[Federal Register Volume 65, Number 164 (Wednesday, August 23, 2000)]
[Notices]
[Pages 51376-51377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21433]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43152; File No. SR-Amex-00-39]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange, 
LLC in Option Transaction Fees for Options on Nasdaq-100 Index Shares

August 14, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ and rule 19b-4 thereunder,\2\ notice is hereby given that on 
July 28, 2000, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with 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 Amex. The Exchange has 
designated this proposal as one establishing or changing a due, fee, or 
other charge imposed by Amex under Section 19(b)(3)(A)(ii) of the 
Act,\3\ 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The American Stock Exchange LLC proposes to revise specialist and 
Registered Options Trader Fees for transactions in Nasdaq-100 Index 
Share options. The text of the proposed rule change is available upon 
request at the Exchange or 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 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 Amex currently imposes a transaction charge on options trades 
executed on the Exchange. Transaction charges vary, depending on 
whether they involve an equity or index option. They also vary 
depending upon whether a charged transaction is executed for a 
specialist or market maker account; a member firm's proprietary 
account; a non-member broker-dealer account; or a customer account. In 
addition, the Amex imposes a charge for clearance of options trades as 
well as an options floor brokerage charge. These charges also depend 
upon the type of account for which a trade is executed. All three types 
of charges--transaction, options clearance and options floor 
brokerage--are subject to caps \4\ based on the number of options 
contracts traded on a given day. Currently, no transaction, comparison 
or floor brokerage fees are charged for customer equity option 
transactions.
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    \4\ 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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    To offset the costs of providing for the trading of, and to enhance 
the marketing of options on, Nasdaq-100 Index Shares, the Exchange 
proposes to raise fees charged to specialists and Registered Options 
Traders (``ROTs'') for transactions in which a public customer \5\ is a 
party to the trade. Specifically, the transaction fee charged the 
specialist and ROTs, currently $0.17 per contract side, would increase 
by $0.30 per contract side to $0.47, but only for transactions in which 
a public customer is a party. Options comparison and floor brokerage 
fees for the specialist and ROTs will remain unchanged at $0.04 and 
$0.03 per contract side, respectively. The Exchange represents that the 
proposed increases are necessary to allow the Exchange to better 
provide for the costs associated with trading and enhancing the 
marketing of options on Nasdaq-100 Index Shares.
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    \5\ Under the proposed rule change, ``public customer'' would 
mean a non-broker-dealer. This is the same meaning the term has 
under Amex rule 958a.
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2. Statutory Basis
    The Exchange represents that the proposed rule change is consistent 
with Section 6(b) of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\7\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate such rule change in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.
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    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 17 CFR 240.19b-4.
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B. Self-Regulatory Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate 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.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Securities Exchange Act of 1934 and Rule 19b-
4(f)(2) thereunder. 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 Securities Exchange 
Act of 1934.

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, D.C. 20549-
0609. Copies of

[[Page 51377]]

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. 
522, 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-0039 and 
should be submitted by September 13, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority. \8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-21433 Filed 8-22-00; 8:45 am]
BILLING CODE 8010-01-M