[Federal Register Volume 70, Number 9 (Thursday, January 13, 2005)]
[Notices]
[Pages 2432-2433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-116]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50988; File No. SR-Amex-2004-97]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the American Stock Exchange LLC To Reduce Options Transaction Fees for 
Exchange Specialists and Registered Options Traders

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 2, 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 
January 6, 2005, the Exchange 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Form 19b-4 dated January 6, 2005 (``Amendment No. 1''). 
In Amendment No. 1, the Exchange clarified the effective date of the 
proposed fee change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to reduce the aggregate options transaction 
fee for Exchange specialists and registered options traders from $0.25 
per contract side to $0.20 per contract side. The text of the proposed 
rule change 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

[[Page 2433]]

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. 
The Exchange 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 currently imposes transactions charges for 
transactions in equity options executed on the Exchange by Exchange 
specialists and Exchange registered options traders (``ROTs''). The 
current charges for Exchange specialist and ROTs in equity options are 
$0.25 per contract side, consisting of an options transaction fee of 
$0.15, an options comparison fee of $0.05 and an options floor 
brokerage fee of $0.05. The Exchange proposes to reduce the aggregate 
equity options transaction fee for Exchange specialists and ROTs from 
the current level of $0.25 per contract side to $0.20 per contract side 
effective December 2, 2004. Non-member market makers, i.e., market 
makers registered in the same option class on another option exchange, 
will continue to be charged the current aggregate transaction fee of 
$0.30 per contract side. The new aggregate equity options transaction 
fee for Exchange specialists and ROTs will consist of an options 
transaction fee of $0.10 per contract side, an options comparison fee 
of $0.05 per contract side and options floor brokerage fee of $0.05 per 
contract side.
    The Exchange believes that the proposed reduction in the equity 
options transaction fee will benefit the Exchange by providing greater 
incentive to Exchange specialists and ROTs to competitively quote their 
markets in comparison to the markets made by other options exchanges. 
The Exchange also believes that the reduction in the equity options 
transaction fee will help to maintain the existing floor operations of 
member firms at the Amex.
2. Statutory Basis
    The Exchange believes that 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, 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).
    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) thereunder,\7\ 
because the proposed rule change establishes or changes a due, fee or 
other charge applicable only to a member of the Exchange. At any time 
within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate the rule change if it appears to the 
Commission that the action is necessary or appropriate in the public 
interest, for the protection of investors, or would otherwise further 
the purposes of the Act.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers that period 
to commence on January 6, 2005, the date the Exchange filed 
Amendment No. 1 to the proposed rule change. 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. 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-2004-97 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-2004-97. 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 Room, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of the filing also will be 
available for inspection and copying at the principal office of the 
Exchange. 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-2004-97 and should be submitted on or before February 3, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E5-116 Filed 1-12-05; 8:45 am]
BILLING CODE 8010-01-P