone conversation between Cyndi Nguyen, Attorney, the SEC, and 
Michael Cavalier, Associate General Counsel, the Amex (April 26, 
2001).
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    The Amex has recently upgraded its booth telephones from an 18-
button turret system, for which it charged $600 per year to a new 40-
button system. The new annual charge for all turret telephones will be 
phased in as follows: $900 per telephone from July 1, 2001 to June 30, 
2002 and $1,290 per telephone beginning July 1, 2002.
    The Amex has incurred significant development and installation 
expenses in implementing its Booth Automated Routing System (``BARS'') 
for routing orders to and within the Exchange and will also incur 
significant annual operation costs. The Exchange is imposing its BARS 
annual equipment fees of $3,600 per configuration of up to ten hand-
held devices, one keyboard, one Central Processing Unit (``CPU''), one 
monitor, and one printer, with users retaining liability for the cost 
of any damage, loss, or repairs. These fees will be implemented 
beginning May 1, 2001.
    In order to address security risks that may be associated with loss 
of photo identification cards used on the Floor, the Exchange is 
increasing the fee to replace lost photo identification cards from $15 
to $100, beginning May 1, 2001. This fee also better reflects Exchange 
costs associated with card replacements.
    For construction and craft services provided by the Exchange at any 
member's request, the Exchange will charge $50.00 per worker per hour 
for work performed 8 a.m.-6 p.m. New York time only on the days the 
Exchange is open for business and $75.00 per hour for worked performed 
at all other times. These charges serve to eliminate an Exchange 
subsidy for such services.
    (3) Booth Rentals:
    The Exchange is restructuring and simplifying annual booth rental 
charges on a phased in basis as follows:

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                                      New fees  as of  New fees  as of
             Booth type                 July 1, 2001     July 1, 2002                  Former fees
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Type 1 (``telephone'')..............           $3,000           $3,500  $1,600-$2,200.
Type 2 (24 ``standard'')............            4,500            4,500  Not applicable.
Type 3 (36 ``standard'')............            6,000            6,000  Not applicable.

[[Page 27188]]

 
Type 4 (``machine'')................            6,000            7,000  $5,000-$5,400.
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    The revised fee schedule is designed to provide partial recovery by 
the Exchange of costs associated with constructing and maintaining 
booth rental space.
    (4) Membership Registration and IDC Fee Schedule:
    The Exchange is amending its fee schedule, effective May 1, 2001, 
applicable to membership registration to bring such charges in line 
with those of other exchanges. Renewal fees will be raised from $30 to 
$47, initial fees will be raised from $55 to $60, and termination fees 
will be raised from $25 to $30.
2. Statutory Basis
    The Amex believes the proposed rule change is consistent with the 
provisions of section 6(b) of the Act \7\ in general, and furthers the 
objectives of section 6(b)(4) of the Act \8\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among members, issuers, and other persons using 
Exchange facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex does not believe that the proposed rule change will result 
in 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 proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \10\ because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. At any time within 60 days of the 
filing of the 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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 Room. 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-2001-22 and should be 
submitted by June 6, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-12281 Filed 5-15-01; 8:45 am]
BILLING CODE 8010-01-M