Document ID: SEC-2007-0324-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-03-05T05:00Z

[Federal Register: March 5, 2007 (Volume 72, Number 42)]
[Notices]               
[Page 9794-9796]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr07-84]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55348; File No. SR-Amex-2007-18]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval to Proposed 
Rule Change and Amendment No. 1 Thereto To Provide for an Optional 
Exchange-Provided Fingerprinting Service and To Amend Its Member Fees 
To Include a Processing Fee for the Fingerprinting Service

February 26, 2007.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 7, 2007, 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 substantially prepared by the 
Exchange. On February 16, 2007, Amex submitted Amendment No. 1 to the 
proposed rule change. This order provides notice of the proposed rule 
change as modified by Amendment No. 1 and approves the proposed rule 
change as amended on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 9795]]

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

    The Exchange proposes to provide for an in-house optional 
fingerprinting service and to modify its Member Fees to include a fee 
for such fingerprinting service.\3\
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    \3\ Telephone conversation between Nyieri Nazarian, Assistant 
General Counsel, Amex, and Cyndi N. Rodriguez, Special Counsel, 
Division of Market Regulation, Commission, on February 23, 2007.
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    The text of the proposed rule change is available at Amex, the 
Commission's Public Reference Room, and http://www.amex.com.

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 III 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to provide for an optional fingerprinting 
service and to amend its Member Fees to include a fee for this service 
for members or member applicants.\4\ The Exchange intends to establish 
this in-house fingerprinting service to facilitate the member 
registration process.
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    \4\ Id.
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    A member or member applicant must currently use an external 
fingerprinting service to have fingerprints taken and will incur 
whatever costs are associated therewith. Currently, the member or 
member applicant must forward fingerprints to the National Association 
of Securities Dealers, Inc. (``NASD'') for processing and is charged a 
$35.00 fee \5\ from NASD's Internet-based Central Registration 
Depository (WEB CRD). This fee includes a $13 fingerprint submission 
fee that is also charged for results processed through Amex.\6\ NASD 
forwards the results to the FBI to conduct the standard criminal 
background check. Approximately $22.00 of the $35.00 amount is paid to 
the FBI for this background check. The member or member applicant also 
incurs any costs associated with mailing the fingerprints. The Exchange 
believes that this process has proven lengthy and burdensome for 
members and member applicants.
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    \5\ See Footnote 4 to the Exchange's Registration and IDC Fees 
Section of the Amex Fee Schedule.
    \6\ See Section 4 of Schedule A to the NASD By-Laws.
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    Furthermore, the $25.50 ``Fingerprint Processing Fee'' on the 
current Amex Fee Schedule is assessed when a current member simply 
needs his or her fingerprints submitted to the FBI for a background 
check. In this case, the member would need an expedited background 
check conducted because of a seat change or transfer. In this 
situation, the fingerprinting takes place in-house, and the prints are 
sent to the FBI by the Exchange. The results are then returned to the 
Exchange on an expedited basis. The member would also pay the $35.00 
fee to NASD for registration with WEB CRD.\7\
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    \7\ As the Exchange clarified in Amendment No. 1, when a member 
pays the $25.50 fingerprint fee, he or she has his or her 
fingerprints taken in-house and must also pay a $35.00 fee to NASD 
for registration with WEB CRD. See Amendment No. 1.
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    To expedite the fingerprinting process, the Exchange now proposes 
to offer an optional in-house fingerprinting service for all members 
and member applicants for a $45.00 fee. Members or member applicants 
choosing to avail themselves of the Exchange's proposed service would 
have their fingerprints taken in-house. The Exchange would forward the 
fingerprints to the FBI in order for the FBI to conduct the background 
check.\8\ Upon receiving the results, the Exchange would forward the 
results of the criminal background check to NASD. In this case, the 
$13.00 fingerprint submission fee would be charged for results 
processed through Amex.\9\ The Exchange believes that collapsing the 
steps into one package will speed up this process and be less 
burdensome for members and member applicants. The Exchange notes that 
the current option, as well as the $25.50 option, shall continue to 
remain in place.
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    \8\ $22.00 out of the $45.00 amount would be paid to the FBI.
    \9\ NASD would collect this $13.00 fee. The Exchange clarified 
in Amendment No. 1 that members or member applicants opting to have 
their fingerprints taken in-house under the proposed new program 
would pay a $45.00 fee as well as the $13.00 fee to WEB CRD. See 
Amendment No. 1.
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    Furthermore, the Exchange proposes to include an additional 
footnote in the Member Fees section of the Amex Fee Schedule to note 
that the $45.00 fee would only be assessed on members and member 
applicants who partake in the Exchange's optional in-house 
fingerprinting service. The Exchange further proposes to correct a 
typographical error by deleting footnote 3 from the Examination Fees 
section and replacing it with the correct footnote 2.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\10\ in general, and furthers the objectives of Section 6(b)(5) of the 
Act \11\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose 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. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-Amex-2007-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

    All submissions should refer to File Number SR-Amex-2007-18. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your

[[Page 9796]]

comments more efficiently, please use only one method. The Commission 
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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 also will be available for 
inspection and copying at the principal office of Amex. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Amex-2007-18 and should be 
submitted on or before March 26, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\12\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\13\ which requires, among 
other things, that the Exchange's rules be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest.
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    \12\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that offering an optional in-house 
fingerprinting service may provide Exchange members and member 
applicants with an expedited and less burdensome alternative for 
obtaining and processing their fingerprints at the Exchange as part of 
the Exchange's registration process. The Commission further believes 
that the additional changes to the Exchange's Member Fees schedule 
serve to clarify the fees associated with the Exchange's new 
fingerprinting service.
Accelerated Approval
    The Commission finds good cause, consistent with Section 19(b)(2) 
of the Act,\14\ for approving this proposed rule change, as amended, 
before the thirtieth day after the publication of notice thereof in the 
Federal Register because it would enable the Exchange to implement the 
optional in-house fingerprinting service immediately, providing members 
and member applicants another way to be fingerprinted.
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    \14\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\15\ that the proposed rule change (SR-Amex-2007-18), as modified 
by Amendment No. 1, be, and it hereby is, approved on an accelerated 
basis.
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    \15\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-3746 Filed 3-2-07; 8:45 am]

BILLING CODE 8010-01-P