66958 Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Notices

6 15 U.S.C. 78(b)(3)(a).

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

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

9 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Under Amex-2001–102, the Exchange seeks to

impose the floor, membership, options trading, and

comparison and floor brokerage fees, as described

in this current proposal, as of August 1, 2001. In

addition, the Exchange proposes to impose the

License Fees and the elimination of the fee cap for

options, as described in this proposal, as of October

1, 2001. See Securities Exchange Act Release No.

45165 (December 18, 2001).

effective under section 19(b)(3)(A) of the

Act.6

According to the Exchange,

application of the Floor, member, and

options fees as of August 1, 2001, will

allow it to recoup a portion of costs it

incurred during 2001 in providing

enhancements to the Floor, which

include major improvements in

technology, facilities and services.

These enhancements included a major

expansion of the Amex trading floor in

2001. The Exchange believes that these

fee increases better align its fees with

the actual cost of delivering services and

reduce Exchange subsidization of such

services. The Exchange notes that such

subsidies have been longstanding and

preceded August 1, 2001. Therefore, the

Exchange believes that imposing the fee

schedule as of August 1, 2001, which

followed approval by the Amex Board of

Governors on July 25, 2001, is

reasonable and appropriate to fund

enhancements that benefit all Floor

constituencies, including specialists,

Options Principal Members, Limited

Trading Permit Holders, Associate

Members, and employees of member

firms on the Floor.

Furthermore, the Exchange proposes

to apply the license fees for NDX, MNX

and OEF options as of October 1, 2001

because trading in these options on the

Exchange began in October 2001. The

Exchange notes that, because these fees

are transaction based, they would apply

only after trading actually began in

October. (NDX and MNX began trading

on October 12 and OEF began trading

and October 11.) The Exchange

proposes to eliminate the options fee

cap as October 1, 2001 to further reduce

Exchange subsidy of facilities and

services on the Floor, as discussed

above, and because Exchange billing

procedures cannot readily accommodate

elimination of the fee cap prior to

October 1, 2001.

In conclusion, the Exchange states

that the increase in options transactions

charges is necessitated by the large and

increasing costs incurred by the

Exchange in implementing options

trading technology. Exchange billing of

such fees as of August 1, 2001 (for Floor

Fees, Member Fees and Options Fees)

and October 1, 2001 (for the License Fee

and elimination of options fee cap) will

assist in compensating the Exchange for

costs incurred by the Exchange in

delivering specified services to members

and for providing options trading

technology.

(2) Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

section 6(b) of the Act 7 in general and

furthers the objectives of section

6(b)(4) 8 in particular in that it is

designed to provide for the equitable

allocation of reasonable dues, fees, and

other charges among its members and

issuers and other persons using its

facilities.

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

(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 No.

SR–Amex–2001–102 and should be

submitted by January 17, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–31741 Filed 12–26–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–45163; File No. SR–Amex–

2001–101]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

American Stock Exchange LLC

Relating to an Increase in Floor,

Membership and Options Trading Fees

December 18, 2001.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and rule 19b–4 2 thereunder,

notice is hereby given that on November

30, 2001, the American Stock Exchange

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

the Securities and Exchange

Commission (the ‘‘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.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to increase

floor, membership and options trading

fees as described herein.3

The text of the proposed rule change

appears below. New text is in italics;

deletions are in brackets.

Fee Schedule

I. Floor fees

Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Notices 66959

Type Annual fee

Floor Fees:

(payable monthly)

Floor Clerk ......................................................................................... $[300.00] 900.00 ($75/month).

Floor Facility—Regular & Options ..................................................... [1,400.00] 2400.00 ($200/month).

Principal

Floor Facility—Limited Trading Permit .............................................. [700.00] 2400.00 ($200/month).

Floor Wire Privilege ........................................................................... [400.00] 800.00 ($66.67/month).

Post Fee per Podium ........................................................................ 750.00

Specialist Registration Fee ............................................................... [400.00] 800.00 ($66.67/month).

Technology ........................................................................................ [1,200.00] 3000.00 ($250/month).

No further change. ............................................................................

II. Member Fees

Membership Dues Annual fee

÷ Associate .............................................................................................. $[750.00] 1500.00 ($125/month).

÷ Options Principal (OPM) ....................................................................... [750.00] 1500.00 ($125/month).

÷ Regular ................................................................................................. [750.00] 1500.00 ($125/month).

÷ Limited Trading Permit (LTP) ............................................................... [750.00] 1500.00 ($125/month).

No further changes. ..................................................................................

III. Options Fees

Type Firm 2

Specialist, market

maker

(ROTs)

Broker/dealer Customer 3

I. Options Transaction Fee 1 (per contract side)

Equity Options ................................................................................. $0.19 ................ $[0.17] 0.26 $0.19 ................ No Charge.

Index Options .................................................................................. 0.11 .................. [0.12] 0.21] 0.11 .................. $0.10.

II. Options Comparison Fee 1 (per contract side)

Equity Options ................................................................................. $0.04 ................ $[0.04] 0.05 $0.04 ................ No Charge.

Index Options .................................................................................. 0.04 .................. [0.04] 0.05 0.04 .................. $0.04.

III. Options Floor Brokerage Fee 1 (per contract side)

Equity Options ................................................................................. $0.03 ................ $[0.03] 0.05 $0.03 ................ No Charge.

Index Options .................................................................................. 0.03 .................. [0.03] 0.05 0.03 .................. 0.03.

IV. Options Marketing Fee 4 (per contract side)

Equity Options ................................................................................. No Charge ........ $0.40 No Charge ........ No Charge.

V Options Licensing Fee (per contract side)

MNX, NDX and QQQ ...................................................................... No Charge ........ $0.10 No Charge ........ No Charge.

OEF ................................................................................................. No Charge ........ 0.05 No Charge ........ No Charge.

Notes:

1The increase of $0.09 in transaction fees, of $0.01 in comparison fees, and of $0.02 floor brokerage fees will only be imposed on the first

3,000 contracts executed for the accounts of specialists, registered options traders, and non-member broker dealers as either an accommodation

trade (also known as ‘‘Cabinet Trades’’) or part of the following strategies: (a) reversal and conversions; (b) dividend spreads; and (c) box

spreads. A Fee Reimbursement Form must be submitted to the Exchange in order to receive a reimbursement of the fee increases charged on

contracts in excess of 3,000.

[There is a cap on the number of options contracts per trade subject to Exchange options charges. Options charges will be imposed on member firm proprietary, specialist, market maker and non-member broker/dealer trades for the first 3,000 contracts. The caps will apply to all three

options charge—transaction, comparison, and floor brokerage—and will apply to one day’s trades of 100 or more contracts per execution on one

side of any series executed by one specialist/trader/broker (for one member firm) and cleared by one clearing firm. The cap will also apply to

trades of less than 100 contracts that are multiple per copy contract parties to trades of 100 or more contracts. The same fee schedule and cap

provision will apply to LEAPS and FLEX options.] 2 Customer facilitated orders will continue to be charged a transaction fee of $0.07 per contract side.

3 Index Options machine delivered ≤ 30 contracts are not assessed a transaction fee. 4Excludes options trades between and among Registered Options Traders and Specialists.

66960 Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Notices

4See Annex Rule 959 for a description of an

accommodation trade.

5The Exchange defines a ‘‘conversion’’ as a

strategy in which a long put and a short call with

the same strike price and expiration date are

combined with long underlying stock to lock in a

nearly riskless profit. A ‘‘reversal’’ is a strategy in

which a short put and long call with the same strike

price and expiration date are combined with short

stock to lock in a nearly riskless profit.

6The Exchange defines a ‘‘dividend spread’’ as

any trade done within a defined time frame in

which a dividend arbitrage can be achieved

between any two deep-in-money options.

7The Exchange defines a ‘‘box spread’’ as a

spread strategy that involves a long call and short

put at one strike price as well as a short call and

long put at another strike price. This is a synthetic

long stock position at one strike price and a

synthetic short stock position at another strike

price.

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

9 15 U.S.C. 78f(b)(4).

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 proposes to increase

the following Exchange Floor fees:

(1) The Technology fee would be

increased from $1200 to $3000 annually

($250 per month); (2) the Floor Facility

fee would be increased from $1400 to

$2400 annually ($200 per month) for

Regular and Options Principal

Members. This fee would also be

increased from $700 to $2400 annually

for holders of Limited Trading Permits;

(3) the Floor Clerk fee would be

increased from $300 to $900 annually

($75 per month); (4) the Specialist

Registration fee would be increased

from $400 to $800 annually ($66.67 per

month); and (5) the Floor Wire Privilege

fee would be increased from $400 to

$800 annually ($66.67 per month).

A. Member Fees

Membership Dues would be increased

from $750 to $1500 annually ($125

monthly) for all Regular Members,

Options Principal Members, Associate

Members and holders of Limited

Trading Permits.

B. License Fees

In recent years, the Exchange has

entered into license agreements with

providers of indexes to use such indexes

for the trading of options. In an effort to

recoup some of the costs of these

licenses, the Exchange proposes to

establish a licensing fee for specialists

and registered options traders. The fee,

the amount of which may vary from

product to product, would be collected

on every transaction in the product in

which the specialist or registered

options trader is a party. Initially, the

fees and products would be as follows:

Options on the Nasdaq 100 Index

Tracking Stock (symbol: QQQ), Nasdaq

100 Index (symbol: NDX) and Mini NDX

(symbol: MNX)—$0.10 per contract

side, and options on the S&P 100

iShares (symbol: OEF)—$0.05 per

contract side.

C. Options Fees

Transaction, Comparison and Floor

Brokerage Fees—For all specialists and

registered options trader transactions in

both equity and index options, the

options fees would be increased as

follows: (1) The Options Transaction fee

per contract side is increased from $0.17

to $0.26 for equity options and from

$0.12 to $0.21 for index options; (2) the

options comparison fee is increased

from $0.04 to $0.05 per contract side;

and (3) the floor brokerage fee per

contract side is increased from $0.03 to

$0.05.

Elimination of Fee Cap—The

Exchange states that currently all three

types of options fees—transaction,

comparison, and floor brokerage—are

subject to a cap on the number of

options contracts subject to the charges

on a given day. The current cap is set

at 3,000 contracts.

The Exchange proposes to eliminate

the cap on orders executed for the

accounts of specialists, registered

options traders, and non-member broker

dealers. Thus, transaction, comparison,

and floor brokerage fees would apply to

all option contracts executed for those

accounts on a given day.

Notwithstanding the foregoing, the

Exchange has determined that

accommodation trades (also known as

‘‘Cabinet Trades’’) 4 and trades occurring

as part of certain types of strategies

would be eligible for the cap on that

portion of the transaction, option

clearance, and floor brokerage fees that

represent the increase in fees

established in this filing. Thus, for

contracts executed in excess of 3,000 on

a given day, the transaction fee increase

of $0.09, the options comparison fee

increase of $0.01 and the floor brokerage

fee increase of $0.02 would be

reimbursed as set forth below.

Transaction, options comparison, and

floor brokerage fees would continue to

be charged for only the first 3,000

contracts executed as an

accommodation trade or pursuant to one

of the following strategies: (1) Reversals

and conversion; 5 (2) dividend spreads; 6

and (3) box spreads.7 The Exchange

states that its billing system is unable to

distinguish among these types of

transactions; therefore, a manual

procedure has been developed.

Specifically, within thirty calendar days

of the particular transaction date, a Fee

Reimbursement Form must be

completed and submitted to the

Exchange. Upon acceptance, the

Exchange would delivery to that

member’s clearing firm a reimbursement

check in the amount of the transaction,

clearance, and brokerage fee increases (a

total of $0.12) charged on contracts in

excess of 3,000 executed pursuant to an

accommodation trade or one of the

strategies described above.

The Exchange states that the Floor

and Member Fees would be increased in

order to better align the Exchange’s fees

with the actual cost of delivering the

specified services and to reduce

Exchange subsidization of such services.

The increase in options transactions

charges would be necessitated by the

large and increasing costs incurred by

the Exchange in implementing options

trading technology.

(2) Statutory Basis

The Exchange believes that 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) 9 in particular in that it is

designed to provide for the equitable

allocation of reasonable dues, fees, and

other charges among its members and

issuers and other persons using its

facilities.

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.

Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Notices 66961

10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19–4(f)(2). 12 17 CFR 200.30–3(a)(12).

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 pursuant to section

19(b)(3)(A)(ii) of the Act 10 and rule

19b–4(f)(2) 11 thereunder because it

establishes or changes a due, fee, or

charge imposed by the Exchange. 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 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 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 No.

SR–Amex–2001–101 and should be

submitted by January 17, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–31743 Filed 12–26–01; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

Bureau of Political-Military Affairs

[Public Notice 3859]

60-Day Notice of Proposed Information

Collections

In the matter of: Form DS–2032, Statement of

Registration (OMB No. 1405–0002); Form

DSP–5, Application/License for Permanent

Export of Unclassified Defense Articles and

Related Unclassified Technical Data (OMB

No. 1405–0003); Form DSP–61,

Application/License for Temporary Import

of Unclassified Defense Articles (OMB No.

1405–0013); Form DSP–73, Application/

License for Temporary Export of

Unclassified Defense Articles (OMB No.

1405–0023); Form DSP–85, Application/

License for Permanent/Temporary Export

or Temporary Import of Classified Defense

Articles and Classified Technical Data

(OMB No. 1405–0022); Form DSP–83, NonTransfer and Use Certificate (OMB No.

1405-0021); Statement of Political

Contributions, Fees, or Commissions in

Connection with the Sale of Defense

Articles or Services (OMB No. 1405–0025);

Form DSP–119, Application for

Amendment to License for Export or

Import of Classified or Unclassified

Defense Articles and Related Technical

Data (OMB No. 1405–0092); Form DSP–94,

Authority To Export Defense Articles and

Services Sold under the Foreign Military

Sales (FMS) Program (OMB No. 1405–

0051); Request for Approval of

Manufacturing License Agreements,

Technical Assistance Agreements, and

Other Agreements (OMB No. 1405–0093);

Maintenance of Records by Registrants

(OMB No. 1405–0111); Prior Approval for

Brokering Activity (New Collection); and

Brokering Activity Reports (New

Collection)

ACTION: 60-day notice of proposed

information collections.

SUMMARY: The Department of State is

seeking Office of Management and

Budget (OMB) approval for the

information collection described below.

The purpose of this notice is to allow 60

days for public comment in the Federal

Register preceding submission to OMB.

This process is conducted in accordance

with the Paperwork Reduction Act of

1995.

The following summarizes the

information collection proposals

submitted to OMB:

Type of Request: Extension of

Currently Approved Collection Without

Change.

Originating Office: Bureau of

Political-Military Affairs, Office of

Defense Trade Controls, PM/DTC.

Title of Information Collection:

Statement of Registration.

Frequency: Every one to four years.

Form Number: DS–2032.

Respondents: Business and non-profit

organizations.

Estimated Number of Respondents:

5,000.

Average Hours Per Response: 2 hours.

Total Estimated Burden: 10,000

hours.

(Total Estimated Burden based on

number of forms received per year.)

Type of Request: Extension of

Currently Approved Collection Without

Change.

Originating Office: Bureau of

Political-Military Affairs, Office of

Defense Trade Controls, PM/DTC.

Title of Information Collection:

Application/License for Permanent

Export of Unclassified Defense Articles

and Related Unclassified Technical

Data.

Frequency: On occasion.

Form Number: DSP–5.

Respondents: Business and non-profit

organizations.

Estimated Number of Respondents:

5,000.

Average Hours Per Response: 1 hour.

Total Estimated Burden: 30,000

hours.

(Total Estimated Burden based on

number of forms received per year.)

Type of Request: Extension of

Currently Approved Collection Without

Change.

Originating Office: Bureau of

Political-Military Affairs, Office of

Defense Trade Controls, PM/DTC.

Title of Information Collection:

Application/License for Temporary

Import of Unclassified Defense Articles.

Frequency: On occasion.

Form Number: DSP–61.

Respondents: Business and non-profit

organizations.

Estimated Number of Respondents:

4,500.

Average Hours Per Response: 30

minutes.

Total Estimated Burden: 4,500 hours.

(Total Estimated Burden based on

number of forms received per year.)

Type of Request: Extension of

Currently Approved Collection Without

Change.

Originating Office: Bureau of

Political-Military Affairs, Office of

Defense Trade Controls, PM/DTC.

Title of Information Collection:

Application/License for Temporary

Export of Unclassified Defense Articles.

Frequency: On occasion.

Form Number: DSP–73.

Respondents: Business and non-profit

organizations.

Estimated Number of Respondents:

5,000.

Average Hours Per Response: 1 hour.

Total Estimated Burden: 2,500 hours.

(Total Estimated Burden based on

number of forms received per year.)

Type of Request: Extension of

Currently Approved Collection Without

Change.