[Federal Register Volume 67, Number 29 (Tuesday, February 12, 2002)]
[Notices]
[Pages 6554-6555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3302]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45401; File No. SR-Amex-2002-07]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC To Amend Amex Rule 393 Relating to Section 31 Transaction Fees

February 6, 2002.
    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 February 4, 2002, 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 
Exchange filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange asked the Commission to waive the 30-day 
operative delay. See Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to amend Amex Rule 393 relating to transaction 
fees pursuant to section 31 of the Act.\6\ The text of the proposed 
rule change is below. New text is in italics; deletions are in 
brackets.
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    \6\ 15 U.S.C. 78ee.
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Rule 393. Securities and Exchange Commission Transaction Fee
    There shall be paid to the Exchange by each member or member 
organization in such manner and at such time as the Treasurer of the

[[Page 6555]]

Exchange shall direct, the fees specified in section 31 of the 
Securities Exchange Act of 1934, and rules thereunder, for all [sum of 
one cent for each $300 or fraction thereof of the dollar volume of the] 
sales upon the Exchange of securities specified in section 31 of the 
Securities Exchange Act of 1934, and rules thereunder [(other than 
bonds, debentures, and other evidence of indebtedness or any security 
which the Commission may, by rule, exempt from the imposition of the 
fee) (whether or not cleared by a registered clearing agency) cleared 
by such member or member organization]. The monies so paid to the 
Exchange shall be paid to the Securities and Exchange Commission as the 
transaction fee imposed upon the Exchange by the provisions of the 
Securities Exchange Act of 1934.

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 its proposal and discussed any 
comments it received regarding the proposal. 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
    Section 31 of the Act \7\ has required the remittance of a fee to 
the Commission of 1/300 of one percent of the aggregate dollar amount 
of the sale of securities. Excluded from this requirement is the sale 
of any bonds, debentures, or other evidences of indebtedness and any 
sale or class of sales of securities that the Commission may, by rule, 
exempt from the imposition of this fee.
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    \7\ 15 U.S.C. 78ee.
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    Congress recently passed the ``Investor and Capital Markets Relief 
Act'' (``ICMRA''), which amends section 31 of the Act. The ICMRA 
reduced the fee to $15 per $1 million of the aggregate dollar amount of 
the sale of securities. December 28, 2001 is the effective date for 
this new rate. The ICMRA provides that the Commission will, twice 
yearly, determine the amount of any changes in the fee.
    Amex Rule 393, which references the previous fee of one cent for 
each $300 of dollar volume, is therefore being amended to conform it to 
Congress' recent amendment to section 31 of the Act. Thus, members and 
member organizations are required to pay to the Exchange whatever fees 
are specified pursuant to Section 31 of the Act and the rules 
thereunder.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) \9\ in particular in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and 
Rule 19b-4(f)(6) thereunder.\11\ At any time within 60 days of the 
filing of the 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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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    The Amex has requested that the Commission accelerate the operative 
date. The Commission finds good cause to waive the 5-day pre-filing 
notice requirement and the 30-day operative waiting period, because 
such designation is consistent with the protection of investors and the 
public interest. Acceleration of the operative date will allow the Amex 
to immediately conform its rule to reflect the recent amendment to 
section 31 of the Act. For these reasons, the Commission finds good 
cause to waive both the 5-day pre-filing requirement and the 30-day 
operative waiting period.\12\
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    \12\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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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 proposal 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 number SR-Amex-2002-07 and should be 
submitted by March 5, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-3302 Filed 2-11-02; 8:45 am]
BILLING CODE 8010-01-P