[Federal Register Volume 69, Number 248 (Tuesday, December 28, 2004)]
[Notices]
[Pages 77788-77789]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3831]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50894; File No. SR-Amex-2004-93]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change and Amendment No. 1 Thereto Relating to Customer 
Transaction Charges for the Trading of Nasdaq-100 Index Tracking 
Stock([supreg])

December 20, 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 November 22, 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. On 
December 7, 2004, Amex filed Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons. In 
addition, the Commission is granting accelerated approval of the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Amex restated the proposed rule 
change in its entirety.
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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 and Exchange Traded 
Funds and Trust Issued Receipts Fee Schedules to provide for customer 
transactions charges for the trading of Nasdaq-100 Index Tracking 
Stock([supreg]) (Symbol: QQQQ) pursuant to the Nasdaq Unlisted Trading 
Privileges Plan. The text of the proposed rule change, as amended, is 
available at the Office of the Secretary, 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, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it had received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III 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
    Effective December 1, 2004, the Nasdaq-100 Index Tracking 
Stock([supreg]) listed on the Nasdaq Stock Market, Inc. It trades on 
Nasdaq under the symbol QQQQ. The Amex trades the QQQQ on an unlisted 
trading privileges basis. The Amex proposes to amend the Amex Equity 
and Exchange Traded Funds and Trust Issued Receipts Fee Schedules 
(``Amex Fee Schedules'') to provide that the customer transaction 
charges in QQQQ would be $.0015 per share ($.15 per 100 shares), capped 
at $100 per trade. This would be one-fourth of the regular customer 
transaction charge for the Nassaq-100 Index Tracking Stock([supreg]) 
when it was listed on the Amex (although the Amex has suspended

[[Page 77789]]

these charges since August 2001) and for other Exchange Traded Fund 
Shares. The Exchange believes that this fee level would encourage 
competition among markets trading QQQQ and enhance the Amex's 
competitiveness in trading this security. In order to reflect the lower 
transaction charges in QQQQ for customers on the Exchange Traded Funds 
and Trust Issued Receipts Fee Schedule (``ETF Fee Schedule''), a new 
Section IV would be added specifically to set forth transaction charges 
in QQQQ for customers as well as the specialist and registered traders. 
The transaction charges for all three market participants previously 
were included in Section II of the ETF Fee Schedule since they were the 
same in each case as the transaction charges for other Exchange Traded 
Funds for which the Exchange pays unreimbursed fees to a third party. 
Although the text of Section IV is entirely new, it would reflect the 
current transaction charges in place for specialists and registered 
traders, this proposal is not seeking to establish new transaction 
charges for the specialist and registered traders.
    In addition, the Amex has determined that during the first month of 
trading QQQQ pursuant to unlisted trading privileges, it would suspend 
these customer charges. The Amex Fee Schedules also would be amended to 
reflect this temporary suspension.
2. Statutory Basis
    The Amex believes the proposed rule change is consistent with 
Section 6(b) of the Act,\4\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act,\5\ in particular, in that it is intended to 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its members and issuers and other persons using its 
facilities.\6\
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ The Commission changed this sentence to reflect statutory 
basis for the proposed rule change pursuant to Section 6(b)(4) of 
the Act, rather than Section 6(b)(5). Telephone conversation among 
Claire P. McGrath, Senior Vice President and Deputy General Counsel, 
Amex, Ann E. Leddy, Special Counsel, and Ted Venuti, Attorney, 
Division of Market Regulation, Commission (December 9, 2004).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, would impose any 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. 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-2004-93 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-2004-93. 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 office of the 
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 
publicly available. All submissions should refer to File Number SR-
Amex-2004-93 and should be submitted on or before January 18, 2005.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change, as amended, is consistent with the requirements of the Act 
and the rules and regulations thereunder, applicable to a national 
securities exchange.\7\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(4) of the Act,\8\ 
in that it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members and other persons using its 
facilities. The Commission believes that the proposed change in 
customer transaction charges is not unreasonable and should not 
discriminate unfairly among market participants.
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    \7\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
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    The Amex has requested that the Commission find good cause for 
approving the proposed rule change and Amendment No. 1 thereto prior to 
the thirtieth day after publication of notice thereof in the Federal 
Register. The Commission notes that granting accelerated approval of 
the proposal would allow the Amex to implement the proposed changes to 
its fee schedule for QQQQ in a manner which coincides with the start of 
trading QQQQ pursuant to unlisted trading privileges. Accordingly, the 
Commission finds good cause, pursuant to Section 19(b)(2) of the 
Act,\9\ for approving the proposed rule change, as amended, prior to 
the thirtieth day after the date of publication of notice thereof in 
the Federal Register
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    \9\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-Amex-2004-93), and Amendment 
No. 1 thereto, are hereby approved on an accelerated basis.
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    \10\ 15 U.S.C. 78s(b)(2).

    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. E4-3831 Filed 12-27-04; 8:45 am]
BILLING CODE 8010-01-P