Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC,

[Federal Register: August 18, 2004 (Volume 69, Number 159)]

[Notices]

[Page 51339-51340]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr18au04-102]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50187; File No. SR-Amex-2004-58]

Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the American Stock Exchange LLC To Reduce ETF Transaction Fees for Specialists and Registered Traders and the Cap on ETF Transaction Charges for Specialists

August 12, 2004.

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 July 30, 2004, the American Stock Exchange LLC (``Amex'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule

[[Page 51340]]

change as described in items I, II, and III below, which items have been prepared by the Exchange. The proposed rule change has been filed by the Amex as establishing or changing a due, fee, or other charge under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon filing. 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)(ii).

\4\ 17 CFR 240.19b-4(f)(2).

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

   The Exchange proposes to reduce transaction fees for specialists and registered options traders (``ROTs'') in connection with transactions in exchange traded fund shares (``ETFs'') and to reduce the cap on ETF transaction charges for specialists. The text of the revised Fee Schedule is available at the Amex and at the Commission.

2. 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 received on the proposed rule change. 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.

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

      1. Purpose

      The Amex proposes to reduce transaction charges imposed on specialists and ROTs in connection with Exchange transactions in ETFs and to reduce the cap on ETF transaction charges for specialists. For purposes of the Exchange's Fee Schedule, ETFs include portfolio depositary receipts, index fund shares and trust issued receipts.

      The Exchange represents that the proposal is effective as of August 1, 2004, and constitutes a 25% reduction (for both specialists and ROTs) for ETF transaction charges without reimbursed fees to third parties. In addition, the Exchange represents that the proposed rule change will result in a 22.91% reduction for specialists and a 24% reduction for ROTs for ETF transaction charges for which the Exchange pays unreimbursed fees to a third party.

      The Exchange believes that this reduction in ETF transaction fees will provide greater incentives for specialists and ROTs to competitively quote their markets and attract additional order flow. In addition, the Exchange also believes that the reduction will help to maintain 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 \5\ in general and furthers the objectives of 6(b)(4) of the Act \6\ in particular regarding the equitable allocation of reasonable dues, fees, and other charges among Exchange members and other persons using Exchange facilities.

      \5\ 15 U.S.C. 78f(b).

      \6\ 15 U.S.C. 78f(b)(4).

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

      The Exchange represents that the proposed rule change will impose no burden on competition.

   3. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others

      The Exchange represents that no written comments were solicited or received with respect to the proposed rule change.

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

   The foregoing proposed rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) thereunder \8\ because it changes a due, fee, or other charge imposed by the Exchange. At any time within 60 days of the filing of such 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 the furtherance of the purposes of the Act.\9\

   \7\ 15 U.S.C. 78s(b)(3)(A)(ii).

   \8\ 17 CFR 240.19b-4(f)(2).

   \9\ See 15 U.S.C. 78(b)(3)(C).

4. 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 rule-comments@sec.gov. Please include

   File Number SR-Amex-2004-58 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-2004-58. 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 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-2004-58 and should be submitted on or before September 7, 2004.

   For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\10\

   \10\ 17 CFR 200.30-3(a)(12).

   Margaret H. McFarland, Deputy Secretary.

   [FR Doc. 04-18907 Filed 8-17-04; 8:45 am]

   BILLING CODE 8010-01-P