Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise Its Options Transaction Fees, 56941-56943 [05-19495]

Download as PDF Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices your comments, and send your comments by December 30, 2005. FOR FURTHER INFORMATION, CONTACT: Duane W. Schmidt, Mail Stop T–7E18, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001. Telephone: (301) 415–6919; Internet: dws2@nrc.gov. In September 2003, the NRC published a three-volume NUREG report, NUREG– 1757, ‘‘Consolidated NMSS Decommissioning Guidance.’’ That report provides guidance on: planning and implementing license termination under the License Termination Rule, in 10 CFR part 20, subpart E; complying with the radiological criteria for license termination; and complying with the requirements for financial assurance and recordkeeping for decommissioning and timeliness in decommissioning materials facilities. The draft Supplement 1, ‘‘Consolidated NMSS Decommissioning Guidance: Updates to Implement the License Termination Rule Analysis’’ (NUREG–1757, Supplement 1), is the first of periodic updates to reflect current NRC decommissioning policy. Draft Supplement 1 provides proposed additions and updates to guidance addressing the following issues, which were explored in an NRC staff analysis of the implementation of the License Termination Rule: restricted use and institutional controls; on-site disposal of radioactive materials; scenario justification based on reasonably foreseeable land use; intentional mixing of contaminated soil; and removal of material after license termination. It also provides new and revised guidance to address several other issues. NRC is seeking public comment in order to receive feedback from the widest range of interested parties and to ensure that all information relevant to developing the document is available to the NRC staff. The NRC will review public comments received on the draft document. Suggested changes will be incorporated, where appropriate, and a final document will be issued for use. When finalized, the guidance is intended for use by NRC staff, licensees, and the public. Draft Supplement 1 is issued for comment only and is not intended for interim use. For the Nuclear Regulatory Commission. Andrew Persinko, Acting Deputy Director, Decommissioning Directorate, Division of Waste Management and Environmental Protection, Office of Nuclear Material Safety and Safeguards. [FR Doc. 05–19447 Filed 9–28–05; 8:45 am] BILLING CODE 7590–01–P SUPPLEMENTARY INFORMATION: PRESIDIO TRUST ACTION: The Presidio Trust. Notice of public meeting. In accordance with §103(c)(6) of the Presidio Trust Act, 16 U.S.C. 460bb note, Title I of Pub. L. 104–333, 110 Stat. 4097, as amended, and in accordance with the Presidio Trust’s bylaws, notice is hereby given that a public meeting of the Presidio Trust Board of Directors will be held commencing 6:30 p.m. on Thursday, October 20, 2005, at the Herbst International Exhibition Hall, 385 Moraga Avenue, Presidio of San Francisco, California. The Presidio Trust was created by Congress in 1996 to manage approximately eighty percent of the former U.S. Army base known as the Presidio, in San Francisco, California. The purposes of this meeting are to provide an Executive Director’s Report, to provide an overview of projects and plans for fiscal year 2006, and to receive public comment in accordance with the Trust’s Public Outreach Policy. Accommodation: Individuals requiring special accommodation at this meeting, such as needing a sign language interpreter, should contact Mollie Matull at (415) 561–5300 prior to October 14, 2005. SUMMARY: FOR FURTHER INFORMATION CONTACT: Karen Cook, General Counsel, the Presidio Trust, 34 Graham Street, P.O. Box 29052, San Francisco, California 94129–0052, Telephone: (415) 561– 5300. Dated: September 23, 2005. Karen A. Cook, General Counsel. [FR Doc. 05–19433 Filed 9–28–05; 8:45 am] BILLING CODE 4310–4R–P 13:52 Sep 28, 2005 Jkt 205001 [Release No. 34–52493; File No. SR–Amex– 2005–087] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise Its Options Transaction Fees 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 31, 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. Amex has designated the proposed rule change as one establishing or changing a due, fee, or other charge imposed by Amex pursuant to 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 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 Amex proposes to: (i) Increase transaction fees for customer and firm orders on index options from the current rate of $0.22 per contract side to $0.45 per contract side; (ii) eliminate the fee exception for machine delivered index option orders of less than 30 contracts; (iii) adopt transaction fees of $0.15 per contract side in connection with customer orders for options on trust issued receipts (‘‘TIRs’’) and exchange-traded funds (‘‘ETFs’’); and (iv) adopt options licensing fees for firm, non-member market maker, and broker-dealer orders. 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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 Dated at Rockville, MD, this 23rd day of September, 2005. VerDate Aug<31>2005 SECURITIES AND EXCHANGE COMMISSION September 22, 2005. Notice of Public Meeting AGENCY: PO 00000 Frm 00056 Fmt 4703 56941 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1 56942 Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices 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 Statutory Basis for, the Proposed Rule Change 1. Purpose Amex proposes to amend its Options Fee Schedule to adopt and/or increase certain transaction fees applicable to index options, ETF options, and TIR options. The fee changes proposed in this rule filing will be effective September 1, 2005. The Exchange, for the purpose of clarity and ease of reference, has also added additional references to specific option types throughout its Options Fee Schedule. The types of options set forth in the Options Fee Schedule now will include Equity Options, Exchange-Traded Fund Share Options (excluding QQQQ Options), QQQQ Options, Trust Issued Receipt (HOLDR) Options, Index Options (in some cases, excluding MNX and NDX Options), and MNX and NDX Options.5 Amex currently charges transaction fees for customer and firm orders in index options executed on the Exchange at the total rate of $0.22 per contract side. The Exchange proposes to increase total transaction fees to $0.45 per contract side 6 for customer and firm index option orders executed on the Exchange, with the exception of MNX and NDX options, which will remain at the current total rate of $0.22 per contract side. In addition, the Exchange also proposes to eliminate the fee exception in which machine-delivered index option orders of less than 30 contracts are not subject to transaction fees. This change will provide that all index option orders executed on the 5 Currently, the Options Fee Schedule lists equity options, index options, and options on the S&P 100 iShares. 6 The $0.45 per contract side charge would consist of an options transaction fee of $0.38 per contract side, an options comparison fee of $0.04 per contract side, and an options floor brokerage fee of $0.03 per contract side. VerDate Aug<31>2005 13:52 Sep 28, 2005 Jkt 205001 Exchange will be subject to transaction fees. The transaction fees in connection with ETF and TIR options transactions are currently provided under the category ‘‘Equity Options,’’ set forth in the Options Fee Schedule.7 As a result, customer orders are not charged transaction fees. The one exception is that customer orders are charged a $0.15 options transaction fee in the iShares S&P 100 Index Fund option. Amex is proposing to levy a transaction fee on customer orders of TIR and ETF options (excluding QQQQ options) at a total rate of $0.15 per contract side.8 In order to remain competitive with the other options exchanges, the Exchange will continue not to charge a transaction fee on customer QQQQ option orders. Currently, the Exchange does not charge firm, non-member market maker, or broker-dealer orders a fee for transactions in certain licensed options products. The Exchange proposes to levy an options licensing fee on these orders consistent with the licensing fee currently assessed on orders of specialists and registered options traders. The proposed fee varies from $0.05 per contract side to $0.20 per contract side, depending upon the particular index-based product that is subject to a license agreement. These fees are set forth in the Options Licensing Fee section of the Options Fee Schedule. 2. Statutory Basis The Exchange believes that the proposed fee change is consistent with the requirements of Section 6(b) of the Act,9 in general, and Section 6(b)(4) of the Act,10 in particular, regarding the equitable allocation of reasonable dues, fees, and other charges among Exchange members and other persons using Exchange facilities. The Exchange asserts that the proposed increase in transaction fees for index, ETF, and TIR options is equitable as required by Section 6(b)(4) of the Act.11 In connection with the proposed increase in the index option transaction fee for customer and firm orders, the 7 As set forth above, ETF and TIR options will now be separately listed in the Options Fee Schedule. 8 The $0.15 per contract side charge would consist of an options transaction fee of $0.08 per contract side, an options comparison fee of $0.04 per contract side, and an options floor brokerage fee of $0.03 per contract side. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). 11 Section 6(b)(4) 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.’’ 15 U.S.C. 78f(b)(4). PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 Exchange notes that the proposal will better align its index option fees with its competitors. Customer orders will now also be charged $0.15 per contract side in connection with ETF and TIR options instead of not being subject to transaction fees. The Exchange believes that this is reasonable and equitable given the fact that the orders of other market participants are subject to transaction charges. The Exchange also maintains that charging an options licensing fee, where applicable, to all market participant orders except for customer orders is reasonable given the competitive pressures in the industry. The Exchange further believes that eliminating the fee exception for machine-delivered index option orders of less than 30 contracts is equitable and fair since all index option orders will now be potentially subject to transaction charges regardless of the size of the order. In the past, the Exchange and certain market participants have largely subsidized the cost of providing index options. The Exchange now seeks to better align these fees with the cost of providing these products, maintaining the trading floor and systems, and generating revenue to fund Exchange operations. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes that the proposed rule change does not 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 proposed rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act 12 and Rule 19b–4(f)(2) thereunder,13 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 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, 12 15 13 17 E:\FR\FM\29SEN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 29SEN1 Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices or otherwise in 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Jonathan G. Katz, Secretary. [FR Doc. 05–19495 Filed 9–28–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–52494; File No. SR–CBOE– 2005–70] • 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–2005–087 on the subject line. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend a Pilot Program Relating to Market-Maker Access to the Hybrid Automatic Execution System Paper Comments September 22, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Jonathan G. Katz, Secretary, notice is hereby given that on Securities and Exchange Commission, September 12, 2005, the Chicago Board 100 F Street, NE., Washington, DC Options Exchange, Incorporated 20549–9303. (‘‘CBOE’’ or ‘‘Exchange’’) filed with the All submissions should refer to File Securities and Exchange Commission Number SR–Amex–2005–087. This file (‘‘Commission’’) the proposed rule number should be included on the change as described in Items I, II, and subject line if e-mail is used. To help the III below, which Items have been prepared by the Exchange. The Commission process and review your Exchange has designated this proposal comments more efficiently, please use only one method. The Commission will as ‘‘non-controversial’’ pursuant to post all comments on the Commission’s Section 19(b)(3)(A) of the Act,3 and Rule 19b–4(f)(6) thereunder,4 which renders Internet Web site (https://www.sec.gov/ the proposed rule change effective upon rules/sro.shtml). Copies of the filing with the Commission.5 The submission, all subsequent Commission is publishing this notice to amendments, all written statements solicit comments on the proposed rule with respect to the proposed rule change from interested persons. change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the Commission and any person, other than The Exchange proposes to extend the those that may be withheld from the pilot program in CBOE Rule 6.13 public in accordance with the relating to market-maker access to the provisions of 5 U.S.C. 552, will be Exchange’s automatic execution system until October 12, 2006. No other available for inspection and copying in changes are being made to the pilot the Commission’s Public Reference program. The text of the proposed rule Room. Copies of the filing also will be change is available on the Exchange’s available for inspection and copying at the principal office of the Exchange. All Web site (https://www.cboe.com), at the Exchange’s Office of the Secretary, and comments received will be posted without change; the Commission does 14 17 CFR 200.30–3(a)(12). not edit personal identifying 1 15 U.S.C. 78s(b)(1). information from submissions. You 2 17 CFR 240.19b–4. should submit only information that 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). you wish to make available publicly. All 5 The Exchange asked the Commission to waive submissions should refer to File the five business day pre-filing notice requirement. Number SR–Amex–2005–087 and See Rule 19b–4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii). should be submitted on or before The Commission is exercising its authority to waive October 20, 2005. the five business day pre-filing notice requirement and notes that the Exchange provided the Commission with four business days’ notice. VerDate Aug<31>2005 13:52 Sep 28, 2005 Jkt 205001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 56943 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 Statutory Basis for, the Proposed Rule Change 1. Purpose In 2004, the Commission approved on a pilot basis, CBOE Rule 6.13(b)(i)(C)(iii) (‘‘Rule’’) relating to the frequency with which certain market participants could submit orders for execution through the Exchange’s Hybrid Trading System (‘‘Hybrid’’).6 CBOE Rule 6.13(b)(i)(C)(iii) currently provides in relevant part: (iii) 15-Second Limitation: With respect to orders eligible for submission pursuant to paragraph (b)(i)(C)(ii), members shall neither enter nor permit the entry of multiple orders on the same side of the market in an option class within any 15-second period for an account or accounts of the same beneficial owner. The appropriate FPC may shorten the duration of this 15second period by providing notice to the membership via a Regulatory Circular that is issued at least one day prior to implementation. The effectiveness of this rule shall terminate on October 12, 2005. Upon approval of the Rule, the Exchange began allowing orders from options exchange market-makers to be eligible for automatic execution subject to the 15-second limitation described above.7 As the pilot period expires on 6 See Securities Exchange Act Release No. 50005 (July 12, 2004), 69 FR 43032 (July 19, 2004) (SR– CBOE–2004–33). The pilot program has been extended once. See Securities Exchange Act Release No. 51030 (January 12, 2005), 70 FR 3404 (January 24, 2005) (SR–CBOE–2004–91) (extension of the pilot program until October 12, 2005). 7 CBOE Rule 6.13(b)(i)(C)(ii) governs the submission of orders from market-makers (paragraph (C)(ii)(A)) and stock exchange specialists (paragraph (C)(ii)(B)). It should be noted that, pursuant CBOE Rule 6.13(b)(i)(C)(iii), the floor procedures committees (FPCs) determined to shorten to 5 seconds (from 15 seconds) the period E:\FR\FM\29SEN1.SGM Continued 29SEN1

Agencies

[Federal Register Volume 70, Number 188 (Thursday, September 29, 2005)]
[Notices]
[Pages 56941-56943]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-19495]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52493; File No. SR-Amex-2005-087]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Revise Its Options Transaction Fees

September 22, 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 31, 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. Amex has 
designated the proposed rule change as one establishing or changing a 
due, fee, or other charge imposed by Amex pursuant to 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 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    Amex proposes to: (i) Increase transaction fees for customer and 
firm orders on index options from the current rate of $0.22 per 
contract side to $0.45 per contract side; (ii) eliminate the fee 
exception for machine delivered index option orders of less than 30 
contracts; (iii) adopt transaction fees of $0.15 per contract side in 
connection with customer orders for options on trust issued receipts 
(``TIRs'') and exchange-traded funds (``ETFs''); and (iv) adopt options 
licensing fees for firm, non-member market maker, and broker-dealer 
orders.
    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.

[[Page 56942]]

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Amex proposes to amend its Options Fee Schedule to adopt and/or 
increase certain transaction fees applicable to index options, ETF 
options, and TIR options. The fee changes proposed in this rule filing 
will be effective September 1, 2005. The Exchange, for the purpose of 
clarity and ease of reference, has also added additional references to 
specific option types throughout its Options Fee Schedule. The types of 
options set forth in the Options Fee Schedule now will include Equity 
Options, Exchange-Traded Fund Share Options (excluding QQQQ Options), 
QQQQ Options, Trust Issued Receipt (HOLDR) Options, Index Options (in 
some cases, excluding MNX and NDX Options), and MNX and NDX Options.\5\
---------------------------------------------------------------------------

    \5\ Currently, the Options Fee Schedule lists equity options, 
index options, and options on the S&P 100 iShares.
---------------------------------------------------------------------------

    Amex currently charges transaction fees for customer and firm 
orders in index options executed on the Exchange at the total rate of 
$0.22 per contract side. The Exchange proposes to increase total 
transaction fees to $0.45 per contract side \6\ for customer and firm 
index option orders executed on the Exchange, with the exception of MNX 
and NDX options, which will remain at the current total rate of $0.22 
per contract side. In addition, the Exchange also proposes to eliminate 
the fee exception in which machine-delivered index option orders of 
less than 30 contracts are not subject to transaction fees. This change 
will provide that all index option orders executed on the Exchange will 
be subject to transaction fees.
---------------------------------------------------------------------------

    \6\ The $0.45 per contract side charge would consist of an 
options transaction fee of $0.38 per contract side, an options 
comparison fee of $0.04 per contract side, and an options floor 
brokerage fee of $0.03 per contract side.
---------------------------------------------------------------------------

    The transaction fees in connection with ETF and TIR options 
transactions are currently provided under the category ``Equity 
Options,'' set forth in the Options Fee Schedule.\7\ As a result, 
customer orders are not charged transaction fees. The one exception is 
that customer orders are charged a $0.15 options transaction fee in the 
iShares S&P 100 Index Fund option. Amex is proposing to levy a 
transaction fee on customer orders of TIR and ETF options (excluding 
QQQQ options) at a total rate of $0.15 per contract side.\8\ In order 
to remain competitive with the other options exchanges, the Exchange 
will continue not to charge a transaction fee on customer QQQQ option 
orders.
---------------------------------------------------------------------------

    \7\ As set forth above, ETF and TIR options will now be 
separately listed in the Options Fee Schedule.
    \8\ The $0.15 per contract side charge would consist of an 
options transaction fee of $0.08 per contract side, an options 
comparison fee of $0.04 per contract side, and an options floor 
brokerage fee of $0.03 per contract side.
---------------------------------------------------------------------------

    Currently, the Exchange does not charge firm, non-member market 
maker, or broker-dealer orders a fee for transactions in certain 
licensed options products. The Exchange proposes to levy an options 
licensing fee on these orders consistent with the licensing fee 
currently assessed on orders of specialists and registered options 
traders. The proposed fee varies from $0.05 per contract side to $0.20 
per contract side, depending upon the particular index-based product 
that is subject to a license agreement. These fees are set forth in the 
Options Licensing Fee section of the Options Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed fee change is consistent 
with the requirements of Section 6(b) of the Act,\9\ in general, and 
Section 6(b)(4) of the Act,\10\ in particular, regarding the equitable 
allocation of reasonable dues, fees, and other charges among Exchange 
members and other persons using Exchange facilities.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange asserts that the proposed increase in transaction fees 
for index, ETF, and TIR options is equitable as required by Section 
6(b)(4) of the Act.\11\ In connection with the proposed increase in the 
index option transaction fee for customer and firm orders, the Exchange 
notes that the proposal will better align its index option fees with 
its competitors. Customer orders will now also be charged $0.15 per 
contract side in connection with ETF and TIR options instead of not 
being subject to transaction fees. The Exchange believes that this is 
reasonable and equitable given the fact that the orders of other market 
participants are subject to transaction charges. The Exchange also 
maintains that charging an options licensing fee, where applicable, to 
all market participant orders except for customer orders is reasonable 
given the competitive pressures in the industry.
---------------------------------------------------------------------------

    \11\ Section 6(b)(4) 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.'' 15 U.S.C. 
78f(b)(4).
---------------------------------------------------------------------------

    The Exchange further believes that eliminating the fee exception 
for machine-delivered index option orders of less than 30 contracts is 
equitable and fair since all index option orders will now be 
potentially subject to transaction charges regardless of the size of 
the order. In the past, the Exchange and certain market participants 
have largely subsidized the cost of providing index options. The 
Exchange now seeks to better align these fees with the cost of 
providing these products, maintaining the trading floor and systems, 
and generating revenue to fund Exchange operations.

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

    The Exchange believes that the proposed rule change does not 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 proposed rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \12\ and Rule 19b-4(f)(2) 
thereunder,\13\ 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 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,

[[Page 56943]]

or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 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-2005-087 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-2005-087. 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 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-2005-087 and should be submitted on or before 
October 20, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
[FR Doc. 05-19495 Filed 9-28-05; 8:45 am]
BILLING CODE 8010-01-P
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