Document ID: SEC-2008-1402-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-10-09T04:00Z

[Federal Register: October 9, 2008 (Volume 73, Number 197)]
[Notices]               
[Page 59689-59690]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09oc08-150]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58712; File No. SR-Amex-2008-73]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by American Stock Exchange LLC 
Relating to the Amex Price List After the Acquisition of NYSE Euronext

October 2, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 29, 2008, the American Stock Exchange LLC (``Amex'' 
or ``Exchange'') filed with the Securities and Exchange Commission the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the self-regulatory organization. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    In connection with its pending acquisition by NYSE Euronext--the 
parent company of the New York Stock Exchange LLC (``NYSE'') and NYSE 
Arca--the American Stock Exchange LLC (``Amex'' or ``Exchange'') is 
seeking to revise the Amex Price List that will be put in effect after 
the acquisition closes.
    The text of the proposed rule change is available on the Amex's Web 
site at http://www.amex.com, the Office of the Secretary, the Amex 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 self-regulatory organization 
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 self-regulatory organization 
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
Background
    Pursuant to an agreement dated January 17, 2008, the Amex is being 
acquired by NYSE Euronext--the parent company of the NYSE and NYSE 
Arca--through a series of mergers as described in SR-Amex-2008-62 (the 
``Transaction'').\3\ Following completion of the Transaction, Amex will 
become one of the U.S. Regulated Subsidiaries \4\ of NYSE Euronext and 
will continue to engage in the business of operating a national 
securities exchange registered under Section 6 of the Securities 
Exchange Act of 1934, as amended (the ``Act'').\5\ Following the 
Transaction, the name of the new exchange will be NYSE Alternext US 
LLC. NYSE Alternext US will continue to operate a marketplace for the 
listing and trading of equities, options, bonds and for a limited 
period of time Exchange Traded Fund shares (``ETFs'') and certain 
structured products. It is anticipated that after a period of 
transition during which these products will continue to trade on Amex 
legacy trading systems and facilities, the trading of these products 
will be relocated to trading systems and facilities operated by NYSE or 
NYSE Arca on behalf of NYSE Alternext US.\6\ The substantive changes to 
the Amex Price List proposed herein will be in effect during the 
transition period, beginning with the first complete billable month 
after the completion of the Transaction through to the relocation of 
the trading of each of the product lines. The non-substantive changes 
such as changes to the name of the Exchange and elimination of 
references to seat owners and memberships will take place immediately 
after the Transaction closes.
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    \3\ Securities Exchange Act Release No. 58284 (August 1, 2008), 
73 FR 46086 (August 7, 2008) Notice of Filing of Proposed Rule 
Change SR-Amex 2008-62.
    \4\ The term ``U.S. Regulated Subsidiary'' is defined under 
Article VII, Section 7.3(G) of the Bylaws of NYSE Euronext.
    \5\ 15 U.S.C. 78f.
    \6\ For more information regarding the relocation of equity 
products see Securities Exchange Act Release No. 58265 (July 30, 
2008) 73 FR 46075 (August 7, 2008) Notice of Filing of Proposed Rule 
Change SR-Amex 2008-63. In addition, the Exchange will submit 
separate rule filings regarding the relocation of options, bonds, 
ETFs and structured products in the near future.
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    During the transition period NYSE Alternext US intends to make 
available to persons and entities that apply and meet certain 
requirements a temporary trading permit (to be known as an ``86 Trinity 
Permit'') to allow holders to trade products currently traded on the 
Exchange prior to the relocation of the trading of the products as 
described above.\7\ To ensure continuity following the Transaction, 
persons and entities that were authorized to trade on the Exchange 
immediately prior to the Transaction, will be deemed to have satisfied 
applicable requirements necessary to receive an 86 Trinity Permit. Any 
person or organization seeking access to the Exchange during the 
transition period will need to obtain an 86 Trinity Permit.
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    \7\ For a further description of 86 Trinity Permit Holders see 
Securities Exchange Act Release No. 58284 (August 1, 2008) 73 FR 
46086 (August 7, 2008) Notice of Filing of Proposed Rule Change SR-
Amex 2008-62.
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Description of Changes to the Price List
    In addition to changing the name of the Amex Price List to the NYSE 
Alternext U.S. Price List and revisions to references related to seat 
owner and memberships to reflect the issuance of 86 Trinity Permits, 
the Exchange proposes to make the following changes:
    1. The following floor fees will be waived for holders of 86 
Trinity Permits during the transition period beginning with the first 
complete billable month after the Transaction closes (referred to 
hereinafter as the ``Operative Date''). For example, if the Transaction 
closes in September, floor fees will be waived beginning in October. 
Floor fees include Floor Clerk Fee, Floor Facility Fee, Floor Wire 
Privilege Fee, Post Fee per Podium Fee, Specialist Registration Fee and 
the Technology Fee.
    2. The Cable TV fee will be increased from $360 per year to $420 
per year to reflect an increase in the cost of this service to the 
Exchange; this fee

[[Page 59690]]

increase will go into effect on the Operative Date. In addition the 
Price List will be revised to include the monthly rate charged for 
services that are billed on a monthly rather than annual basis. 
Reference to the Membership Certificate fee of $20.00 will be 
eliminated since the Exchange will no longer issue such certificates.
    3. The Price List section on Booth Rental and Order Pads is revised 
and updated to eliminate the references to (i) Order Pads since there 
is no fee indicated for order pads in that section; and (ii) the Booth 
Rental fees no longer in effect.
    4. The Price List section on Members Fees is revised to (i) change 
the name of the section to 86 Trinity Permit Holder Fees; (ii) 
eliminate Membership Dues; (iii) eliminate Initiation Fees, except for 
the Application Processing Fee and the $45 fee for use of the 
Exchange's in-house fingerprinting service; (iv) change the name of the 
subsection Membership Fees to 86 Trinity Permit Holder Fees and waive 
the Limited Trading Permits (``LTP'') fee for those LTP holders who 
become 86 Trinity Permit Holders after the Transaction closes\8\ The 
LTP Fee is billed at the beginning of each quarter, therefore, if the 
Transaction closes in the middle of a quarter, waiver of the fee will 
be effective at the beginning of the next quarter and will not be 
applied retroactively; (v) eliminate the Qualifying Maintenance fee 
charged to Interim Members; and (vi) eliminate obsolete notes.
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    \8\ As discussed in proposed rule change SR-Amex 2008-62, during 
the transition period physical and electronic access to NYSE 
Alternext US's trading facilities will only be made available to 
individuals that obtain an 86 Trinity Permit, thus the access a LTP 
holder had prior to the Transaction will be cancelleld and for 
continued access such former LTP holder may obtain an 86 Trinity 
Permit.
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    5. The Price List section on Registration and IDC Fees is being 
revised to replace NASD with FINRA.
    References throughout the Price List to Amex or ASE will be revised 
to NYSE Alternext U.S. or Exchange where appropriate.
(2) Statutory Basis
    The Exchange believes that the proposed fee change is consistent 
with Section 6(b)(4) of the 1934 Act \9\ regarding the equitable 
allocation of reasonable dues, fees and other charges among exchange 
members and other persons using exchange facilities. In particular the 
Exchange is revising its Price List to be in effect during the 
transition period after the closing of its Transaction with NYSE 
Euronext. Most of the fees currently in place on the Amex will remain 
in effect after the closing of the Transaction and throughout the 
transition period, however, certain member fees are being waived for 
the transition period to help off-set costs it is anticipated members 
will incur when transitioning their operations to NYSE Alternext's new 
trading facilities.
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    \9\ 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 1934 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 rule change has become effective immediately pursuant 
to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-4(f)(2) \11\ 
thereunder. 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 of 
appropriate in the public interest, for the protection of investors, or 
otherwise in the furtherance of the purposes of the Securities Exchange 
Act of 1934.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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-2008-73 on the subject line.

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-2008-73. 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 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-2008-73 and should be submitted on or before October 30, 2008.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority. \12\
Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-23925 Filed 10-8-08; 8:45 am]

BILLING CODE 8011-01-P