Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the American Stock Exchange LLC Relating to Fees for Transactions in Options on the Nasdaq 100 Index (NDX) and Mini-Nasdaq 100 Index (MNX), 10706-10707 [E5-877]
Download as PDF
<![CDATA[
10706
Federal Register / Vol. 70, No. 42 / Friday, March 4, 2005 / Notices
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–2005–001 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–2005–001. 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
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Amex. 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–
2005–001 and should be submitted on
or before March 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.30
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–875 Filed 3–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51269; File No. SR–Amex–
2005–025]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
American Stock Exchange LLC
Relating to Fees for Transactions in
Options on the Nasdaq 100 Index
(NDX) and Mini-Nasdaq 100 Index
(MNX)
February 28, 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
23, 2005, 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.
The Exchange filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify its
Options Fee Schedule by increasing the
per-contract license fee in connection
with transactions by specialists and
registered options traders (‘‘ROTs’’) in
options on the Nasdaq 100 Index
(‘‘NDX’’) and the reduced-value Nasdaq
100 Index (‘‘MNX’’). The text of the
proposed rule change is available on
Amex’s Web site (https://
www.amex.com), at the Amex’s
principal office, and at 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, 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
30 17
CFR 200.30–3(a)(12).
VerDate jul<14>2003
19:07 Mar 03, 2005
Jkt 205001
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange has entered into
numerous agreements with index
providers for the purpose of trading
index options. The requirement to pay
an index license fee to such third parties
is a condition to the listing and trading
of these index options. In many cases,
the Exchange is required to pay a
significant licensing fee to issuers or
index owners that may not be
reimbursed. In an effort to recoup the
costs associated with index licenses, the
Exchange has previously established a
per-contract licensing fee for specialists
and ROTs that is collected on every
transaction in designated products in
which a specialist or ROT is a party.
The licensing fees currently imposed on
specialists and ROTs are set forth in the
Exchange’s Options Fee Schedule.
The current license fee charged to
specialists and ROTs trading NDX and
MNX options is $0.10 per contract side.
As a result of a recent change to the
licensing agreement for NDX and MNX,
the Exchange is now being charged a
higher license fee. Accordingly, the
Exchange now proposes to charge $0.15
per contract side for NDX and MNX
options.
The purpose of the proposed fee is for
the Exchange to recoup its costs in
connection with the index license fee
for the trading of NDX and MNX
options. The proposed license fee will
be collected on every transaction in
NDX or MNX options in which a
specialist or ROT is a party.
Accordingly, the Exchange believes that
requiring the payment of a per-contract
licensing fee by those specialists and
ROTs that are the beneficiaries of the
Exchange’s index license agreements is
justified and is consistent with the rules
of the Exchange. The Exchange believes
that passing the license fee (on a percontract basis) along to the specialists
allocated to NDX and MNX and the
ROTs trading such products is efficient
and consistent with the intent of the
Exchange to pass on its non-reimbursed
costs to those market participants that
are the beneficiaries of such license
agreements.
The Exchange notes that it has
recently increased a number of member
fees to better align Exchange fees with
the actual cost of delivering services and
E:\FR\FM\04MRN1.SGM
04MRN1
Federal Register / Vol. 70, No. 42 / Friday, March 4, 2005 / Notices
reduce Exchange subsidies of such
services.5 Implementation of this
proposal is consistent with the
reduction and/or elimination of these
subsidies.
The Exchange submits that the
proposed license fee will provide the
Exchange with additional revenue and
allow the Exchange to recoup its costs
associated with the trading of NDX and
MNX options. Furthermore, the Amex
believes that this fee will help to
allocate to those specialists and ROTs
transacting in NDX and MNX options a
fair share of the related costs of offering
such options. Accordingly, the
Exchange believes that the proposed fee
is reasonable.
2. Statutory Basis
The Exchange believes that the
proposed fee change is consistent with
Section 6(b) of the Act,6 in general, and
Section 6(b)(4) of the Act,7 in particular,
in that it provides for the equitable
allocation of reasonable dues, fees, and
other charges among exchange 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
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
The foregoing rule change has become
effective immediately pursuant to
Section 19(b)(3)(A)(ii) of the Act 8 and
Rule 19b–4(f)(2) thereunder,9 in that it
establishes or changes a due, fee, or
5 See Securities Exchange Act Release Nos. 51070
(January 21, 2005), 70 FR 4900 (January 31, 2005)
(relating to options transaction fees in connection
with the Standard & Poor’s Depository Receipts);
45360 (January 29, 2002), 67 FR 5626 (February 6,
2002) (order approving a rule change relating to a
retroactive increase in floor, membership, and
options trading fees, including licensing fees); and
44286 (May 9, 2001), 66 FR 27187 (May 16, 2001)
(relating to fees imposed on members and member
organizations, including member fees, floor fees,
booth rental fees, and membership registration
fees).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
VerDate jul<14>2003
19:07 Mar 03, 2005
Jkt 205001
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.
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–2005–025 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–2005–025. 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. Copies of such filing also will be
available for inspection and copying at
the principal offices 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–2005–025 and
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
10707
should be submitted on or before March
25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–877 Filed 3–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51250; File No. SR–Amex–
2005–021]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Amending Section 507 of the Amex
Company Guide To Conform the
Definition of a ‘‘Large’’ Dividend to the
Threshold Specified in Section 521 of
the Company Guide
February 24, 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
11, 2005, the American Stock Exchange
LLC (‘‘Exchange’’ or ‘‘Amex’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ 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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Amex seeks to revise Section 507
of the Company Guide to conform the
definition of a ‘‘large’’ dividend to the
threshold specified in Section 521 of the
Company Guide.
The text of the proposed rule change
is available on the Amex’s Web site
https://www.amex.com, at the Amex’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
10 17
CFR 200.30–3(A)(12).
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).
1 15
E:\FR\FM\04MRN1.SGM
04MRN1
]]>Agencies
[Federal Register Volume 70, Number 42 (Friday, March 4, 2005)]
[Notices]
[Pages 10706-10707]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-877]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51269; File No. SR-Amex-2005-025]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange
LLC Relating to Fees for Transactions in Options on the Nasdaq 100
Index (NDX) and Mini-Nasdaq 100 Index (MNX)
February 28, 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 23, 2005, 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. The
Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders it
effective upon filing with the Commission. 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)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify its Options Fee Schedule by
increasing the per-contract license fee in connection with transactions
by specialists and registered options traders (``ROTs'') in options on
the Nasdaq 100 Index (``NDX'') and the reduced-value Nasdaq 100 Index
(``MNX''). The text of the proposed rule change is available on Amex's
Web site (https://www.amex.com), at the Amex's principal office, and at
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, 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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange has entered into numerous agreements with index
providers for the purpose of trading index options. The requirement to
pay an index license fee to such third parties is a condition to the
listing and trading of these index options. In many cases, the Exchange
is required to pay a significant licensing fee to issuers or index
owners that may not be reimbursed. In an effort to recoup the costs
associated with index licenses, the Exchange has previously established
a per-contract licensing fee for specialists and ROTs that is collected
on every transaction in designated products in which a specialist or
ROT is a party. The licensing fees currently imposed on specialists and
ROTs are set forth in the Exchange's Options Fee Schedule.
The current license fee charged to specialists and ROTs trading NDX
and MNX options is $0.10 per contract side. As a result of a recent
change to the licensing agreement for NDX and MNX, the Exchange is now
being charged a higher license fee. Accordingly, the Exchange now
proposes to charge $0.15 per contract side for NDX and MNX options.
The purpose of the proposed fee is for the Exchange to recoup its
costs in connection with the index license fee for the trading of NDX
and MNX options. The proposed license fee will be collected on every
transaction in NDX or MNX options in which a specialist or ROT is a
party. Accordingly, the Exchange believes that requiring the payment of
a per-contract licensing fee by those specialists and ROTs that are the
beneficiaries of the Exchange's index license agreements is justified
and is consistent with the rules of the Exchange. The Exchange believes
that passing the license fee (on a per-contract basis) along to the
specialists allocated to NDX and MNX and the ROTs trading such products
is efficient and consistent with the intent of the Exchange to pass on
its non-reimbursed costs to those market participants that are the
beneficiaries of such license agreements.
The Exchange notes that it has recently increased a number of
member fees to better align Exchange fees with the actual cost of
delivering services and
[[Page 10707]]
reduce Exchange subsidies of such services.\5\ Implementation of this
proposal is consistent with the reduction and/or elimination of these
subsidies.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 51070 (January 21,
2005), 70 FR 4900 (January 31, 2005) (relating to options
transaction fees in connection with the Standard & Poor's Depository
Receipts); 45360 (January 29, 2002), 67 FR 5626 (February 6, 2002)
(order approving a rule change relating to a retroactive increase in
floor, membership, and options trading fees, including licensing
fees); and 44286 (May 9, 2001), 66 FR 27187 (May 16, 2001) (relating
to fees imposed on members and member organizations, including
member fees, floor fees, booth rental fees, and membership
registration fees).
---------------------------------------------------------------------------
The Exchange submits that the proposed license fee will provide the
Exchange with additional revenue and allow the Exchange to recoup its
costs associated with the trading of NDX and MNX options. Furthermore,
the Amex believes that this fee will help to allocate to those
specialists and ROTs transacting in NDX and MNX options a fair share of
the related costs of offering such options. Accordingly, the Exchange
believes that the proposed fee is reasonable.
2. Statutory Basis
The Exchange believes that the proposed fee change is consistent
with Section 6(b) of the Act,\6\ in general, and Section 6(b)(4) of the
Act,\7\ in particular, in that it provides for the equitable allocation
of reasonable dues, fees, and other charges among exchange members and
other persons using exchange facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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
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
The foregoing rule change has become effective immediately pursuant
to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2)
thereunder,\9\ in that it establishes or 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2005-025 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-2005-025. 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. Copies of such
filing also will be available for inspection and copying at the
principal offices 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-2005-025 and should be submitted on or before March
25, 2005.
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. E5-877 Filed 3-3-05; 8:45 am]
BILLING CODE 8010-01-P
