Document ID: SEC-2007-0209-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-02-09T05:00Z

[Federal Register: February 9, 2007 (Volume 72, Number 27)]
[Notices]               
[Page 6299-6300]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09fe07-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55229; File No. SR-Amex-2007-12]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to a Clarification to the Exchange's Payment for Order Flow 
Plan

February 2, 2007.
    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 January 22, 2007, 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. Amex has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by Amex under 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 clarify the current Payment for Order Flow 
Plan with respect to funds collected from Supplemental Registered 
Options Traders (``SROTs'').

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. Amex has substantially 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 adopted its current Payment for Order Flow Plan in 
February of 2006.\5\ Under the current plan, the Exchange charges an 
equity options marketing fee of $0.75 per contract \6\ solely to 
customer orders that are from payment accepting firms with whom a 
specialist or a Supplemental Registered Options Trader (``SROT''), has 
negotiated a payment for order flow arrangement.\7\ This fee solely 
applies to those orders which are executed electronically through the 
Exchange's ANTE system.
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    \5\ See Securities Exchange Act Release No. 53341 (February 21, 
2006), 71 FR 10085 (February 28, 2006) (approving SR-Amex 2006-15).
    \6\ The fee is $1.00 for SPDR contracts.
    \7\ See Securities Exchange Act Release Nos. 54324 (August 16, 
2006), 71 FR 50110 (August 24, 2006) (SR-Amex 2006-63); and 54486 
(September 22, 2006), 71 FR 57009 (September 28, 2006) (SR-Amex 
2006-79).
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    As noted in the Exchange's previous Payment for Order Flow filings, 
fees are collected from any SROT, specialist or ROT who participates in 
a trade with a payment accepting firm with whom a specialist has 
negotiated a payment for order flow arrangement, or with whom an SROT 
has negotiated a payment with an affiliated SROT.
    The Exchange proposes to clarify the current Payment for Order Flow 
Plan to limit the spending of funds collected from SROTs, which are 
allocated to a specialist, when the SROT participates in a trade where 
the specialist has negotiated a payment for order flow arrangement. In 
these instances, the Exchange proposes to require that the specialist 
be limited to spending any SROT collected funds only in those options 
classes in which the SROT is able to trade.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \8\ in general, and Section 6(b)(4) of the 
Act \9\ in particular, because it is an equitable allocation of 
reasonable dues, fees, and other charges among exchange members and 
other persons using exchange facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).

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[[Page 6300]]

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

    The Exchange does not believe that the proposed rule change will 
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 been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed by the Exchange. Accordingly, the proposal 
will take effect upon filing with the Commission. 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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    \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-2007-12 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-2007-12. 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. 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-2007-12 and should be submitted on or before March 2, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-2150 Filed 2-8-07; 8:45 am]

BILLING CODE 8010-01-P