Document ID: SEC-2006-1258-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-09-28T04:00Z

[Federal Register: September 28, 2006 (Volume 71, Number 188)]
[Notices]               
[Page 57009-57010]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se06-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54486; File No. SR-Amex-2006-79]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating To the Amendment to the Payment for Order Flow Plan To Include 
Supplemental Registered Options Traders

September 22, 2006.

    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 August 18, 2006, 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 prepared by the Exchange. The Amex 
has designated this proposal as one establishing or changing a due, 
fee, or other charge imposed by the 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 Amex proposes to amend the its current options fee schedule and 
Payment for Order Flow Plan to allow Supplemental Registered Options 
Traders (``SROTs'') to negotiate a payment for order flow arrangement 
with any affiliated order flow provider (``OFP'') from which they 
receive the guaranteed SROT allocation.\5\
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    \5\ Telephone conference between Michou H.M. Nguyen, Special 
Counsel, Division of Market Regulation, Commission, and Nyieri 
Nazarian, Assistant General Counsel, Exchange, on September 18, 
2006. See also Amex Rule 935-ANTE(a)(7).
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    The text of the proposed rule change is available on the Amex's Web 
site at http://www.amex.com, at the principal office of the Exchange, 

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 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 Amex proposes to amend the its current options fee schedule and 
Payment for Order Flow Plan to allow SROTs to negotiate a payment for 
order flow arrangement with any affiliated OFP from which they receive 
the guaranteed SROT allocation.\6\
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    \6\ Id.
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    The Exchange states that it adopted its current Payment for Order 
Flow Plan in February of 2006.\7\ The Amex states that under the 
current plan, the Exchange charges an equity options marketing fee of 
$0.75 per contract solely with respect to customer orders that are from

[[Page 57010]]

payment accepting firms with whom a specialist has negotiated a payment 
for order flow arrangement. SPDR Options are currently subject to a 
$1.00 per contract fee. The Amex states that this fee solely applies to 
those orders that are executed electronically through the Exchange's 
ANTE system.
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    \7\ See Securities Exchange Act Release No. 53341 (February 21, 
2006), 71 FR 10085 (February 28, 2006) (SR-Amex-2006-15).
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    The Exchange now proposes to allow SROTs to negotiate such an 
arrangement from any affiliated OFPs from which they receive the 
guaranteed SROT allocation. Payment collected on SROT trades would be 
set aside for that particular SROT. In addition, fees would be 
collected from any SROT, specialist, or ROT who participates in the 
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 furthers the 
objectives of section 6(b)(4) of the Act,\9\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among Amex members and other persons using Amex 
facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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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

    The Exchange neither solicited nor received comments 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-2006-79 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-2006-79. 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 the 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-2006-79 and should be submitted on or before 
October 19, 2006.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-15925 Filed 9-27-06; 8:45 am]

BILLING CODE 8010-01-P