[Federal Register Volume 65, Number 91 (Wednesday, May 10, 2000)]
[Notices]
[Pages 30154-30155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11607]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42752; File No. SR-Amex-00-18]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange LLC Relating to Options 
Transaction Fees for Non-Member Broker-Dealers

May 3, 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 give that 
on April 7, 2000, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule

[[Page 30155]]

change as described in Items I, II, and III below, which Items have 
been prepared by the Exchange. 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 240.19-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to increase equity options transaction fees for 
non-member broker dealer orders.

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 Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspect 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 increase equity options transaction fees for 
non-member broker-dealer orders. The Amex currently imposes a 
transaction charge on options trades executed on the Exchange. The 
charges vary depending on whether the transaction involves an equity or 
index option and whether the transaction is executed for a specialist 
or market maker account, a member firm's proprietary account, a non-
member broker-dealer, or a customer account. The Amex also imposes a 
charge for clearance of options trades and an options floor brokerage 
charge, which also depends upon the type of account for which the trade 
is executed. In addition, all three types for charges--transaction, 
options clearance, and options floor brokerage--are subject to caps on 
the number of options contracts subject to the charges on a given 
day.\3\
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    \3\ The current caps are set at 2000 contracts for customer 
trades and 3000 contracts for member firm proprietary, non-member 
broker-dealer, specialist, and market maker trades.
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    Recently, the Amex eliminated all options transaction, clearance, 
and floor brokerage fees for customer equity options orders.\4\ To 
offset the elimination of these fees for customer equity options 
orders, the Exchange raised the equity options transaction fee from 
$0.07 to $0.19 per contract side for member firm proprietary orders and 
from $0.08 to $0.17 per contract side for specialist and market maker 
orders. Now, to further offset the elimination of options transaction, 
clearance and brokerage fees for customer equity option orders, the 
Exchange proposes to increase the equity options transaction fee for 
non-member broker-dealer orders from $0.07 to $0.19 per contract side. 
This revised fee will also apply to both LEAPS \5\ and FLEX \6\ 
options. Equity options clearance and floor brokerage fees for non-
member-dealers will remain unchanged at $0.04 and $0.03 per contract 
side, respectively.
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    \4\ See Securities Exchange Act Release No. 42675, (April 13, 
2000). 65 FR 21223 (April 20, 2000).
    \5\ LEAPS are Long Term Equity Anticipation Securities or 
options with durations of up to 36 months. See Amex Rule 903C.
    \6\ FLEX options are customized options with individually 
specified terms such as strike price, expiration date, and exercise 
style. See Amex Rule 900G.
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2. Statutory Basis

    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)(4) \8\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members and other persons using its facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statements on Burden on Competition

    The Amex 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

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve such rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested person 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, N.W., Washington, D.C. 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 may 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 Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to the File No. SR-Amex-00-18 
and should be submitted by May 31, 2000.

    For the Commission, by the Division on Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-11607 Filed 5-9-00; 8:45 am]
BILLING CODE 8010-01-M