[Federal Register Volume 67, Number 25 (Wednesday, February 6, 2002)]
[Notices]
[Page 5626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2791]


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SECURITIES AND EXHANGE COMMISSION

(Release No. 34-45360; File No. SR-Amex-2001-102)


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change Relating to a Retroactive Increase in 
Floor, Membership and Options Trading Fees

January 29, 2002.

I. Introduction and Description of the Proposal

    On December 6, 2001, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to apply retroactively fee increases made under 
SR-Amex-2001-101,\3\ which was filed for immediate effectiveness 
pursuant to section 19(b)(3)(A)(ii) of the Act.\4\ Specifically, the 
Exchange proposed to increase floor, membership and option trading fees 
and to impose the increased license fees and to eliminate of the fee 
cap for options as of October 1, 2001. Amendment No. 1 was filed with 
the Commission on December 17, 2001.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 45163 (December 18, 
2001), 66 FR 66958 (December 27, 2001) for a description of these 
increased fees. (SR-Amex-2001-101).
    \4\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \5\ See letter from Claire P. McGrath, Vice President and Deputy 
General Counsel, Amex, to Nancy Sanow, Assistant Director, Division 
of Market Regulation, Commission, dated December 14, 2001 
(``Amendment No. 1''). In Amendment No. 1, the Amex provided greater 
detail as to the basis for the proposed rule change.
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    The proposed rule change was published for comment, as amended, in 
the Federal Register on December 27, 2001.\6\ The Commission received 
no comments on the proposal. This order approves the proposed rule 
change, as amended.
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    \6\ See Securities Exchange Act Release No. 45165 (December 27, 
2001), 66 FR 66957.
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II. Discussion

    After careful review, the Commission finds that the proposed rule 
change, as amended, is consistent with the requirements of section 6 of 
the Act \7\ and the rules and regulations thereunder applicable to a 
national securities exchange.\8\ The Commission finds specifically that 
the proposed rule change is consistent with section 6(b)(4) of the Act 
\9\, which requires, among other things, that the rules of a national 
securities exchange be 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. Specifically, the 
increase reflects additional costs that Amex has represented it has 
incurred since August 2001 for services provided to issuers. The Amex 
stated that it has committed additional resources to provide 
enhancements to the Floor, and major improvements in technology, 
facilities and services, which included a major expansion of the Amex 
Trading Floor in 2001. The Exchange represented that the increase in 
options transactions charges is necessitated by the large and 
increasing costs incurred by the Exchange in implementing options 
trading technology. The Exchange further represented that it has 
subsidized such expenses before August 1, 2001.
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    \7\ 15 U.S.C. 78f.
    \8\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(4).
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III. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\10\, that the proposed rule change (File No. SR-Amex-2001-102), as 
amended, is approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-2791 Filed 2-5-02; 8:45 am]
BILLING CODE 8010-01-P