[Federal Register Volume 62, Number 227 (Tuesday, November 25, 1997)]
[Notices]
[Pages 62795-62796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30864]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39333; File No. SR-AMEX-97-36]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange, 
Inc. Relating to Revised Equity Fee Schedule

November 17, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October 
14, 1997, the American Stock Exchange, Inc. (``Amex'' or ``Exchange'') 
filed with the Securities and Exchange Commission the fee change as 
described in Items I, II and III below, which Items have been prepared 
by the self-regulatory organization. The Commission is publishing this 
notice to solicit comments on the fee change from interested persons.

[[Page 62796]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex has revised its schedule of fees imposed on trades in 
Standard & Poor's Depositary Receipts 
(``SPDRs'') and Standard & Poor's MidCap Depositary 
Receipts (``MidCap SPDRs''). The text of the 
fee change is available at the Office of the Secretary, the Amex and at 
the Commission.

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 self-regulatory organization 
included statements concerning the purpose of and basis for the fee 
change and discussed any comments it received on the fee change. The 
text of these statements may be examined at the places specified in 
Item IV below. The self-regulatory organization 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange currently imposes a transaction charge and a 
regulatory fee on trades in equity securities executed on the Exchange. 
The Exchange's equity transaction charge is a two-part fee consisting 
of a share charge and a value charge, based on the total number of 
shares traded and the value of such shares, respectively. All equity 
trades executed through the Exchange's Post Execution Reporting 
(``PER'') order routing system up to 1,099 shares are exempt from 
Exchange equity transaction charges (excluding only those for the 
account of non-member competing dealers). The Exchange also imposes a 
separate regulatory fee on all equity trades calculated at .00005 times 
the total value of shares traded.
    The Exchange is now making revisions to its schedule of fees 
relative to trades on the Exchange in SPDRs and MidCap SPDRs. The 
Exchange will charge a different and separate fee which will vary 
depending on for whom the trade was executed. Specialists will be 
charged a transaction fee of $.006 per share ($.60 per 100 shares), 
capped at $300 per trade. Registered Traders will be charged a 
transaction fee of $.007 per share ($.70 per 100 shares), capped at 
$350 per trade. Off-floor orders (both customer and broker-dealer) will 
be charged a transaction fee of $.006 per share ($.60 per 100 shares), 
capped at $100 per trade.
    In addition to the foregoing, orders up to 5,099 shares in SPDRs 
and MidCap SPDRs routed to the Exchange Floor electronically through 
the Exchange's PER System will not be assessed a transaction fee.\1\ 
However, the new fee schedule will operate on a principle consistent 
with that applied in the context of the Exchange's current fee waiver 
in equities generally for PER orders up to 1,099 shares, in that the 
various fee waivers in SPDRs and MidCap SPDRs will not be available to 
PER orders for the account of a non-member competing marketmaker.
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    \1\ Very recently (see SR-AMEX-97-34) the Exchange had extended 
a PER fee waiver to customer orders up to 5,099 shares in all 
exchange-traded fund products (``EXTRA Funds''). This fee schedule 
change was not implemented and is being replaced by the fee schedule 
revisions being made herein.
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    These changes are calculated to lower costs to users of the 
products while making the cost of trading on the Exchange comparable to 
the economics of trading this and functionally similar products in 
other markets. The revised equity fee schedule was implemented by the 
Exchange on October 29, 1997. The Exchange will notify member firms as 
to the date of effectiveness and as to any necessary modifications to 
provide for proper identification of orders entitled to the fee 
exemption.
2. Statutory Basis
    The fee change is consistent with Section 6(b) of the Act in 
general and furthers the objectives of Section 6(b)(4) \2\ in 
particular in that it is intended to assure the equitable allocation of 
reasonable dues, fees, and other charges among members, issuers, and 
other persons using the Exchange's facilities.
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    \2\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The fee change will impose no 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 
fee 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 imposed by the Exchange and, therefore, has become effective 
pursuant to Section 19(b)(3)(A) of the Act \3\ and subparagraph (e)(2) 
of the Rule 19b-4 thereunder.\4\ At any time within 60 days of the 
filing of such fee change, the Commission may summarily abrogate such 
fee 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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    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 19b-4(e).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, DC 20549. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the fee change that are filed with the 
Commission, and all written communications relating to the fee 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 in Washington, DC. Copies of such filing will 
also be available for inspection and copying at the principal office of 
the Amex. All submissions should refer to File No. SR-AMEX-97-36 and 
should be submitted by December 16, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-30864 Filed 11-24-97; 8:45 am]
BILLING CODE 8010-01-M