[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Notices]
[Pages 67226-67227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28001]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46731; File No. SR-Amex-2002-78]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to a Temporary Waiver of Associate Member Fees for Persons 
Trading Nasdaq Securities Admitted to Unlisted Trading Privileges 
Through the Exchange's Electronic Order Routing Systems

October 28, 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 September 26, 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 
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 waive through December 31, 2002: (1) the 
membership dues, initiation fee, application processing fee, initial 
registration fee and the electronic access fee for new Associate 
Members that trade only Nasdaq stocks through the Exchange's electronic 
order routing systems during the period of the waiver, and (2) the 
electronic access fee for existing Associate Members that currently do 
not have electronic access privileges and that trade only Nasdaq stocks 
through the Exchange's electronic order routing systems during the 
period of the waiver.
    The proposed fee schedule 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 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 Exchange 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 is proposing to temporarily waive Associate Member and 
electronic access fees for broker/dealer firms that currently do not 
have electronic access to the Amex Order File (``AOF''). The waiver 
would last through December 31, 2002, and would apply to firms that 
trade only Nasdaq stocks through the Exchange's electronic order 
routing systems during the period of the waiver. Broker-dealers that 
become Associate Members during the waiver period would not have to 
pay: (1) 2002 dues applicable to Associate Members, (2) Associate 
Member initiation fee, (3) application processing fee, (4) initial 
registration fee, and (5) the electronic access fee. Existing Associate 
Members that currently do not have electronic access to the AOF also 
could upgrade to electronic access privileges without paying the 
customary electronic access fee provided they trade only Nasdaq stocks 
through the Exchange's electronic order routing systems during the 
period of the fee waiver.
    At the end of the waiver period, firms that became Associate 
Members during the waiver and traded only Nasdaq stocks through the AOF 
would have to: (1) Acquire a regular membership and pay the fees and 
dues associated with becoming a regular member, or (2) pay the 2003 
dues, the Associate Member

[[Page 67227]]

initiation fee, the application processing fee, the renewal 
registration fee and the electronic access fee for 2003 applicable to 
Associate Members, or (3) terminate their Associate Membership. New 
Associate Members that terminate their Associate Membership on or prior 
to December 31, 2002, will not have to pay 2002 dues, the Associate 
Member initiation fee, the application processing fee, the initial 
registration fee and the electronic access fee for 2002.
    At the end of the waiver period, firms that already were Associate 
Members prior to the waiver and upgraded to electronic access 
privileges during the waiver and traded only Nasdaq stocks through the 
AOF would have to: (1) Acquire a regular membership and pay the fees 
and dues associated with becoming a regular member, or (2) pay the 2003 
dues and electronic access fee for 2003 applicable to Associate 
Members.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \3\ in general and furthers the objectives 
of section 6(b)(4) \4\ of the Act in particular in that it is designed 
to provide for the equitable allocation of reasonable dues, fees, and 
other charges among the Exchange's members, issuers and other persons 
using its facilities.
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    \3\ 15 U.S.C. 78f(b)
    \4\ 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 inappropriate 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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange, and therefore, has become 
effective pursuant to section 19(b)(3)(A)(ii) of the Act \5\ and 
subparagraph (f)(2) of Rule 19b-4 thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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    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.

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 at the 
Commission's Public Reference Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-Amex-2002-78 and 
should be submitted by November 25, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-28001 Filed 11-1-02; 8:45 am]
BILLING CODE 8010-01-P