[Federal Register Volume 66, Number 117 (Monday, June 18, 2001)]
[Notices]
[Pages 32852-32853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15221]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44410; File No. SR-Amex-2001-26]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange LLC Relating To an Increase in 
the Exchange Regulatory Fee

June 12, 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 May 7, 2001, 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, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 Equity Fee Schedule to increase 
the Regulatory Fee from .0005  x  Total Value to .00075  x  Total Value 
for orders entered electronically into the Amex Order File from off the 
Floor (``System Orders'') by a member or member organization trading as 
an agent for the account of a non-member competing market maker. Below 
is the text of the proposed rule change. Text in italics indicates 
material to be added.
* * * * *

Amex Equity Fee Schedule

I. Transaction Charges

    No change

II. Regulatory Fee

    .00005  x  Total Value (for all equity securities except 
Portfolio Depositary Receipts, Index Fund Shares and Trust Issued 
Receipts).
    000075  x  Total Value (for System Orders in Portfolio 
Depositary Receipts, Index Fund Shares and Trust Issued Receipts 
entered by a member or member organization trading as agent for the 
account of a non-member competing market maker).

    Notes:
    1. All trades executed on the Exchange in Portfolio Depositary 
Receipts, Index Fund Shares and Trust Issued Receipts will be exempt 
from the regulatory fee. This provision does not apply to System 
Orders of a member or member organization trading as agent for the 
account of a non-member competing market maker.
    2. System Orders for up to 2,099 shares will not be assessed a 
regulatory fee. This provision does not apply to System Orders of a 
member or member organization trading as an agent for the account of 
a non-member competing market maker. (Orders in Portfolio Depositary 
Receipts, Index Fund Shares and Trust-Issued Receipts are covered 
under Note 1 above.)

* * * * *

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 an 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 the Exchange Equity Fee Schedule to 
increase the Regulatory Fee for certain orders in Portfolio Depositary 
Receipts \3\ (e.g. SPDRs<Register> Nasdaq 100 Index Tracking Stock 
(sm)), Index Fund Shares \4\ (e.g., iShares(sm) Select Sector 
SPDRs<Register>), and Trust Issued Receipts \5\ (e.g., HOLDRs) 
(referred to collectively herein as the ``Products''). The Exchange 
does not assess a transaction charge for orders in the Products entered 
electronically into the Amex Order File from off the Exchange Floor 
(``System Orders'') up to 5,099 shares.\6\ This provision, however, 
does not apply to System Orders of a member or member organization 
trading as an agent for the account of a non-member competing market 
maker.\7\ The Exchange also imposes a Regulatory Fee for equities 
transactions of .00005  x  Total Value. Transactions executed on the 
Amex in the Products are exempt from the Regulatory Fee, except for 
System Orders of a member or member organization trading as an agent 
for the account of a non-member competing market maker, which continue 
to be subject to the Regulatory Fee.
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    \3\ See Amex Rule 1000(b) for the definition of Portfolio 
Depositary Receipts.
    \4\ See Amex Rule 1000A(b) for the definition of Index Fund 
Shares.
    \5\ See Amex Rule 1200(b) for the definition of Trust Issued 
Receipts.
    \6\ See Amex Equity Fee Schedule.
    \7\ A ``competing market maker'' is defined in the Exchange 
Equity Fee Schedule as a specialist or market maker registered as 
such as on a registered stock exchange (other than the Amex) or a 
market maker bidding and offering over-the-counter in an Amex-traded 
security.
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    The Exchange proposes to increase the Regulatory Fee from .00005 
x  Total Value to .000075  x  Total Value for System Orders in the 
Products entered by members acting as an agent for non-member competing 
market makers. The Exchange is undertaking the proposed revision in 
fees to offset increased Exchange expenses and costs associated with 
the continued development, listing and trading of additional Portfolio 
Depositary Receipts, Index Fund Shares and Trust Issued Receipts. 
Because the proposed revision in fees will better enable the Exchange 
to further develop, list, and trade new Products, the Exchange believes 
it is appropriate and necessary to implement a revised Regulatory Fee 
for the Products.
2. Statutory Basis
    The proposed rule change is consistent with section 6(b) of the Act 
\8\ in general, and furthers the objectives of section 6(b)(4) of the 
Act \9\ in particular, in that it is intended to assure the equitable 
allocation of reasonable dues, fees, and other charges among its 
members, issuers, and other persons using the Exchange facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any 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 
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or

[[Page 32853]]

(ii) as to which the Exchange consents, the Commission will:
    (A) by order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. 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 SR-Amex-2001-26 and should 
be submitted by July 9, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-15221 Filed 6-15-01; 8:45 am]
BILLING CODE 8010-01-M