[Federal Register Volume 72, Number 142 (Wednesday, July 25, 2007)]
[Notices]
[Pages 40908-40910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14358]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56102; File No. SR-Amex-2007-64]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change Relating to an Extension of the Linkage Fee Pilot Program

July 19, 2007.
    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 June 27, 2007, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
This order provides notice of the proposed rule change and approves the 
proposed rule change 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 extend for one year, until July 31, 2008, 
the current pilot program regarding transaction fees for trades 
executed through the intermarket options linkage (the ``Linkage'') on 
the Exchange. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and http://www.amex.com.

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,

[[Page 40909]]

the proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item III 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
    Amex proposes to extend for one year, until July 31, 2008, the 
current pilot program establishing Exchange fees for Principal Orders 
(``P Orders'') and Principal Acting As Agent Orders (``P/A Orders'') 
submitted through the Linkage. The fees in connection with the pilot 
program are scheduled to expire on July 31 2007.\3\
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    \3\ See Securities Exchange Act Release No. 54161 (July 17, 
2006), 71 FR 42141 (July 25, 2006) (SR-Amex-2006-62).
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    The current fees applicable to P Orders and P/A Orders executed on 
the Exchange are as follows: (i) $0.10 per contract side options 
transaction fee for equity options, exchange traded fund share 
(``ETF'') options, QQQQ options and trust issued receipt options; (ii) 
$0.21 per contract side options transaction fee for index options 
(including MNX and NDX options); (iii) $0.05 per contract side options 
comparison fee; (iv) $0.05 per contract side options floor brokerage 
fee; and (v) an options licensing fee for certain ETF and index option 
products ranging from $0.15 per contract side to $0.05 per contract 
side depending on the particular ETF or index option.\4\ These are the 
same fees charged to specialists and registered option traders 
(``ROTs'') for transactions executed on the Exchange.\5\ The Exchange 
does not charge for the execution of Satisfaction Orders sent through 
the Linkage.
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    \4\ See the Options Licensing Fee section of the Amex Options 
FeeSchedule available at http://www.amex.com.
    \5\ As set forth in the Amex Options Fee Schedule, P/A Orders 
and POrders are not subject to the options marketing fee and the 
options cancellation fee even though specialists and ROTs may be 
subject to these fees for trades executed on the Exchange. E-mail 
from Jeffrey P. Burns, Vice President & Associate General Counsel, 
Amex to David Liu, Assistant Director, Division of Market 
Regulation, Commission dated July 18, 2007.
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    As was the case in the original pilot program and subsequent 
extensions, the Exchange believes that the existing fees currently 
charged to Exchange specialists and ROTs should also apply to 
executions resulting from Linkage Orders.
    Based on the experience to date, the Exchange believes that an 
extension of the pilot program for one year until July 31, 2008 is 
appropriate.
2. Statutory Basis
    The proposed fee change is consistent with Section 6(b)(4) of the 
Act \6\ regarding an equitable allocation of reasonable dues, fees, and 
other charges among its members and other persons using Exchange 
facilities.
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    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no 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 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-2007-64 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-Amex-2007-64. 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, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of such 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-2007-64 and should be 
submitted on or before August 15, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the 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\ and, in particular, the requirements of Section 6(b) of 
the Act \8\ and the rules and regulations thereunder. The Commission 
finds that the proposed rule change is consistent with Section 6(b)(4) 
of the Act,\9\ which requires that the rules of the Exchange provide 
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 extension of the Linkage fee pilot until 
July 31, 2008 will give the Exchange and the Commission further 
opportunity to evaluate whether such fees are appropriate.
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    \7\ In approving this rule change, the Commission notes that it 
hasconsidered the proposal's impact on efficiency, competition, and 
capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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    The Commission also finds good cause for approving the proposed 
rule change prior to the 30th day after the date of publication of the 
notice of filing thereof in the Federal Register. The Commission 
believes that granting accelerated approval of the proposed rule change 
will preserve the Exchange's existing pilot program for Linkage fees 
without interruption as the Exchange and the Commission continue 
considering the appropriateness of Linkage fees. Therefore, the 
Commission

[[Page 40910]]

finds good cause, consistent with Section 19(b)(2) of the Exchange 
Act,\10\ to approve the proposed rule change on an accelerated basis.
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    \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-2007-64), be and it 
hereby is, 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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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-14358 Filed 7-24-07; 8:45 am]
BILLING CODE 8010-01-P