[Federal Register Volume 67, Number 112 (Tuesday, June 11, 2002)]
[Notices]
[Pages 40034-40035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14571]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46026; File No. SR-Amex-2002-12]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change and Amendment No. 1 Thereto To 
Retroactively Apply Amended Options Trading Fees

June 4, 2002.
    On March 1, 2002, 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 retroactively apply options trading fees that 
were amended in SR-Amex-2002-11.\3\ Specifically, the Exchange proposes 
to impose the fee change as of December 1, 2001. The Amex filed 
Amendment No. 1 to the proposed rule change on April 16, 2002.\4\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 45783 (April 18, 
2002), 67 FR 20851 (April 26, 2002) for a description of these fees 
changes. These fee amendments were filed pursuant to Section 
19(b)(3)(A)(ii) of the Act and were effective upon filing on April 
16, 2002.
    \4\ See letter from Claire P. McGrath, Vice President and Deputy 
General Counsel, Amex, to Nancy Sanow, Assistant Director, Division 
of Market Regulation, Commission, dated April 12, 2002 (``Amendment 
No. 1''). In Amendment No. 1, the Amex amended the proposal to 
incorporate the Exchange's reasons for not charging specialists and 
registered options traders the recent increase in transaction, 
comparison and floor brokerage fees for accommodation trades or 
trades executed pursuant to reversals and conversions, dividend 
spreads, and box spreads. Amex also provided an explanation of the 
December 1, 2001 implementation date for the elimination of the fee 
cap.
---------------------------------------------------------------------------

    The proposed rule change, as amended, was published for comment in 
the Federal Register on April 26, 2002.\5\ The Commission received no 
comments on the proposal. This order approves the proposed rule change, 
as amended.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 45784 (April 18, 
2002), 67 FR 20847.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of Section 6 of the Act \6\ and the 
rules and regulations thereunder applicable to a national securities 
exchange.\7\ The Commission finds specifically that the proposed rule 
change, as amended, is consistent with Section 6(b)(4) of the

[[Page 40035]]

Act \8\, 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 Exchange proposes not to apply the prior fee 
increases to accommodation transactions in order to encourage 
specialists and registered options traders, by keeping fees low, to 
provide liquidity as an accommodation to investors seeking to close out 
worthless option positions. The Exchange further proposes not to apply 
the fee increases to reversals, conversions, dividend spreads and box 
spreads in order to encourage specialists and registered options 
traders, by keeping fees low, to provide liquidity for these types of 
financing strategies. The Exchange has stated that it wants to keep 
fees for accommodation transactions and spread strategies comparable 
with the fees charged by other options exchanges for these types of 
transactions, and given that the Exchange has increased a number of 
fees to its membership in recent months, it believes that the 
implementation of any type of reduction in fees should be put in place 
as of December 1, 2001.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 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).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\9\, that the proposed rule change (File No. SR-Amex-2002-12), as 
amended, is approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-14571 Filed 6-10-02; 8:45 am]
BILLING CODE 8010-01-P