[Federal Register Volume 68, Number 75 (Friday, April 18, 2003)]
[Notices]
[Pages 19241-19242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9590]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47668; File No. SR-Amex-2003-22]


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

April 11, 2003.
    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 March 31, 2003, the American Stock Exchange LLC (``Exchange'' or 
``Amex'') 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 Amex. The Amex 
filed the proposed rule change as a ``non-controversial'' rule change 
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 Amex provided written notice to the Commission on March 
18, 2003, that it intended to file this proposed rule change. The 
Amex also asked the Commission to waive 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 amend the Amex Equity Fee Schedule (1) to 
provide for customer transaction charges for the iShares S&P 100 Index 
Fund of $.0015 per share ($.15 per 100 shares), capped at $100 per 
trade; and (2) to suspend until April 30, 2003 exchange transaction 
charges in 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 for specialist, 
Registered Trader 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 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 has suspended customer transaction charges until March 
31, 2003 for the iShares S&P 100 Index Fund (Symbol: OEF), an Exchange 
Traded Fund that the Exchange trades pursuant to unlisted trading 
privileges.\6\ The Exchange proposes to amend the Amex Equity Fee 
Schedule to provide that the customer transaction charges in OEF will 
be $.0015 per share ($.15 per 100 shares), capped at $100 per trade. 
This is one-fourth of the regular customer transaction charge for Index 
Fund Shares for which customer transaction charges have not been 
suspended (Index Fund Shares and other securities for which customer 
transaction charges have been suspended are set forth in Note 3 to the 
Amex Equity Fee Schedule). The regular charge is $.006 per share ($.60 
per 100 shares), capped at $100 per trade. The Exchange believes that 
this fee level will encourage competition among markets trading OEF and 
enhance the Exchange's competitiveness in trading this security.
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    \6\ See Securities Exchange Act Release No. 47455 (March 6, 
2003), 67 FR 12111 (March 13, 2003) (SR-Amex-2003-15).
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    In addition, the Exchange is extending until April 30, 2003 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; 
\7\ until December 31, 2002; \8\ until January 31, 2003; \9\ until 
February 28, 2003; \10\ and until March 31, 2003.\11\ 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.\12\
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    \7\ See Securities Exchange Act Release No. 46765 (November 1, 
2002), 67 FR 68893 (November 13, 2002) (SR-Amex-2002-91).
    \8\ See Securities Exchange Act Release No. 46996 (December 13, 
2002), 67 FR 78264 (December 23, 2002) (SR-Amex-2002-98).
    \9\ See Securities Exchange Act Release No. 47141 (January 8, 
2003), 68 FR 2090 (January 15, 2003) (SR-Amex-2002-115).
    \10\ See Securities Exchange Act Release No. 47361 (February 13, 
2003), 68 FR 8534 (February 21, 2003) (SR-Amex-2003-04).
    \11\ See Securities Exchange Act Release No. 47455 (March 6, 
2003), 68 FR 12111 (March 13, 2003) (SR-Amex-2003-15).
    \12\ 15 U.S.C. 78s(b)(3)(A).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \13\ in general, and furthers the objectives of 
section 6(b)(4) of the Act \14\ in particular, because it is intended 
to assure the equitable allocation of reasonable dues, fees, and other 
charges among its members,

[[Page 19242]]

issuers and other persons using its facilities.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 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 that is not necessary in 
furtherance of the purposes of the Act.

III. Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    No written comments were either solicited or received.

IV. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, the proposed rule 
change has become effective pursuant to section 19(b)(3)(A) \15\ of the 
Act and Rule 19b-4(f)(6) \16\ thereunder. 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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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6).
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    The Amex has requested that the Commission accelerate the operative 
date. The Commission believes waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Acceleration of the operative date will enable the Amex to continue 
suspension of its exchange transaction charges, and allow for the 
reinstitution of a previously suspended customer transaction fee at 
one-fourth its original level as of April 1, 2003. For these reasons, 
the Commission designates the proposal to be effective and operative 
upon filing with the Commission.\17\
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    \17\ 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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V. 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-2003-22 and 
should be submitted by May 9, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-9590 Filed 4-17-03; 8:45 am]
BILLING CODE 8010-01-P