Document ID: SEC-2008-0468-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-03-26T04:00Z

[Federal Register: March 26, 2008 (Volume 73, Number 59)]
[Notices]               
[Page 16080-16082]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr08-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57532; File No. SR-Amex-2008-21]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Eliminate the Nasdaq UTP Equity Fee Schedule

March 19, 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 March 10, 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 substantially prepared by the 
Exchange. The Exchange has designated this proposal as one establishing 
or changing a due, fee, or other charge applicable only to a member, 
pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ 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 eliminate the Nasdaq UTP Equity Fee 
Schedule. The text of the proposed rule change is available at the 
Exchange's principal office, on the Exchange's Web site at http://
www.amex.com, 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
    The Exchange proposes to eliminate the Nasdaq UTP Equity Fee 
Schedule for transactions in connection with the Exchange's Nasdaq UTP 
Program. As a replacement for the Nasdaq UTP Equity Fee Schedule, the 
Exchange proposes to charge members for transactions in Nasdaq UTP 
securities pursuant to the Exchange's existing Equity Fee Schedule.
    Currently, transaction fees for Nasdaq UTP securities are 
differentiated between specialist trades ($0.10 per 100 shares), member 
competing market maker trades ($0.15 per 100 shares), non-member 
competing market maker trades ($0.15 per 100 shares), Amex equity 
traders ($0.15 per 100 shares),

[[Page 16081]]

non-member customer trades ($0.15 per 100 shares) and member customer 
trades ($0.15 per 100 shares).\5\ In addition, the Exchange waives 
specialist transaction charges for those specialists that do not charge 
a commission to customers. With respect to crosses, there is a maximum 
charge of $50 per side per trade. The Exchange does not charge for 
Nasdaq UTP securities transactions executed at a price of less than 
$1.00 per share.
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    \5\ These fees are charged only to Exchange members.
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    This proposal would eliminate the separate Nasdaq UTP Equity Fee 
Schedule and instead charge members for Nasdaq UTP transactions 
pursuant to the existing Equity Fee Schedule. As a result, transaction 
charges for customers would be based on the number of shares executed 
per month. The current rate is $0.0030 for shares executed in a month 
of up to 50 million and $0.0025 for shares executed in a month over 50 
million. A transaction charge is assessed only on the first 5,000 
shares of any transaction. In addition, transactions resulting from 
orders entered electronically into the Amex Order File from off the 
floor (``System Orders'') for up to 500 shares are not assessed a 
transaction charge. The fee for shares that execute with a price below 
$1.00 per share is 0.3% of the total dollar value of the transaction.
    Specialist charges under the Equity Fee Schedule are $0.0003 per 
share side or $0.03 per 100 shares. Nasdaq UTP securities would also be 
subject to the equities order cancellation fee which provides that the 
executing clearing member is charged $0.25 for every additional 
equities and ETF order sent for a mnemonic and cancelled through Amex 
systems in a given month when the total number of equities and ETF 
orders cancelled for that mnemonic is more than 50 times the equities 
and ETF orders executed through Amex systems for that mnemonic in that 
same month. Cancellations resulting from ``Immediate or Cancel'' or 
``Fill or Kill'' orders and cancellations entered to cancel at the 
opening orders not executed at the opening are not counted towards the 
number of cancellations used to determine whether the fee should be 
applied to a mnemonic and will not be counted when determining the 
amount of the cancellation fee charged to an executing clearing member. 
Executions of ``Immediate or Cancel'' and ``Fill or Kill'' orders will 
however be counted towards the number of executions.
    Clearing charges for orders routed to and executed on another 
exchange or market center are assessed at a monthly rate of $0.0004 per 
share ($0.04 per 100 shares). In addition, the Equity Fee Schedule also 
charges members for orders routed to and executed on another exchange 
or market center at the monthly rate of $.0030 per share ($0.30 per 100 
shares). This routing charge for shares that execute with a share price 
below $1.00 is 0.3% of the total dollar value of the transaction.
    The elimination of the Nasdaq UTP Equity Fee Schedule would be 
effective immediately.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\6\ in general and furthers the objectives of Section 6(b)(4) of the 
Act \7\ in particular in that it is intended to assure the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities. 
Specifically, the Exchange believes that the proposal provides for an 
equitable allocation of reasonable fees among Exchange members through 
the elimination of a separate fee schedule applicable to the Exchange's 
Nasdaq UTP Program. Members engaging in transactions in Nasdaq UTP 
securities would be subject to the Exchange's Equity Fee Schedule.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change is establishing or changing a 
due, fee, or other charge applicable only to a member, it has become 
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 
19b-4(f)(2) thereunder.\9\ 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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-2008-21 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-2008-21. 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 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-2008-21 and should be 
submitted on or before April 16, 2008.

[[Page 16082]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6126 Filed 3-25-08; 8:45 am]

BILLING CODE 8011-01-P