Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Adoption of an Options Licensing Fee in Connection With Certain Russell Indexes, 34971-34973 [E6-9436]

Download as PDF Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices increase the number of qualified students entering the fields of information assurance and computer security in an effort to respond to the threat to the Federal Government’s information technology infrastructure. The program provides capacity building grants to selected 4-year colleges and universities to develop or improve their capacity to train information assurance professionals. It also provides selected 4-year colleges and universities scholarship grants to attract students to the information assurance field. Participating students who receive scholarships from this program are required to serve a 10-week internship during their studies and complete a post-graduation employment commitment equivalent to the length of the scholarship or one year, whichever is longer. OPM projects that 450 students will graduate from participating institutions over the next three years. These students will need placement in addition to the 180 students needing placement this year. This is a new collection of information. Based on other programs that collect similar information, we estimate the collection of information for registering and creating an online resume to be 45 minutes to 1 hour in length of time to answer questions. We estimate the total number of hours to be 630. Comments are particularly invited on: Whether this information is necessary for the proper performance of functions of OPM, and whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology. For copies of this proposal, contact Kathy Roberson (210) 805–2423, ext. 506; fax (210) 805–2407 or e-mail to kathy.roberson@opm.gov. Please include your mailing address with your request. Comments on this proposal should be received within sixty (60) calendar days from the date of this publication. wwhite on PROD1PC61 with NOTICES DATES: Send or deliver comments to: U.S. Office of Personnel Management, ATTN: Kathy Roberson, 8610 Broadway, Rm. 305, San Antonio, TX 78217. E-mail: kathy.roberson@opm.gov. ADDRESSES: VerDate Aug<31>2005 18:25 Jun 15, 2006 Jkt 208001 34971 Office of Personnel Management. Dan G. Blair, Deputy Director. [FR Doc. E6–9417 Filed 6–15–06; 8:45 am] added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. BILLING CODE 6325–38–P Dated: June 14, 2006. Jill M. Peterson, Assistant Secretary. [FR Doc. 06–5506 Filed 6–14–06; 11:19 am] SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8010–01–M Sunshine Act; Notice of Meetings Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold the following meetings during the week of June 19, 2006: A Closed Meeting will be held on Monday, June 19, 2006 at 2 p.m. and on Thursday, June 22, 2006 at 10 a.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters may also be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (4), (5), (7), (8), (9)(B), (10) and 17 CFR 200.402(a)(3), (4), (5), (7), (8), (9)(ii), and (10) permit consideration of the scheduled matters at the Closed Meetings. Commissioner Glassman, as duty officer, voted to consider the items listed for the closed meetings in closed session and determined that no earlier notice thereof was possible. The subject matter of the Closed Meeting scheduled for Monday, June 19, 2006 will be: Formal orders of investigation; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; and Regulatory matters regarding financial institutions. The subject matter of the Closed Meeting scheduled for Thursday, June 22, 2006 will be: Formal orders of investigation; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; Litigation matters; and Resolution of litigation claims. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53968; File No. SR–Amex– 2006–56] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Adoption of an Options Licensing Fee in Connection With Certain Russell Indexes June 9, 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 May 26, 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 licensing 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 Russell 2000 Index (symbol: RUT) and shares of the following exchangetraded funds (‘‘ETFs’’): (1) Rydex Russell Top 50 (symbol: XLG); (2) iShares Russell 1000 (symbol: IWB); (3) iShares Russell 1000 Growth (symbol: 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 E:\FR\FM\16JNN1.SGM 16JNN1 34972 Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices IWF); (4) iShares Russell 1000 Value (symbol: IWD); (5) iShares Russell 2000 (symbol: IWM); (6) iShares Russell 2000 Growth (symbol: IWO); (7) iShares Russell 2000 Value (symbol: IWN); and (8) iShares Russell 3000 (symbol: IWV) (collectively, the ‘‘Russell ETFs’’). The text of the proposed rule change is available on Amex’s Web site at http://www.amex.com, at the principal office of 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. wwhite on PROD1PC61 with NOTICES 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 the Russell 2000 Index (‘‘RUT’’) and the Russell ETFs. This fee change will be assessed on members commencing May 26, 2006. The Exchange has entered into numerous agreements with various index providers for the purpose of trading options on certain indexes and ETFs, such as RUT and Russell ETFs. This requirement to pay an index license fee to a third party is a condition to the listing and trading of these index and 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 RUT and Russell ETFs. Specifically, Amex seeks 5 See, e.g., Securities Exchange Act Release No. 52493 (September 22, 2005), 70 FR 56941 (September 29, 2005). VerDate Aug<31>2005 18:25 Jun 15, 2006 Jkt 208001 to charge an options licensing fee of $0.10 per contract side for the RUT options and Russell ETF 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 RUT options and Russell ETF 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 RUT options and Russell ETF options by those market participants that are the beneficiaries of Exchange index license agreements is 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.6 Amex believes 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 RUT options and Russell ETF 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.7 In connection with the adoption of an options licensing fee for RUT options and Russell ETF 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 rule change is consistent with Section 6(b)(4) 6 See, e.g., Securities Exchange Act Release Nos. 45360 (January 29, 2002), 67 FR 5626 (February 6, 2002) and 44286 (May 9, 2001), 66 FR 27187 (May 16, 2001). 7 Section 6(b)(4) of the Act requires 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. PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 of the Act 8 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. 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 9 and Rule 19b– 4(f)(2) thereunder,10 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–2006–56 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. 8 15 U.S.C. 78f(b)(4). U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). 9 15 E:\FR\FM\16JNN1.SGM 16JNN1 Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Notices All submissions should refer to File Number SR–Amex–2006–56. 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–2006–56 and should be submitted on or before July 7, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–9436 Filed 6–15–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53969; File No. SR–CBOE– 2006–53] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Its Marketing Fee Program wwhite on PROD1PC61 with NOTICES June 9, 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 June 2, 2006, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:25 Jun 15, 2006 Jkt 208001 34973 NDX, and options on RUT). A Preferred Market-Maker will only be given access to the marketing fee funds generated from a Preferred order if the Preferred Market-Maker has an appointment in the class in which the Preferred order is received and executed. If less than 80% of the marketing fee funds are paid out by the DPM/LMM or Preferred MarketMaker in a given month, then the Exchange would refund such surplus at the end of the month on a pro rata basis based upon contributions made by the Market-Makers, RMMs, e-DPMs, DPMs and LMMs. However, if 80% or more of I. Self-Regulatory Organization’s the accumulated funds in a given month Statement of the Terms of Substance of are paid out by the DPM/LMM or the Proposed Rule Change Preferred Market-Maker, there will not The CBOE proposes to amend its be a rebate for that month and the funds marketing fee program. Below is the text will carry over and will be included in of the proposed rule change. Proposed the pool of funds to be used by the new language is in italics; deleted DPM/LMM or Preferred Market-Maker language is in [brackets]. the following month. At the end of each quarter, the Exchange would then CHICAGO BOARD OPTIONS refund any surplus, if any, on a pro rata EXCHANGE, INC. basis based upon contributions made by FEES SCHEDULE the Market-Makers, RMMs, DPMs, eDPMs and LMMs. CBOE’s marketing fee [MAY 18] June 2, 2006 program as described above will be in 1. No Change ..................................... 2. MARKETING FEE (6)(16) .............. $.65 effect until June 2, [2006] 2007. Remainder of Fees Schedule—No 3.–4. No Change ................................ change. FOOTNOTES: (1)–(5) No Change. II. Self-Regulatory Organization’s (6) The Marketing Fee will be Statement of the Purpose of, and assessed only on transactions of Market- Statutory Basis for, the Proposed Rule Makers, RMMs, e-DPMs, DPMs, and Change LMMs resulting from orders for less In its filing with the Commission, the than 1,000 contracts (i) from payment Exchange included statements accepting firms, or (ii) that have concerning the purpose of and basis for designated a ‘‘Preferred Market-Maker’’ the proposed rule change, and discussed under CBOE Rule 8.13 at the rate of $.65 any comments it received on the per contract on all classes of equity proposed rule change. The text of these options, options on HOLDRs, options on statements may be examined at the SPDRs, options on DIA, options on places specified in Item IV below. The NDX, and options on RUT. The fee will CBOE has prepared summaries, set forth not apply to: Market-Maker-to-Marketin Sections A, B, and C below, of the Maker transactions including most significant aspects of such transactions resulting from orders from statements. non-member market-makers; transactions resulting from inbound P/A A. Self-Regulatory Organization’s Statement of the Purpose of, and orders or a transaction resulting from Statutory Basis for, the Proposed Rule the execution of an order against the Change DPM’s account if an order directly related to that order is represented and 1. Purpose executed through the Linkage Plan The CBOE states that currently, its using the DPM’s account; transactions marketing fee is assessed upon DPMs, resulting from accommodation LMMs, e-DPMs, RMMs, and Marketliquidations (cabinet trades); and Makers at the rate of $.65 per contract transactions resulting from dividend on transactions of Market-Makers, strategies, merger strategies, and short RMMs, e-DPMs, DPMs, and LMMs stock interest strategies as defined in resulting from orders for less than 1,000 footnote 13 of this Fees Schedule. This fee shall not apply to index options and contracts (i) from payment accepting firms, or (ii) that have designated a options on ETFs (other than options on ‘‘Preferred Market-Maker’’ under CBOE SPDRs, options on DIA, options on Rule 8.13. The Exchange notes that this 3 15 U.S.C. 78s(b)(3)(A)(ii). fee does not apply to: Market-Maker-to4 17 CFR 240.19b–4(f)(2). Market-Maker transactions including (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The CBOE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the CBOE under 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. PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\16JNN1.SGM 16JNN1

Agencies

[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Notices]
[Pages 34971-34973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9436]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53968; File No. SR-Amex-2006-56]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Adoption of an Options Licensing Fee in Connection With 
Certain Russell Indexes

 June 9, 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 May 26, 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).
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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 licensing 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 
Russell 2000 Index (symbol: RUT) and shares of the following exchange-
traded funds (``ETFs''): (1) Rydex Russell Top 50 (symbol: XLG); (2) 
iShares Russell 1000 (symbol: IWB); (3) iShares Russell 1000 Growth 
(symbol:

[[Page 34972]]

IWF); (4) iShares Russell 1000 Value (symbol: IWD); (5) iShares Russell 
2000 (symbol: IWM); (6) iShares Russell 2000 Growth (symbol: IWO); (7) 
iShares Russell 2000 Value (symbol: IWN); and (8) iShares Russell 3000 
(symbol: IWV) (collectively, the ``Russell ETFs'').
    The text of the proposed rule change is available on Amex's Web 
site at http://www.amex.com, at the principal office of 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 
the Russell 2000 Index (``RUT'') and the Russell ETFs. This fee change 
will be assessed on members commencing May 26, 2006.
    The Exchange has entered into numerous agreements with various 
index providers for the purpose of trading options on certain indexes 
and ETFs, such as RUT and Russell ETFs. This requirement to pay an 
index license fee to a third party is a condition to the listing and 
trading of these index and 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 RUT and Russell ETFs. Specifically, Amex 
seeks to charge an options licensing fee of $0.10 per contract side for 
the RUT options and Russell ETF 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 RUT options and Russell ETF 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 RUT options and Russell ETF 
options by those market participants that are the beneficiaries of 
Exchange index license agreements is 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.\6\ 
Amex believes 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 RUT options and Russell ETF options, a fair 
share of the related costs of offering such options.
---------------------------------------------------------------------------

    \6\ See, e.g., Securities Exchange Act Release Nos. 45360 
(January 29, 2002), 67 FR 5626 (February 6, 2002) and 44286 (May 9, 
2001), 66 FR 27187 (May 16, 2001).
---------------------------------------------------------------------------

    The Exchange asserts that the proposal is equitable as required by 
Section 6(b)(4) of the Act.\7\ In connection with the adoption of an 
options licensing fee for RUT options and Russell ETF 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.
---------------------------------------------------------------------------

    \7\ Section 6(b)(4) of the Act requires 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 rule change is consistent with 
Section 6(b)(4) of the Act \8\ regarding the equitable allocation of 
reasonable dues, fees and other charges among exchange members and 
other persons using exchange facilities.
---------------------------------------------------------------------------

    \8\ 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 \9\ and Rule 19b-4(f)(2) thereunder,\10\ 
because it establishes or changes a due, fee, or other charge imposed 
by the self-regulatory organization.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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-2006-56 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.


[[Page 34973]]


All submissions should refer to File Number SR-Amex-2006-56. 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-2006-56 and should be submitted on or before July 
7, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E6-9436 Filed 6-15-06; 8:45 am]
BILLING CODE 8010-01-P