[Federal Register Volume 70, Number 33 (Friday, February 18, 2005)]
[Notices]
[Pages 8411-8413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-667]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51201; File No. SR-Amex-2005-18]


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

February 14, 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 7, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with 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 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and is approving the 
proposal on an accelerated basis.
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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 apply retroactively a suspension of Amex 
transaction charges for specialist, registered trader, broker-dealer 
and customer orders for the iShares COMEX Gold Trust (the ``Gold 
Trust'') from January 28, 2005 through January 31, 2005. 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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Amex proposed, in a companion filing (SR-Amex-2005-14), to 
suspend transaction charges in the Gold Trust through February 28, 2005 
for specialist, registered trader, broker-dealer and customer 
orders.\3\ The Gold Trust commenced trading on the Exchange on January 
28, 2005; however, the filing to suspend transaction charges for 
specialists, registered traders, broker-dealers and customers was not 
filed with the Commission until February 1, 2005. As such, market 
participants were charged according to the existing fee schedule for 
trust issued receipts (``TIRs'') from January 28, 2005 through January 
31, 2005.
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    \3\ See Securities Exchange Act Release No. 51185 (February 10, 
2005) (File No. SR-Amex-2005-14). This proposal was filed pursuant 
to Section 19(b)(3)(A) of the Act and was effective upon filing.
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    Under the current fee schedule, off-floor orders (i.e., customer 
and broker-dealer) 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 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 are charged $0.0033 ($0.33 per 100 shares), capped 
at $300 per trade (90,909 shares). Registered traders are charged 
$0.0036 ($0.36 per 100 shares), capped at $300 per trade (83,333 
shares).
    Under the proposed rule change, the Exchange is suspending all 
transaction charges in the Gold Trust for specialist, registered 
trader, broker-dealer and

[[Page 8412]]

customer orders from January 28, 2005 through January 31, 2005, which 
is consistent with the companion filing to suspend transaction charges 
generally through February 28, 2005 and benefits all market 
participants.\4\ The Exchange believes a retroactive suspension of fees 
for the Gold Trust is appropriate to enhance the competitiveness of 
executions 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.\5\
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    \4\ See supra note 3.
    \5\ 15 U.S.C. 78s(b)(3)(A).
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    The Exchange is amending the Equities Fee Schedule and Exchange 
Traded Funds and Trust Issued Receipts Fee Schedules to indicate that 
transaction charges have been suspended from January 28, 2005 through 
February 28, 2005 for the Gold Trust. In addition, the Exchange Equity 
Fee Schedule and Exchange Traded Funds Schedule and Trust Issued 
Receipts Fee Schedule is being amended to refer to the retroactive 
suspension of transaction charges for certain Exchange Traded Funds and 
the application of customer transaction charges in connection with the 
Gold Trust (Symbol: OEF) previously filed with the Commission.\6\
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    \6\ 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).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act \7\ in general, and furthers the objectives 
of Section 6(b)(4) of the Act \8\ 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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. 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-2005-18 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-2005-18. 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 at 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-2005-18 and should be submitted on 
or before March 11, 2005.

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

    The Amex requests that the proposed rule change be given expedited 
review and accelerated effectiveness pursuant to Section 19(b)(2) of 
the Act. 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, and, in particular, with the requirements of 
Section 6(b)(5) of the Act.\9\ The Commission has previously approved 
the suspension of transaction charges for specialist, registered 
trader, broker-dealer and customer orders.\10\ Accordingly, the 
Commission finds that the retroactive suspension of transaction fees is 
consistent with the Act and will promote just and equitable principles 
of trade, foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to 
and facilitating transactions in securities, and, in general, protect 
investors and the public interest consistent with Section 6(b)(5) of 
the Act.\11\
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    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See supra note 6.
    \11\ In approving the proposed rule, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
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    The Exchange has requested and the Commission finds good cause for 
approving the proposed rule change prior to the thirtieth day after the 
date of publication of notice of filing thereof in the Federal Register 
as the proposal does not significantly affect the protection of 
investors or the public interest and does not impose any significant 
burden on competition. The Exchange states that the retroactive 
suspension for the Gold Trust transaction fees will benefit all market 
participants and enhance the competitiveness of executions on the Amex. 
In Amex's companion filing, Amex originally sought to implement a 
suspension of transaction charges for all market participants as of the 
commencement of trading of the Gold Trust on the Exchange on January 
28, 2005 through February 28, 2005. Furthermore the Commission notes 
that the suspension of transaction fees in Amex's companion filing have 
been approved for similar products.\12\

[[Page 8413]]

Accordingly, the Commission believes that there is good cause, 
consistent with Sections 6(b)(5) and 19(b)(2) of the Act,\13\ to 
approve the proposal, on an accelerated basis.
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    \12\ See Securities Exchange Act Release Nos. 49025 (January 6, 
2004), 69 FR 2018 (January 13, 2004) (retroactive application of a 
monthly options transaction fee cap for specialists and registered 
options traders); and 49019 (January 5, 2004) 69 FR 2023 (January 
13, 2004) (cap monthly options transactions fees incurred by 
specialists and registered options traders in any single options 
class).
    \13\ 15 U.S.C. 78f(b)(5) and 78s(b)(2).
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V. Conclusion

    Therefore it is ordered, pursuant to Section 19(b)(2) of the 
Act,\14\ that the proposed rule change (SR-Amex-2005-18) is hereby 
approved on an accelerated basis.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-667 Filed 2-17-05; 8:45 am]
BILLING CODE 8010-01-P