[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Notices]
[Pages 79186-79187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32796]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47053; File No. SR-Amex-2002-107]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to an Extension of 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

December 19, 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 December 16, 2002, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. The Amex has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by the Exchange under 
Section 19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal 
effective upon filing with the Commission. 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)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend through March 31, 2003 the waiver 
of: (1) 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 Office of the 
Secretary of 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 Exchange is proposing to extend to March 31, 2003, the 
temporary waiver of 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 currently is set to expire on 
December 31, 2002 and applies 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 will not have to pay: (1) 2002 and 2003 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 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 become Associate 
Members during the waiver and trade only Nasdaq stocks through AOF 
would have to:
    (1) Acquire a regular membership and pay the fees and dues 
associated with becoming a regular member,
    (2) Continue their Associate Membership and pay: (i) 75% of the 
2003 dues, (ii) the Associate Member Initiation Fee, (iii) Application 
Processing Fee, (iv) the Renewal Registration Fee, and (v) 75% of the 
Electronic Access Fee for 2003, or
    (3) Terminate their Associate Membership.

New Associate Members that terminate their Associate Membership on or 
prior to March 31, 2003 will not have to pay 2002 and 2003 dues, 
Associate Member Initiation Fee, Application Processing Fee, Initial 
Registration Fee and Electronic Access Fee for 2002 and 2003.
    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 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.

[[Page 79187]]

2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act \4\ in general and furthers the objectives of Section 
6(b)(4) of the Act \5\ in particular in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among Amex members and issuers and other persons using the 
Amex's 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 proposed fee change will impose no burden on competition that 
is not necessary or appropriate in furtherance of the purposes of the 
Act.

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 proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\7\ because it establishes or changes a due, fee, or other 
charge imposed by the Amex. 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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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-2002-107 and should be 
submitted by January 17, 2003.
    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 02-32796 Filed 12-26-02; 8:45 am]
BILLING CODE 8010-01-P