Document ID: SEC-2008-0934-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-07-10T04:00Z

[Federal Register: July 10, 2008 (Volume 73, Number 133)]
[Notices]               
[Page 39744-39746]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jy08-108]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58086; File No. SR-Amex-2008-52]

 
Self-Regulatory Organizations; American Stock Exchange, LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to an Extension of the Linkage Fee Pilot Program

July 2, 2008.
    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 June 26, 2008, 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 substantially by the 
Exchange. The Commission is

[[Page 39745]]

publishing this notice to solicit comments on the proposed rule change 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to extend for one (1) year through July 31, 
2009, the current pilot program (``Pilot Program'') regarding 
transaction fees for trades executed through the intermarket options 
linkage (``Linkage''). The text of the proposed rule change is 
available at www.amex.com, the Exchange, and 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
    The Amex is proposing to extend for one (1) year through July 31, 
2009, the current Pilot Program establishing Exchange fees for 
Principal Orders (``P Orders'') and Principal Acting As Agent Orders 
(``P/A Orders'') submitted through the Linkage. This proposal does not 
make any substantive changes to the existing Pilot Program, other than 
to extend its operation through July 31, 2009. The fees in connection 
with the Pilot Program are scheduled to expire on July 31, 2008.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 56102 (July 19, 
2007), 72 FR 40908 (July 25, 2007) (SR-Amex-2007-64).
---------------------------------------------------------------------------

    The current fees applicable to P Orders and P/A Orders executed on 
the Exchange are as follows: (i) $0.10 per contract side options 
transaction fee for equity options, exchange traded fund share 
(``ETF'') options and trust issued receipt (HOLDR) options, (ii) $0.21 
per contract side options transaction fee for index options, (iii) 
$0.05 per contract side options comparison fee, (iv) $0.05 per contract 
side options floor brokerage fee, and (v) an options licensing fee for 
certain ETF and index option products ranging from $0.16 per contract 
side to $0.05 per contract side depending on the particular ETF or 
index option.\4\ These are the same fees charged to specialists and 
registered option traders (``ROTs'') for transactions executed on the 
Exchange. The Exchange does not charge for the execution of 
Satisfaction Orders sent through the Linkage.
---------------------------------------------------------------------------

    \4\ See the Options Licensing Fee section of the Amex Options 
Fee Schedule available at www.amex.com.
---------------------------------------------------------------------------

    The Options Fee Schedule also provides that automatically executed 
Linkage Orders (except Satisfaction Orders) are subject to the ``BD 
Auto-Ex Fee'' set forth in Section VII of the Fee Schedule.\5\ As a 
result, the Linkage Orders (except Satisfaction Orders) received by the 
Exchange from a non-member market maker (i.e. an away market maker) 
that are automatically executed are charged (i) a $0.50 per contract 
side options transaction fee, (ii) a $0.05 per contract side options 
comparison fee and (iii) a $0.05 per contract side options floor 
brokerage fee. Accordingly, the total transaction fee for Linkage 
Orders received by a non-member market maker that is automatically 
executed is $0.60 per contract side.\6\
---------------------------------------------------------------------------

    \5\ The BD Auto-Ex Fee provides that broker-dealer orders that 
are automatically executed on the Exchange are subject to (i) a 
$0.50 per contract side options transaction fee for equity options, 
ETF share options, trust issued receipt (HOLDR) options and index 
options, (ii) $0.05 per contract side options comparison fee and 
(iii) $0.05 per contract side options floor brokerage fee.
    \6\ See Securities Exchange Act Release No. 57589 (April 1, 
2008), 73 FR 18827 (April 7, 2008) (SR-Amex-2008-09).
---------------------------------------------------------------------------

    As was the case in the original Pilot Program and subsequent 
extensions, the Exchange believes that the existing fees currently 
charged to Exchange specialists and ROTs should also apply to Linkage 
executions resulting from P/A and P Orders.
    Based on experience to date, the Exchange believes that an 
extension of the Pilot Program for one (1) year through July 31, 2009 
is appropriate.
2. Statutory Basis
    The proposed fee change is consistent with Section 6(b)(4) of the 
Act \7\ regarding the equitable allocation of reasonable dues, fees and 
other charges among Exchange members and other persons using Exchange 
facilities. The Exchange believes that an extension of the existing 
Linkage fee Pilot Program is consistent with Section 6(b)(4) and 
equitably allocates fees to those non-member market makers executing 
orders on the Exchange through the Linkage.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no 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 foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder 
\9\ because: (i) It does not significantly affect the protection of 
investors or the public interest; (ii) it does not impose any 
significant burden on competition; and (iii) by its terms, it does not 
become operative for 30 days after the date of filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest; provided that the self-regulatory 
organization has given the Commission written notice of its intent to 
file the proposed rule change, at least five business days prior to the 
date of filing of the proposed rule change.\10\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ The Exchange satisfied this pre-filing requirement.
---------------------------------------------------------------------------

    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 proposed rule 
change 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-2008-52 on the subject line.

[[Page 39746]]

Paper Comments

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

All submissions should refer to File Number SR-Amex-2008-52. 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 on official business 
days between the hours of 10 a.m. and 3 p.m. Copies of such 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-2008-52 and should be submitted on or before July 31, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15638 Filed 7-9-08; 8:45 am]

BILLING CODE 8010-01-P