Document ID: SEC-2007-1043-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-08-01T04:00Z

[Federal Register: August 1, 2007 (Volume 72, Number 147)]
[Notices]               
[Page 42155-42157]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01au07-121]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56127; File No. SR-Amex-2007-63]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Options Order Cancellation Fee

July 24, 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 June 27, 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. The Amex has filed the proposed rule change as one 
establishing or changing a due, fee, or other charge imposed by the 
Exchange 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 revise the options order cancellation fee. 
The text of the proposed rule change is available at Amex, the 
Commission's Public

[[Page 42156]]

Reference Room, and http://www.amex.com.

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. Amex 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 revise the existing options order 
cancellation fee set forth in the Options Fee Schedule. The proposed 
revision would change the manner in which the fee is determined or 
calculated so that the cancellation fee of $1.00 is assessed to the 
executing Clearing Member for each order cancelled through the Amex 
Order File (``AOF'') in excess of the number of orders that the 
executing Clearing Member executes through AOF in a given month.\5\
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    \5\ The operative date of the proposal was designated by Amex as 
July 1, 2007.
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    The current options order cancellation fee set forth in the Options 
Fee Schedule differs in how the fee is assessed against executing 
Clearing Members. The fee of $1.00 is currently charged against an 
executing Clearing Member for every order that it cancels through the 
AOF in a given month when the total number of orders the executing 
Clearing Member canceled through AOF in that month exceeds the total 
number of orders that same Clearing Member executed through AOF in that 
same month. The fee does not apply to executing Clearing Members that 
cancel fewer than 500 orders through AOF in a given month. Accordingly, 
an executing Clearing Member is charged $1.00 for each cancelled order 
in a given month when such cancelled orders exceed executed orders 
through AOF unless the executing Clearing Member cancels fewer than 500 
orders in such given month. The proposal seeks to change how the 
executing Clearing Member is assessed the order cancellation fee so 
that the fee pertains only to the excess of order cancellations versus 
order executions.
    The Exchange believes that the proposal will simplify the 
application of the options order cancellation fee and provide greater 
clarity to market participants. In addition, the Exchange submits that 
the proposal is similar to the order cancellation fee of other options 
exchanges.
    The Exchange believes that charging an options order cancellation 
fee, where applicable, for excess order cancellations is reasonable 
given the increase in costs to the Exchange that may occur as a result 
of a large volume of order cancellations. Accordingly, the Exchange 
seeks, through this proposal, to better manage the application of its 
options order cancellation fee.
2. Statutory Basis
    The Exchange asserts that the proposal is equitable as required by 
section 6(b)(4) of the Act.\6\ In addition, the Exchange believes that 
the proposed rule change is consistent with section 6(b) of the Act,\7\ 
in general, and furthers the objectives of section 6(b)(5),\8\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest.
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    \6\ Section 6(b)(4) states that the rules of a national 
securities exchange provide for the equitable allocation of 
reasonable dues, fees, and other charges among its members and 
issuers and other persons using its facilities.
    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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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 by the Exchange on 
this proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change establishes or changes a 
due, fee, or other charged imposed by the Exchange, it has become 
effective pursuant to section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(2) \10\ thereunder. At any time within 60 days of the filing of 
the proposed rule change the Commission may summarily abrogate such 
proposed 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).
    \10\ 17 CFR 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-2007-63 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-2007-63. 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-2007-63 and should

[[Page 42157]]

be submitted on or before August 22, 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. E7-14831 Filed 7-31-07; 8:45 am]

BILLING CODE 8010-01-P