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 VerDate Aug<31>2005 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 E:\FR\FM\20MRN1.SGM 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). VerDate Aug<31>2005 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 PO 00000 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]


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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
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