[Federal Register Volume 66, Number 162 (Tuesday, August 21, 2001)]
[Notices]
[Pages 43926-43927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20979]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44698; File No. SR-Amex-2001-57]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange, 
LLC Relating to Suspension of Transaction Charges for Certain Exchange 
Traded Funds

August 14, 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 August 1, 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 Exchange proposes to suspend Exchange transaction charges for 
customer orders in the following Amex-listed Exchange Traded Funds: 
Nasdaq-100 Index Tracking Stock; Standard & Poor's Depositary 
Receipts; DIAMONDS; and iShares S&P 500 Index 
FundTM.

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 parts 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 is proposing to suspend transaction charges for 
customer orders

[[Page 43927]]

for the following Amex-listed Exchange Traded Funds: Standard & Poor's 
Depositary Receipts (Symbol: SPY); Nasdaq 100 Index Tracking Stock 
(QQQ); DIAMONDS (DIA); and iShares S&P 500 Index Fund (IVV).
    Off-Floor orders (i.e., customer and broker-dealer) in these 
securities currently are charged $.006 per share ($.60 per 100 shares), 
capped at $100 per trade (16,667 shares). Orders entered electronically 
into the Amex Order File from off the Floor (``System Orders'') for up 
to 5,009 shares are currently not assessed a transaction charge, while 
System Orders over 5,099 shares are subject to a $.006 per share 
transaction charge, capped at $100 per trade. Exchange transaction 
charges applicable to customer orders are now suspended. The Exchange 
will continue to impose, and is not suspending, existing transaction 
charges applicable to entities other than customers, including Exchange 
specialists, Registered Traders, and member organizations.
    The Exchange believes a suspension of fees for these securities for 
customer orders is appropriate to enhance the competitiveness of 
executions in these securities on the Amex. The Exchange will reassess 
the fee suspension as appropriate, and will file any modification to 
the fee suspension with the Commission pursuant to section 19(b)(3)(A) 
of the Act.\3\
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    \3\ 15 U.S.C. 78s(b)(3)(A).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \4\ in general, and furthers the 
objectives of section 6(b)(4)\5\ in particular, in that it is intended 
to assure 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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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    Written comments on the proposed rule change were neither solicited 
nor received

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

    The proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \7\ because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. 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 furtherance of the purposes of 
the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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 persons, 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 Section. 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-2001-57 and 
should be submitted by September 11, 2001.

    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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Jonathan G. Katz,
Secretary.
[FR Doc. 01-20979 Filed 8-20-01; 8:45 am]
BILLING CODE 8010-01-M