Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Transaction Charges for Equities and ETFs, 13145-13146 [E7-4978]
Download as PDF
Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Notices
Room. Copies of the 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–2007–28 and should
be submitted on or before April 10,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4977 Filed 3–19–07; 8:45 am]
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
BILLING CODE 8010–01–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55460; File No. SR–Amex–
2007–30]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Transaction Charges for Equities and
ETFs
March 13, 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 March 8,
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 and II
below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
pwalker on PROD1PC71 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to revise
Equities and Exchange Traded Funds
and Trust Issued Receipts (‘‘ETFs’’) Fee
Schedules (collectively, the ‘‘Fee
Schedule’’).
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.amex.com), at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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15:08 Mar 19, 2007
Jkt 211001
The Exchange recently revised its
Equities, ETFs, and Nasdaq UTP Fee
Schedules.3 The Exchange is now
proposing to make some additional
changes to the Equities and ETFs Fee
Schedules. The Equity Fee Schedule
currently provides a waiver of
transaction charges for orders of up to
500 shares entered electronically into
the Amex Order File from off the floor
(‘‘System Orders’’). This transaction
charge waiver does not apply to the
System Orders of a member or member
organization trading as an agent for the
account of a non-member competing
market maker.4 The Exchange is now
proposing to extend the transaction
charge waiver to System Orders for the
accounts of non-member competing
market makers. Thus, the Equity Fee
Schedule is being amended to eliminate
the second and third sentences of Item
3 on the schedule.
The ETF Fee Schedule also provides
a waiver of transaction charges for
orders entered electronically into the
Amex Order File from off the floor.
However for ETFs, orders up to 2,400
shares are deemed to be System Orders
for which transaction charges are
waived. Again, the transaction charge
waiver currently does not apply to the
System Orders of a member or member
organization trading as an agent for the
account of a non-member competing
market maker. The Exchange is now
proposing to extend the transaction
3 See SR–Amex–2007–23 filed on February 22,
2007 and SR–Amex–2007–28 filed on March 1,
2007.
4 A competing market maker is defined for
purposes of the Equity and ETF Fee Schedules as
a specialist or market maker registered as such on
a registered stock exchange (other than Amex), or
a market maker bidding and offering over-thecounter, in an Amex-traded security.
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
13145
charge waiver to System Orders for the
accounts of non-member competing
market makers. Thus, the ETF Fee
Schedule is being amended to eliminate
the second and third sentences of Note
1 on the schedule.
The Exchange is also proposing to
apply the waiver of transaction charges
for System Orders in equities and ETFs
for the accounts of non-member
competing market makers retroactively,
beginning March 1, 2007.
2. Statutory Basis
The proposed fee change is consistent
with Section 6(b)(4) of the Act 5
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
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 immediately pursuant to
Section 19(b)(3)(A)(iii) of the Act 6 and
Rule 19b–4(f)(6) 7 thereunder because it
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate.8
The Commission has determined to
waive the 30-day operative delay. The
Commission believes that doing so is
consistent with the protection of
investors and the public interest
because eligible parties will be able to
obtain the benefit of the fee waivers
immediately. Accordingly, the
5 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A)(iii).
7 17 CFR 240.19b–4(f)(6).
8 Rule 19b–4(f)(6) also requires the self-regulatory
organization to give the Commission notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designed by the Commission. The
Commission has determined to waive the five-day
pre-filing requirement.
6 15
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20MRN1
13146
Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Notices
Commission designates the proposal to
be operative upon filing with the
Commission.9
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 of appropriate in the public
interest, for the protection of investors,
or otherwise in the 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:
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–2007–30 and should
be submitted on or before April 10,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–4978 Filed 3–19–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
pwalker on PROD1PC71 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
No. SR–Amex–2007–30 on the subject
line.
[Release No. 34–55464; File No. SR–Amex–
2007–08]
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–2007–30. 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 the filing also will be
available for inspection and copying at
the principal office of Amex. All
comments received will be posted
March 13, 2007.
9 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the propose rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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15:08 Mar 19, 2007
Jkt 211001
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Approval of a Proposed Rule
Change to Establish a Passive Price
Improvement Order for Specialists and
Registered Traders
I. Introduction
On January 19, 2007, the American
Stock Exchange LLC (‘‘Amex’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2
The proposed rule change was
published for comment in the Federal
Register on February 2, 2007.3 The
Commission received one comment
letter.4 On March 12, 2007, Amex
submitted a response to the comment
letter.5 This order approves the
proposed rule change.
II. Description of the Proposal
Amex proposes to amend the rules for
its AEMI trading platform 6 to add a
Passive Price Improvement (‘‘PPI’’)
order type. PPI orders are undisplayed
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Release Act 55179
(January 26, 2007), 72 FR 05091 (February 2, 2007).
4 See Letter from Christopher Cornette, Member,
Amex, to Florence E. Harmon, Deputy Secretary,
Commission, received February 14, 2007.
5 See Letter from Claire P. McGrath, Senior Vice
President & General Counsel, Amex, to Nancy M.
Morris, Secretary, Commission, dated March 12,
2007 (‘‘Amex Response Letter’’).
6 See Securities Exchange Act Release No. 54552
(September 29, 2006), 71 FR 59546 (October 10,
2006).
1 15
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Frm 00069
Fmt 4703
Sfmt 4703
orders that, to execute, would have to be
inside the automated best bid and offer
of the Exchange (also referred to as the
‘‘Amex Published Quote’’ or ‘‘APQ’’) by
at least a tick. They would be the only
method for Specialists and Registered
Traders to offer price improvement
electronically. A Specialist or Registered
Trader would have to have at least one
active quote on a particular side of a
security on the AEMI book to enter and
maintain a PPI order in the same
security on the same side. A Specialist
or Registered Trader that meets this
quoting requirement could enter only
one PPI order on each side for a
security. A PPI order could not form
part of the APQ and would be visible
only to the entering Specialist or
Registered Trader (or his firm).
AEMI would make a PPI order eligible
for execution if at least one of the
following conditions were met:
1. The Specialist’s or Registered
Trader’s displayed quote is at the APQ
on the side of the PPI order that would
be executed. In this case, the PPI order
would be executed up to (a) the size of
the Specialist’s or Registered Trader’s
displayed quote on that side or (b) the
size of the incoming order, whichever is
smaller.
2. The Specialist’s or Registered
Trader’s displayed quote is one tick
away from the APQ on the side of the
PPI order that would be executed. In
this case, the PPI order would be
executed up to (a) half of the size of the
Specialist’s or Registered Trader’s
displayed quote on that side or (b) the
size of the incoming order, whichever is
smaller.
The AEMI system would ignore (i.e.,
make ineligible for execution against an
otherwise marketable aggressing order,
without canceling) the remaining size of
a PPI order beyond the thresholds
described above.7 The AEMI system
would also ignore a PPI order in the
following circumstances:
• The PPI order locks or crosses the
automated NBBO or APQ as a result of
a change in the automated NBBO or
APQ;
• The PPI order equals the APQ on
the same side of the market;
7 For example, assume that a Specialist’s bid for
1,000 shares is part of the Amex best bid and there
are no better-priced protected quotations at other
trading centers. The Specialist has a PPI order to
buy 3,000 shares priced one tick better than the
Amex best bid. Assume that an incoming market
order to sell 3,000 shares is received by AEMI. The
system would execute 1,000 shares against the
Specialist’s PPI order, and the remainder would
execute one tick down at the Amex best bid (based
on the Exchange’s rules of priority and parity). The
remaining size of the PPI order (2,000 shares) is
ignored because the PPI order may execute only up
to the size of the Specialist’s displayed bid at the
APQ.
E:\FR\FM\20MRN1.SGM
20MRN1
Agencies
[Federal Register Volume 72, Number 53 (Tuesday, March 20, 2007)]
[Notices]
[Pages 13145-13146]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4978]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55460; File No. SR-Amex-2007-30]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Transaction Charges for Equities and ETFs
March 13, 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 March 8, 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 and
II below, which Items have been substantially prepared by the Exchange.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to revise Equities and Exchange Traded Funds
and Trust Issued Receipts (``ETFs'') Fee Schedules (collectively, the
``Fee Schedule'').
The text of the proposed rule change is available on the Exchange's
Web site (https://www.amex.com), at the Exchange's principal office, 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 recently revised its Equities, ETFs, and Nasdaq UTP
Fee Schedules.\3\ The Exchange is now proposing to make some additional
changes to the Equities and ETFs Fee Schedules. The Equity Fee Schedule
currently provides a waiver of transaction charges for orders of up to
500 shares entered electronically into the Amex Order File from off the
floor (``System Orders''). This transaction charge waiver does not
apply to the System Orders of a member or member organization trading
as an agent for the account of a non-member competing market maker.\4\
The Exchange is now proposing to extend the transaction charge waiver
to System Orders for the accounts of non-member competing market
makers. Thus, the Equity Fee Schedule is being amended to eliminate the
second and third sentences of Item 3 on the schedule.
---------------------------------------------------------------------------
\3\ See SR-Amex-2007-23 filed on February 22, 2007 and SR-Amex-
2007-28 filed on March 1, 2007.
\4\ A competing market maker is defined for purposes of the
Equity and ETF Fee Schedules as a specialist or market maker
registered as such on a registered stock exchange (other than Amex),
or a market maker bidding and offering over-the-counter, in an Amex-
traded security.
---------------------------------------------------------------------------
The ETF Fee Schedule also provides a waiver of transaction charges
for orders entered electronically into the Amex Order File from off the
floor. However for ETFs, orders up to 2,400 shares are deemed to be
System Orders for which transaction charges are waived. Again, the
transaction charge waiver currently does not apply to the System Orders
of a member or member organization trading as an agent for the account
of a non-member competing market maker. The Exchange is now proposing
to extend the transaction charge waiver to System Orders for the
accounts of non-member competing market makers. Thus, the ETF Fee
Schedule is being amended to eliminate the second and third sentences
of Note 1 on the schedule.
The Exchange is also proposing to apply the waiver of transaction
charges for System Orders in equities and ETFs for the accounts of non-
member competing market makers retroactively, beginning March 1, 2007.
2. Statutory Basis
The proposed fee change is consistent with Section 6(b)(4) of the
Act \5\ regarding the equitable allocation of reasonable dues, fees,
and other charges among exchange members and other persons using
exchange facilities.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
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 immediately pursuant
to Section 19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) \7\
thereunder because it does not: (i) Significantly affect the protection
of investors or the public interest; (ii) impose any significant burden
on competition; (iii) become operative for 30 days from the date on
which it was filed, or such shorter time as the Commission may
designate.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ Rule 19b-4(f)(6) also requires the self-regulatory
organization to give the Commission notice of its intent to file the
proposed rule change, along with a brief description and text of the
proposed rule change, at least five business days prior to the date
of filing of the proposed rule change, or such shorter time as
designed by the Commission. The Commission has determined to waive
the five-day pre-filing requirement.
---------------------------------------------------------------------------
The Commission has determined to waive the 30-day operative delay.
The Commission believes that doing so is consistent with the protection
of investors and the public interest because eligible parties will be
able to obtain the benefit of the fee waivers immediately. Accordingly,
the
[[Page 13146]]
Commission designates the proposal to be operative upon filing with the
Commission.\9\
---------------------------------------------------------------------------
\9\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the propose rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
---------------------------------------------------------------------------
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 of appropriate
in the public interest, for the protection of investors, or otherwise
in the 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2007-30 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-2007-30. 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 the
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-2007-30 and should be submitted on or before April 10, 2007.
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4978 Filed 3-19-07; 8:45 am]
BILLING CODE 8010-01-P