[Federal Register Volume 68, Number 232 (Wednesday, December 3, 2003)]
[Notices]
[Pages 67707-67708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30057]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48829; File No. SR-Amex-2003-95]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Fees for Amex Specialist and Registered Trader 
Transactions in ETFs

November 24, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4\2\ thereunder, notice is hereby given that 
on November 13, 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 Amex. 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 modify transaction fees for specialist and 
registered trader transactions in portfolio depository receipts, index 
fund shares, and trust issued receipts (collectively referred to as 
``ETFs''). The text of the proposed rule change is available at 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, 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. 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 reduce transaction fees charged 
specialists and traders for ETFs. Under the proposed fee changes, 
specialist per share transaction

[[Page 67708]]

fees for ETFs where Amex does not pay unreimbursed fees to a third 
party would be reduced from $0.0063 per share ($0.63 per hundred 
shares) to $0.0055 per share ($0.55 per hundred shares). Registered 
trader per share ETF transaction fees would be reduced from $0.0073 per 
share ($0.73 per hundred shares) to $0.0060 per share ($0.60 per 
hundred shares).
    With respect to ETF fees where Amex pays unreimbursed fees to a 
third party, specialist per share ETF transaction fees would be reduced 
from $0.0070 per share ($0.70 per hundred shares) to $0.0059 per share 
($0.59 per hundred shares). Registered trader per share ETF transaction 
fees would be reduced from $0.0076 per share ($0.76 per hundred shares) 
to $0.0062 per share ($0.62 per hundred shares).
    Specialist per trade transaction fees would remain capped at $300 
per trade and registered trader per trade maximum transaction fees 
would be reduced from $350 to $300. In addition, specialist ETF 
transaction charges would be capped at $700,000 per month per unit. The 
Exchange intends to implement the proposed fee changes as of December 
1, 2003.
2. Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act,\3\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act,\4\ in particular, in that it is designed to 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members, issuers, and other persons using its 
facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Amex does not believe that the proposed rule change will impose any 
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 foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule 
19b-4 \6\ thereunder, because it establishes or changes a due, fee, or 
other charge.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of November 13, 2003, 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.\7\
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    \7\ See 15 U.S.C. 78s(b)(3)(C).
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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 in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of Amex. 
All submissions should refer to File No. SR-Amex-2003-95 and should be 
submitted by December 24, 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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-30057 Filed 12-2-03; 8:45 am]
BILLING CODE 8010-01-P