Document ID: SEC-2006-0584-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-05-05T04:00Z

[Federal Register: May 5, 2006 (Volume 71, Number 87)]
[Notices]               
[Page 26574-26575]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05my06-139]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53735; File No. SR-Amex-2006-20]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 
Thereto To Amend the Annual Fee for Certain Listed Bonds and Debentures

April 27, 2006.
    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 March 22, 2006, 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. On April 
5, 2006, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ On April 24, 2006, the Exchange filed Amendment No. 2 to the 
proposed rule change.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange explained that its listed 
bonds and debentures are primarily structured products. Amendment 
No. 1 replaced and superseded the original filing in its entirety.
    \4\ In Amendment No. 2, the Exchange clarified that the proposed 
increase in the annual fee for bond issues would take effect in 
January 2007. Amendment No. 2 replaced and superseded Amendment No. 
1 to the original filing in its entirety.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Section 141 of the Amex Company 
Guide to increase the annual fee for listed bonds and debentures of 
companies whose equity securities are not listed on the Exchange 
(``Bonds and Debentures'') \5\ from $3,500 to $5,000.
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    \5\ The Exchange notes that the fees to which this proposal 
relates are applicable primarily to structured products listed on 
the Exchange as well as straight corporate debt.
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    The text of the proposed rule change, as amended, is available on 
the Exchange's Internet Web site (http://www.amex.com), at the 

Exchange's principal office, and at the Commission's Public Reference 
Room.

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
    Amex proposes to increase the annual fee for listed Bonds and 
Debentures from $3,500 to $5,000. Currently,

[[Page 26575]]

Section 141 of the Amex Company Guide provides that an annual fee of 
$3,500 is payable in January of each year for Bonds and Debentures. The 
Exchange notes that its Bonds and Debentures are primarily structured 
products (e.g., notes with returns tied to the performance of an 
underlying index, basket of commodities, etc.). The increased annual 
fees will be applicable to Bonds and Debentures currently listed as 
well as new listings. The increased fees will be assessed commencing 
January 2007. Beginning January 2007, the increased fees will be 
payable by all issuers of Bonds and Debentures.
    The Exchange asserts that the proposed fee increase will allow Amex 
to better recoup its costs in connection with the delivery of services 
relating to the trading of Bonds and Debentures. The Exchange believes 
that the proposed increase in annual fees will provide approximately 
$250,000 of additional revenue to Amex for the 2007 calendar year.
    The Exchange notes that the analogous New York Stock Exchange LLC 
(``NYSE'') and NYSE Arca, L.L.C. (``NYSE Arca Marketplace'') fees 
applicable to structured products and The Nasdaq Stock Market, Inc. 
fees applicable to other securities are $5,000, $5,000 and $15,000, 
respectively.\6\ Accordingly, Amex believes that the proposed fee 
increase will have a minimal impact on volume but will provide 
additional revenue needed for the Exchange to effectively compete.
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    \6\ See NYSE Listed Company Manual Section 902.05 (Fees for 
Listing Structured Products); NYSE Arca Marketplace Annual Listing 
Maintenance Fee for Structured Products; NASD Rule 4530(b) (Other 
Securities, Annual Fee).
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    The Exchange notes that in recent years it has revised a number of 
fees to better align its fees with the actual cost of delivering 
services.\7\ Amex believes that the increased fees will help to 
allocate to those market participants trading in Bonds and Debentures a 
fair share of the related costs of offering such products.
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    \7\ See Securities Exchange Act Release No. 45360 (January 29, 
2002), 67 FR 5626 (February 6, 2002); Securities Exchange Act 
Release No. 44286 (May 9, 2001), 66 FR 27187 (May 16, 2001).
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2. Statutory Basis
    The Exchange believes that the proposal is equitable as required by 
Section 6(b)(4) of the Act.\8\ The Exchange notes that charging an 
increased annual fee commencing January 2007 to issuers of Bonds and 
Debentures is reasonable given the competitive pressures in the 
industry. Accordingly, the Exchange seeks through this proposal to 
better align its transaction charges with the cost of providing 
products.
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    \8\ 15 U.S.C. 78f(b)(4). Section 6(b)(4) of the Act states that 
the rules of a national securities exchange must provide for ``the 
equitable allocation of reasonable dues, fees, and other charges 
among its members and issuers and other persons using its 
facilities.''
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will 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. 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, as amended, or
    (B) Institute proceedings to determine whether the proposed rule 
change, as amended, 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, 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-2006-20 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-Amex-2006-20. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your 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 the 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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-2006-20 and should be submitted on or before May 
26, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-6777 Filed 5-4-06; 8:45 am]

BILLING CODE 8010-01-P