[Federal Register Volume 70, Number 31 (Wednesday, February 16, 2005)]
[Notices]
[Pages 7977-7979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-650]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51185; File No. SR-Amex-2005-14]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to a Suspension of Transaction Fees in Connection With the 
iShares[reg] COMEX Gold Trust

February 10, 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 February 1, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with

[[Page 7978]]

the Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Amex. The Exchange filed the proposal as a 
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of 
the Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the 
proposal effective upon filing with the Commission.\5\ The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ Rule 19b-4(f)(6) under the Act requires the Amex to provide 
the Commission with five business days notice of its intention to 
file a non-controversial proposed rule change. The Amex did not 
provide such notice but requested that the Commission waive the 
notice requirement. The Amex also requested that the Commission to 
waive the 30-day operative delay. See Rule 19b-4(f)(6)(iii) under 
the Act. 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to suspend through February 28, 2005, 
Exchange transaction charges for specialist, registered trader, broker-
dealer and customer orders for the iShares COMEX Gold Trust (the ``Gold 
Trust''). The text of the proposed rule change is available on Amex's 
Web site http://www.amex.com, at the Amex's Office of the Secretary, 
and the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Amex included statements 
concerning the purpose of and basis for the proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Specialist, registered traders, broker-dealers and customer orders 
in the Gold Trust are subject to the following transaction charges. 
Off-Floor orders (i.e., customer and broker-dealer) currently are 
charged $.0060 per share ($0.60 per 100 shares), capped at $100 per 
trade (16,667 shares). Orders entered electronically into the Amex 
Order File (``System Orders'') from off the Floor for up to 5,099 
shares are currently not assessed a transaction charge. This provision, 
however, does not apply to System Orders of a member or member 
organization trading as an agent for the account of a non-member 
competing market maker. System Orders over 5,099 shares currently are 
subject to a $.0060 per share transaction charge, capped at $100 per 
trade. Specialists currently are charged $0.0033 ($0.33 per 100 
shares), capped at $300 per trade (90,909 shares). Registered traders 
currently are charged $0.0036 ($0.36 per 100 shares), capped at $300 
per trade (83,333 shares).
    The Exchange is suspending all transaction charges in the Gold 
Trust for specialist, registered trader, broker-dealer and customer 
orders until February 28, 2005. The Exchange believes a suspension of 
fees for the Gold Trust is appropriate to enhance the competitiveness 
of executions for the Gold Trust on the Amex. The Exchange will 
reassess the fee suspension as appropriate and will file a proposed 
rule change for any modification to the fee suspension with the 
Commission pursuant to Section 19(b)(3)(A) of the Act.\6\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

    The Exchange is amending the Equities Fee Schedule and Exchange 
Traded Funds and Trust Issued Receipts Fee Schedule to indicate that 
transaction charges have been suspended until February 28, 2005 for the 
Gold Trust. In addition, the Exchange Traded Funds and Trust Issued 
Receipts Fee Schedule is being amended to refer to the suspension of 
transaction charges for certain Exchange Traded Funds and the 
application of customer transaction charges in connection with the 
iShares S&P 100 Index Fund (Symbol: OEF) previously filed with the 
Commission.\7\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release Nos. 46384 (August 20, 
2002), 67 FR 55048 (August 27, 2002) (suspension of transaction 
charges for SHY, IEF, TLT and LQD); and 47668 (April 11, 2003), 68 
FR 19241 (April 18, 2003) (OEF transaction charges).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed fee change is consistent 
with Section 6(b) of the Act \8\ in general, and furthers the 
objectives of Section 6(b)(4) \9\ in particular in that it is intended 
to assure the equitable allocation of reasonable dues, fees, and other 
charges among its members and issuers and other persons using its 
facilities.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change does not 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

    No written comments were solicited or received by the Exchange 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 does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date of the filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest; the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) \10\ of the 
Act and Rule 19b-4(f)(6) \11\ thereunder.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    Although Rule 19b-4(f)(6) under the Act \12\ requires that an 
Exchange submit notice of its intent to file at least five business 
days prior to the filing date, the Commission is waiving this 
requirement at the Exchange's request in view of the fact that the 
proposed rule change waives fees for all market participants and 
similar suspension of transaction fees have been approved for similar 
products.\13\
---------------------------------------------------------------------------

    \12\ 17 CFR.240-19b-4(f)(6).
    \13\ See supra note 7.
---------------------------------------------------------------------------

    The Exchange has also requested that the Commission waive the 30-
day operative delay, as specified in Rule 19b-4(f)(6)(iii), and 
designate the proposed rule change immediately operative by finding 
that such action is consistent with the protection of investors and the 
public interest. The Commission notes that by waiving the operative 
period, the Exchange has stated that the suspension of transaction fees 
will enhance the competitiveness of the product and will permit the 
Exchange to implement the fee waiver immediately.\14\
---------------------------------------------------------------------------

    \14\ The Exchange will reassess the fee waivers prior to 
February 28, 2005 and will make any required filing pursuant to Rule 
19b-4 of the Act prior to that date.

---------------------------------------------------------------------------

[[Page 7979]]

    Furthermore, the Commission notes that Amex's suspension of 
transaction fees have been approved for similar products and that 
trading in the Gold Trust on the Exchange commenced on January 28, 
2005. The Exchange also has stated that the fee suspension is for all 
market participants and is intended to provide cost savings to 
investors, members, and other market participants. For these reasons, 
the Commission, consistent with the protection of investors and the 
public interest, has waived the 30-day operative date requirement for 
this proposed rule change and has determined to designate the proposed 
rule change as operative on February 1, 2005, the date it was submitted 
to the Commission.
    At any time within 60 days of the filing of this proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

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 
SR-Amex-2005-14 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 SR-Amex-2005-14. 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. Copies of such filing also will be 
available on the Exchange's Web site at http://www.amex.com and 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 SR-Amex-2005-14 and should be submitted on 
or before March 9, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-650 Filed 2-15-05; 8:45 am]
BILLING CODE 8010-01-P