Document ID: SEC-2006-1352-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-10-19T04:00Z

[Federal Register: October 19, 2006 (Volume 71, Number 202)]
[Notices]               
[Page 61809-61811]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc06-137]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54593; File No. SR-Amex-2006-97]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Electronic Access Fee

 October 12, 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 October 4, 2006, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted

[[Page 61810]]

to 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. Amex filed the proposed rule change 
pursuant to 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 amend Amex's Member Fee Schedule to reduce 
the Electronic Access Fee from $61,363 to $30,000. The text of the 
proposed rule change is available on Amex's Web site at http://www.amex.com
, at the principal office of 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, 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 purpose of this proposal is to amend Amex's Member Fee Schedule 
to reduce the Electronic Access Fee from $61,363 to $30,000. Amex 
currently charges a $61,363 electronic access fee (``Fee'') to 
Associate member firms \5\ which route order flow to the Exchange. 
Eleven out of the 42 Associate member firms currently registered with 
Amex pay the Fee each year.\6\
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    \5\ An Associate member firm is not required to own or lease a 
seat to qualify as a member firm.
    \6\ The Fee is billed once a year in the fall for the upcoming 
fiscal year.
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    All new Associate members were required to pay the Fee when it was 
established in August of 2000.\7\ The Exchange proposes to revise the 
Fee to reflect the current prices of seats and the prices to lease a 
seat. The fee change will not affect the value of the regular seats.
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    \7\ See Securities Exchange Act Release No. 43279 (September 11, 
2000), 65 FR 56606 (September 19, 2000) (approving File No. SR-Amex-
2000-44); see also Securities Exchange Act Release No. 44337 (May 
22, 2001), 66 FR 29369 (May 30, 2001) (approving File No. SR-Amex-
2001-15).
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    Of the 42 current Associate member firms, only two have been 
approved since August 2000, subjecting them to payment of the Fee. 
Furthermore, the number of Associate member firms with electronic 
access capability has significantly decreased over the past few years 
as such firms either terminate or change their status to an off-floor, 
regular membership.
    The Exchange believes that the new reduced Fee will not undermine 
other Amex member firms and will appeal to regional firms interested in 
sending order flow to Amex, without the need for a physical presence at 
the Exchange. The Exchange asserts that the proposal is equitable as 
required by Section 6(b)(4) of the Act.
2. Statutory Basis
    Amex 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 its members and issuers 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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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.

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 establishes or changes a due, fee, or 
other charge applicable only to a member imposed by the Exchange, and, 
therefore, has become effective pursuant to Section 19(b)(3)(A)(ii) of 
the Act \10\ and subparagraph (f)(2) of Rule 19b-4 thereunder.\11\ 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-2006-97 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-2006-97. 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-2006-97 and should be submitted on or before November 9, 2006.

[[Page 61811]]

    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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-17392 Filed 10-18-06; 8:45 am]

BILLING CODE 8011-01-P