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, 2432-2433 [E5-116]
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Federal Register / Vol. 70, No. 9 / Thursday, January 13, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–50973; File No. SR–OPRA–
2004–06]
Options Price Reporting Authority;
Order Approving an Amendment to the
Plan for Reporting of Consolidated
Options Last Sale Reports and
Quotation Information To Amend
Guideline 2 of the Capacity Guidelines
Adopted in Accordance With the Plan
January 6, 2005.
On October 19, 2004, the Options
Price Reporting Authority (‘‘OPRA’’)
submitted to the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 11Aa3–2
thereunder,2 an amendment to the Plan
for Reporting of Consolidated Options
Last Sale Reports and Quotation
Information (‘‘OPRA Plan’’).3 The
proposed amendment would amend
Guideline 2 of the Capacity Guidelines
(‘‘Guideline 2’’) adopted in accordance
with the Plan. Notice of the proposal
was published in the Federal Register
on December 9, 2004.4 The Commission
received no comment letters on the
proposed OPRA Plan amendment. This
order approves the proposal.
The first purpose of the proposed
OPRA Plan amendment is to amend
Guideline 2 to reduce the frequency of
the capacity review cycle from a
quarterly cycle to a cycle no less
frequently than semi-annually.
According to OPRA, based on the
experience of the Independent System
Capacity Advisor (‘‘ISCA’’) and the
parties to the Plan, the quarterly cycle
currently required by Guideline 2 fails
to take into account the amount of time
needed for the complete cycle of
solicitation, discussion, revision, and
review of these projections to be
completed. Because of this, the ISCA
suggested, and the parties to the Plan
agreed, that a six-month cycle for the
capacity projection and review process
1 15
U.S.C. 78k–1.
CFR 240.11Aa3–2.
3 The OPRA Plan is a national market system plan
approved by the Commission pursuant to Section
11A of the Act and Rule 11Aa3–2 thereunder. See
Securities Exchange Act Release No. 17638 (March
18, 1981), 22 S.E.C. Docket 484 (March 31, 1981).
The OPRA Plan provides for the collection and
dissemination of last sale and quotation information
on options that are traded on the participant
exchanges. The six participants to the OPRA Plan
are the American Stock Exchange LLC, the Boston
Stock Exchange, Inc., the Chicago Board Options
Exchange, Inc., the International Securities
Exchange, Inc., the Pacific Exchange, Inc., and the
Philadelphia Stock Exchange, Inc.
4 See Securities Exchange Act Release No. 50785
(December 2, 2004), 69 FR 71440.
2 17
VerDate jul<14>2003
17:46 Jan 12, 2005
Jkt 205001
would be more realistic, while
providing the ISCA with sufficiently
current capacity projections to assure
that the OPRA System would be able to
meet the capacity needs of the parties as
they may change from time to time.
The second purpose of the proposed
amendment is to permit a party to the
Plan to either increase or decrease the
amount of additional capacity it is
requesting once it has received the
ISCA’s initial cost estimates for OPRA
System modifications to accommodate
the capacity projections and requests of
all of the parties. Currently, Guideline 2
does not contemplate that a party would
be able to increase the amount of
additional capacity it is requesting at
this stage of the process.
After careful review, the Commission
finds that the proposed OPRA Plan
amendment is consistent with the
requirements of the Act and the rules
and regulations thereunder.5 The
Commission believes that the proposed
OPRA Plan amendment is consistent
with Section 11A of the Act 6 and Rule
11Aa3–2 thereunder 7 in that it is
appropriate in the public interest, for
the protection of investors and the
maintenance of fair and orderly markets,
to remove impediments to, and perfect
the mechanisms of, a national market
system.
Specifically, given the experience of
the ISCA and the parties to the Plan, the
Commission finds that it is appropriate
to extend the capacity review cycle to
no less frequently than semi-annually so
as to provide the ISCA and the parties
sufficient time to complete their cycle of
solicitation, discussion, revision and
review regarding capacity projections.
Moreover, the Commission believes that
permitting the parties to increase their
requested capacity after receiving initial
costs estimates from the ISCA should
help to ensure that the various parties
to the Plan have the flexibility they need
in projecting and planning for their
capacity needs.
It is therefore ordered, pursuant to
Section 11A of the Act,8 and Rule
11Aa3–2 thereunder,9 that the proposed
OPRA Plan amendment (SR–OPRA–
2004–06) be, and it hereby is, approved.
5 In approving this proposed OPRA Plan
amendment, the Commission has considered its
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78k–1.
7 17 CFR 240.11Aa3–2.
8 15 U.S.C. 78k–1.
9 17 CFR 240.11Aa3–2.
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For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–115 Filed 1–12–05; 8:45 am]
BILLING CODE 8010–01–P
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.
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
10 17
CFR 200.30–3(29).
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.
1 15
E:\FR\FM\13JAN1.SGM
13JAN1
Federal Register / Vol. 70, No. 9 / Thursday, January 13, 2005 / Notices
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
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
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17:46 Jan 12, 2005
Jkt 205001
members and other persons using
exchange facilities.
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
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. 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 (https://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
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–116 Filed 1–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–50999; File No. SR–Amex–
2003–90]
Self-Regulatory Organizations; Order
Granting Accelerated Approval of
Proposed Rule Change and
Amendment No. 1 Thereto by
American Stock Exchange LLC
Relating to the Amendment of
Exchange Rule 153
6 15
January 7, 2005.
7 17
I. Introduction
On October 9, 2003, the American
Stock Exchange LLC (‘‘Amex’’ or
‘‘Exchange’’) filed with the Securities
U.S.C. 78s(b)(3)(A)(ii).
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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9 17
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CFR 200.30–3(a)(12).
13JAN1
]]>Agencies
[Federal Register Volume 70, Number 9 (Thursday, January 13, 2005)]
[Notices]
[Pages 2432-2433]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-116]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. 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 (https://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\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-116 Filed 1-12-05; 8:45 am]
BILLING CODE 8010-01-P
