[Federal Register Volume 67, Number 246 (Monday, December 23, 2002)]
[Notices]
[Pages 78264-78265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32186]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46996; File No. SR-Amex-2002-98]


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

December 13, 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 29, 2002, the American Stock Exchange LLC (``Amex'') 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.
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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 Amex proposes to extend until December 31, 2002 the suspension 
of 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. 
Proposed new language is italicized; proposed deletions are in 
[brackets].
* * * * *

Amex Equity Fee Schedule

I. Transaction Charges

    No change.

II. Regulatory Fee

    No Change.
    Notes:
    1. and 2. No change.
    3. Customer transaction charges for the following Portfolio 
Depositary Receipts, Index Fund Shares, and Trust Issued Receipts have 
been suspended:

      DIA--DIAMONDS [reg]                   BHH-B2B Internet HOLDRs TM
      QQQ--Nasdaq-100[reg] Index Tracking   BBH--Biotech HOLDRs
       Stock
      SPY--SPDRs [reg]                      BDH--Broadband HOLDRs
      IVV--iShares S&P 500                  EKH--Europe 2001 HOLDRs
      MDY--MidCap SPDRs                     IAH--Internet Architecture
                                             HOLDRs
      XLY--Select Sector SPDR--Consumer     HHH--Internet HOLDRs
      Discretionary                         IIH--Internet Infrastructure
                                             HOLDRs
      XLP--Select Sector SPDR--Consumer     MKH--Market 2000+ HOLDRs
       Staples
      XLE--SPDR--Energy                     OIH--Oil Service HOLDRs
      XLF--Select Sector SPDR--Financial    PPH--Pharmaceutical HOLDRs
      XLV--Select Sector SPDR--Health Care  RKH--Regional Bank HOLDRs
      XLI--Select Sector SPDR--Industrial    RTH--Retail HOLDRs
      XLB--Select Sector SPDR--Materials    SMH--Semiconductor HOLDRs
      XLK--Select Sector SPDR--Technology   SWH--Software HOLDRs
      XLU--Select Sector SPDR--Utilities    TTH--Telecom HOLDRs
                                            UTH--Utilities HOLDRs
                                            WMH--Wireless HOLDRs
                                            SHY--iShares Lehman 1-3 Year
                                             Treasury Bond Fund
                                            IEF--iShares Lehman 7-10
                                             Year Treasury Bond Fund
                                            TLT--iShares Lehman 20+ Year
                                             Treasury Bond Fund
                                            LQD--iShares GS $ InvesTop
                                             Corporate Bond Fund
                                            TFT--Treasury 1 FITR ETF
                                            TOU--Treasury 2 FITR ETF
                                            TFI--Treasury 5 FITR ETF
                                            TTE--Treasury 10 FITR ETF
 

    Until [November 30] December 31, 2002, transaction charges also 
have been suspended in SHY, IEF, TFT, TOU, TFI and TTE for specialist, 
RegisteredTrader and broker dealer orders.
* * * * *

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 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 proposes to extend until December 31, 2002 the 
suspension of transaction charges in iShares Lehman 1-3 year Treasury 
Bond Fund (Symbol: SHY); iShares Lehman 7-10 year Treasury Bond Fund 
(Symbol: IEF); Treasury 10 FITR ETF (Symbol: TTE); Treasury 5 FITR ETF 
(TFI); Treasury 2 FITR ETF (TOU); and Treasury 1 FITR ETF (TFT) for 
specialist, Registered Trader and broker-dealer orders. The Exchange 
previously filed a suspension in such charges until November 30, 
2002.\3\
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    \3\ See Securities Exchange Act Release No. 46765 (November 1, 
2002), 67 FR 68893 (November 13, 2002)(SR-Amex-2002-91).
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    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

[[Page 78265]]

pursuant to section 19(b)(3)(A) of the 1934 Act.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \4\ in general, and furthers the 
objectives of section 6(b)(4)\5\ in particular, in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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

    The Exchange has neither solicited nor received comments on 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 \6\ and Rule 19b-4(f)(6) \7\ thereunder because 
the proposal: (i) Does not significantly affect the protection of 
investors or the public interest; (ii) does not impose any significant 
burden on competition; and (iii) does not become operative prior to 30 
days after the date of filing or such shorter time as the Commission 
may designate if consistent with the protection of investors and the 
public interest; provided that the Exchange has given the Commission 
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 short time as designated by the Commission. 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 furtherance of the 
purposes of the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    The Amex has requested that the Commission waive the five-day pre-
filing notice and the 30-day operative delay. The Commission believes 
that waiving the five-day pre-filing notice and the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. The Commission notes that fee suspensions for the exchange-
trade funds that are the subject of this filing have been previously 
filed with the Commission.\8\ Further, extension of the fee suspension 
for specialist, Registered Trader, and broker-dealer orders will permit 
the fee suspensions to continue uninterrupted. For these reasons, the 
Commission designates the proposal to be effective and operative upon 
filing with the Commission.\9\
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    \8\ See supra note 3.
    \9\ 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 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 will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-Amex-2002-98 and 
should be submitted by January 13, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-32186 Filed 12-20-02; 8:45 am]
BILLING CODE 8010-01-P