[Federal Register Volume 65, Number 118 (Monday, June 19, 2000)]
[Notices]
[Pages 38014-38015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15345]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42915; File No. SR-Amex-00-28]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC, Relating to an Increase in Fees for Registered Options Trader and 
Specialist Transactions in Exchange Traded Fund Shares

June 9, 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 May 25, 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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to revise fees for Registered Options Trader and 
Specialist transactions in Exchange Traded Fund Shares.

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 the 
Statutory Basis for, the Proposed Rule Change

(1) Purpose
    The Ammex currently imposes charges for transactions in Portfolio 
Depositary Receipts (``PDRs''), Index Fund Shares and Trust Issued 
Receipts (``TIRs'') executed on the Exchange. Currently, charges 
include fees for Registered Options Trader and Specialist transactions 
in PDRs, Index Fund Shares and TIRs, including Nasdaq-100 Index Trust, 
SPDRs, DIAMONDS, WEBS, MidCap SPDRs, Select Sector SPDRs, and HOLDRs. 
The current rate for Specialist transactions in these products is 
$0.006 per share ($0.60 per 100 shares), capped at $300 per trade 
(50,000 shares). The current rate for Registered Options Trader 
transactions is $0.007 per share ($0.70 per 100 shares), capped at $350 
per trade (50,000 shares). Off floor orders (i.e., customer and broker-
dealer) are charged $0.006 per share ($0.60 per 100 shares), capped at 
$100 per trade (16,667 shares).
    The Exchange proposes to revise fees for Registered Options Trader 
and Specialist transactions in PDRs, Index Fund Shares and TIRs. The 
Exchange will apply the revised transaction fees to all Registered 
Options Trader and Specialist transactions in currently traded as well 
as newly listed PDRs, Index Fund Shares and TIRs. The proposed revision 
is in the amount of $0.03 per 100 shares for Specialist and Registered 
Options Trader transactions. As a result, upon implementation of the 
proposed fee revision, Specialist fees for transactions in PDRs, Index 
Fund Shares and TIRs will increase from $0.006 per share ($0.60 per 100 
shares) to $0.0063 per share ($0.63 per 100 shares) and Registered 
Options Trader fees will increase from $0.007 per share ($0.70 per 100 
shares) to $0.0073 per share ($0.73 per 100 shares).
    The Exchange is undertaking the proposed revision in fees to offset 
increased Exchange expenses and costs associated with the continued 
development, listing and trading of additional PDRs, Index Fund Shares 
and TIRs. Because the proposed revision in fees will better enable the 
Exchange to further develop, list and trade new Exchange Traded Fund 
Shares, the Exchange believes it is appropriate and necessary to 
implement the revised fee schedule.
(2) Statutory Basis
    The proposed rule change is consistent with Section 6(b) \3\ of the 
Act in general and furthers the objectives of Section 6(b)(4) \4\ 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 its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).

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[[Page 38015]]

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, which establishes or changes a due, fee 
or other charge imposed by the Exchange, has become effective pursuant 
to Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(2) of Rule 
19b-4 thereunder.\6\ 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 the furtherance of the purposes of the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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. 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 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, D.C.
    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-00-28 and should be submitted by July 10, 
2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-15345 Filed 6-16-00; 8:45 am]
BILLING CODE 8010-01-M