[Federal Register Volume 68, Number 96 (Monday, May 19, 2003)]
[Notices]
[Pages 27115-27116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12455]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47822; File No. SR-Amex-2003-14]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change as Amended by Amendments No. 1, 2, and 3 Thereto, and Notice of 
Filing and Accelerated Approval of Amendment No. 4 Thereto, by the 
American Stock Exchange LLC, Relating to a One-Year Pilot for Options 
Intermarket Linkage Fees

May 9, 2003.
    On February 28, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its fee structure to clarify which fees 
apply to trades pertaining to the options intermarket linkage 
(``Linkage'') and to specify that such fees are for a one-year pilot. 
On March 7, 2003, Amex submitted Amendment No. 1 to the proposed rule 
change.\3\ On March 19, 2003, Amex submitted Amendment No. 2 to the 
proposed rule change.\4\ On March 21, 2003, Amex submitted Amendment 
No. 3 to the proposed rule

[[Page 27116]]

change.\5\ The Commission published the amended proposal for comment in 
the Federal Register on March 28, 2003.\6\ The Commission received no 
comments on the proposal. On May 8, 2003, Amex submitted Amendment No. 
4 to the proposal.\7\ This order approves the proposal rule change, as 
amended by Amendments No. 1, 2, 3, and 4. The Commission also solicits 
comment from interested persons on Amendment No. 4.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Jeffrey P. Burns, Assistant General Counsel, 
Amex, to Jennifer Lewis, Attorney, Division of Market Regulation 
(``Division''), Commission, dated March 6, 2003 (``Amendment No. 
1'').
    \4\ See letter from Jeffrey P. Burns, Assistant General Counsel, 
Amex, to Jennifer Lewis, Attorney, Division, Commission, dated March 
18, 2003 (``Amendment No. 2'').
    \5\ See letter from Jeffrey P. Burns, Assistant General Counsel, 
Amex, to Jennifer Lewis, Attorney, Division, Commission, dated March 
20, 2003 (``Amendment No. 3'').
    \6\ See Securities Exchange Act Release No. 47562 (March 21, 
2003), 68 FR 15250.
    \7\ See letter from Jeffrey P. Burns, Assistant General Counsel, 
Amex, to Jennifer Lewis, Attorney, Division, Commission, dated May 
8, 2003 (``Amendment No. 4''). In Amendment No. 4, Amex proposes to 
amend its fee schedule to clarify that the one-year pilot program 
for Linkage fees expires on January 31, 2004.
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    Three Amex fees would apply to Linkage trades other than 
satisfaction orders: a per transaction per contract side fee of $.26; a 
$.05 options floor brokerage fee; and a $.05 options comparison fee. 
Each of these Linkage-related fees would be implemented as a one-year 
pilot, expiring on January 31, 2004.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \8\ and, in 
particular, the requirements of Section 6 of the Act.\9\ The Commission 
finds that the proposed rule change is consistent with Section 6(b)(4) 
of the Act,\10\ which requires that the rules of an exchange provide 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities. The Commission 
believes the one-year pilot will give the Exchange and the Commission 
the opportunity to evaluate whether these fees are appropriate.
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    \8\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
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    The Commission finds good cause, consistent with Section 19(b)(2) 
of the Act,\11\ to approve Amendment No. 4 to the proposed rule change 
prior to the thirtieth day after the date of publication of notice of 
filing thereof in the Federal Register. The Commission notes that the 
notice that was published in the Federal Register \12\ indicated that 
the Linkage fees were subject to a one-year pilot and Amendment No. 4 
merely specifies the expiration date. Therefore, Amex's proposal for 
the one-year pilot program to expire on January 31, 2004 was subject to 
notice and comment. Accordingly, the Commission believes good cause 
exists, pursuant to Sections 6(b)(5) and 19(b) of the Act \13\ to 
accelerate approval of Amendment No. 4 to the proposed rule change.
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    \11\ 15 U.S.C. 78s(b)(2).
    \12\ See supra note 6.
    \13\ 13 15 U.S.C. 78f(b)(5) and 15 U.S.C. 78s(b).
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    Interested persons are invited to submit written data, views and 
arguments concerning Amendment No. 4, including whether it 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-2003-14 and should be 
submitted by June 9, 2003.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\14\ that the proposed rule change (SR-Amex-2003-14), as amended, 
is approved on a pilot basis until January 31, 2004.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-12455 Filed 5-16-03; 8:45 am]
BILLING CODE 8010-01-P