[Federal Register Volume 67, Number 180 (Tuesday, September 17, 2002)]
[Notices]
[Pages 58659-58660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23536]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46484; File No. SR-Amex-2002-59]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Fees for Transactions in Nasdaq Securities Traded on an 
Unlisted Trading Privileges Basis

September 10, 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 August 27, 2002, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Amex.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.\4\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The proposal was originally filed on June 28, 2002. On 
August 19, 2002, Amex filed Amendment No. 1 to clarify that the 
proposed transaction fees only apply to member transactions. On 
August 27, 2002, Amex filed Amendment No. 2 to reduce transaction 
fees for member competing market makers from $0.40 per 100 shares to 
$ 0.15 per 100 shares. Because this is a substantive amendment, the 
Commission deems the proposal to have been filed on the date it 
received Amendment No. 2.
    \4\ See Securities Exchange Act Release No. 46483 (September 10, 
2002), which proposes to implement these fees for non-members.
---------------------------------------------------------------------------

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

    The Exchange proposes to adopt transaction fees for trades in 
Nasdaq securities traded pursuant to Unlisted Trading Privileges 
(``UTP''). The text of the proposed rule change is below. Proposed new 
language is in italics.
* * * * *
Floor Fees through Registration and IDC Fees (No change)

Equity Fees

Amex Listed Company Equity Fee Schedule (No change)

Nasdaq UTP Equity Fee Schedule

Specialist trades:                          $.10 per 100 shares
Member Competing Market Maker trades:       $.15 per 100 shares
Amex Option Market Maker trades:            $.15 per 100 shares
Trades by Amex Equity Traders:              $.15 per 100 shares
Member Customer trades:                     $.15 per 100 shares
 

    Notes:
    1. The Exchange will waive the transaction charge for specialist 
principal trades for six months after the start of Nasdaq UTP trading 
for specialist firms that do not charge any commission to ``customers'' 
in Nasdaq UTP securities.
    2. A ``competing market maker'' is defined as a specialist or 
market maker registered as such on a registered stock exchange (other 
than the Amex) or on Nasdaq, or a market maker bidding and offering 
over-the-counter, in an Amex traded security.
    3. The term ``customer'' includes any market participant other than 
a ``competing market maker.''
    4. The transaction charge for crosses is subject to a maximum 
charge of $50 per side per trade.
Amex Exchange Traded Funds Fee Schedule (No change)
Bond Charges through Other Fees (No change)
* * * * *
    (b) Not applicable.
    (c) Not applicable.

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 Amex included statements 
concerning the purpose of, and the 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to implement a program to trade Nasdaq 
securities on a UTP basis.\5\ The Exchange, accordingly, is 
implementing a separate fee schedule for transactions in Nasdaq 
securities admitted to trading on the Exchange pursuant to UTP to make 
the Amex competitive with other market centers trading Nasdaq 
securities. The Exchange asserts that the proposed fees are similar to 
those charged by other market centers for transactions in Nasdaq 
securities traded pursuant to UTP.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 45365 (January 30, 
2002), 67 FR 5626 (February 6, 2002) (SR-Amex-2001-106) (Notice of 
Amex's proposed trading rules for Nasdaq securities traded pursuant 
to UTP).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and the provisions of 
Section 6(b)(4) of the Act,\7\ in particular, which requires that the 
rules of an exchange provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities.
---------------------------------------------------------------------------

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

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

[[Page 58660]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and subparagraph 
(f)(2) of Rule 19b-4 \9\ thereunder, because it establishes or changes 
a due, fee, or other charge. At any time within 60 days of the filing 
date, 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 
Exchange. All submissions should refer to File No. SR-Amex-2002-59 and 
should be submitted by October 8, 2002.

    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. 02-23536 Filed 9-16-02; 8:45 am]
BILLING CODE 8010-01-P