Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to a Temporary Suspension of Specialist Transaction Charges for the Nasdaq-100 Tracking Stock® (QQQQ), 49336-49338 [E5-4582]
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<![CDATA[
49336
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2005–066 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR-Amex-2005–066. 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 the 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 tomake available publicly. All
submissions should refer to File
Number SR–Amex–2005–066 and
should be submitted on or before
September 13, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4581 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
7 17
CFR 200.30–3(a)(12).
VerDate Aug<18>2005
15:03 Aug 22, 2005
Jkt 205001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52268; File No. SR–Amex–
2005–077]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendments No. 1 and 2 Thereto
Relating to a Temporary Suspension of
Specialist Transaction Charges for the
Nasdaq-100 Tracking Stock (QQQQ)
August 15, 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 July 15,
2005, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which items
have been prepared by Amex. On July
20, 2005, the Exchange filed
Amendment No. 1 to the proposal.3 On
August 11, 2005, the Exchange filed
Amendment No. 2 to the proposal.4
Amex has designated the proposed rule
change, as amended, as establishing or
changing a due, fee, or other charge
imposed by the Exchange pursuant to
Section 19(b)(3)(A)(ii) of the Act 5 and
Rule 19b–4(f)(2) thereunder,6 which
renders the proposal effective upon
filing with the Commission. 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 amend the
Amex Equity and Exchange Traded
Funds and Trust Issued Receipts Fee
Schedules to suspend specialist
transaction charges for the trading of
Nasdaq-100 Index Tracking Stock()
(Symbol: QQQQ) from July 18, 2005
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, Amex added language to
the purpose section to explain that the proposal is
deleting certain provisions from its fee schedules
because such provisions, by their terms, have
already expired.
4 In Amendment No. 2, Amex made minor
technical changes to the proposed rule text and
provided furhter discussion on how the proposal is
consistent with the requirement under Section
6(b)(4) of the Act to provide for the equitable
allocation of reasonable dues, fees, and other
charges among its members and issuers and other
persons its members and issuers and other persons
using its facilities. See 15 U.S.C. 78f(b)(4).
5 15 U.S.C. 78s(b)(3)(A)(ii).
6 17 CFR 240.19b–4(f)(2).
2 17
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
through July 31, 2005. The text of the
proposed rule change is available on
Amex’s Web site (https://
www.amex.com), at Amex’s principal
office, and from 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, as amended,
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to suspend
transaction charges for specialist orders
in the Nasdaq-100 Index Tracking
Stock() (QQQQ) from July 18, 2005
through July 31, 2005. This proposed
rule change also deletes the references
in the Amex Fee Schedules regarding
the suspension of transaction charges
for customer/broker-dealer, specialist
and registered trader orders in QQQQ
through February 28, 2005 because
those provisions are no longer effective
due to their expiration. Similarly, the
references in the Amex Fee Schedules
regarding the suspension of transaction
charges for specialist, registered trader,
and broker-dealer orders in IAU from
January 28, 2005 through February 28,
2005 will also be deleted because these
provisions are also no longer effective
due to their expiration.
Specialists orders for transactions in
the Nasdaq-100 Index Tracking Stock()
currently are charged $0.0037 ($0.37 per
100 shares), capped at $300 per trade.
Effective December 1, 2004, the Nasdaq100 Index Tracking Stock() (formerly
‘‘QQQ’’) transferred its listing from
Amex to the Nasdaq Stock Market, Inc.
It now trades on Nasdaq under the
symbol QQQQ. After the transfer, Amex
began trading QQQQ on an unlisted
trading privileges basis. Amex
previously suspended the transaction
charges of specialist and registered
trader orders in connection with QQQQ
from December 1, 2004 through
E:\FR\FM\23AUN1.SGM
23AUN1
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
February 28, 2005.7 The Exchange did
not extend these fee waivers after
February 28, 2005. In connection with
the transfer of QQQQ to Nasdaq, the
Amex Fee Schedules were amended to
provide for transaction charges of
$0.0015 per share ($0.15 per 100 shares)
for customer orders, capped at $100 per
trade in connection with QQQQ
transactions.8 Amex previously
suspended those transaction charges for
customer orders in connection with
QQQQ from December 1, 2004 through
February 28, 2005.9 The Exchange did
not extend this fee waiver after February
28, 2005.
The Exchange asserts that the
proposed suspension of transaction fees
for specialist orders in connection with
QQQQ is consistent with Section 6(b)(4)
of the Act.10 Specifically, the Exchange
believes that the proposal provides for
an equitable allocation of reasonable
fees among Exchange members largely
based on the fact that a specialist has
greater obligations than other members
and they are also subject to Exchange
fees in addition to transaction fees.
In connection with the proposal to
suspend or waive transaction fees for
specialist orders in QQQQ, the
Exchange notes that specialists are
subject to a variety of Exchange fees
other than transaction charges. For
example, the Exchange imposes floor
fees solely on specialists such as a floor
clerk fee, a floor facility fee, a post fee,
and a registration fee.11 In addition, for
those members on the floor of the
Exchange, a technology fee and
membership fees are also charged by the
Exchange.12 Certain market
participants—such as customers, nonmember broker-dealers, market-makers,
and member broker-dealers—are not
subject to the majority of these fees. In
addition, a specialist unit, in order to
adequately ‘‘make a market’’ in assigned
securities, must be sufficiently staffed
and have adequate technology resources
to handle the volume of orders
(especially in QQQQ) that are sent to the
Exchange. These operational costs borne
by a specialist further support the
Exchange proposal to temporarily
suspend QQQQ transaction fees on
specialist orders.
Specialists also have certain
obligations under Exchange rules, as
well as the Act, that do not exist for
other market participants. For example,
a specialist is required to maintain a fair
and orderly market in his or her
assigned securities pursuant to Amex
Rule 170. This affirmative obligation
requires the specialist to maintain the
price continuity of the security with
reasonable depth, while also
minimizing the effect of any temporary
disparities between supply and demand.
As a result, the Exchange believes that
the proposed suspension of transaction
charges for specialist orders in QQQQ is
reasonable and equitable given the
numerous obligations that specialists
must adhere to in making markets.
As detailed above, the Exchange
believes a suspension of transaction fees
for specialist orders in connection with
QQQQ is equitable and appropriate for
the purpose of enhancing our
competitiveness in trading this security.
The Exchange further submits that the
fee suspension will provide greater
incentive to the specialist to continue to
provide market liquidity, rendering the
Exchange an attractive venue for market
participants to execute orders.
7 See Securities Exchange Act Release Nos. 50811
(December 7, 2004), 69 FR 74547 (December 14,
2005); 50970 (January 6, 2005), 70 FR 2193 (January
12, 2005); and 51150 (February 8, 2005), 70 FR 7780
(February 15, 2005).
8 See Securities Exchange Act Release No. 50894
(December 20, 2004), 69 FR 77788 (December 28,
2004).
9 See Securities Exchange Act Release Nos. 50894
(December 20, 2004), 69 FR 77788 (December 28,
2004); 50969 (January 6, 2005), 70 FR 2191 (January
12, 2005); and 51152 (February 8, 2005), 70 FR 7781
(February 15, 2005).
10 Section 6(b)(4) of the Act states that the rules
of a national securities exchange must provide for
‘‘the equitable allocation of reasonable dues, fees,
and other charges among its members and issuers
and other persons using its facilities.’’
11 The floor clerk, floor facility, post, and
registration fees on an annual basis are $900,
$2,400, $1,000, and $800, respectively.
12 A technology fee of $3,000 per year is assessed
on all specialists and other floor participants at the
Exchange. Annual membership dues of $1,500 must
be paid by all members, while annual membership
fees are payble depending on the type of
membership and circumstances. Non-members are
not subject to these fees.
2. Statutory Basis
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15:03 Aug 22, 2005
Jkt 205001
Amex believes that the proposed rule
change consistent with Section 6(b) of
the Act 13 in general and furthers the
objectives of Section 6(b)(4) of the Act 14
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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex does not believe that the
proposed rule change would impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
13 15
14 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00083
Fmt 4703
Sfmt 4703
49337
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change, as
amended, has become effective pursuant
to Section 19(b)(3)(A)(ii) of the Act 15
and subparagraph (f)(2) of Rule 19b–4
thereunder 16 because it establishes or
changes a due, fee, or other charge
imposed by the Exchange. At any time
within 60 days of the filing of the
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 furtherance of the purposes of the
Act.17
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–2005–077 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303. All submissions should
refer to File Number SR–Amex–2005–
077. 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.
15 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
17 The effective date of the original proposed rule
change is July 20, 2005 and the effective date of the
amendment is August 11, 2005. For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, under Section 19(b)(3)(C)
of the Act, the Commission considers the period to
commence on August 11, 2005, the date on which
the Exchange submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
16 17
E:\FR\FM\23AUN1.SGM
23AUN1
49338
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
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 office of 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–2005–077 and
should be submitted on or before
September 13, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4582 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52267; File No. SR–Amex–
2005–081)
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment No. 1 Thereto Relating to
a Temporary Suspension of Specialist
Transaction Charges for the Nasdaq100 Tracking Stock (QQQQ)
August 15, 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 August 1,
2005, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or the ‘‘Commission’’) the
proposed rule change as described in
items I, II, and III below, which items
have been prepared by Amex. On
August 15, 2005, the Exchange filed
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<18>2005
15:03 Aug 22, 2005
Jkt 205001
Amendment No. 1 to the proposal.3
Amex has designated the proposed rule
change, as amended, as establishing or
changing a due, fee, or other charge
imposed by the Exchange pursuant to
section 19(b)(3)(A)(ii) of the Act 4 and
Rule 19b–4(f)(2) thereunder,5 which
renders the proposal effective upon
filing with the Commission. 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 amend the
Amex Equity and Exchange Traded
Funds and Trust Issued Receipts Fee
Schedules (the ‘‘Amex Fee Schedules’’)
to extend the suspension of transaction
charges for specialist orders in
connection with the trading of the
Nasdaq-100 Index Tracking Stock
(Symbol: QQQQ) from August 1, 2005
through August 31, 2005. The text of the
proposed rule change, as amended, is
available on Amex’s Web site (https://
www.amex.com), at Amex’s principal
office, and from 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, as amended,
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to extend
the suspension of transaction charges
for specialist orders in the Nasdaq-100
Index Tracking Stock (QQQQ) from
3 In Amendment No. 1, Amex made minor
technical changes to the proposed rule text and
provided further discussion on how the proposal is
consistent with the requirement under Section
6(b)(4) of the Act to provide for the equitable
allocation of reasonable dues, fees and other
charges among its members and issuers and other
persons using its facilities. See 15 U.S.C. 78f(b)(4).
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 7 CFR 240.19b–4(f)(2).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
August 1, 2005, through August 31,
2005. The current suspension of
specialist transaction charges in QQQQ
will otherwise terminate on July 31,
2005.6
Specialist orders in QQQQ executed
on the Exchange currently are charged
$0.0037 ($0.37 per 100 shares), capped
at $300 per trade. Effective December 1,
2004, the Nasdaq-100 Index Tracking
Stock (formerly ‘‘QQQ’’) transferred its
listing from Amex to the Nasdaq Stock
Market, Inc. It now trades on Nasdaq
under the symbol QQQQ. After the
transfer, Amex began trading QQQQ on
an unlisted trading privileges basis.
As detailed in a recently filed
proposed rule change (File No. SR–
Amex–2005–077), the Exchange submits
that a suspension of transaction fees for
specialist orders in connection with
QQQQ is consistent with section 6(b)(4)
of the Act.7 Specifically, the Exchange
believes that extending the suspension
of transaction charges for QQQQ
specialist orders is an equitable
allocation of reasonable fees among
Exchange members, issuers, and other
persons using its facilities. The fact that
specialists have greater obligations than
other members and are also subject to
other Exchange fees, in addition to
transaction fees, supports this proposal
to temporarily extend the fee
suspension.
The Exchange notes that specialists
are also subject to a variety of Exchange
fees other than transaction charges, such
as a floor clerk fee, a floor facility fee,
a post fee, and a registration fee.8 In
addition, specialists and other floor
members of the Exchange are subject to
technology and membership fees.9
Certain market participants—such as
customers, non-member broker-dealers,
market-makers, and member brokerdealers—are not subject to the majority
of these fees. In addition, specialist
units, unlike registered traders and
other floor members, must be
sufficiently staffed and provide
adequate technology resources to handle
the volume of orders (especially in
QQQQ) that are sent to the specialist
6 See Amex File No. 2005–077 filed with the
Commission on July 15, 2005.
7 Section 6(b)(4) of the Act states that the rules of
a national securities exchange provide for ‘‘the
equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and
other persons using its facilities.’’
8 The floor clerk, floor facility, post, and
registration fees on an annual basis are $900,
$2,400, $1,000, and $800, respectively.
9 A technology fee of $3,000 per year is assessed
on all specialists and other floor participants at the
Exchange. Annual membership dues of $1,500 must
be paid by all members, while annual membership
fees are payable depending on the type of
membership and circumstances. Non-members are
not subject to these fees.
E:\FR\FM\23AUN1.SGM
23AUN1
]]>Agencies
[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Pages 49336-49338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4582]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52268; File No. SR-Amex-2005-077]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendments No. 1 and 2 Thereto Relating to a Temporary Suspension
of Specialist Transaction Charges for the Nasdaq-100 Tracking
Stock[supreg] (QQQQ)
August 15, 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 July 15, 2005, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which items have been prepared by Amex.
On July 20, 2005, the Exchange filed Amendment No. 1 to the
proposal.\3\ On August 11, 2005, the Exchange filed Amendment No. 2 to
the proposal.\4\ Amex has designated the proposed rule change, as
amended, as establishing or changing a due, fee, or other charge
imposed by the Exchange pursuant to Section 19(b)(3)(A)(ii) of the Act
\5\ and Rule 19b-4(f)(2) thereunder,\6\ which renders the proposal
effective upon filing with the Commission. 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\ In Amendment No. 1, Amex added language to the purpose
section to explain that the proposal is deleting certain provisions
from its fee schedules because such provisions, by their terms, have
already expired.
\4\ In Amendment No. 2, Amex made minor technical changes to the
proposed rule text and provided furhter discussion on how the
proposal is consistent with the requirement under Section 6(b)(4) of
the Act to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and issuers and other
persons its members and issuers and other persons using its
facilities. See 15 U.S.C. 78f(b)(4).
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 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 amend the Amex Equity and Exchange Traded
Funds and Trust Issued Receipts Fee Schedules to suspend specialist
transaction charges for the trading of Nasdaq-100 Index Tracking
Stock([reg]) (Symbol: QQQQ) from July 18, 2005 through July 31, 2005.
The text of the proposed rule change is available on Amex's Web site
(https://www.amex.com), at Amex's principal office, and from 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, as
amended, 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to suspend transaction charges for
specialist orders in the Nasdaq-100 Index Tracking Stock([reg]) (QQQQ)
from July 18, 2005 through July 31, 2005. This proposed rule change
also deletes the references in the Amex Fee Schedules regarding the
suspension of transaction charges for customer/broker-dealer,
specialist and registered trader orders in QQQQ through February 28,
2005 because those provisions are no longer effective due to their
expiration. Similarly, the references in the Amex Fee Schedules
regarding the suspension of transaction charges for specialist,
registered trader, and broker-dealer orders in IAU from January 28,
2005 through February 28, 2005 will also be deleted because these
provisions are also no longer effective due to their expiration.
Specialists orders for transactions in the Nasdaq-100 Index
Tracking Stock([reg]) currently are charged $0.0037 ($0.37 per 100
shares), capped at $300 per trade. Effective December 1, 2004, the
Nasdaq-100 Index Tracking Stock([reg]) (formerly ``QQQ'') transferred
its listing from Amex to the Nasdaq Stock Market, Inc. It now trades on
Nasdaq under the symbol QQQQ. After the transfer, Amex began trading
QQQQ on an unlisted trading privileges basis. Amex previously suspended
the transaction charges of specialist and registered trader orders in
connection with QQQQ from December 1, 2004 through
[[Page 49337]]
February 28, 2005.\7\ The Exchange did not extend these fee waivers
after February 28, 2005. In connection with the transfer of QQQQ to
Nasdaq, the Amex Fee Schedules were amended to provide for transaction
charges of $0.0015 per share ($0.15 per 100 shares) for customer
orders, capped at $100 per trade in connection with QQQQ
transactions.\8\ Amex previously suspended those transaction charges
for customer orders in connection with QQQQ from December 1, 2004
through February 28, 2005.\9\ The Exchange did not extend this fee
waiver after February 28, 2005.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 50811 (December 7,
2004), 69 FR 74547 (December 14, 2005); 50970 (January 6, 2005), 70
FR 2193 (January 12, 2005); and 51150 (February 8, 2005), 70 FR 7780
(February 15, 2005).
\8\ See Securities Exchange Act Release No. 50894 (December 20,
2004), 69 FR 77788 (December 28, 2004).
\9\ See Securities Exchange Act Release Nos. 50894 (December 20,
2004), 69 FR 77788 (December 28, 2004); 50969 (January 6, 2005), 70
FR 2191 (January 12, 2005); and 51152 (February 8, 2005), 70 FR 7781
(February 15, 2005).
---------------------------------------------------------------------------
The Exchange asserts that the proposed suspension of transaction
fees for specialist orders in connection with QQQQ is consistent with
Section 6(b)(4) of the Act.\10\ Specifically, the Exchange believes
that the proposal provides for an equitable allocation of reasonable
fees among Exchange members largely based on the fact that a specialist
has greater obligations than other members and they are also subject to
Exchange fees in addition to transaction fees.
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\10\ Section 6(b)(4) of the Act states that the rules of a
national securities exchange must provide for ``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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In connection with the proposal to suspend or waive transaction
fees for specialist orders in QQQQ, the Exchange notes that specialists
are subject to a variety of Exchange fees other than transaction
charges. For example, the Exchange imposes floor fees solely on
specialists such as a floor clerk fee, a floor facility fee, a post
fee, and a registration fee.\11\ In addition, for those members on the
floor of the Exchange, a technology fee and membership fees are also
charged by the Exchange.\12\ Certain market participants--such as
customers, non-member broker-dealers, market-makers, and member broker-
dealers--are not subject to the majority of these fees. In addition, a
specialist unit, in order to adequately ``make a market'' in assigned
securities, must be sufficiently staffed and have adequate technology
resources to handle the volume of orders (especially in QQQQ) that are
sent to the Exchange. These operational costs borne by a specialist
further support the Exchange proposal to temporarily suspend QQQQ
transaction fees on specialist orders.
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\11\ The floor clerk, floor facility, post, and registration
fees on an annual basis are $900, $2,400, $1,000, and $800,
respectively.
\12\ A technology fee of $3,000 per year is assessed on all
specialists and other floor participants at the Exchange. Annual
membership dues of $1,500 must be paid by all members, while annual
membership fees are payble depending on the type of membership and
circumstances. Non-members are not subject to these fees.
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Specialists also have certain obligations under Exchange rules, as
well as the Act, that do not exist for other market participants. For
example, a specialist is required to maintain a fair and orderly market
in his or her assigned securities pursuant to Amex Rule 170. This
affirmative obligation requires the specialist to maintain the price
continuity of the security with reasonable depth, while also minimizing
the effect of any temporary disparities between supply and demand. As a
result, the Exchange believes that the proposed suspension of
transaction charges for specialist orders in QQQQ is reasonable and
equitable given the numerous obligations that specialists must adhere
to in making markets.
As detailed above, the Exchange believes a suspension of
transaction fees for specialist orders in connection with QQQQ is
equitable and appropriate for the purpose of enhancing our
competitiveness in trading this security. The Exchange further submits
that the fee suspension will provide greater incentive to the
specialist to continue to provide market liquidity, rendering the
Exchange an attractive venue for market participants to execute orders.
2. Statutory Basis
Amex believes that the proposed rule change consistent with Section
6(b) of the Act \13\ in general and furthers the objectives of Section
6(b)(4) of the Act \14\ 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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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Amex does not believe that the proposed rule change would 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 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, as amended, has become effective
pursuant to Section 19(b)(3)(A)(ii) of the Act \15\ and subparagraph
(f)(2) of Rule 19b-4 thereunder \16\ because it establishes or changes
a due, fee, or other charge imposed by the Exchange. At any time within
60 days of the filing of the 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 furtherance of the
purposes of the Act.\17\
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-4(f)(2).
\17\ The effective date of the original proposed rule change is
July 20, 2005 and the effective date of the amendment is August 11,
2005. For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change, as
amended, under Section 19(b)(3)(C) of the Act, the Commission
considers the period to commence on August 11, 2005, the date on
which the Exchange submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-2005-077 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303. All submissions should refer to File Number
SR-Amex-2005-077. 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.
[[Page 49338]]
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 office of 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-2005-077 and should be
submitted on or before September 13, 2005.
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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4582 Filed 8-22-05; 8:45 am]
BILLING CODE 8010-01-P
