Document ID: SEC-2008-0703-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-05-13T04:00Z

[Federal Register: May 13, 2008 (Volume 73, Number 93)]
[Notices]               
[Page 27582-27583]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13my08-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57794; File No. SR-Amex-2008-34]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change To Give Retroactive Effect to Its 
Revenue Sharing Program for ETF Quoting Participants

May 7, 2007.
    On March 27, 2008, the American Stock Exchange LLC (``Amex'' or

[[Page 27583]]

``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposal to retroactively apply its revenue sharing 
program (``RSP'') for Designated Amex Remote Traders (``DARTs''), ETF 
specialists, and registered traders (collectively, ``ETF quoting 
participants''). The proposal was published for comment in the Federal 
Register on April 4, 2008.\3\ The Commission received no comments on 
the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57578 (March 28, 
2008), 73 FR 18592.
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    The RSP was first put in place by the Exchange for ETF specialists 
and registered traders, effective July 1, 2007, and was to last through 
December 31, 2007 unless otherwise extended.\4\ The Exchange 
inadvertently failed to file to extend the RSP at the expiration of 
that time period, but, upon realizing the error, promptly filed to 
reinstate the RSP for all ETF quoting participants, effective March 18, 
2008.\5\ The RSP is now in effect through the end of September 2008.
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    \4\ See Securities Exchange Act Release No. 55893 (June 29, 
2007), 72 FR 37059 (July 6, 2007) (SR-Amex-2007-68) (``RSP 
Release'').
    \5\ See Securities Exchange Act Release No. 57541 (March 20, 
2008) (SR-Amex-2008-25), 73 FR 16400 (March 27, 2008) (reinstating 
RSP for all ETF quoting participants); see also Securities Exchange 
Act Release No. 57540 (March 20, 2008), 73 FR 16399 (March 27, 2008) 
(SR-Amex-2008-23) (expanding RSP to DARTs).
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    The Exchange now seeks to retroactively apply the RSP for the time 
period January 1, 2008 through March 17, 2008 (the ``retroactive 
period'') in order to provide continuity in the RSP for all ETF quoting 
participants on the Exchange, who continued to quote aggressively 
during the retroactive period in the expectation of receiving RSP 
payments. RSP payments for the retroactive period will be made pursuant 
to the same terms established in the RSP Release.\6\
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    \6\ See supra note 4.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\7\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(4) of the Act,\8\ which requires the equitable allocation 
of reasonable dues, fees, and other charges among Exchange members and 
other persons using Exchange facilities. In approving this proposal, 
the Commission notes the Exchange's statements that ETF quoting 
participants have relied on the expectation of RSP payments during the 
retroactive period, and that the Exchange does not believe it fair to 
withhold RSP payments from ETF quoting participants for the retroactive 
period solely because of the Exchange's inadvertent failure to extend 
the RSP.
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    \7\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-Amex-2008-34) be, 
and it hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    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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Nancy M. Morris,
Secretary.
 [FR Doc. E8-10562 Filed 5-12-08; 8:45 am]

BILLING CODE 8010-01-P