[Federal Register Volume 66, Number 73 (Monday, April 16, 2001)]
[Notices]
[Pages 19591-19592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9307]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44166; File No. SR-Amex-2001-15]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange LLC Relating to Its Annual 
Electronic Access Fee.

April 6, 2001.
    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 March 9, 2001, 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 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 (i) amend Article VII of the Exchange 
Constitution by deleting the requirement that the annual electronic 
access fee be fixed by the Board of Governors (``Board'') based on a 
given formula; and (ii) set the year 2001 electronic access fee at 
$61,363.00. Below is the text of the proposed rule change. Text in 
brackets indicates material to be deleted, and text in italics 
indicates material to be added.

American Stock Exchange Constitution

    * * *

Article VII

    Sec. 1(a)-(d) No change.
    (e) Associate members--The initiation fee for associate 
membership shall be a sum equal to 5% of the latest price at which a 
regular membership shall have been sold and transferred to an 
applicant for regular membership, otherwise than for a nominal 
consideration or through a private sale prior to the date when such 
initiation fee is due, provided, however, that the initiation fee 
for an associate member who is approved as the nominee of an 
associate member firm or corporation pursuant to Article IV, section 
1(d) shall be $100. The annual membership fee for associate 
membership shall be $4,000 per month for associate member firms and 
$3,000 per year for individual associate members and off-floor 
traders. Associate members shall be permitted to waive these fees by 
demonstrating to the Exchange's Financial Regulatory Services 
Department that ten percent (10%) of the associate member's and/or 
individual off-floor trader's volume is transacted on the Floor of 
the Exchange. [The annual membership fee for associate membership 
access to the Exchange electronic systems as provided in Article IV, 
section 1(d) shall be fixed by the Board once a year, and shall be a 
sum equal to 10% of the average price at which regular memberships 
shall have been sold and transferred to applicants for regular 
membership, otherwise than for nominal consideration or through 
private sale, during the preceding twelve months.] Effective August 
7, 2000, all new associate members shall be required to pay the 
annual electronic access fee, as provided in Article IV, section 
1(d), as well as the monthly and/or annual fees. Such initiation, 
monthly and/or annual and electronic access fee shall be paid prior 
to the approval by the Exchange of an applicant for associate 
membership, and prior to renewal of such membership at the end of 
the period for which such fees have been paid.
    (f) No change.
    * * *

[[Page 19592]]

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 Amex 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose

    The Exchange currently imposes on associate memberships an 
annual electronic access fee for access to the Exchange's electronic 
systems. Pursuant to Article VII, section 1(e) of the Exchange 
Constitution, this annual electronic access fee is required to be 
fixed by the Board once a year and is calculated on a formula of ten 
(10%) percent of the average price at which regular memberships have 
been sold and transferred to applicants for regular memberships, 
other than for nominal consideration or through a private sale, 
during the preceding twelve months, from January through December. 
The electronic access fee for the year 2001 is the year 2000 fee 
fixed at $61,363.00. The Exchange proposes to amend its Constitution 
by deleting both the 10% formula and the requirement that the Board 
fix the electronic access fee each year. The Exchange further 
proposes to fix the electronic access fee for the year 2001 at its 
current level at $61,363.00 and add it to the Exchange's schedule of 
fees to treat it in the future on a schedule rather than on a 
formula basis.
    It is cumbersome and inefficient for the Board to have to 
address, on an annual basis, the issue of one fee. Furthermore, the 
Exchange is in the process of reviewing its overall fee structure 
and intends to perform this review on an ongoing annual basis. The 
purpose of this review is to keep fees current, in accordance with 
prevailing economic conditions, and simplify the process while 
remaining competitive with other options and equities exchanges.

2. Statutory Basis

    The proposed rule change is consistent with Section 6(b) of the 
Act \3\ in general, and furthers the objectives of section 6(b)(4) 
of the Act \4\ in particular, in that it is designed to provide for 
the equitable allocation of reasonable dues, fees and other charges 
among Exchange members and issuers and other persons using Exchange 
facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
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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

    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 proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. 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-2001-15 and should be 
submitted by May 7, 2001.

    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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Jonathan G. Katz,
Secretary.
[FR Doc. 01-9307 Filed 4-13-01; 8:45 am]
BILLING CODE 8010-01-M