[Federal Register Volume 66, Number 168 (Wednesday, August 29, 2001)]
[Notices]
[Pages 45712-45713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21792]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44738; File No. SR-Amex-2001-60]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Suspending the Collection of a Marketing Fee From Specialists and 
Registered Options Traders

August 22, 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 7, 2001, the American Stock Exchange LLC (``Amex'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III, below, which 
Items the Amex has prepared. 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 suspend collection of the marketing fee that 
it currently imposes on equity options transactions of specialists and 
registered options traders (``ROTs''). The text of the proposed rule 
change is available at the principal offices of the Amex and at 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 Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it had received. 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 Amex proposes to suspend collection of the marketing fee that 
it currently imposes on equity options transactions of specialists and 
ROTs.
    In July 2000, the Amex imposed a marketing fee of $0.40 per 
contract on the transactions of specialists and ROTs in equity 
options.\3\ The Amex collects the fee and allocates the funds to the 
Amex's specialists, who may then use the funds to pay broker-dealers 
for orders that they direct to the Amex. The specialists, in their 
discretion, determine the specific terms governing the orders that 
qualify for payment and the amount of any payments. The Amex also 
instituted a rebate program whereby funds collected and unspent are 
returned to the specialists and ROTs.\4\
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    \3\ See Securities Exchange Act Release No. 43228 (August 30, 
2000), 65 FR 54330 (September 7, 2000) (SR-Amex-2000-38). Trades 
between ROTs and trades between specialists and ROTs were excluded 
from the marketing fee.
    \4\ See Securities Exchange Act Release No. 44598 (July 26, 
2001), 66 FR 41071 (August 6, 2001) (SR-Amex-2001-38).
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    The Amex now proposes to suspend collection of the marketing fee 
for an indeterminate period of time. The Amex would also reserve the 
right to reinstate the program if it determines to do so. The Amex 
notes that the funds collected before the suspension of the program 
would continue to be allocated to the specialists and disbursed 
pursuant to the specialists' instructions. In addition, the rebate 
program mentioned above would remain in effect until all unspent money 
is returned to the specialists and ROTs.
2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
Section 6(b) of the Act \5\ and furthers the objectives of Section 
6(b)(4) of the Act \6\ 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 facilitates.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex 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

    The Amex neither solicited nor received any written comments with 
respect to the proposal.

[[Page 45713]]

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

    The Amex has designated the foregoing proposed rule change as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-
4(f)(2) thereunder,\8\ and therefore the proposal has become effective 
upon filing with the Commission. At any time within 60 days after the 
filing of the proposed rule change, the Commission may summarily 
abrogate the 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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, 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 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-2001-60 and 
should be submitted by September 19, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-21792 Filed 8-28-01; 8:45 am]
BILLING CODE 8010-01-M