Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 2 Thereto Relating to the Suspension of Transaction Charges for Specialist Orders in the Nasdaq-100 Tracking Stock® (QQQQ), 25253-25254 [E6-6374]
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Federal Register / Vol. 71, No. 82 / Friday, April 28, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53701; File No. SR–Amex–
2006–30]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment No. 2 Thereto Relating to
the Suspension of Transaction
Charges for Specialist Orders in the
Nasdaq-100 Tracking Stock (QQQQ)
April 21, 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 6,
2006, 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 Amex. The Exchange filed
Amendment No. 1 on April 13, 2006,
and withdrew Amendment No. 1 on
April 18, 2006. On April 18, 2006, the
Exchange filed Amendment No. 2 to the
proposed rule change.3 Amex has
designated the proposed rule change as
establishing or changing a due, fee, or
other charge imposed by the Exchange
pursuant to Section 19(b)(3)(A)(ii) of the
Act 4 and Rule 19b–4(f)(2) thereunder,5
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Amex Exchange Traded Funds and
Trust Issued Receipts Fee Schedule (the
‘‘ETF Fee Schedule’’) to suspend
transaction charges for specialist orders
in connection with the trading of the
Nasdaq-100 Index Tracking Stock
(Symbol: QQQQ) from April 6, 2006
through June 30, 2006.
The text of the proposed rule change,
as amended, is available on Amex’s Web
site (https://www.amex.com), at Amex’s
principal office, and from the
Commission’s Public Reference Room.
jlentini on PROD1PC65 with NOTICES
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 2, the Exchange revised its
statutory basis section, made a minor revision to its
purpose section, and added a citation to its purpose
section.
4 15 U.S.C. 78s(b)(3)(A)(ii).
5 17 CFR 240.19b–4(f)(2).
2 17
VerDate Aug<31>2005
17:14 Apr 27, 2006
Jkt 208001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change, as amended,
and discussed any comments it received
on the proposal. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to suspend
transaction charges for specialist orders
in the QQQQ from April 6, 2006
through June 30, 2006. The previous
suspension of specialist transaction
charges in the QQQQ terminated on
December 31, 2005.
Specialist orders currently are
charged $0.0034 ($0.34 per 100 shares),
capped at $300 per trade (88,235
shares). Effective December 1, 2004, the
Nasdaq-100 Index Tracking Stock
(formerly ‘‘QQQ’’) transferred its listing
from Amex to The Nasdaq Stock Market,
Inc. (‘‘Nasdaq’’). It now trades on
Nasdaq under the symbol QQQQ. After
the transfer, Amex began trading QQQQ
on an unlisted trading privileges basis.
Amex previously suspended the
transaction charges of specialist orders
in connection with the QQQQ through
December 31, 2005.6 The Exchange did
not extend these fee waivers after
December 31, 2005.
The Exchange asserts that the
proposed suspension of transaction fees
for specialist orders in connection with
the QQQQ is consistent with Section
6(b)(4) of the Act.7 Specifically, the
Exchange believes that the proposal
provides for an equitable allocation of
reasonable fees among Exchange
members largely based on the fact that
specialists have greater obligations than
other members and are also subject to
other Exchange fees in addition to
transaction fees.
6 See Securities Exchange Act Release No. 52736
(November 4, 2005), 70 FR 69171 (November 14,
2005).
7 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).
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
25253
In connection with the proposal to
suspend or waive transaction fees for
specialist orders in the QQQQ, the
Exchange notes that specialists are
subject to a variety of Exchange fees
other than transaction charges. For
example, the Exchange imposes floor
fees solely on specialists such as a floor
clerk fee, a floor facility fee, a post fee,
and registration fee.8 In addition, for
those members on the floor of the
Exchange, a technology fee and
membership fees are also charged by the
Exchange.9 Certain market participants,
such as customers, non-member brokerdealers and market-makers, and member
broker-dealers are not subject to the
majority of these fees. In addition, a
specialist unit in order to adequately
‘‘make a market’’ in assigned securities
must be sufficiently staffed 10 and have
adequate technology resources to handle
the volume of orders (especially in the
QQQQ) that are sent to the Exchange.
The Exchange believes that these
operational costs borne by a specialist
further supports the proposal to
temporarily suspend QQQQ transaction
fees on specialist orders.
Specialists have certain obligations
required by Exchange rules as well as
the Act that do not exist for other
market participants. For example, a
specialist pursuant to Amex Rule 170 is
required to maintain a fair and orderly
market in his or her assigned securities.
Other members of the Exchange as well
as non-member market participants do
not have this obligation. As a result, the
Exchange believes that the proposed
suspension of transaction charges for
specialist orders in the QQQQ is
reasonable and equitable given the
obligations that specialists must adhere
to in making markets. The Exchange
further submits that the fee suspension
will provide a greater incentive to
specialists to continue to provide
market liquidity, rendering the
Exchange an attractive venue for market
participants to execute orders.
2. Statutory Basis
Amex believes that the proposed rule
change, as amended, is consistent with
8 The floor clerk, floor facility, post, and
registration fees on an annual basis are $900,
$2,400, $1,000, and $800, respectively.
9 A technology fee of $3,000 per year is assessed
on all specialists and other floor participants at the
Exchange. Annual membership dues of $1,500 must
be paid by all members while annual membership
fees are payable depending on the type of
membership and circumstances. Non-members are
not subject to these fees.
10 See Securities Exchange Act Release No. 53386
(February 28, 2006), 71 FR 11250 (March 6, 2006)
(requiring specialists to employ an adequate
number of clerks).
E:\FR\FM\28APN1.SGM
28APN1
25254
Federal Register / Vol. 71, No. 82 / Friday, April 28, 2006 / Notices
Section 6(b) of the Act 11 in general and
furthers the objectives of Section 6(b)(4)
of the Act 12 in particular, and is an
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex 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, as
amended, has become effective pursuant
to Section 19(b)(3)(A)(ii) of the Act 13
and subparagraph (f)(2) of Rule 19b–4
thereunder 14 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.15
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2006–30 on the
subject line.
Paper Comments
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of a Proposed Rule Change
and Amendment No. 1 Thereto
Relating to Written Compliance and
Supervisory Controls
All submissions should refer to File
Number SR–Amex–2006–30. 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 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–2006–30 and should
be submitted on or before May 19, 2006.
April 24, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Nancy M. Morris,
Secretary.
[FR Doc. E6–6374 Filed 4–27–06; 8:45 am]
jlentini on PROD1PC65 with NOTICES
12 15
17:14 Apr 27, 2006
Jkt 208001
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
7, 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 filed Amendment No. 1 with the
Commission on April 6, 2006.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Amex Rule 320 to (1) require members
and member organizations with
employees to establish, maintain,
enforce and keep current a system of
compliance and supervisory controls
reasonably designed to achieve
compliance with applicable securities
laws and regulations and Exchange
rules, and (2) make certain other
technical changes to the rule text.
The text of the proposed rule change
is available on the Amex’s Web site at
https://www.amex.com, at the Amex’s
Office of the Secretary, 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
proposal and discussed any comments it
received on the proposal. 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
11 15
VerDate Aug<31>2005
[Release No. 34–53708; File No. SR–Amex–
2005–116]
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
BILLING CODE 8010–01–P
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
13 15 U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4(f)(2).
15 The effective date of the original proposed rule
change is April 6, 2006 and the effective date of
Amendment No. 2 is April 18, 2006. For purposes
of calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, under Section 19(b)(3)(C)
of the Act, the Commission considers the period to
commence on April 18, 2006, the date on which the
Exchange submitted Amendment No. 2. See 15
U.S.C. 78s(b)(3)(C).
SECURITIES AND EXCHANGE
COMMISSION
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Amendment No. 1.
2 17
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00122
Fmt 4703
Sfmt 4703
E:\FR\FM\28APN1.SGM
28APN1
]]>Agencies
[Federal Register Volume 71, Number 82 (Friday, April 28, 2006)]
[Notices]
[Pages 25253-25254]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6374]
[[Page 25253]]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53701; File No. SR-Amex-2006-30]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 2 Thereto Relating to the Suspension of Transaction
Charges for Specialist Orders in the Nasdaq-100 Tracking Stock[supreg]
(QQQQ)
April 21, 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 6, 2006, 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 Amex. The Exchange
filed Amendment No. 1 on April 13, 2006, and withdrew Amendment No. 1
on April 18, 2006. On April 18, 2006, the Exchange filed Amendment No.
2 to the proposed rule change.\3\ Amex has designated the proposed rule
change as establishing or changing a due, fee, or other charge imposed
by the Exchange pursuant to Section 19(b)(3)(A)(ii) of the Act \4\ and
Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change, as amended,
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 2, the Exchange revised its statutory basis
section, made a minor revision to its purpose section, and added a
citation to its purpose section.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Amex Exchange Traded Funds and
Trust Issued Receipts Fee Schedule (the ``ETF Fee Schedule'') to
suspend transaction charges for specialist orders in connection with
the trading of the Nasdaq-100 Index Tracking Stock[supreg] (Symbol:
QQQQ) from April 6, 2006 through June 30, 2006.
The text of the proposed rule change, as amended, is available on
Amex's Web site (https://www.amex.com), at Amex's principal office, and
from the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change, as
amended, and discussed any comments it received on the proposal. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to suspend transaction charges for
specialist orders in the QQQQ from April 6, 2006 through June 30, 2006.
The previous suspension of specialist transaction charges in the QQQQ
terminated on December 31, 2005.
Specialist orders currently are charged $0.0034 ($0.34 per 100
shares), capped at $300 per trade (88,235 shares). Effective December
1, 2004, the Nasdaq-100 Index Tracking Stock[supreg] (formerly ``QQQ'')
transferred its listing from Amex to The Nasdaq Stock Market, Inc.
(``Nasdaq''). It now trades on Nasdaq under the symbol QQQQ. After the
transfer, Amex began trading QQQQ on an unlisted trading privileges
basis. Amex previously suspended the transaction charges of specialist
orders in connection with the QQQQ through December 31, 2005.\6\ The
Exchange did not extend these fee waivers after December 31, 2005.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 52736 (November 4,
2005), 70 FR 69171 (November 14, 2005).
---------------------------------------------------------------------------
The Exchange asserts that the proposed suspension of transaction
fees for specialist orders in connection with the QQQQ is consistent
with Section 6(b)(4) of the Act.\7\ Specifically, the Exchange believes
that the proposal provides for an equitable allocation of reasonable
fees among Exchange members largely based on the fact that specialists
have greater obligations than other members and are also subject to
other Exchange fees in addition to transaction fees.
---------------------------------------------------------------------------
\7\ 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).
---------------------------------------------------------------------------
In connection with the proposal to suspend or waive transaction
fees for specialist orders in the QQQQ, the Exchange notes that
specialists are subject to a variety of Exchange fees other than
transaction charges. For example, the Exchange imposes floor fees
solely on specialists such as a floor clerk fee, a floor facility fee,
a post fee, and registration fee.\8\ In addition, for those members on
the floor of the Exchange, a technology fee and membership fees are
also charged by the Exchange.\9\ Certain market participants, such as
customers, non-member broker-dealers and market-makers, and member
broker-dealers are not subject to the majority of these fees. In
addition, a specialist unit in order to adequately ``make a market'' in
assigned securities must be sufficiently staffed \10\ and have adequate
technology resources to handle the volume of orders (especially in the
QQQQ) that are sent to the Exchange. The Exchange believes that these
operational costs borne by a specialist further supports the proposal
to temporarily suspend QQQQ transaction fees on specialist orders.
---------------------------------------------------------------------------
\8\ The floor clerk, floor facility, post, and registration fees
on an annual basis are $900, $2,400, $1,000, and $800, respectively.
\9\ A technology fee of $3,000 per year is assessed on all
specialists and other floor participants at the Exchange. Annual
membership dues of $1,500 must be paid by all members while annual
membership fees are payable depending on the type of membership and
circumstances. Non-members are not subject to these fees.
\10\ See Securities Exchange Act Release No. 53386 (February 28,
2006), 71 FR 11250 (March 6, 2006) (requiring specialists to employ
an adequate number of clerks).
---------------------------------------------------------------------------
Specialists have certain obligations required by Exchange rules as
well as the Act that do not exist for other market participants. For
example, a specialist pursuant to Amex Rule 170 is required to maintain
a fair and orderly market in his or her assigned securities. Other
members of the Exchange as well as non-member market participants do
not have this obligation. As a result, the Exchange believes that the
proposed suspension of transaction charges for specialist orders in the
QQQQ is reasonable and equitable given the obligations that specialists
must adhere to in making markets. The Exchange further submits that the
fee suspension will provide a greater incentive to specialists to
continue to provide market liquidity, rendering the Exchange an
attractive venue for market participants to execute orders.
2. Statutory Basis
Amex believes that the proposed rule change, as amended, is
consistent with
[[Page 25254]]
Section 6(b) of the Act \11\ in general and furthers the objectives of
Section 6(b)(4) of the Act \12\ in particular, and is an equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities.
---------------------------------------------------------------------------
\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
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, as amended, has become effective
pursuant to Section 19(b)(3)(A)(ii) of the Act \13\ and subparagraph
(f)(2) of Rule 19b-4 thereunder \14\ 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.\15\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
\15\ The effective date of the original proposed rule change is
April 6, 2006 and the effective date of Amendment No. 2 is April 18,
2006. For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change, as
amended, under Section 19(b)(3)(C) of the Act, the Commission
considers the period to commence on April 18, 2006, the date on
which the Exchange submitted Amendment No. 2. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2006-30 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-2006-30. 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 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-2006-30 and should be submitted on or before May 19, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-6374 Filed 4-27-06; 8:45 am]
BILLING CODE 8010-01-P
