Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27187

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

2 17 CFR 240.19b–4.

3Amendment 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).

6The 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).

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–12250 Filed 5–15–01; 8:45 am]

BILLING CODE 8010–01–M

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.

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.

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:

Booth type

New fees

as of

July 1, 2001

New fees

as of

July 1, 2002

Former fees

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.

27188 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

7 15 U.S.C. 78f(b).

8 15 U.S.C. 78f(b)(4).

9 15 U.S.C. 78s(b)(3)(A)(ii).

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12).

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

2 17 U.S.C. 240.19b–4.

Booth type

New fees

as of

July 1, 2001

New fees

as of

July 1, 2002

Former fees

Type 4 (‘‘machine’’) ............................................................................................ 6,000 7,000 $5,000–$5,400.

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.

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.

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

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–12281 Filed 5–15–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44289; File No. SR–CHX–

2001–09]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Stock Exchange, Inc., To

Allow Floor Brokers To Clear a

Specialist’s Post By Telephone

May 10, 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 23,

2001, the Chicago Stock Exchange, Inc.

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

Securities Exchange Act Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by the Exchange. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

1. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to amend

CHX Article XX, Rule 10 to permit floor

brokers to clear a specialist’s post

telephonically. The text of the proposed

rule change is below. Proposed

additions are in italics. Proposed

deletions are in brackets.

ARTICLE XX, RULE 10

Manner of Bidding and Offering

Rule 10. Bids and offers to be effective

must be audibly made at the post and shall

remain in full force until the person making

the bid or offer shall audibly announce that

he is out of the market or until he leaves the

post.

* * * Interpretations and Policies: .01

Although there may be certain amount of

negotiation by voice away from the post,

every trade must be consummated at the

post. .02 Clearing the Post.

Policy. All orders received by floor brokers

or originated by market makers on the floor

of the Exchange must effectively clear the

post before the orders may be routed to

another market[, either] via the ITS [System]

or through the use of alternative means.

Floor brokers who receive an order on the

floor have a fiduciary responsibility to seek

a best price execution for such order. This

responsibility includes clearing of the

Exchange’s post prior to routing an order to

another market so that other buying and

selling interest at the post can be checked for

a potential execution equal to [that may be

as good as] or better than the execution

available in another market. It is not

inconsistent with a floor broker’s fiduciary

responsibility to effectively clear the post

telephonically, provided that: (i) through the

specialist, the floor broker probes the market

for other buying and selling interest at the

post, and (ii) after probing the market, if

equal or better buying or selling interest is

available at the post, the floor broker, while

physically present at the post, consummates

the trade at the post.