Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Elimination of the Equity Option Transaction Fee Discount for Member Firms Facilitating Customer Orders, 69998-69999 [E5-6376]
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Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
f. The Substitution will in no way
alter the tax benefits to Owners.
g. The Substitution is expected to
confer certain future economic benefits
on Owners by virtue of greater asset
base or lower expenses.
h. At the time of the Substitution, the
total annual expenses of the IGI
Portfolio’s shares and the IDE Portfolio’s
shares are expected to be lower than the
Replaced Portfolio.
i. The Substitution will be effected by
redeeming shares of the Replaced
Portfolio in cash to be conveyed
immediately to each of the Replacement
Portfolios to purchase its respective
shares.
j. For those Owners invested in the
subaccount corresponding to the
Replaced Portfolio on the date of the
Substitution (the ‘‘Affected Contracts’’),
AIG SunAmerica will reimburse, on the
last business day of each fiscal period
(not to exceed a fiscal quarter) during
the twenty-four months following the
date of the Substitution (the
‘‘Substitution Date’’), the subaccount
value attributable to investing in the
Replacement Portfolio such that the sum
of the Replacement Portfolio’s operating
expenses (taking into account fee
waivers and expense reimbursements)
and subaccount expenses (asset-based
fees and charges deducted on a daily
basis from subaccount assets and
reflected in the calculation of
subaccount unit values) for such period
will not exceed with respect, on an
annualized basis, the sum of the
Replaced Portfolio’s operating expenses
(taking into account fee waivers and
expense reimbursements) and
subaccount expenses for the fiscal year
preceding the Substitution Date.
4. Because the liquidation of the
Replaced Portfolio was pursuant to a
determination by NSAT in which AIG
did not participate, AIG SunAmerica
represents that the proposed
Substitution involving the Replaced
Portfolio and its selection of the
Replacement Portfolios was not
motivated by any financial
consideration paid or to be paid to it or
to any of its affiliates by the
Replacement Portfolios, their adviser,
sub-adviser or underwriters, or by
affiliates of the Replacement Portfolios,
their adviser or underwriters.
5. AIG SunAmerica has determined
that each of the Replacement Portfolios
is an appropriate replacement for the
Replaced Portfolio. The Replacement
Portfolios have investment objectives,
policies, and restrictions substantially
similar in all material respects to the
Replaced Portfolio. Over the past three
years, the Replacement Portfolios have
taken on investment risks to a
VerDate Aug<31>2005
15:21 Nov 17, 2005
Jkt 208001
significantly lesser extent than risks that
have been assumed by the Replaced
Portfolio, whereby the Replacement
Portfolios’ portfolio securities are
significantly less concentrated than
those of the Replaced Portfolio.
Conclusion
For the reasons and upon the facts set
forth in the application, the Applicants
state that the proposed Substitution
meets the standards of section 26(c) of
the 1940 Act and request that the SEC
issue an order of approval pursuant to
section 26(c) of the 1940 Act.
For the commission, by the Division of
Investment Management, pursuant to
delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6377 Filed 11–17–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52754; File No. SR–Amex–
2005–113]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Elimination of the Equity Option
Transaction Fee Discount for Member
Firms Facilitating Customer Orders
November 9, 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 November
1, 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 Amex filed the proposed rule
change 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
The Amex proposes to eliminate the
equity option transaction fee discount
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
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
for member firms facilitating customer
orders.5 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
atthe 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
Amex 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 April 2000, the Exchange
eliminated its transaction, clearance,
and floor brokerage fees for customer
equity options transactions.6 To offset
this fee elimination, the Exchange
increased certain fees charged for equity
options transactions of members.
Specifically, the transaction fee for
member firm proprietary orders was
increased from $0.07 to $0.19 per
contract side. However, the Exchange
determined at that time to keep the
transaction fee at $0.07 for those
member firm proprietary orders that
facilitated a customer equity options
order.7 A facilitation occurs when a
member firm crosses an order for its
own account by buying from or selling
to an order from its customer. The
Exchange chose to keep the fee for these
types of transactions lower in order to
encourage member firms to continue to
send these types of orders to the
Exchange.
5 The Exchange clarified that the option
transaction fee discount applies only to equity
options. Telephone conversation between Claire P.
McGrath, Senior Vice President and General
Counsel, Amex, and Jennifer Dodd, Special
Counsel, and Ted Venuti, Attorney, Division of
Market Regulation, Commission, November 7, 2005
(‘‘November 7, 2005 Telephone Conversation’’).
6 See Securities Exchange Act Release No. 42675
(April 13, 2000), 65 FR 21223 (April 20, 2000)
(Notice of Filing and Immediate Effectiveness of
File No. SR–Amex–00–15).
7 The Exchange clarified that this $.07 transaction
fee applies only to equity options. See November
7, 2005 Telephone Conversation, supra note 5.
E:\FR\FM\18NON1.SGM
18NON1
Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
Subsequently, in 2004, the Exchange
adopted a monthly cap on fees charged
for all equity and index options
transactions by member firms including
transactions resulting from customer
facilitations.8 Pursuant to the monthly
cap, the transaction, comparison, and
floor brokerage fees charged to member
firms are capped at $75,000 per month
per member firm.9 The purpose of this
monthly cap was to provide an
incentive for member firms to transact
more volume on the floor of the
Exchange, which provides more trading
opportunities for floor members thus
increasing revenue potential for
specialists and registered options
traders.
Based on the implementation of the
monthly fee cap described above,
management now proposes to eliminate
the equity option transaction fee
discount for member firms facilitating
customer orders.10 Given that member
firm fees are currently capped at
$75,000 per month, an additional
incentive in the form of a discount for
these facilitation transactions is no
longer necessary. The elimination of the
fee discount also will allow the
Exchange to charge the same fee for all
types of transactions thereby
simplifying the fee schedule and
eliminating the need to identify
transactions resulting from the member
firm facilitation of customer orders.
2. Statutory Basis
The Amex believes the proposed rule
change is consistent with section 6(b) of
the Act,11 in general, and furthers the
objectives of section 6(b)(4) of the Act,12
in particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities. In
addition, the Amex believes that
eliminating the discount for transactions
resulting from the member firm
facilitation of customer orders in equity
options allows for a more consistent
8 See Securities Exchange Act Release No. 49217
(February 10, 2004), 69 FR 7828 (February 19, 2004)
(Notice of Filing and Immediate Effectiveness of
File No. SR–Amex–2004–10). The Exchange
clarified that the monthly cap on fees applies to all
equity and index options transactions. See
November 7, 2005 Telephone Conversation, supra
note 5.
9 The Exchange clarified that the monthly cap
applies to transaction, comparison, and floor
brokerage fees. See November 7, 2005 Telephone
Conversation, supra note 5.
10 The Exchange clarified that the option
transaction fee discount applies only to equity
options. See November 7, 2005 Telephone
Conversation, supra note 5.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
15:21 Nov 17, 2005
Jkt 208001
application of options transaction fees
to all types of orders.
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.
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 establishes
or changes a due, fee, or other charge
applicable only to a member imposed by
the Exchange,13 and, therefore, has
become effective pursuant to section
19(b)(3)(A)(ii) of the Act 14 and
subparagraph (f)(2) of Rule 19b–4
thereunder.15 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.
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
No. SR–Amex–2005–113 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File No.
SR–Amex–2005–113. This file number
13 The Exchange clarified that the proposed rule
change would change a fee applicable only to a
member. See November 7, 2005 Telephone
Conversation, supra note 5.
14 15 U.S.C. 78s(b)(3)(A)(ii).
15 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
69999
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 will also 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 No.
SR–Amex–2005–113 and should be
submitted on or before December 9,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6376 Filed 11–17–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52765; File No. SR–Amex–
2005–102]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
an Interpretation of Exchange Rule 577
and Section 723 of the Amex Company
Guide
November 10, 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 October
12, 2005, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\18NON1.SGM
18NON1
]]>Agencies
[Federal Register Volume 70, Number 222 (Friday, November 18, 2005)]
[Notices]
[Pages 69998-69999]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6376]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52754; File No. SR-Amex-2005-113]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Elimination of the Equity Option Transaction Fee
Discount for Member Firms Facilitating Customer Orders
November 9, 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 November 1, 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 Amex
filed the proposed rule change 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
The Amex proposes to eliminate the equity option transaction fee
discount for member firms facilitating customer orders.\5\ 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 atthe
Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ The Exchange clarified that the option transaction fee
discount applies only to equity options. Telephone conversation
between Claire P. McGrath, Senior Vice President and General
Counsel, Amex, and Jennifer Dodd, Special Counsel, and Ted Venuti,
Attorney, Division of Market Regulation, Commission, November 7,
2005 (``November 7, 2005 Telephone Conversation'').
---------------------------------------------------------------------------
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 Amex 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 April 2000, the Exchange eliminated its transaction, clearance,
and floor brokerage fees for customer equity options transactions.\6\
To offset this fee elimination, the Exchange increased certain fees
charged for equity options transactions of members. Specifically, the
transaction fee for member firm proprietary orders was increased from
$0.07 to $0.19 per contract side. However, the Exchange determined at
that time to keep the transaction fee at $0.07 for those member firm
proprietary orders that facilitated a customer equity options order.\7\
A facilitation occurs when a member firm crosses an order for its own
account by buying from or selling to an order from its customer. The
Exchange chose to keep the fee for these types of transactions lower in
order to encourage member firms to continue to send these types of
orders to the Exchange.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 42675 (April 13,
2000), 65 FR 21223 (April 20, 2000) (Notice of Filing and Immediate
Effectiveness of File No. SR-Amex-00-15).
\7\ The Exchange clarified that this $.07 transaction fee
applies only to equity options. See November 7, 2005 Telephone
Conversation, supra note 5.
---------------------------------------------------------------------------
[[Page 69999]]
Subsequently, in 2004, the Exchange adopted a monthly cap on fees
charged for all equity and index options transactions by member firms
including transactions resulting from customer facilitations.\8\
Pursuant to the monthly cap, the transaction, comparison, and floor
brokerage fees charged to member firms are capped at $75,000 per month
per member firm.\9\ The purpose of this monthly cap was to provide an
incentive for member firms to transact more volume on the floor of the
Exchange, which provides more trading opportunities for floor members
thus increasing revenue potential for specialists and registered
options traders.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 49217 (February 10,
2004), 69 FR 7828 (February 19, 2004) (Notice of Filing and
Immediate Effectiveness of File No. SR-Amex-2004-10). The Exchange
clarified that the monthly cap on fees applies to all equity and
index options transactions. See November 7, 2005 Telephone
Conversation, supra note 5.
\9\ The Exchange clarified that the monthly cap applies to
transaction, comparison, and floor brokerage fees. See November 7,
2005 Telephone Conversation, supra note 5.
---------------------------------------------------------------------------
Based on the implementation of the monthly fee cap described above,
management now proposes to eliminate the equity option transaction fee
discount for member firms facilitating customer orders.\10\ Given that
member firm fees are currently capped at $75,000 per month, an
additional incentive in the form of a discount for these facilitation
transactions is no longer necessary. The elimination of the fee
discount also will allow the Exchange to charge the same fee for all
types of transactions thereby simplifying the fee schedule and
eliminating the need to identify transactions resulting from the member
firm facilitation of customer orders.
---------------------------------------------------------------------------
\10\ The Exchange clarified that the option transaction fee
discount applies only to equity options. See November 7, 2005
Telephone Conversation, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Amex believes the proposed rule change is consistent with
section 6(b) of the Act,\11\ in general, and furthers the objectives of
section 6(b)(4) of the Act,\12\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities. In addition, the Amex believes that eliminating the
discount for transactions resulting from the member firm facilitation
of customer orders in equity options allows for a more consistent
application of options transaction fees to all types of orders.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 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.
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 establishes or changes a due, fee, or
other charge applicable only to a member imposed by the Exchange,\13\
and, therefore, has become effective pursuant to section
19(b)(3)(A)(ii) of the Act \14\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\15\ 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.
---------------------------------------------------------------------------
\13\ The Exchange clarified that the proposed rule change would
change a fee applicable only to a member. See November 7, 2005
Telephone Conversation, supra note 5.
\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 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 No. SR-Amex-2005-113 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303.
All submissions should refer to File No. SR-Amex-2005-113. 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 will also 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 No. SR-Amex-2005-113 and should be submitted on or before December
9, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6376 Filed 11-17-05; 8:45 am]
BILLING CODE 8010-01-P
