Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Adoption of a Licensing Fee for Options on the First Trust IPOX-100 Index Fund Shares, 23974-23975 [E6-6146]

Download as PDF 23974 Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule that are filed with the Commission, and all written communications relating to the proposed rule between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of PCAOB. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should be submitted on or before May 25, 2006. V. Conclusion On the basis of the foregoing, the Commission finds that proposed rules, including the March 28, 2006 amendment, are consistent with the requirements of the Act and the securities laws and are necessary and appropriate in the public interest and for the protection of investors. However, to facilitate implementation of the proposed rules, the Commission expects the PCAOB will issue additional implementation guidance as requested by a number of the commenters. It is therefore ordered, pursuant to Section 107 of the Act and Section 19(b)(2) of the Exchange Act, that the Proposed Ethics and Independence Rules Concerning Independence, Tax Services, and Contingent Fees (File No. PCAOB–2006–01), as amended, be and hereby are approved. By the Commission. Nancy M. Morris, Secretary. [FR Doc. E6–6125 Filed 4–24–06; 8:45 am] [Release No. 34–53678; File No. SR–Amex– 2006–36] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Adoption of a Licensing Fee for Options on the First Trust IPOX–100 Index Fund Shares April 19, 2006. 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 April 12, 2006, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) submitted to 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 Amex. Amex has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the selfregulatory organization under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 4(f)(2) thereunder,4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify its Options Fee Schedule by adopting a per contract license fee for the orders of specialists, registered options traders (‘‘ROTs’’), firms, non-member market makers, and broker-dealers in connection with options transactions on the shares of the First Trust IPOX–100 Index Fund (symbol: FPX). The text of the proposed rule change is available on the Amex’s Web site at http://www.amex.com, at the principal office of the Amex, 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 BILLING CODE 8010–01–P wwhite on PROD1PC65 with NOTICES SECURITIES AND EXCHANGE COMMISSION In its filing with the Commission, Amex included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed 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). rule change. The text of these statements may be examined at the places specified in Item IV below. 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 Amex proposes to adopt a per contract licensing fee for options on FPX. This fee change will be assessed on members commencing April 13, 2006. The Exchange has entered into numerous agreements with various index providers for the purpose of trading options on certain exchange traded funds (‘‘ETFs’’), such as FPX. This requirement to pay an index license fee to a third party is a condition to the listing and trading of these ETF options. In many cases, the Exchange is required to pay a significant licensing fee to the index provider that may not be reimbursed. In an effort to recoup the costs associated with certain index licenses, the Exchange has established a per contract licensing fee for the orders of specialists, ROTs, firms, non-member market makers and broker-dealers, which is collected on every option transaction in designated products in which such market participant is a party.5 The purpose of this proposal is to charge an options licensing fee in connection with options on FPX. Specifically, Amex seeks to charge an options licensing fee of $0.10 per contract side for FPX options for specialist, ROT, firm, non-member market maker and broker-dealer orders executed on the Exchange. In all cases, the fees will be charged only to the Exchange members through whom the orders are placed. The proposed options licensing fee will allow the Exchange to recoup its costs in connection with the index license fee for the trading of the FPX options. The fees will be collected on every order of a specialist, ROT, firm, non-member market maker, and brokerdealer executed on the Exchange. The Exchange believes that the proposal to require payment of a per contract licensing fee in connection with the FPX options by those market participants that are the beneficiaries of Exchange index license agreements is 1 15 2 17 VerDate Aug<31>2005 16:59 Apr 24, 2006 Jkt 208001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 5 See, e.g., Securities Exchange Act Release No. 52493 (September 22, 2005), 70 FR 56941 (September 29, 2005). E:\FR\FM\25APN1.SGM 25APN1 Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Notices justified and consistent with the rules of the Exchange. The Exchange notes that the Amex, in recent years, has revised a number of fees to better align Exchange fees with the actual cost of delivering services and reduce Exchange subsidies of such services. Amex believes that the implementation of this proposal is consistent with the reduction and/or elimination of these subsidies. Amex also believes that these fees will help to allocate to those market participants engaging in transactions in FPX options, a fair share of the related costs of offering such options. The Exchange asserts that the proposal is equitable as required by Section 6(b)(4) of the Act.6 In connection with the adoption of an options licensing fee for FPX options, the Exchange believes 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. Accordingly, the Exchange seeks, through this proposal, to better align its transaction charges with the cost of providing products. 2. Statutory Basis Amex believes that the proposed fee change is consistent with Section 6(b)(4) of the Act 7 regarding the equitable allocation of reasonable dues, fees and other charges among exchange members and other persons using exchange facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition Amex 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. wwhite on PROD1PC65 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b– 6 Section 6(b)(4) 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. 7 15 U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Aug<31>2005 16:59 Apr 24, 2006 Jkt 208001 4(f)(2) thereunder,9 because it establishes or changes a due, fee, or other charge imposed by the selfregulatory organization. At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2006–36 on the subject line. 23975 information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Amex–2006–36 and should be submitted on or before May 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–6146 Filed 4–24–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53675; File No. SR–NASD– 2006–049] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Brut’s Routing Order Process April 18, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on April 13, • Send paper comments in triplicate 2006, the National Association of to Nancy M. Morris, Secretary, Securities Dealers, Inc., through its Securities and Exchange Commission, subsidiary, The Nasdaq Stock Market, 100 F Street, NE., Washington, DC Inc. (‘‘Nasdaq’’), filed with the 20549–1090. Securities and Exchange Commission All submissions should refer to File (‘‘SEC’’ or the ‘‘Commission’’) the Number SR–Amex–2006–36. This file proposed rule change as described in number should be included on the Items I, II and III below, which items subject line if e-mail is used. To help the have been prepared by Nasdaq. Nasdaq Commission process and review your has designated the proposed rule change comments more efficiently, please use as a ‘‘non-controversial’’ rule change only one method. The Commission will pursuant to Rule 19b–4(f)(6) under the post all comments on the Commission’s Act,3 which renders the proposal Internet Web site (http://www.sec.gov/ effective upon filing with the rules/sro.shtml). Copies of 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 The text of the proposed rule change those that may be withheld from the is below. Proposed new language is in public in accordance with the italics; proposed deletions are in provisions of 5 U.S.C. 552, will be [brackets]. available for inspection and copying in * * * * * the Commission’s Public Reference Room. Copies of such filing also will be 4714. Routing—Nasdaq-Listed Securities available for inspection and copying at the principal office of the Amex. All (a)–(b)—No Change comments received will be posted without change; the Commission does 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). not edit personal identifying 2 17 9 17 PO 00000 CFR 240.19b–4(f)(2). Frm 00082 Fmt 4703 3 17 Sfmt 4703 E:\FR\FM\25APN1.SGM CFR 240.19b–4. CFR 240.19b–4(f)(6). 25APN1

Agencies

[Federal Register Volume 71, Number 79 (Tuesday, April 25, 2006)]
[Notices]
[Pages 23974-23975]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6146]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53678; File No. SR-Amex-2006-36]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Adoption of a Licensing Fee for Options on the First 
Trust IPOX-100 Index Fund Shares

April 19, 2006.
    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 April 12, 2006, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted to 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 Amex. Amex has 
designated this proposal as one establishing or changing a due, fee, or 
other charge imposed by the self-regulatory organization under Section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders it effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(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 Exchange proposes to modify its Options Fee Schedule by 
adopting a per contract license fee for the orders of specialists, 
registered options traders (``ROTs''), firms, non-member market makers, 
and broker-dealers in connection with options transactions on the 
shares of the First Trust IPOX-100 Index Fund (symbol: FPX).
    The text of the proposed rule change is available on the Amex's Web 
site at http://www.amex.com, at the principal office of the Amex, 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, Amex 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. 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
    Amex proposes to adopt a per contract licensing fee for options on 
FPX. This fee change will be assessed on members commencing April 13, 
2006.
    The Exchange has entered into numerous agreements with various 
index providers for the purpose of trading options on certain exchange 
traded funds (``ETFs''), such as FPX. This requirement to pay an index 
license fee to a third party is a condition to the listing and trading 
of these ETF options. In many cases, the Exchange is required to pay a 
significant licensing fee to the index provider that may not be 
reimbursed. In an effort to recoup the costs associated with certain 
index licenses, the Exchange has established a per contract licensing 
fee for the orders of specialists, ROTs, firms, non-member market 
makers and broker-dealers, which is collected on every option 
transaction in designated products in which such market participant is 
a party.\5\
---------------------------------------------------------------------------

    \5\ See, e.g., Securities Exchange Act Release No. 52493 
(September 22, 2005), 70 FR 56941 (September 29, 2005).
---------------------------------------------------------------------------

    The purpose of this proposal is to charge an options licensing fee 
in connection with options on FPX. Specifically, Amex seeks to charge 
an options licensing fee of $0.10 per contract side for FPX options for 
specialist, ROT, firm, non-member market maker and broker-dealer orders 
executed on the Exchange. In all cases, the fees will be charged only 
to the Exchange members through whom the orders are placed.
    The proposed options licensing fee will allow the Exchange to 
recoup its costs in connection with the index license fee for the 
trading of the FPX options. The fees will be collected on every order 
of a specialist, ROT, firm, non-member market maker, and broker-dealer 
executed on the Exchange. The Exchange believes that the proposal to 
require payment of a per contract licensing fee in connection with the 
FPX options by those market participants that are the beneficiaries of 
Exchange index license agreements is

[[Page 23975]]

justified and consistent with the rules of the Exchange.
    The Exchange notes that the Amex, in recent years, has revised a 
number of fees to better align Exchange fees with the actual cost of 
delivering services and reduce Exchange subsidies of such services. 
Amex believes that the implementation of this proposal is consistent 
with the reduction and/or elimination of these subsidies. Amex also 
believes that these fees will help to allocate to those market 
participants engaging in transactions in FPX options, a fair share of 
the related costs of offering such options.
    The Exchange asserts that the proposal is equitable as required by 
Section 6(b)(4) of the Act.\6\ In connection with the adoption of an 
options licensing fee for FPX options, the Exchange believes 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. Accordingly, the Exchange seeks, 
through this proposal, to better align its transaction charges with the 
cost of providing products.
---------------------------------------------------------------------------

    \6\ Section 6(b)(4) 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.
---------------------------------------------------------------------------

2. Statutory Basis
    Amex believes that the proposed fee change is consistent with 
Section 6(b)(4) of the Act \7\ regarding the equitable allocation of 
reasonable dues, fees and other charges among exchange members and 
other persons using exchange facilities.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    Amex 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) thereunder,\9\ 
because it establishes or changes a due, fee, or other charge imposed 
by the self-regulatory organization.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2006-36 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Amex-2006-36. 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 (http://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 the Amex. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-Amex-2006-36 and should be submitted on or before May 
16, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-6146 Filed 4-24-06; 8:45 am]
BILLING CODE 8010-01-P