[Federal Register Volume 66, Number 226 (Friday, November 23, 2001)]
[Notices]
[Pages 58765-58766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29253]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45068; File No. SR-Amex-2001-98]


Self-Regulatory Organizations; Notice of Filing of a Proposed 
Rule Change by the American Stock Exchange LLC to Reinstate and 
Increase Options Transaction Charges

November 16, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ notice is hereby given that on November 8, 2001, the American Stock 
Exchange LLC (``Amex'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule

[[Page 58766]]

change as described in Items, I, II, and III below, which Items have 
been prepared by self-regulatory organization. The Commission is 
publishing this notice to solicit comments on the proposed rule.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to reinstate and increase options transaction 
charges in select products. The Exchange proposes to increase the fees 
charged to (1) customers for transactions in index options from $0.10 
to $0.15; and (2) member firms and non-member broker dealers for 
transactions in index options from $0.11 to $0.15. In addition, the 
Exchange is proposing to reinstate a customer transaction charge for 
equity options on the S&P 100 iShares. The transaction charge will be 
$0.15 per contract side.

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 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
    Transaction charges are imposed on options trades executed on the 
Exchange. The charges vary depending on whether the transaction 
involves an equity or index option and whether the transaction is 
executed for a specialist's account, a registered options trader 
account, a member firm's proprietary account, a non-member broker-
dealer, or a customer account. The Amex also imposes a charge for 
clearance of options trades and an options floor brokerage charge, 
which also depends upon the product and the type of account for which 
the trade is executed. In April 2000, the Exchange eliminated 
transaction, floor brokerage, and clearance charges for customer equity 
option trades. At that time, fees charged to customers for transactions 
in index options remained unchanged at $0.10 per contract.
    The Exchange is now proposing to increase the fees charged to (1) 
customers for transactions in index options from $0.10 to $0.15; and 
(2) member firms and non-member broker dealers for transactions in 
index options from $0.11 to $0.15. In addition, the Exchange is 
proposing to reinstate a customer transaction charge for equity options 
on the S&P 100 iShares. The transaction charge will be $0.15 per 
contract side. The Exchange believes that these increases are necessary 
due to the increasing costs incurred in developing and implementing new 
technology for the fast and efficient trading of options.
(2) Statutory Basis
    The proposed rule change is consistent with section 6(b) of the Act 
\2\ in general and furthers the objectives of section 6(b)(4) of the 
Act \3\ 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.
---------------------------------------------------------------------------

    \2\ 15 U.S.C. 78f(b).
    \3\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 form 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-2001-98 and 
should be submitted by December 14, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\
---------------------------------------------------------------------------

    \4\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-29253 Filed 11-21-01; 8:45 am]
BILLING CODE 8010-01-M