Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of a Proposed Rule Change Relating to Fees for the Routing of Orders to Other Market Centers Through a Private Linkage, 74962-74964 [E6-21161]
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hsrobinson on PROD1PC76 with NOTICES
74962
Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
of another person to include any person
who directly or indirectly owns,
controls, or holds with power to vote
5% or more of the outstanding voting
securities of the other person. Applicant
states that to the extent that the In-Kind
Tender Offers would constitute the
purchase or sale of securities by an
Affiliated Shareholder, the transactions
would be prohibited by section 17(a).
Accordingly, applicant requests an
exemption from section 17(a) of the Act
to the extent necessary to permit the
participation of Affiliated Shareholders
in the In-Kind Repurchase Offers.
2. Section 17(b) of the Act authorizes
the Commission to exempt any
transaction from the provisions of
section 17(a) if the terms of the
transaction, including the consideration
to be paid or received, are reasonable
and fair and do not involve
overreaching on the part of any person
concerned, and the transaction is
consistent with the policy of each
registered investment company and
with the general purposes of the Act.
Section 6(c) of the Act provides that the
Commission may exempt any person,
security, or transaction or any class or
classes of persons, securities, or
transactions, from any provision of the
Act or rule thereunder, if and to the
extent that such exemption is necessary
or appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act.
3. Applicant asserts that the terms of
the In-Kind Tender Offers meet the
requirements of sections 17(b) and 6(c)
of the Act. Applicant asserts that neither
the Fund nor an Affiliated Shareholder
has any choice as to the portfolio
securities to be received as proceeds
from the In-Kind Tender Offers. Instead,
shareholders will receive their pro rata
portion of each of the Fund’s portfolio
securities, excluding (a) securities
which, if distributed, would have to be
registered under the Securities Act of
1933 (‘‘Securities Act’’); (b) securities
issued by entities in countries that
restrict or prohibit the holdings of
securities by non-residents other than
through qualified investment vehicles,
or whose distribution would otherwise
be contrary to applicable local laws,
rules or regulations; and (c) certain
portfolio assets (such as forward
currency exchange contracts and
repurchase agreements) that although
they may be liquid and marketable,
include the assumption of contractual
obligations, require special trading
facilities, or can only be traded with the
counterparty to the transaction in order
to effect a change in beneficial
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21:31 Dec 12, 2006
Jkt 211001
ownership. Moreover, applicant states
that the portfolio securities to be
distributed in the In-Kind Tender Offer
will be valued according to an objective,
verifiable standard, and the In-Kind
Tender Offers are consistent with the
investment policies of the Fund.
Applicant also believes that the In-Kind
Tender Offers are consistent with the
general purposes of the Act because the
interests of all shareholders are equally
protected and no Affiliated Shareholder
would receive an advantage or special
benefit not available to any other
shareholder participating in the In-Kind
Tender Offers.
Applicant’s Conditions
Applicant agrees that any order
granting the requested relief will be
subject to the following conditions:
1. Applicant will distribute to
shareholders participating in the InKind Tender Offers an in-kind pro rata
distribution of portfolio securities of
applicant. The pro rata distribution will
not include: (a) Securities that, if
distributed, would be required to be
registered under the Securities Act; (b)
securities issued by entities in countries
that restrict or prohibit the holdings of
securities by non-residents other than
through qualified investment vehicles,
or whose distribution would otherwise
be contrary to applicable local laws,
rules or regulations; and (c) certain
portfolio assets (such as forward
currency exchange contracts and
repurchase agreements) that although
they may be liquid and marketable,
include the assumption of contractual
obligations, require special trading
facilities or can only be traded with the
counterparty to the transaction in order
to effect a change in beneficial
ownership. Cash will be paid for any
portion of applicant’s assets represented
by cash and cash equivalents (such as
certificates of deposit, commercial paper
and repurchase agreements) and other
assets which are not readily
distributable (including receivables and
prepaid expenses), net of all liabilities
(including accounts payable). In
addition, applicant may pay cash for
fractional shares and/or odd lots of
securities and/or amounts attributable to
any cash positions (including short-term
non-equity securities); distribute odd
lots and any cash position to
shareholders; or round off (up or down)
fractional shares so as to eliminate them
prior to distribution. Applicant may also
distribute a higher pro rata percentage
of other portfolio securities to represent
such items.
2. The securities distributed to
stockholders pursuant to the In-Kind
Tender Offers will be limited to
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
securities that are traded on a public
securities market or for which quoted
bid and asked prices are available.
3. The securities distributed to
stockholders pursuant to the In-Kind
Tender Offers will be valued in the
same manner as they would be valued
for purposes of computing applicant’s
net asset value, which, in the case of
securities traded on a public securities
market for which quotations are
available, is their last reported sales
price on the exchange on which the
securities are primarily traded or at the
last sales price on a public securities
market, or, if the securities are not listed
on an exchange or a public securities
market or if there is no such reported
price, the average of the most recent bid
and asked price (or, if no such asked
price is available, the last quoted bid
price).
4. Applicant will maintain and
preserve for a period of not less than six
years from the end of the fiscal year in
which any In-Kind Tender Offer occurs,
the first two years in an easily accessible
place, a written record of such In-Kind
Repurchase Offer, that includes the
identity of each shareholder of record
that participated in such In-Kind
Repurchase Offer, whether that
shareholder was an Affiliated
Shareholder, a description of each
security distributed, the terms of the
distribution, and the information or
materials upon which the valuation was
made.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Nancy M. Morris,
Secretary.
[FR Doc. E6–21166 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54885; File No. SR–Amex–
2006–105]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of a Proposed Rule Change
Relating to Fees for the Routing of
Orders to Other Market Centers
Through a Private Linkage
December 6, 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 November
30, 2006, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
1 15
2 17
E:\FR\FM\13DEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
13DEN1
Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
Exchange. The Exchange 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)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to revise the
equities and Exchange Traded Fund
Shares (‘‘ETFs’’) Fee Schedules to
provide for various fees related to the
routing of orders to other market centers
through a private linkage.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.amex.com), at the
Exchange’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, 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
Average size of outbound order
tickets
hsrobinson on PROD1PC76 with NOTICES
1. Purpose
The Exchange proposes to establish
fees for the routing of orders between
market centers using its ‘‘private
linkage.’’ Private linkages are brokerdealer members of other market centers
trading Amex-listed equities and ETFs
through which Amex will route orders
to access protected quotes (i.e., quotes
being disseminated by an ‘‘automated
3 15
4 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
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21:31 Dec 12, 2006
Jkt 211001
trading center’’ 5) when those quotes are
better than those available at Amex. Use
of a private linkage will begin with the
implementation of the Exchange’s new
hybrid market trading platform (known
as ‘‘AEMI’’). The AEMI trading platform
will become operative prior to the final
date set by the Commission for full
operation of all automated trading
centers that intend to qualify their
quotations for trade-through protection
under Rule 611 of Regulation NMS (the
date known as the ‘‘Trading Phase
Date’’). The Exchange has adopted rules
for the use of AEMI prior to the
Regulation NMS Trading Phase Date 6
and has obtained exemptive relief 7 from
its obligation to use the ITS electronic
communications network to route
orders to other markets and use the
private linkage instead. Amex will incur
charges for routing orders to other
market centers through the private
linkage and proposes to pass some of
those charges on to its members. The
charges to be passed on include clearing
and market access charges.
Amex has entered into a contract with
a broker-dealer and a clearing firm to
route orders to other market centers and
to clear the resulting executions. The
contract provides that clearing charges
will be assessed monthly based on the
average size of the order routed to the
other market centers. The average size of
the order ticket routed to the other
market centers is based on the total
volume of shares routed on behalf of
Amex each trading day divided by the
number of order tickets routed that
resulted in an execution. For example,
if 100 order tickets representing 100,000
shares are routed on behalf of Amex on
a given day resulting in 80 executions,
the clearing fee charged per share, as set
forth on the following chart, would be
$0.0005 (100,000 ÷ 80 = 1,250, the
average order ticket size) resulting in a
total clearing fee of $50 incurred by
Amex for that trading day:
>=
>=
>=
>=
>=
>=
0–150 ..................................
150 and < 300 ....................
300 and < 500 ....................
500 and < 750 ....................
750 and < 1500 ..................
1500 and < 2500 ................
Clearing
price per
share
Frm 00068
Fmt 4703
Sfmt 4703
> = 2500 and < 6000 ................
> = 6000 ....................................
Clearing
price per
share
0.0003
0.000275
The clearing charge of $50 would be
divided among the orders executed that
trading day based upon the number of
shares executed. Thus, for example, on
that trading day a member submitted
two orders—one order for 100 shares
and one order for 1,000 shares. Both
orders were executed in full through the
private linkage. The clearing charges
assessed to the member for the 100
share order would be $0.05 (100 ×
$0.0005) and the clearing charge
assessed to the member for the 1,000
share order would be $0.50 (1,000 ×
$0.0005). Amex would accumulate the
daily clearing charges and bill members
monthly the daily accumulated charges.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 8
in general and furthers the objectives of
Section 6(b)(4) of the Act 9 in particular
in that it is intended to assure the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
using its facilities. Specifically, the
Exchange is proposing to pass through
clearing charges it has incurred for
orders routed to other market centers
through the Exchange’s private linkage.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
$0.001 rule change.
0.0008 III. Date of Effectiveness of the
0.0007
0.0006 Proposed Rule Change and Timing for
0.0005 Commission Action
0.0004
5 The terms ‘‘automated trading center’’ and
‘‘protected quotation’’ are defined in Rule 600(b) of
Regulation NMS, 17 CFR 242.600(b).
6 See Securities Exchange Act Release No. 54709
(November 3, 2006), 71 FR 65847 (November 9,
2006) (order approving SR–Amex 2006–72).
7 See Letter to Claire P. McGrath, Senior Vice
President and General Counsel, Amex, from David
S. Shillman, Associate Director, Division of Market
Regulation, Commission, dated November 3, 2006.
PO 00000
Average size of outbound order
tickets
74963
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 10 and
paragraph (f)(2) of Rule 19b–4
thereunder,11 because it establishes or
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
9 15
E:\FR\FM\13DEN1.SGM
13DEN1
74964
Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
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
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:
hsrobinson on PROD1PC76 with NOTICES
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–2006–105 on the
subject line.
Number SR–Amex–2006–105 and
should be submitted on or before
January 3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21161 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54882; File No. SR–Amex–
2006–80]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving Proposed Rule Change To
Amend Rule 777 Regarding Depository
Eligibility
December 6, 2006.
I. Introduction
On August 21, 2006, the American
Stock Exchange LLC (‘‘Amex’’) filed
with the Securities and Exchange
Paper Comments
Commission (‘‘Commission’’) proposed
rule change SR–Amex–2006–80
• Send paper comments in triplicate
pursuant to Section 19(b)(1) of the
to Nancy M. Morris, Secretary,
Securities Exchange Act of 1934
Securities and Exchange Commission,
(‘‘Act’’).1 Notice of the proposal was
Station Place, 100 F Street, NE,
published in the Federal Register on
Washington, DC 20549–1090.
September 21, 2006.2 No comment
All submissions should refer to File
letters were received. For the reasons
Number SR–Amex–2006–105. This file
discussed below, the Commission is
number should be included on the
subject line if e-mail is used. To help the approving the proposed rule change as
amended.
Commission process and review your
comments more efficiently, please use
II. Description
only one method. The Commission will
In general, Amex is amending its
post all comments on the Commission’s
depository eligibility requirement. The
Internet Web site (https://www.sec.gov/
rule change: (i) Deletes a reference to a
rules/sro.shtml). Copies of the
distinction between domestic and
submission, all subsequent
foreign issuers; (ii) deletes an exception
amendments, all written statements
for securities whose terms cannot be
with respect to the proposed rule
reasonably modified to meet the criteria
change that are filed with the
for depository eligibility at all securities
Commission, and all written
depositories; and (iii) deletes additional
communications relating to the
requirements imposed by the rule that
proposed rule change between the
Commission and any person, other than are no longer necessary.
Previously, before an issue of
those that may be withheld from the
securities could be listed, Rule 777(a)
public in accordance with the
required only a domestic issuer to
provisions of 5 U.S.C. 552, will be
represent to Amex that a CUSIP number
available for inspection and copying in
identifying the securities had been
the Commission’s Public Reference
Room. Copies of such filing also will be included in the file of eligible issues
maintained by a securities depository
available for inspection and copying at
the principal office of the Exchange. All registered with the Commission as a
clearing agency under section 17A of
comments received will be posted
the Act.3 The same requirement did not
without change; the Commission does
not edit personal identifying
12 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 Securities Exchange Act Release No. 54442
you wish to make available publicly. All (September 14, 2006), 71 FR 55229.
3 15 U.S.C. 78q–1.
submissions should refer to File
VerDate Aug<31>2005
21:31 Dec 12, 2006
Jkt 211001
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
apply to foreign issuers. However,
exclusion of foreign issuers is no longer
necessary because they have the
capacity to comply with Rule 777 and
have been doing so voluntarily for years.
Amex’s rule change also deletes the
exception in Rule 777(a) for securities
whose terms cannot be reasonably
modified to meet the criteria for
depository eligibility at all securities
depositories. The exception was
originally included in Rule 777(a)
because, among other things, various
states and countries precluded the bookentry issuance of securities. Following
implementation of Rule 777(a),
however, most, if not all, states have
amended their corporate statutes to
allow for book-entry issuance, and as a
result the exception is no longer needed
to accommodate such issuers.
Furthermore, Amex’s rule change
deletes a provision that prevented new
issues distributed by an underwriting
syndicate prior to the date a securities
depository system for monitoring
repurchases of distributed shares by the
underwriting syndicate from becoming
depository eligible because such a
system has become available. Prior to
the availability of such a system, a
managing underwriter could delay the
date a security was deemed depository
eligible for up to three months after
commencement of trading on Amex.
Since the approval of Rule 777, The
Depository Trust Company (‘‘DTC’’) 4
implemented its Initial Public Offering
Tracking System 5 that enables lead
managers and syndicate members of
equity underwritings to monitor
repurchases of distributed shares in an
automated book-entry environment.
Since DTC has the capability to monitor
repurchases of distributed shares, the
requirements listed in Rule 777(b) are
no longer necessary, and Amex has
deleted Rule 777(b) in its entirety.
Finally, Amex has cross-referenced
rules 776 and 777 in Part 1 of the Amex
Company Guide to clarify that Rules 776
and 777 are initial and continued listing
standards applicable to companies
listed on Amex.
III. Discussion
Section 19(b) of the Act directs the
Commission to approve a proposed rule
change of a self-regulatory organization
if it finds that such proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
4 DTC is a securities depository registered with
the Commission under sections 17A and 19 of the
Act as a clearing agency.
5 Securities Exchange Act Release No. 37208 (May
13, 1996), 61 FR 25253 (May 20, 1996) [File No. SR–
DTC–95–27].
E:\FR\FM\13DEN1.SGM
13DEN1
]]>Agencies
[Federal Register Volume 71, Number 239 (Wednesday, December 13, 2006)]
[Notices]
[Pages 74962-74964]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21161]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54885; File No. SR-Amex-2006-105]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of a Proposed Rule Change Relating to Fees for the
Routing of Orders to Other Market Centers Through a Private Linkage
December 6, 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 November 30, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with
[[Page 74963]]
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been substantially prepared by the Exchange. The Exchange 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)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to revise the equities and Exchange Traded
Fund Shares (``ETFs'') Fee Schedules to provide for various fees
related to the routing of orders to other market centers through a
private linkage.
The text of the proposed rule change is available on the Exchange's
Web site (https://www.amex.com), at the Exchange'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, 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 proposes to establish fees for the routing of orders
between market centers using its ``private linkage.'' Private linkages
are broker-dealer members of other market centers trading Amex-listed
equities and ETFs through which Amex will route orders to access
protected quotes (i.e., quotes being disseminated by an ``automated
trading center'' \5\) when those quotes are better than those available
at Amex. Use of a private linkage will begin with the implementation of
the Exchange's new hybrid market trading platform (known as ``AEMI'').
The AEMI trading platform will become operative prior to the final date
set by the Commission for full operation of all automated trading
centers that intend to qualify their quotations for trade-through
protection under Rule 611 of Regulation NMS (the date known as the
``Trading Phase Date''). The Exchange has adopted rules for the use of
AEMI prior to the Regulation NMS Trading Phase Date \6\ and has
obtained exemptive relief \7\ from its obligation to use the ITS
electronic communications network to route orders to other markets and
use the private linkage instead. Amex will incur charges for routing
orders to other market centers through the private linkage and proposes
to pass some of those charges on to its members. The charges to be
passed on include clearing and market access charges.
---------------------------------------------------------------------------
\5\ The terms ``automated trading center'' and ``protected
quotation'' are defined in Rule 600(b) of Regulation NMS, 17 CFR
242.600(b).
\6\ See Securities Exchange Act Release No. 54709 (November 3,
2006), 71 FR 65847 (November 9, 2006) (order approving SR-Amex 2006-
72).
\7\ See Letter to Claire P. McGrath, Senior Vice President and
General Counsel, Amex, from David S. Shillman, Associate Director,
Division of Market Regulation, Commission, dated November 3, 2006.
---------------------------------------------------------------------------
Amex has entered into a contract with a broker-dealer and a
clearing firm to route orders to other market centers and to clear the
resulting executions. The contract provides that clearing charges will
be assessed monthly based on the average size of the order routed to
the other market centers. The average size of the order ticket routed
to the other market centers is based on the total volume of shares
routed on behalf of Amex each trading day divided by the number of
order tickets routed that resulted in an execution. For example, if 100
order tickets representing 100,000 shares are routed on behalf of Amex
on a given day resulting in 80 executions, the clearing fee charged per
share, as set forth on the following chart, would be $0.0005 (100,000 /
80 = 1,250, the average order ticket size) resulting in a total
clearing fee of $50 incurred by Amex for that trading day:
------------------------------------------------------------------------
Clearing
Average size of outbound order tickets price per
share
------------------------------------------------------------------------
> = 0-150.................................................. $0.001
> = 150 and < 300.......................................... 0.0008
> = 300 and < 500.......................................... 0.0007
> = 500 and < 750.......................................... 0.0006
> = 750 and < 1500......................................... 0.0005
> = 1500 and < 2500........................................ 0.0004
> = 2500 and < 6000........................................ 0.0003
> = 6000................................................... 0.000275
------------------------------------------------------------------------
The clearing charge of $50 would be divided among the orders
executed that trading day based upon the number of shares executed.
Thus, for example, on that trading day a member submitted two orders--
one order for 100 shares and one order for 1,000 shares. Both orders
were executed in full through the private linkage. The clearing charges
assessed to the member for the 100 share order would be $0.05 (100 x
$0.0005) and the clearing charge assessed to the member for the 1,000
share order would be $0.50 (1,000 x $0.0005). Amex would accumulate the
daily clearing charges and bill members monthly the daily accumulated
charges.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\8\ in general and furthers the objectives of Section 6(b)(4) of the
Act \9\ in particular in that it is intended to assure the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities.
Specifically, the Exchange is proposing to pass through clearing
charges it has incurred for orders routed to other market centers
through the Exchange's private linkage.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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 proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act \10\ and paragraph (f)(2) of Rule
19b-4 thereunder,\11\ because it establishes or
[[Page 74964]]
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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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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 Number SR-Amex-2006-105 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2006-105. 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 the Exchange. 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-2006-105 and should be submitted on or before
January 3, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21161 Filed 12-12-06; 8:45 am]
BILLING CODE 8011-01-P
