[Federal Register Volume 70, Number 8 (Wednesday, January 12, 2005)]
[Notices]
[Pages 2191-2193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-66]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50969; File No. SR-Amex-2004-111]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change Relating to the Extension of the Suspension of Customer 
Transaction Charges for the Trading of Nasdaq-100 Index Tracking 
Stock[reg]

January 6, 2005.
    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 December 28, 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. 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.
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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 (``Amex Fee Schedules'') 
to extend the suspension of customer transactions charges for the 
trading of

[[Page 2192]]

Nasdaq-100 Index Tracking Stock[reg] (Symbol: QQQQ) pursuant to the 
Nasdaq Unlisted Trading Privileges Plan until January 31, 2005.\3\ The 
text of the proposed rule change is available at the Office of the 
Secretary, Amex, and at the Commission.
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    \3\ The Exchange also submitted a proposed rule change extending 
the suspension of the specialist's and registered traders' 
transaction charges for the trading of QQQQ. See File No. SR-Amex-
2004-110.
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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 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[reg] 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 amended the Amex Fee Schedules to provide 
that the customer transaction charges in QQQQ will be $.0015 per share 
($.15 per 100 shares), capped at $100 per trade. The Amex, however, has 
suspended these customer transaction charges for the first month of 
trading the QQQQ. The Amex is now proposing to extend the suspension of 
customer transaction charges to January 31, 2005. The Exchange believes 
that this fee suspension would encourage competition among markets 
trading QQQQ and enhance the Amex's competitiveness in trading this 
security.
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 between 
Claire P. McGrath, Senior Vice President and Deputy General Counsel, 
Amex, and Ted Venuti, Attorney, Division of Market Regulation, 
Commission (January 4, 2005).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change 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-2004-111 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-2004-111. 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-2004-111 and should be submitted on or before February 2, 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 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 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 extension of the suspension of customer transactions charges for 
the trading of QQQQ to coincide with the extension of the suspension of 
transaction charges for the specialist and registered traders for the 
trading of QQQQ.\9\ Accordingly, the Commission finds good cause, 
pursuant to section 19(b)(2) of the Act,\10\ for approving the proposed 
rule change prior to the thirtieth day after the date of publication of 
notice thereof in the Federal Register.
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    \9\ See File No. SR-Amex-2004-110, supra note 3.
    \10\ 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,\11\ that the proposed rule change (SR-Amex-2004-

[[Page 2193]]

111) is hereby approved on an accelerated basis.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-66 Filed 1-11-05; 8:45 am]
BILLING CODE 8010-01-P