Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to an Amendment to the Options Marketing Fee, 9050-9051 [E7-3408]

Download as PDF 9050 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices notify OPM when any such waiver is terminated. [FR Doc. E7–3454 Filed 2–27–07; 8:45 am] BILLING CODE 6325–43–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55328; File No. SR–Amex– 2007–16] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to an Amendment to the Options Marketing Fee February 21, 2007. 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 February 2, 2007, 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 substantially prepared by the Exchange. On February 14, 2007, the Amex submitted Amendment No. 1 to the proposed rule change. Amex has designated this proposal as one establishing or changing a due, fee, or other charge imposed by Amex 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, as amended, from interested persons. sroberts on PROD1PC70 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to decrease the equity options marketing fee from the current level of $0.75 to $0.35 per contract for those equity, exchange traded fund share, and trust issued receipt options series that quote and trade in one cent increments under the penny pilot program. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and www.amex.com. 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). VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 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. Amex has substantially 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 proposal seeks to reduce the current fee of $0.75 per contract to $0.35 per contract for those equity, exchange traded fund share, and trust issued receipt options series that quote and trade in one cent increments under the penny pilot program. In February, 2006, the Exchange increased its equity options marketing fee from $0.40 per contract on the transactions of specialists and registered options traders (‘‘ROTs’’) in equity options to $0.75 per contract (except for SPDR options which will continue to remain subject to the current fee level of $1.00 per contract 5).6 Currently, the equity options marketing fee is assessed on electronically executed customer orders from firms that accept payment for directing their orders to the Exchange (‘‘payment accepting firms’’) with whom a specialist has negotiated a payment for order flow arrangement. The Exchange has no role with respect to the negotiations between specialists and payment accepting firms. The Exchange collects and administers the payment of the fee collected on those transactions for which the specialist has advised the Exchange that it has negotiated with a payment accepting firm to pay for the firm’s order flow. Included in this general administrative support, the Exchange tracks the number of qualified orders sent by a payment accepting firm, bills specialists and ROTs through their clearing firms, and issues payments to payment accepting firms to reflect the 5 See Securities Exchange Act Release No. 51685 (May 11, 2005), 70 FR 28587 (May 18, 2005) (SR– Amex–2005–050). 6 See Securities Exchange Act Release No. 53341 (February 21, 2006), 71 FR 10085 (February 28, 2006) (SR–Amex–2006–15). PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 collection and payment of the marketing fee. The Exchange rebates to specialists and ROTs, on a quarterly basis, the amount of marketing fees collected that have not been paid to order flow providers. The specialists are solely responsible, but are not required, to negotiate payment for order flow agreements with payment accepting firms and are responsible for any arrangements made with the payment accepting firms. The specialists will use the funds that are collected from a particular post on the Exchange to market for those specific products traded at that particular post on the Exchange. Additionally, supplemental registered options traders have the ability to enter into payment for order flow agreements with affiliated firms. So long as it is within the above described parameters, the specific terms governing the orders that qualify for payment and the amount of any payments are determined by the specialists in their discretion. The Exchange asserts that the proposal is equitable, as required by Section 6(b)(4) of the Act.7 In connection with the revision to the said options marketing fee, the Exchange notes that decreasing the fee in the delineated circumstances from $0.75 to $0.35 per contract is reasonable given the competitive pressure to attract options order flow. Accordingly, the Exchange believes that the proposal is an equitable allocation of reasonable fees among Exchange members. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 8 in general, and Section 6(b)(4) of the Act 9 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among exchange members and issuers and other persons using exchange facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 7 Section 6(b)(4) of the Act states that the rules of a national securities exchange should 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). 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). E:\FR\FM\28FEN1.SGM 28FEN1 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices 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 been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 10 and Rule 19b–4(f)(2) 11 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. 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.12 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–2007–16 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–2007–16. 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 sroberts on PROD1PC70 with NOTICES 10 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 12 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change, the Commission considers the period to commence on February 14, 2007, the date on which the Exchange filed Amendment No. 1. 11 17 VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 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 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–2007–16 and should be submitted on or before March 21, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–3408 Filed 2–27–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55329; File No. SR– NASDAQ–2007–008] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify Opening Process for Nasdaq Market Center February 21, 2007. 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 February 12, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’), filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared substantially by Nasdaq. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to Section 19(b)(3)(A) of the 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 9051 Act,3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission.5 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 the Substance of the Proposed Rule Change Nasdaq is proposing to modify Rule 4752 to clarify that in the Nasdaq Market Center (‘‘System’’), securities listed on the New York and American Stock Exchanges, which are not subject to an opening cross, open for the premarket session in the same manner as Nasdaq-listed securities. The text of the proposed rule change is available at Nasdaq, the Commission’s Public Reference Room, and http:// www.nasdaq.complinet.com/nasdaq/ display/index.html. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for the Proposed Rule Change In its filing with the Commission, Nasdaq 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. Nasdaq 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 Nasdaq is proposing to modify Rule 4752 to clarify that in the Nasdaq Market Center (‘‘System’’), securities listed on the New York and American Stock Exchanges, which are not subject to an opening cross, open for the premarket session in the same manner as Nasdaq-listed securities. Specifically, at 7 a.m., the System adds to the Nasdaq book in time priority all eligible orders in accordance with each order’s defined characteristics. At 9:25 a.m., the System opens all remaining unopened Quotes in accordance with each firm’s instructions. As with Nasdaq securities, market participants quoting in NYSE/ 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 Nasdaq has requested that the Commission waive the 5-day written notice of intention to file the proposed rule change. In addition, Nasdaq has asked the Commission to waive the 30-day operative delay. See Rule 19b–4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii). 4 17 E:\FR\FM\28FEN1.SGM 28FEN1

Agencies

[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Notices]
[Pages 9050-9051]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3408]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55328; File No. SR-Amex-2007-16]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
as Modified by Amendment No. 1 Thereto Relating to an Amendment to the 
Options Marketing Fee

February 21, 2007.
    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 February 2, 2007, 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 substantially prepared by the 
Exchange. On February 14, 2007, the Amex submitted Amendment No. 1 to 
the proposed rule change. Amex has designated this proposal as one 
establishing or changing a due, fee, or other charge imposed by Amex 
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, as amended, from interested 
persons.
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    \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 decrease the equity options marketing fee 
from the current level of $0.75 to $0.35 per contract for those equity, 
exchange traded fund share, and trust issued receipt options series 
that quote and trade in one cent increments under the penny pilot 
program. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and www.amex.com.

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. Amex has substantially 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 proposal seeks to reduce the current fee of $0.75 per contract 
to $0.35 per contract for those equity, exchange traded fund share, and 
trust issued receipt options series that quote and trade in one cent 
increments under the penny pilot program. In February, 2006, the 
Exchange increased its equity options marketing fee from $0.40 per 
contract on the transactions of specialists and registered options 
traders (``ROTs'') in equity options to $0.75 per contract (except for 
SPDR options which will continue to remain subject to the current fee 
level of $1.00 per contract \5\).\6\
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    \5\ See Securities Exchange Act Release No. 51685 (May 11, 
2005), 70 FR 28587 (May 18, 2005) (SR-Amex-2005-050).
    \6\ See Securities Exchange Act Release No. 53341 (February 21, 
2006), 71 FR 10085 (February 28, 2006) (SR-Amex-2006-15).
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    Currently, the equity options marketing fee is assessed on 
electronically executed customer orders from firms that accept payment 
for directing their orders to the Exchange (``payment accepting 
firms'') with whom a specialist has negotiated a payment for order flow 
arrangement.
    The Exchange has no role with respect to the negotiations between 
specialists and payment accepting firms. The Exchange collects and 
administers the payment of the fee collected on those transactions for 
which the specialist has advised the Exchange that it has negotiated 
with a payment accepting firm to pay for the firm's order flow. 
Included in this general administrative support, the Exchange tracks 
the number of qualified orders sent by a payment accepting firm, bills 
specialists and ROTs through their clearing firms, and issues payments 
to payment accepting firms to reflect the collection and payment of the 
marketing fee. The Exchange rebates to specialists and ROTs, on a 
quarterly basis, the amount of marketing fees collected that have not 
been paid to order flow providers.
    The specialists are solely responsible, but are not required, to 
negotiate payment for order flow agreements with payment accepting 
firms and are responsible for any arrangements made with the payment 
accepting firms. The specialists will use the funds that are collected 
from a particular post on the Exchange to market for those specific 
products traded at that particular post on the Exchange. Additionally, 
supplemental registered options traders have the ability to enter into 
payment for order flow agreements with affiliated firms. So long as it 
is within the above described parameters, the specific terms governing 
the orders that qualify for payment and the amount of any payments are 
determined by the specialists in their discretion.
    The Exchange asserts that the proposal is equitable, as required by 
Section 6(b)(4) of the Act.\7\ In connection with the revision to the 
said options marketing fee, the Exchange notes that decreasing the fee 
in the delineated circumstances from $0.75 to $0.35 per contract is 
reasonable given the competitive pressure to attract options order 
flow. Accordingly, the Exchange believes that the proposal is an 
equitable allocation of reasonable fees among Exchange members.
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    \7\ Section 6(b)(4) of the Act states that the rules of a 
national securities exchange should 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).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \8\ in general, and Section 6(b)(4) of the 
Act \9\ in particular, in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
exchange members and issuers and other persons using exchange 
facilities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

[[Page 9051]]

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 been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed by the Exchange. Accordingly, the proposal 
will take effect upon filing with the Commission. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change, the 
Commission considers the period to commence on February 14, 2007, 
the date on which the Exchange filed Amendment No. 1.
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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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2007-16 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-2007-16. 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 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-2007-16 and should be submitted on or before March 21, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-3408 Filed 2-27-07; 8:45 am]
BILLING CODE 8010-01-P