[Federal Register Volume 69, Number 199 (Friday, October 15, 2004)]
[Notices]
[Pages 61272-61273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23124]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50500; File No. SR-Amex-2004-80]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Transaction Fees in Connection With the SPDR O-Strip

October 7, 2004.
    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 October 1, 2004, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') 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 Exchange. 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

    The Exchange proposes to revise transaction fees for specialists 
and registered options traders (``ROTs'') in connection with 
transactions in the SPDR O-Strip (``O-Strip''). \3\ The text of the 
revised fee schedule is available at the Office of the Secretary, Amex, 
and at the Commission's Public Reference Room.
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    \3\ The O-Strip is an exchange-traded fund (``ETF'') share that 
seeks to provide investment results corresponding to the newly-
launched Standard & Poor's (``S&P'') 500 O-Strip Index. The S&P 500 
O-Strip Index consists of all the individual S&P 500 component 
securities that are primarily traded in the over-the-counter market. 
The Index currently consists of approximately 75 securities, 
representing approximately 15% of the market capitalization of the 
S&P 500 Index.
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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, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Amex recently launched the trading of the O-Strip on the Exchange. 
Transaction charges for specialists, ROTs, broker-dealers, and 
customers have accordingly been billed at current rates existing for 
ETFs pursuant to the existing fee schedule in effect. The Exchange now 
proposes, in connection with the O-Strip, to charge specialists and 
ROTs as set forth below in the transaction fee schedule:

                   Transaction Charges for the O-Strip
------------------------------------------------------------------------
                                      Specialists     Registered traders
------------------------------------------------------------------------
Per Share Side..................  $0.0050 ($.50 per   $0.0050 ($.50 per
                                   100 shares).        100 shares)
Subject to the following per      $300 (60,000        $300 (60,000
 trade maximums:.                  shares).            shares)
------------------------------------------------------------------------
Transaction charges for specialists are capped at $400,000 per month per
  specialist unit

    Transaction fees for off-floor broker-dealers and customers will 
remain as set forth in the existing ETF fee schedule. These charges are 
$0.006 per share ($0.60 per 100 shares), capped at $100 per trade 
(16,667 shares). Accordingly,

[[Page 61273]]

this proposal seeks to change the transaction fees for only Exchange 
specialists and ROTs in connection with trading in the O-Strip.
    The Exchange submits that the proposal will be effective October 1, 
2004. The Exchange expects the proposed transaction fees in connection 
with the O-Strip will recoup the costs and provide additional revenue 
associated with the trading of the O-Strip. In addition, Amex believes 
that this fee will help to allocate to those specialists and ROTs 
transacting in the O-Strip, a fair share of the related costs of such 
ETFs. Accordingly, the Exchange believes that the proposed fee is 
reasonable.
2. Statutory Basis
    Amex believes that the proposed fee change is consistent with 
Section 6(b)(4) of the Act \4\ regarding the equitable allocation of 
reasonable dues, fees, and other charges among exchange members and 
other persons using exchange facilities.
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    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no 
burden on competition.

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

    Because the foregoing proposed rule change establishes or changes a 
due, fee, or other charge imposed by the Exchange, it has become 
effective immediately pursuant to Section 19(b)(3)(A)(ii) of the Act 
\5\ and Rule 19b-4(f)(2) thereunder. \6\ At any time within 60 days of 
the filing of such proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary of appropriate in the public interest, for the 
protection of investors, or otherwise in the furtherance of the 
purposes of the Act.
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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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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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-Amex-2004-80 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-Amex-2004-80. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal offices of Amex. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-Amex-2004-80 
and should be submitted on or before November 5, 2004.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority. \7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-23124 Filed 10-14-04; 8:45 am]
BILLING CODE 8010-01-P