[Federal Register Volume 65, Number 55 (Tuesday, March 21, 2000)]
[Notices]
[Pages 15186-15188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6951]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42526; File No. SR-Amex-00-08]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 by American Stock Exchange LLC and Order 
Granting Accelerated Approval of the Proposed Rule Change as Amended, 
Relating To Establishing a Fee Structure To Provide Daily Share Volume 
and Other Reports Via AmexTrader.com

March 13, 2000.
    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 February 7, 2000, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. On March 10, 2000, the Exchange filed Amendment No. 1 to the 
proposed rule change,\3\ which supersedes and replaces entirely the 
initial proposal. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons, and to 
grant accelerated approval of the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which Amex filed pursuant to Section 
19(b)(2) of the Act, replaces the initial proposal, which Amex filed 
pursuant to Section 19(b)(3)(A) of the Act. Because the fees which 
the Exchange intends to charge for historical research reports may 
be paid by non-members, the proposal is properly filed pursuant to 
Section 19(b)(2) of the Act. See 15 U.S.C. 78s(b)(1) and 15 U.S.C. 
78s(b)(3)(A).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Amex proposes to establish a fee structure to provide daily share 
volume and other reports through the AmexTrader.com web site. Below is 
the text of the proposed rule change. All text is being added; there 
are no deletions.
* * * * *
Historical Research and Administrative Reports
    The charge to be paid by the purchaser of separate Historical 
Research and Administrative Reports, shall be as follows:
    (1) Daily Detailed Reports--$7 per day, per security and/or market 
participant for reports containing 15 fields or less. $15 per day, per 
security and/or market participant for reports exceeding 15 fields.
    (2) Summary Level Activity Reports--$25 per report.
    (3) Administrative Reports--$25 per user, per month.
* * * * *

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 
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 III 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
Historical Research Reports
    Amex proposes to establish a fee to provide to investors, upon 
request, historical research reports in electronic formats pertaining 
to Amex issues. Until recently, Amex has provided these reports 
exclusively on an ad hoc basis to customers requesting this information 
by telephone. Under the current system, investors contact an Amex staff 
member via telephone, describe the type of customized report desired, 
and arrange for an appropriate billing and delivery method before 
having the Amex staff member compile the report. Reports are issued in 
hard copy formats for a fee, ranging from $10-$575 depending on the 
number of pages the report consists of, and the amount of effort taken 
to prepare and process the report. The fees consist of an 
administration fee of $10-

[[Page 15187]]

$150 depending on the number of pages in the report, a copy charge of 
$.25 per report page, and if the report is delivered via fax, a fax 
transmission fee of $.15 per page (faxed to one recipient) or $.40 per 
page (faxed to multiple recipients). The average report fee assessed is 
$20-$30. The Amex believes this is an inefficient and time-consuming 
arrangement that is both burdensome to Amex staff and an impediment to 
the accessibility of the information for the investor.
    As the number of individual investors in today's market directing 
their own investment decisions has increased, the volume of requests 
for this information has also increased. To alleviate the demand upon 
staff resources and increase the quality, speed and availability of the 
information available to investors, Amex will develop an automated 
request and delivery system that will facilitate the delivery of these 
reports in a timely and systematic manner at a fixed price, based on a 
standardized pricing methodology. Investors will be able to access the 
reports via the Internet on the AmexTrader.com web site. Once at the 
proper location within the web site, the investor will choose from a 
list of standardized reports, input the necessary information 
pertaining to the desired security to market participant, and provide 
credit card information for payment.\4\ Once completed, the report will 
be sent via e-mail directly to the investor.
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    \4\ Credit card information will be provided utilizing a secure 
web site connection.
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    Amex proposes to provide historical research reports that fall into 
two categories: ``Daily Detailed Reports'' and ``Summary Level Activity 
Reports.'' Examples of Daily Detailed Reports include a Time and Sales 
Report (provides a record of media-reported trades in the selected 
security, indicating the reported time, price and share volume) and a 
Sales and Quotes Report (provides trade information and inside quote 
information at trade time). Summary Level Activity Reports would 
provide trade and/or quote information over a monthly or quarterly 
period.
    Fees for the Daily Detailed Reports would be set on a two-tiered 
basis to reflect the amount of information provided and give Amex a 
level of flexibility in developing new reports and modifying those 
currently envisioned. Amex proposes to assess a fee of $7 for reports 
with 15 or fewer fields of information \5\ for each trading day 
requested.\6\ Those reports with more than 15 fields would cost $15 per 
trading day of information. Some reports may be available for purchase 
on a single-day basis, while others may be available only as multiple-
day packages with a corresponding charge based on the number of days 
provided. Fees for Summary Level Activity Reports would be fixed at $25 
per report.
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    \5\ Examples of fields, depending on the type of report chosen, 
could include reported volume, reported price, reported time, inside 
bid/ask, short sale indicator, etc.
    \6\ For example, an investor requesting a report containing 12 
fields of information for a three-trading-day period would be 
charged $21.
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    Amex believes that this pricing structure is a suitable assessment 
method that will facilitate the creation of an inexpensive and 
effective service for investors.
Administrative Reports
    This second category of reports, available through AmexTrader.com, 
termed ``Administrative Reports'', will be available to Amex member 
firms only.
    Administrative Reports would serve to assist members in auditing 
their own internal systems, verifying back-end processing, and 
projecting monthly costs. Subscribing member firms would be charged a 
$25 fee per user, per month, for access to each administrative 
report.\7\
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    \7\ After assessing the demand for this service, Amex may offer 
volume discounts to purchasers of multiple reports if such discounts 
are determined to be economically feasible.
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2. Statutory Basis
    Amex believes that the proposed rule change is consistent with the 
provisions of sections 6(b)(4) \8\ and 6(b)(5) \9\ of the Act. Section 
6(b)(4) \10\ requires the equitable allocation of reasonable dues, fees 
and other charges among members and issuers and other persons using its 
facilities. Section 6(b)(5) \11\ requires rules that foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities and that are not designed to permit unfair discrimination 
between customers, issuers, brokers or dealers. Amex believes that this 
service involves the implementation of reasonable fees, assessed only 
to users utilizing the service, while providing beneficial information 
to subscribers on a non-discriminatory basis.
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    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Amex does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate of the 
purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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 be withheld from the public in accordance with the provisions of 5 
U.S.C. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street, NW, Washington 
DC 20549. 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-00-08 and should be submitted by April 11, 
2000.

IV. Commission's Findings and Order Granting Accelerated Approval 
of Proposed Rule Change

    The Commission has reviewed carefully the Amex's proposed rule 
change, as amended, and finds, for the reasons set forth below, the 
proposal is consistent with the requirements of Section 6 of the Act 
\12\ and the rules and regulations thereunder applicable to a national 
securities exchange. Specifically, the Commission finds that approval 
of the proposed rule change is consistent with Sections 6(b)(4)\13\ and 
(5)\14\ of the Act. Section 6(b)(4)\15\ requires the equitable 
allocation of reasonable fees and charges among members and other users 
of facilities operated or controlled by an exchange. The Commission 
finds that the fees which Amex has proposed for the historical research 
and administrative

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reports delineated in the proposal are reasonable, given the 
reliability and accessibility of the information.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ 15 U.S.C. 78f(b)(4).
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    Furthermore, Section 6(b)(5) \16\ requires rules that foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and that are not designed to permit unfair 
discrimination between customers, issuers, brokers or dealers. Because 
the fees which Amex proposes to charge for the specified historical 
research and administrative reports will be assessed only to users of 
the service, the Commission finds that the proposal is both non-
discriminatory and reasonable. The Commission also believes that the 
proposal may help to foster cooperation and coordination with persons 
engaged in facilitating transactions in securities by providing 
beneficial information to subscribers on a non-discriminatory basis for 
a reasonable fee. In doing so, the proposal may boost investor 
confidence, while contributing to the integrity of the securities 
markets.
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    \16\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice thereof in the Federal Register. Accelerated approval would 
afford investors the benefits to be realized under this proposal as 
soon as possible. Additionally, the Commission notes that the proposal 
is substantially similar to SR-NASD-99-70,\17\ which was noticed for 
the full 21-day comment period, and for which no comments were 
received. The Commission finds, therefore, that good causes exists, 
consistent with Section 19(b)\18\ and Section 6(b)\19\ of the Act, to 
grant acclerated approval of the proposed rule change.
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    \17\ Securities Exchange Act Release No. 42341 (January 14, 
2000), 65 FR 3513 (January 21, 2000).
    \18\ 15 U.S.C. 78s(b).
    \19\ 15 U.S.C. 78f(b).
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    It is therefore ordered, pursuant Section 19(b)(2) of the Act,\20\ 
that the proposed rule change be and hereby is approved on an 
accelerated basis.
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    \20\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-6951 Filed 3-20-00; 8:45 am]
BILLING CODE 8010-01-M