Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt an Options Licensing Fee for the PowerShares Lux Nanotech Portfolio (PXN) and the PowerShares Aerospace & Defense Portfolio (PPA), 70001-70002 [E5-6381]
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<![CDATA[
Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
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.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6379 Filed 11–17–05; 8:45 am]
BILLING CODE 8010–01–P
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2005–102 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52767; File No. SR–Amex–
2005–108]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Adopt an
Options Licensing Fee for the
PowerShares Lux Nanotech Portfolio
(PXN) and the PowerShares Aerospace
& Defense Portfolio (PPA)
November 10, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
• Send paper comments in triplicate
27, 2005, the American Stock Exchange
to Jonathan G. Katz, Secretary,
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–9303.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–Amex–2005–102. This file
have been prepared by the Exchange.
number should be included on the
Amex has designated this proposal as
subject line if e-mail is used. To help the one establishing or changing a due, fee,
Commission process and review your
or other charge imposed by a selfcomments more efficiently, please use
regulatory organization pursuant to
only one method. The Commission will section 19(b)(3)(A) of the Act 3 and Rule
post all comments on the Commission’s 19b–4(f)(2) thereunder,4 which renders
Internet Web site (https://www.sec.gov/
the proposal effective upon filing with
rules/sro.shtml). Copies of the
the Commission. The Commission is
submission, all subsequent
publishing this notice to solicit
amendments, all written statements
comments on the proposed rule change
with respect to the proposed rule
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
Amex proposes to modify its Options
those that may be withheld from the
Fee Schedule by adopting a per-contract
public in accordance with the
license fee in connection with the
provisions of 5 U.S.C. 552, will be
orders of specialists, registered options
available for inspection and copying in
traders, firms, non-member market
the Commission’s Public Reference
makers, and broker-dealers (collectively,
Room. Copies of such filing also will be ‘‘Market Participants’’) in connection
available for inspection and copying at
with options transactions in the
the principal office of the Exchange. All PowerShares Lux Nanotech Portfolio
comments received will be posted
(symbol: PXN) and the PowerShares
without change; the Commission does
Aerospace & Defense Portfolio (symbol:
not edit personal identifying
PPA).5 The text of the proposed rule
information from submissions. You
14 17 CFR 200.30–3(a)(12).
should submit only information that
1 15 U.S.C. 78s(b)(1).
you wish to make available publicly. All
2 17 CFR 240.19b–4.
submissions should refer to File
3 15 U.S.C. 78s(b)(3)(A).
Number SR–Amex–2005–102 and
4 17 CFR 240.19b–4(f)(2).
should be submitted on or before
5 In this proposed rule change filing, Amex
December 9, 2005.
inadvertently included references to an options
VerDate Aug<31>2005
15:21 Nov 17, 2005
Jkt 208001
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
70001
change is available on the Exchange’s
Internet Web site (https://
www.amex.com), at the Exchange’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange has entered into
numerous agreements with issuers and
owners of indexes for the purpose of
trading options on certain exchangetraded funds (‘‘ETFs’’) and securities
indexes. As a result, the Exchange is
required to pay index license fees to
third parties as a condition to the listing
and trading of these ETF and index
options. In many cases, the Exchange is
required to pay a significant licensing
fee to an index provider that may not be
reimbursed. In an effort to recoup the
costs associated with certain index
licenses, the Exchange has recently
established per-contract licensing fees
for orders of Market Participants that are
collected on each option transaction in
certain designated products in which
such Market Participant is a party.6
The purpose of the proposal is to
charge options licensing fees in
connection with options on PXN and
PPA. Specifically, Amex seeks to charge
options licensing fees of $0.10 and $0.09
per contract side in connection with
PXN and PPA options, respectively, for
orders of Market Participants executed
on the Exchange. In all cases, the fees
would be charged only to Exchange
ticker symbol other than PXN and PPA in certain
places. Amex has represented that these references
were made in error and that the only options which
are subject to the license fees contemplated by this
proposal are PXN and PPA. Telephone conversation
between Jeffrey Burns, Associate General Counsel,
Amex, and Leah Mesfin, Special Counsel, and
Edward Cho, Staff Attorney, Division of Market
Regulation, Commission (November 3, 2005).
6 See Securities Exchange Act Release No. 52493
(September 22, 2005), 70 FR 56941 (September 29,
2005).
E:\FR\FM\18NON1.SGM
18NON1
70002
Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
members through whom such orders are
placed.
Amex represents that the proposed
options licensing fees would allow the
Exchange to recoup its costs in
connection with the index license fees
for the trading of PXN and PPA options.
The fees would be collected on every
Market Participant order executed on
the Exchange. The Exchange believes
that requiring the payment of a percontract licensing fee in connection
with PXN and PPA options by those
Market Participants that benefit from the
index license agreements is justified and
consistent with the rules of the
Exchange.
The Exchange notes that, in recent
years, it has revised a number of its fees
to better align Amex fees with the actual
cost of delivering services and reduce
Amex’s subsidization of such services.7
The Exchange represents that the
implementation of this proposal is
consistent with the reduction and/or
elimination of these subsidies. Amex
believes that these fees will help to
allocate to those Market Participants
engaging in transactions in PXN and
PPA options a fair share of the related
costs of offering such options for
trading.
The Exchange asserts that the
proposal provides for an equitable
allocation of fees as required by section
6(b)(4) of the Act.8 In connection with
the adoption of options licensing fees
for PXN and PPA options, the Exchange
notes that charging the options licensing
fees, where applicable, to all Market
Participant orders, except for customer
orders, is reasonable given the
competitive pressures in the industry.
Accordingly, the Exchange seeks,
through this proposal, to better align its
transaction charges with the cost of
providing trading products.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 9 in general, and
furthers the objectives of section 6(b)(4)
of the Act 10 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
7 See, e.g., Securities Exchange Act Release No.
45360 (January 29, 2002), 67 FR 5626 (February 6,
2002); Securities Exchange Act Release No. 44286
(May 9, 2001), 66 FR 27187 (May 16, 2001).
8 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.’’ 15 U.S.C.
78f(b)(4).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
15:21 Nov 17, 2005
Jkt 208001
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to section
19(b)(3)(A)(ii) of the Act 11 and Rule
19b–4(f)(2) 12 thereunder 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.
IV. Solicitation of Comments
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 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–2005–108 and
should be submitted on or before
December 9, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6381 Filed 11–17–05; 8:45 am]
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:
BILLING CODE 8010–01–P
Electronic Comments
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto
Relating to Records of Orders and
Executions
• 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–2005–108 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
Number SR–Amex–2005–108. This file
number should be included on the
subject line if e-mail is used. To help the
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52766; File No. SR–CHX–
2004–38]
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 November
3, 2004, the Chicago Stock Exchange,
Inc. (‘‘CHX’’ 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 CHX. On July
13 17
11 15
U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 19b–4(f)(2).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
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 70001-70002]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6381]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52767; File No. SR-Amex-2005-108]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Adopt an Options Licensing Fee for the PowerShares Lux Nanotech
Portfolio (PXN) and the PowerShares Aerospace & Defense Portfolio (PPA)
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 27, 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 this proposal as one establishing or changing a due, fee, or
other charge imposed by a self-regulatory organization pursuant to
section 19(b)(3)(A) 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).
\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 modify its Options Fee Schedule by adopting a per-
contract license fee in connection with the orders of specialists,
registered options traders, firms, non-member market makers, and
broker-dealers (collectively, ``Market Participants'') in connection
with options transactions in the PowerShares Lux Nanotech Portfolio
(symbol: PXN) and the PowerShares Aerospace & Defense Portfolio
(symbol: PPA).\5\ The text of the proposed rule change is available on
the Exchange's Internet Web site (https://www.amex.com), at the
Exchange's principal office, and at the Commission's Public Reference
Room.
---------------------------------------------------------------------------
\5\ In this proposed rule change filing, Amex inadvertently
included references to an options ticker symbol other than PXN and
PPA in certain places. Amex has represented that these references
were made in error and that the only options which are subject to
the license fees contemplated by this proposal are PXN and PPA.
Telephone conversation between Jeffrey Burns, Associate General
Counsel, Amex, and Leah Mesfin, Special Counsel, and Edward Cho,
Staff Attorney, Division of Market Regulation, Commission (November
3, 2005).
---------------------------------------------------------------------------
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
The Exchange has entered into numerous agreements with issuers and
owners of indexes for the purpose of trading options on certain
exchange-traded funds (``ETFs'') and securities indexes. As a result,
the Exchange is required to pay index license fees to third parties as
a condition to the listing and trading of these ETF and index options.
In many cases, the Exchange is required to pay a significant licensing
fee to an index provider that may not be reimbursed. In an effort to
recoup the costs associated with certain index licenses, the Exchange
has recently established per-contract licensing fees for orders of
Market Participants that are collected on each option transaction in
certain designated products in which such Market Participant is a
party.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 52493 (September 22,
2005), 70 FR 56941 (September 29, 2005).
---------------------------------------------------------------------------
The purpose of the proposal is to charge options licensing fees in
connection with options on PXN and PPA. Specifically, Amex seeks to
charge options licensing fees of $0.10 and $0.09 per contract side in
connection with PXN and PPA options, respectively, for orders of Market
Participants executed on the Exchange. In all cases, the fees would be
charged only to Exchange
[[Page 70002]]
members through whom such orders are placed.
Amex represents that the proposed options licensing fees would
allow the Exchange to recoup its costs in connection with the index
license fees for the trading of PXN and PPA options. The fees would be
collected on every Market Participant order executed on the Exchange.
The Exchange believes that requiring the payment of a per-contract
licensing fee in connection with PXN and PPA options by those Market
Participants that benefit from the index license agreements is
justified and consistent with the rules of the Exchange.
The Exchange notes that, in recent years, it has revised a number
of its fees to better align Amex fees with the actual cost of
delivering services and reduce Amex's subsidization of such
services.\7\ The Exchange represents that the implementation of this
proposal is consistent with the reduction and/or elimination of these
subsidies. Amex believes that these fees will help to allocate to those
Market Participants engaging in transactions in PXN and PPA options a
fair share of the related costs of offering such options for trading.
---------------------------------------------------------------------------
\7\ See, e.g., Securities Exchange Act Release No. 45360
(January 29, 2002), 67 FR 5626 (February 6, 2002); Securities
Exchange Act Release No. 44286 (May 9, 2001), 66 FR 27187 (May 16,
2001).
---------------------------------------------------------------------------
The Exchange asserts that the proposal provides for an equitable
allocation of fees as required by section 6(b)(4) of the Act.\8\ In
connection with the adoption of options licensing fees for PXN and PPA
options, the Exchange notes that charging the options licensing fees,
where applicable, to all Market Participant orders, except for customer
orders, is reasonable given the competitive pressures in the industry.
Accordingly, the Exchange seeks, through this proposal, to better align
its transaction charges with the cost of providing trading products.
---------------------------------------------------------------------------
\8\ 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.'' 15
U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \9\ in general, and furthers the
objectives of section 6(b)(4) of the Act \10\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
section 19(b)(3)(A)(ii) of the Act \11\ and Rule 19b-4(f)(2) \12\
thereunder 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 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-2005-108 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 Number SR-Amex-2005-108. 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 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-2005-108 and should be submitted on or before December 9, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
Jonathan G. Katz,
Secretary.
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E5-6381 Filed 11-17-05; 8:45 am]
BILLING CODE 8010-01-P
