Document ID: SEC-2007-1287-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-09-18T04:00Z

[Federal Register: September 18, 2007 (Volume 72, Number 180)]
[Notices]               
[Page 53270-53271]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18se07-76]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56382; File No. SR-Amex-2007-80]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Member Floor Fees

September 11, 2007.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act''), and Rule 19b-4 \2\ thereunder, notice is hereby 
given that on August 29, 2007, the American Stock Exchange LLC 
(``Amex'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I, II, and III below, which Items have been prepared 
substantially by the Exchange. Amex has designated the proposed rule 
change as establishing or changing a due, fee, or other charge 
applicable only to members, pursuant to section 19(b)(3)(A)(ii) of the 
Act,\3\ and Rule 19b-4(f)(2) \4\ thereunder, which renders the proposal 
effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to revise the Amex Floor Fee Schedule (the 
``Fee Schedule'').
    The text of the proposed rule change is available on Amex's Web 
site at http://www.amex.com, at Amex's Office of the Secretary, 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, Amex 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposal is to adopt various floor fees for 
services provided by the Exchange to members and member organizations 
in connection with the installation and management of member technology 
and computer networks. These services, among other things, include 
floor facilities, network connectivity, power and telecommunications. 
The Exchange submits that these changes will be implemented on 
September 1, 2007.
    The Fee Schedule sets forth the various floor fees that the 
Exchange proposes to adopt on either a one-time, annual or monthly 
basis as appropriate. The proposal seeks to add three (3) new 
categories to the Fee Schedule to include (i) Colocation Space, (ii) 
Amex Port Charges and (iii) Power. In addition, the proposal adds 
various fees in the Fee Schedule under sections entitled ``Market Data 
Fees/Terminals,'' ``Equipment'' and ``Telecommunications.''
    The section entitled ``Colocation Space'' relates to the Exchange 
facilities space that is made available to members and member firms for 
the purpose of managing their own network and computing hardware at the 
Amex. The proposed fees provide that the members and member firms 
desiring full cabinet \5\ space be assessed a one-time fee of $2,125.00 
with an ongoing annual fee of $14,400 ($1,200/month). Alternatively, 
for a 1/8 cabinet increment, members will be charged a one-time fee of 
$265.00 with an annual fee of $1,800.00 ($150 per month).
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    \5\ ``Full cabinet'' is defined as one (1) 44 rack unit (RU) 
powered telecommunications cabinet or rack with 33 RU usable space. 
Standard power is one (1) 20 amperes (amps) 120 volts primary power 
circuit and one (1) 20 amps 120 volts redundant power circuit per 
cabinet or rack with 16 amps available per circuit.
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    The section entitled ``Amex Port Charges'' are proposed charges for 
network connectivity. These proposed one-time fees range from $100 to 
$780 with ongoing annual fees ranging from $792 ($66/month) to $7,020 
($585/month). The proposed connectivity charge will depend on the type 
of network connectivity.
    The section entitled ``Power'' are proposed charges for electrical 
power that members and member firms may use to supplement the power 
included in the standard Colocation Space. Proposed charges range from 
$1,200 a year ($100/month) to $21,912.00 a year

[[Page 53271]]

($1,826/month). Differences in the proposed fees depend on whether the 
electrical power is primary or redundant and the specific voltage and 
amp requirements.
    The proposal also adds various charges for market data in the 
current section entitled ``Market Data Fees/Terminals.'' These proposed 
fees range from $113.76 a year ($9.48/month) to $3,120 a year ($260/
month). The proposed charges are for fees in connection with various 
market data services such as Dow Jones and Bloomberg.
    With respect to the proposed fee additions to the section entitled 
``Equipment,'' members and member firms would be assessed for the use 
of ``Podia'' \6\ and ``MCTV'' \7\ in the amount of $1,044 per year 
($87/month) and $479.88 per year ($39.99/month), respectively. As 
provided for in the proposed Floor Fee Schedule, these charges would 
defray the Exchange's cost of providing this equipment to members. 
Similarly, the proposed ``Internet Service Fee'' of $840.00 per year 
($70/month) in the section entitled ``Telecommunications'' will defray 
the cost of providing this service to those members and member firms 
that choose to access the internet through the Exchange.
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    \6\ ``Podia'' refers to an increment of space used by 
specialists at a trading post.
    \7\ ``MCTV'' is cable television.
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    Lastly, the current ``Floor Wire Privilege Fee'' would be 
eliminated under the proposal because the proposed charges in 
connection with ``Amex Port Charges'' apply to network connectivity so 
that the ``Floor Wire Privilege Fee'' is not necessary.
2. Statutory Basis
    The proposed fee change is consistent with section 6(b)(4) of the 
Act \8\ regarding the equitable allocation of reasonable dues, fees and 
other charges among exchange members and other persons using exchange 
facilities. The Exchange believes that the proposal is an equitable 
allocation of reasonable fees/charges among floor members because the 
fees/charges relating to floor facilities, network connectivity, power 
and telecommunications are assessed only against those floor members 
who choose to employ the Exchange's offering of such products/services. 
In addition, the Exchange submits that the proposed fees/charges are 
reasonable in connection with the Exchange's offered products/services, 
and are largely expected to cover the cost to the Exchange of providing 
such products/services. Accordingly, the Exchange seeks, through this 
proposal, to better manage its costs for supplying member technology 
and computer networks.
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    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that 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. 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)(ii) of the Act,\9\ and Rule 19b-4(f)(2) \10\ 
thereunder, because it establishes or changes a due, fee, or other 
charge imposed by the Exchange, applicable only to members. 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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-2007-80 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-2007-80. 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, 100 F. Street, 
NE., Washington, DC 20549, 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 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-2007-80 and should be 
submitted on or before October 9, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-18269 Filed 9-17-07; 8:45 am]

BILLING CODE 8010-01-P