[Federal Register Volume 67, Number 180 (Tuesday, September 17, 2002)]
[Notices]
[Pages 58660-58661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23537]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46486; File No. SR-Amex-2002-71]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC To Extend a Suspension of Transaction Charges for Certain Exchange 
Traded Funds

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 29, 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 5-day pre-
filing notice requirement and 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 extend until September 30, 2002, the 
suspension of Amex transaction charges for the Lehman 1-3 year Treasury 
Bond Fund; iShares Lehman 7-10 year Treasury Bond Fund; Lehman 20+ year 
Treasury Bond Fund; and iShares GS $ InvesTop Corporate Bond Fund for 
specialist, Registered Trader and broker-dealer orders. The text of the 
proposed rule change is available at the Amex and at the Commission.

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
    The Amex has suspended transaction charges for transactions in the 
iShares Lehman 1-3 year Treasury Bond Fund (Symbol: SHY); iShares 
Lehman 7-10 year Treasury Bond Fund (Symbol: IEF); iShares Lehman 20+ 
year Treasury Bond Fund (Symbol: TLT); and iShares GS $ InvesTop 
Corporate Bond Fund (Symbol: LQD)(``Funds'') (collectively, 
``Securities'') for (1) customer orders and (2) until August 31, 2002, 
specialist, Registered Trader and broker-dealer orders.\6\ With this 
proposed rule change, the Amex is extending until September 30, 2002, 
the suspension of transaction charges for specialist, Registered 
Trader, and broker-dealer orders. No other changes are proposed with 
this filing, and this filing has no bearing on the suspension of 
transaction charges as they pertain to customer orders.\7\
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    \6\ See Securities Exchange Act Release No. 46384 (August 20, 
2002), 67 FR 55048 (August 27, 2002)(SR-Amex-2002-64).
    \7\ In its proposed rule change, the Amex states that certain 
charges that were suspended by SR-Amex-2002-64 are currently in 
place, the Amex confirmed that the suspension of charges that was 
established in SR-Amex-2002-64 remains in effect, and that the only 
purpose of the instant filing is to extend the suspension of 
transaction charges for specialist, Registered Trader, and broker-
dealer orders in the Securities until September 30, 2002. See 
footnote 6, supra. The Amex clarified that this statement 
inaccurately implies that certain charges exist, when in actuality, 
these charges were suspended in SR-Amex-2002-64, and that this 
proposed rule change simply extends until September 30, 2002 the 
suspension of transaction charges for specialist, Registered Trader, 
and broker-dealer orders in the Securities. Telephone conversation 
between Michael Cavalier, Associate General Counsel, Amex, and 
Joseph P. Morra, Special Counsel, Commission, September 10, 2002.
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    The Exchange believes a suspension of fees for the Securities is 
appropriate to enhance the competitiveness of executions in the 
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 1934 Act.
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)(4) \9\ in

[[Page 58661]]

particular in that it is intended to assure the equitable allocation of 
reasonable dues, fees, and other charges among the Amex's members and 
issuers and other persons using its facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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.

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 waive the 5-day pre-
filing notice requirement and the 30-day operative delay. The 
Commission believes waiving the 5-day pre-filing notice requirement and 
the 30-day operative delay is consistent with the protection of 
investors and the public interest. Waiver of the notice requirement and 
acceleration of the operative date will permit the Amex to suspend 
these fees immediately. For these reasons, the Commission designates 
the proposal to be effective and operative upon filing with the 
Commission.\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-2002-71 and should be 
submitted by October 8, 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. 02-23537 Filed 9-16-02; 8:45 am]
BILLING CODE 8010-01-P