[Federal Register Volume 69, Number 134 (Wednesday, July 14, 2004)]
[Notices]
[Pages 42230-42231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15927]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49986; File No. SR-Amex-2004-37]


Self-Regulatory Organizations; Order Granting Accelerated 
Approval to a Proposed Rule Change and Amendment No. 1 Thereto by the 
American Stock Exchange LLC Relating to a Change in the Options 
Transaction Fee Reductions for Non-Member Broker-Dealers in Connection 
With Cabinet Trades and Spread Trades

July 8, 2004.
    On May 19, 2004, 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 lower the amount of the

[[Page 42231]]

reductions of options transaction fees that are available to non-member 
broker-dealers in connection with equity options and QQQ options 
contracts executed as part of an accommodation or cabinet trade 
(``Cabinet Trades'') and reversals and conversions, dividend spreads, 
box spreads and butterfly spreads (``Spread Trades''). On May 28, 2004, 
the Exchange filed Amendment No. 1 to the proposed rule change.\3\ The 
proposed rule change and Amendment No. 1 were published for comment in 
the Federal Register on June 10, 2004.\4\ No comments were received 
regarding the proposal, as amended. This order approves the proposed 
rule change, as amended, on an accelerated basis.
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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, Associate General Counsel, 
Amex, to Nancy Sanow, Assistant Director, Division of Market 
Regulation, Commission, dated May 27, 2004 (``Amendment No 1''). In 
Amendment No. 1, the Exchange corrected a typographical error in the 
text of the proposed rule change.
    \4\ See Securities Exchange Act Release No. 49800 (June 3, 
2004), 69 FR 32639.
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    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 \5\ and, in 
particular, the requirements of section 6(b) of the Act \6\ and the 
rules and regulations thereunder. Specifically, the Commission finds 
that the proposal to lower the amount of the reduction of options 
transaction fees applicable to non-member broker-dealers in connection 
with Cabinet Trades and Spread Trades is consistent with section 
6(b)(4) of the Act,\7\ which requires the equitable allocation of 
reasonable dues, fees and other charges among Exchange members and 
other persons using Exchange facilities. According to Amex, the 
proposed fee changes should better reflect the actual cost of 
transactions on the Exchange. Further, the proposal provides non-member 
broker-dealers with the same options fee reductions for Cabinet Trades 
and Spread Trades that are applicable to specialists, registered 
options traders (``ROTs'') and member broker-dealers.\8\
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    \5\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ See Securities Exchange Act Release No. 49763 (May 24, 
2004), 69 FR 30967 (June 1, 2004) (notice of filing and immediate 
effectiveness of File No. SR-Amex-2004-28).
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    Amex requested accelerated approval of the proposal in order to 
provide for uniform options transaction fee reductions for non-member 
broker-dealers and specialists, ROTs and member broker-dealers. 
Therefore, Amex has requested that the Commission find good cause for 
approving the proposal, as amended, prior to the thirtieth day after 
the date of publication of notice of filing thereof in the Federal 
Register.
    The Commission notes that the proposal and Amendment No. 1 were 
noticed for the full 21-day comment period, and the Commission received 
no comments regarding the proposal, as amended. As discussed more fully 
above, the Commission believes that the proposed rule change is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among Exchange members and other persons using 
Exchange facilities. The Commission also believes that adjusting the 
options transaction fee reductions applicable to non-member broker-
dealers to equal the fee reductions applicable to specialists, ROTs and 
member broker-dealers for the same types of transactions will promote 
uniformity in options fees charged by the Exchange. Accordingly, the 
Commission finds good cause pursuant to section 19(b)(2) of the Act \9\ 
to approve the proposed rule change, as amended, prior to the thirtieth 
day after the date of publication of notice of filing thereof in the 
Federal Register.
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    \9\ 15 U.S.C. 78s(b)(2).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-Amex-2004-37), as 
amended, is approved on an accelerated basis.
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    \10\ Id.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-15927 Filed 7-13-04; 8:45 am]
BILLING CODE 8010-01-P