[Federal Register Volume 67, Number 80 (Thursday, April 25, 2002)]
[Notices]
[Pages 20558-20559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10151]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45773; File No. SR-Amex-2002-32]


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 and Trust Issued Receipts

April 17, 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 April 15, 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 
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 and 
Trust Issued Receipts: MidCap SPDRsTM, Select Sector 
SPDRs (9 series), and HOLDRsTM (17 series).

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 Amex has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

[[Page 20559]]

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 for the following Amex-listed securities: (1) MidCap 
SPDRs TM (Symbol: MDY); (2) all series of Select Sector 
SPDRs, including Basic Industries (XLB), Consumer Services (XLV), 
Consumer Staples (XLP), Cyclical/Transportation (XLY), Energy (XLE), 
Financial (XLF), Industrial (XLI), Technology (XLK), and Utilities 
(XLU); and (3) all series of HOLDRs, including: Biotech (BBH), 
Broadband (BDH), B2B Internet (BHH), Europe 2001 (EKH), Internet (HHH), 
Internet Architecture (IAH), Internet Infrastructure (IIH), Market 
2000+ (MKH), Oil Service (OIH), Pharmaceutical (PPH), Regional Bank 
(RKH), Retail (RTH), Semiconductor (SMH), Software (SWH), Telecom 
(TTH), Utilities (UTH), and Wireless (WMH).
    Off-floor orders (i.e., customer and broker-dealer orders) 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 5,099 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. The Exchange proposes to 
suspend transaction charges applicable to customer orders. 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) of the Act,\5\ in particular, because 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.\6\
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    \6\ At the request of Amex, the Commission revised this 
sentence. Telephone call between Michael Cavalier, Associate General 
Counsel, Amex, and Jennifer Lewis, Attorney, Division of Market 
Regulation, Commission, on April 17, 2002.
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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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \8\ 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 the 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, 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 No. SR-Amex-2002-32 and 
should be submitted by May 16, 2002.

    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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-10151 Filed 4-24-02; 8:45 am]
BILLING CODE 8010-01-P