[Federal Register Volume 67, Number 219 (Wednesday, November 13, 2002)]
[Notices]
[Pages 68893-68894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28743]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46765; File No. SR-Amex-2002-91]


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

November 1, 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 November 1, 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 and II 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

    Amex proposes to suspend until November 30, 2002 Exchange 
transaction charges for specialist, Registered Trader and broker-dealer 
orders for the iShares Lehman 1-3 year Treasury Bond Fund; iShares 
Lehman 7-10 year Treasury Bond Fund; Treasury 10 FITR ETF; Treasury 5 
FITR ETF; Treasury 2 FITR ETF; and Treasury 1 FITR ETF; and to suspend 
customer transaction charges for an indefinite period for Treasury 10 
FITR ETF; Treasury 5 FITR ETF; Treasury 2 FITR ETF; and Treasury 1 FITR 
ETF.

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.

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

1. Purpose
    The Exchange 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 \TM\ 
Corporate Bond Fund (Symbol: LQD) (``Funds'') for specialist, 
Registered Trader and broker-dealer orders until October 31, 2002.\3\ 
The Exchange proposes to extend until November 30, 2002 the suspension 
of transaction charges in SHY and IEF for specialist, Registered Trader 
and broker-dealer orders. The Exchange will not suspend transaction 
charges for TLT and LQD beyond October 31, 2002 for specialist, 
Registered Trader and broker-dealer orders.
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    \3\ See Securities Exchange Act Release No. 46618 (October 8, 
2002), 67 FR 63714 (October 15, 2002).
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    In addition, the Exchange proposes to waive transaction charges for 
transactions in Treasury 10 FITR ETF (Symbol: TTE); Treasury 5 FITR ETF 
(TFI); Treasury 2 FITR ETF (TOU); and Treasury 1 FITR ETF (TFT) until 
November 30, 2002 for specialist, Registered Trader and broker-dealer 
orders; and proposes to waive customer transaction charges in these 
securities for an indefinite time period.
    The Exchange believes a suspension of fees for these securities 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.\4\
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    \4\ 15 U.S.C. 78s(b)(3)(A).
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2. Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act in general and furthers the objectives of 
Section 6(b)(4) of the Act 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.

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

    The Exchange believes that the proposed rule change will not impose 
a 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 has become effective pursuant to Section 
19(b)(3)(A) of the Act \5\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\6\ The proposed rule change effects a change that (i) does 
not significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) by its terms, does not become operative for 30 days after the 
date of the filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest; provided that the self-regulatory organization has given the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change, at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission.\7\
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    \5\ Id.
    \6\ 17 CFR 240.19b-4(f)(6).
    \7\ As required under Rule 19b-4(f)(6)(iii), the Exchange 
provided the Commission with written notice of its intent to file 
the proposed rule change at least five business days prior to the 
filing date or such shorter time as designated by the Commission.
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    The Exchange requests that the Commission waive the provision in 
Rule 19b-4(f)(6) \8\ that the proposed rule

[[Page 68894]]

change does not become operative for 30 days after the date of the 
filing. Trading in the iShares Funds that are the subject of this 
filing began trading on the Exchange on July 26, 2002, and as noted 
above, fee suspensions have been previously filed with the Commission 
pursuant to Rule 19b-4.\9\ Extension of the fee suspension for 
specialist, Registered Trader and broker-dealer orders will result in 
beneficial cost savings for members and other market participants. In 
addition, trading in the FITRs ETFs will begin on November 1, 2002 and 
implementation of the fee suspensions by that date will result in the 
same beneficial cost savings. The Exchange will reassess the waiver for 
specialist, Registered Trader and broker-dealer orders beyond November 
30, 2002, and will make any required filing pursuant to Rule 19b-4 
prior to that date.
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ See note supra.
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    The Commission has determined to designate that the proposed rule 
change become operative on November 1, 2002. The Commission believes 
that this operative date is consistent with the protection of investors 
and the public interest because it will permit the fee suspensions to 
continue for the iShares products on an uninterrupted basis and will 
provide all market participants with the fee suspension for the new 
FITR ETFs immediately upon the launch of trading.\10\
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    \10\ For purposes only of accelerating the operative date of 
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).
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    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.

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-2002-91 and 
should be submitted by December 4, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-28743 Filed 11-12-02; 8:45 am]
BILLING CODE 8010-01-P