Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Transaction Charges for Equities, ETFs, and Nasdaq UTP Securities, 13320-13322 [E7-5059]
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13320
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2007–18 and should
be submitted on or before April 11,
2007.
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:
BILLING CODE 8010–01–P
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–NYSE–2007–18 on the
subject line.
jlentini on PROD1PC65 with NOTICES
subparagraph (f)(2) of Rule 19b–4
thereunder,12 because it establishes or
changes a due, fee, or other charge
imposed by the NYSE. 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.
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Transaction Charges for Equities,
ETFs, and Nasdaq UTP Securities
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–NYSE–2007–18. 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 offices of NYSE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
12 17
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5117 Filed 3–20–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55458; File No. SR–Amex–
2007–23]
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 February
22, 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. Amex 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, Exchange Traded Funds and
Trust Issued Receipts (‘‘ETFs’’), and
Nasdaq UTP Fee Schedules
(collectively, the ‘‘Fee Schedule’’) to
modify transaction charges in equities,
ETFs, and Nasdaq UTP securities.
13 13
17 CFR 200.30–3(a)(12).
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).
1 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
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 adopted new
transaction charges for its members and
member organizations largely relating to
the Exchange’s new hybrid market
trading platform (known as AEMI), the
upcoming implementation of Regulation
NMS, and changes in the competitive
landscape for equities and ETFs.5 These
new transaction charges became
effective January 2, 2007.6 Since the
adoption of the new transaction fees, the
Exchange has been having difficulty
with its billing system’s ability to obtain
the data necessary to calculate an
accurate bill and provide data to the
clearing firms in a timely manner so
they can accurately pass these charges
on to their customers. As a result, the
Exchange in this filing proposes to
revert back to transaction charges for
customers 7 in equities and ETFs in
effect prior to January 2, 2007. In
5 See Securities Exchange Act Release No. 55195
(January 30, 2007) 72 FR 5469 (February 6, 2007)
(Amex File No. 2006–117).
6 This discussion originally stated, at various
points, that the new transaction charges became
effective January 3, 2007; however, the approved
date of effectiveness was actually January 2, 2007.
E-mail communication between Leah Mesfin,
Special Counsel, Division of Market Regulation,
Commission, and Claire P. McGrath, Senior Vice
President and General Counsel, Amex, on March 2,
2007.
7 Customers are defined for purposes of the
Equity and ETF Fee Schedules to include all market
participants except specialists and registered
traders. Therefore, customers (and the fees charged
to them) include members’ off-floor proprietary
accounts, competing market makers and other
member and non-member broker-dealers. The
Nasdaq UTP Fee Schedule defines customers to
include any market participant other than a
‘‘competing market maker.’’
E:\FR\FM\21MRN1.SGM
21MRN1
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
addition, as an incentive to member
firms to send order flow to the
Exchange, a five percent discount will
be applied to each firm’s total charges
for customer orders. Transaction charges
for specialists in equities and specialists
and registered traders in ETFs will be
made consistent across the product lines
and will generally be applied in the
same manner as under the prior
schedule, but at a lower rate. The five
percent discount will not be applied to
charges for specialists and registered
traders. In addition, for transactions
charges in Nasdaq UTP securities, the
Exchange will also revert back to the fee
schedule in effect prior to January 2,
2007 and will apply the five percent
discount to charges for member and
non-member customer transactions.
Currently, under the recently adopted
fee schedule, transaction charges for
equities, ETFs, and Nasdaq UTP
securities differ based on whether the
charge is for a customer or specialist
and registered trader. Transaction
charges for executions in equities and
ETFs are divided into two tiers based on
the average daily volume as reported by
the appropriate NMS Plan in the
security industry-wide.8 Transaction
charges for all securities traded by
Amex pursuant to unlisted trading
privileges (including Nasdaq UTP
securities) regardless of average daily
trading volume are priced based on one
of the tiers as noted below. The
transaction charges vary within each tier
depending on the type of orders
submitted for the customer account and
the types of quotes and orders submitted
for specialist and registered trader
accounts.
Transaction Charges for Equities
The Exchange is now proposing that
transaction charges for equities be
assessed based generally on the
previous fee schedule for all market
participants on a per-share basis with
the application of various caps and
discounts. Specifically, the Exchange is
proposing the following changes to the
current Equity Fee Schedule: (i)
Adoption of a monthly transaction
charge to customers of $0.0030 per share
jlentini on PROD1PC65 with NOTICES
8 Tier
One pricing is applied to equities and ETFs
whose industry-wide average daily trading volume
is 500,000 shares or greater during the previous
rolling quarter. In addition, Tier One pricing
applies to all securities traded on the Exchange
pursuant to unlisted trading privileges (‘‘UTP’’)
(including Nasdaq UTP securities) regardless of the
their average daily trading volume. All new listings
including IPOs, transfers, and dual listings are
initially categorized as Tier One securities until the
next quarterly recalculation. Tier Two pricing is
applied to all equities and ETFs whose industrywide average daily trading volume is less than
500,000 shares during the previous rolling quarter.
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
for up to 50 million shares and $0.0025
per share for amounts over 50 million
shares; (ii) adoption of a fee cap so that
transaction charges are assessed only on
the first 5,000 shares of each executed
transaction; (iii) adoption of a fee waiver
of transaction charges for certain
electronic orders of up to 500 shares
(this fee waiver will not apply to
electronic orders of a member or
member organization trading as an agent
for the account of a non-member
competing market maker); 9 and (iv)
adoption of a five percent discount on
total amount of customer transaction
charges. For transaction charges
assessed to specialists in equities, the
Exchange will not revert back to the
previous fee schedule where the pershare charge was waived and a charge
based on the total dollar value of
specialist transactions was imposed, but
will instead impose a specialist
transaction charge at the rate of $0.03
per 100 shares.
The other provisions of the current
Equity Fee Schedule including the
‘‘Equities Order Cancellation Fee,’’
‘‘Clearing Charges for Orders Routed to
Another Market Center,’’ and ‘‘PassThrough Charges to Orders Routed to
Another Market Center Through the
NMS Linkage Plan’’ will remain the
same.
Transaction Charges for ETFs
Similar to equities as set forth above,
Amex is proposing that transaction
charges for ETFs be assessed based
generally on the previous fee schedule
for all market participants monthly on a
per-share basis with the application of
various caps and discounts.
Specifically, the Exchange is proposing
the following changes to the current
ETF Fee Schedule: (i) Adoption of
transaction charges for customers of
$0.34 per 100 shares for all ETFs; 10 (ii)
adoption of a $100 cap on the fee
charged per transaction for each
customer trade; (iii) adoption of a
waiver of transaction charges for
electronic orders of up to 2,400 shares
(this fee waiver will not apply to
electronic orders of a member or
member organization trading as an agent
9 A ‘‘competing market maker’’ is defined 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. The Exchange
has subsequently filed another proposed rule
change (SR–Amex–2007–30) to remove the
provision barring the application of the fee waiver
to non-member competing market makers
retroactively to March 1, 2007. Hence, as of March
1, 2007, non-member competing market makers are
eligible for the fee waiver.
10 This charge was reduced to $0.30 by a
subsequent filing that the Exchange submitted, SR–
Amex–2007–28.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
13321
for the account of a non-member
competing market maker); 11 (iv)
adoption of a five percent discount on
the total amount of customer transaction
charges; (v) adoption of an additional
value-based fee for transactions of nonmember competing market makers of
$0.000075 times the total value of orders
entered by a member or member
organization trading as agent for the
account of a non-member competing
market makers; 12 (vi) adoption of
transaction charges for specialists and
registered traders of $0.03 per 100
shares per trade for all ETFs; and (vii)
adoption of a monthly specialist fee cap
of $400,000.
The other provisions of the current
ETF Fee Schedule including the ‘‘Order
Cancellation Fee,’’ ‘‘Clearing Charges for
Orders Routed to Another Market
Center,’’ and ‘‘Pass-Through Charges to
Orders Routed to Another Market Center
Through the NMS Linkage Plan’’ will
remain the same.
Nasdaq UTP Equity Fee Schedule
The separate Nasdaq UTP Equity Fee
Schedule was eliminated with the
adoption of the new Equity Fee
Schedule since all securities traded on
the Exchange based on unlisted trading
privileges (including Nasdaq UTP
securities) were covered under the Tier
One pricing provisions of the new
Equity Fee Schedule. The Exchange is
now proposing to revert back to the
Nasdaq UTP Equity Fee Schedule in
place prior to January 2, 2007.
Specifically, the Exchange proposes to:
(i) Adopt a transaction charge for
specialists of $0.10 per 100 shares;
however, the Exchange will waive this
transaction charge to those specialists
that do not charge commissions to
customers in Nasdaq UTP securities; (ii)
adopt a transaction charge for member
and non-member customers of $0.15 per
100 shares; (iii) adopt a five percent
discount on the total amount of
customer transaction charges; (iv) adopt
a transaction charge for member and
non-member competing market makers
of $0.15 per 100 shares; (v) adopt a
transaction charge for Amex Equity
Traders of $0.15 per 100 shares; and (vi)
adopt a $50 cap on the fee charged for
each side of a cross transaction.
*
*
*
*
*
The Exchange will impose these
transaction charges on its members and
11 SR–Amex–2007–30 also eliminates the
provision barring the application of the fee waiver
to non-member competing market makers
retroactively to March 1, 2007. Hence, as of March
1, 2007, non-member competing market makers are
eligible for this fee waiver.
12 This fee was subsequently eliminated by SR–
Amex–2007–28.
E:\FR\FM\21MRN1.SGM
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13322
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
member organizations effective
February 22, 2007.
2. Statutory Basis
The proposed fee change is consistent
with Section 6(b)(4) of the Act 13
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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 14 and
Rule 19b–4(f)(2) thereunder 15 because it
establishes or 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:
jlentini on PROD1PC65 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–2007–23 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
13 15
U.S.C. 78f(b)(4).
14 15 U.S.C. 78s(b)(3)(A)(ii).
15 17 CFR 19b–4(f)(2).
VerDate Aug<31>2005
17:08 Mar 20, 2007
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Amex–2007–23. 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–2007–23 and should
be submitted on or before April 10,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5059 Filed 3–20–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55472; File No. SR–BSE–
2007–08]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change and
Amendment No. 1 Thereto To Add an
Automatic Quote Cancellation
Procedure to the Boston Options
Exchange Rules
March 14, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
16 17
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
Frm 00087
Fmt 4703
Sfmt 4703
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
15, 2007, the Boston Stock Exchange,
Inc. (‘‘BSE’’ 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 March 13, 2007, BSE
submitted Amendment No. 1 to the
proposed rule change. BSE has filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(5)
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.
I. Self–Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BSE proposes to add Section 15,
Automatic Quote Cancellation
Procedure, to Chapter VI in the Boston
Options Exchange (‘‘BOX’’) Rules. This
proposed addition to the BOX Rules
will provide a BOX Market Maker the
option of enabling automatic quote
cancellation protection so its quotes will
be automatically cancelled if it is
technically disconnected from the BOX
Trading Host. The text of the proposed
rule change is below. Proposed new
language is in italics.
Chapter VI. Market Makers
Sec. 1 through Sec. 14—No Change.
Sec. 15 Automatic Quote Cancellation
Procedure:
(a) The Automatic Quote Cancellation
Procedure is enabled (or disabled) for
all of a Market Maker’s appointed
options classes when a Market Maker
sends an Automatic Quote Cancellation
Procedure enabling (or disabling)
message to the Trading Host. The
Market Maker must provide in the
enable message the duration of no
technical connectivity after which the
Trading Host should cancel his quotes
(set for a duration of between one and
nine seconds). Unless enabled, the
Automatic Quote Cancellation
Procedure is disabled for all options
classes.
(b) When the Automatic Quote
Cancellation Procedure has been
enabled, the Trading Host will
automatically cancel all quotes posted
by the Market Maker in all of the Market
Maker’s appointed options classes when
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(5).
2 17
E:\FR\FM\21MRN1.SGM
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Agencies
[Federal Register Volume 72, Number 54 (Wednesday, March 21, 2007)]
[Notices]
[Pages 13320-13322]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5059]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55458; File No. SR-Amex-2007-23]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Transaction Charges for Equities, ETFs, and Nasdaq UTP
Securities
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 February 22, 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. Amex 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, Exchange Traded Funds
and Trust Issued Receipts (``ETFs''), and Nasdaq UTP Fee Schedules
(collectively, the ``Fee Schedule'') to modify transaction charges in
equities, ETFs, and Nasdaq UTP securities.
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 adopted new transaction charges for its
members and member organizations largely relating to the Exchange's new
hybrid market trading platform (known as AEMI), the upcoming
implementation of Regulation NMS, and changes in the competitive
landscape for equities and ETFs.\5\ These new transaction charges
became effective January 2, 2007.\6\ Since the adoption of the new
transaction fees, the Exchange has been having difficulty with its
billing system's ability to obtain the data necessary to calculate an
accurate bill and provide data to the clearing firms in a timely manner
so they can accurately pass these charges on to their customers. As a
result, the Exchange in this filing proposes to revert back to
transaction charges for customers \7\ in equities and ETFs in effect
prior to January 2, 2007. In
[[Page 13321]]
addition, as an incentive to member firms to send order flow to the
Exchange, a five percent discount will be applied to each firm's total
charges for customer orders. Transaction charges for specialists in
equities and specialists and registered traders in ETFs will be made
consistent across the product lines and will generally be applied in
the same manner as under the prior schedule, but at a lower rate. The
five percent discount will not be applied to charges for specialists
and registered traders. In addition, for transactions charges in Nasdaq
UTP securities, the Exchange will also revert back to the fee schedule
in effect prior to January 2, 2007 and will apply the five percent
discount to charges for member and non-member customer transactions.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55195 (January 30,
2007) 72 FR 5469 (February 6, 2007) (Amex File No. 2006-117).
\6\ This discussion originally stated, at various points, that
the new transaction charges became effective January 3, 2007;
however, the approved date of effectiveness was actually January 2,
2007. E-mail communication between Leah Mesfin, Special Counsel,
Division of Market Regulation, Commission, and Claire P. McGrath,
Senior Vice President and General Counsel, Amex, on March 2, 2007.
\7\ Customers are defined for purposes of the Equity and ETF Fee
Schedules to include all market participants except specialists and
registered traders. Therefore, customers (and the fees charged to
them) include members' off-floor proprietary accounts, competing
market makers and other member and non-member broker-dealers. The
Nasdaq UTP Fee Schedule defines customers to include any market
participant other than a ``competing market maker.''
---------------------------------------------------------------------------
Currently, under the recently adopted fee schedule, transaction
charges for equities, ETFs, and Nasdaq UTP securities differ based on
whether the charge is for a customer or specialist and registered
trader. Transaction charges for executions in equities and ETFs are
divided into two tiers based on the average daily volume as reported by
the appropriate NMS Plan in the security industry-wide.\8\ Transaction
charges for all securities traded by Amex pursuant to unlisted trading
privileges (including Nasdaq UTP securities) regardless of average
daily trading volume are priced based on one of the tiers as noted
below. The transaction charges vary within each tier depending on the
type of orders submitted for the customer account and the types of
quotes and orders submitted for specialist and registered trader
accounts.
---------------------------------------------------------------------------
\8\ Tier One pricing is applied to equities and ETFs whose
industry-wide average daily trading volume is 500,000 shares or
greater during the previous rolling quarter. In addition, Tier One
pricing applies to all securities traded on the Exchange pursuant to
unlisted trading privileges (``UTP'') (including Nasdaq UTP
securities) regardless of the their average daily trading volume.
All new listings including IPOs, transfers, and dual listings are
initially categorized as Tier One securities until the next
quarterly recalculation. Tier Two pricing is applied to all equities
and ETFs whose industry-wide average daily trading volume is less
than 500,000 shares during the previous rolling quarter.
---------------------------------------------------------------------------
Transaction Charges for Equities
The Exchange is now proposing that transaction charges for equities
be assessed based generally on the previous fee schedule for all market
participants on a per-share basis with the application of various caps
and discounts. Specifically, the Exchange is proposing the following
changes to the current Equity Fee Schedule: (i) Adoption of a monthly
transaction charge to customers of $0.0030 per share for up to 50
million shares and $0.0025 per share for amounts over 50 million
shares; (ii) adoption of a fee cap so that transaction charges are
assessed only on the first 5,000 shares of each executed transaction;
(iii) adoption of a fee waiver of transaction charges for certain
electronic orders of up to 500 shares (this fee waiver will not apply
to electronic orders of a member or member organization trading as an
agent for the account of a non-member competing market maker); \9\ and
(iv) adoption of a five percent discount on total amount of customer
transaction charges. For transaction charges assessed to specialists in
equities, the Exchange will not revert back to the previous fee
schedule where the per-share charge was waived and a charge based on
the total dollar value of specialist transactions was imposed, but will
instead impose a specialist transaction charge at the rate of $0.03 per
100 shares.
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\9\ A ``competing market maker'' is defined 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 Exchange has subsequently
filed another proposed rule change (SR-Amex-2007-30) to remove the
provision barring the application of the fee waiver to non-member
competing market makers retroactively to March 1, 2007. Hence, as of
March 1, 2007, non-member competing market makers are eligible for
the fee waiver.
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The other provisions of the current Equity Fee Schedule including
the ``Equities Order Cancellation Fee,'' ``Clearing Charges for Orders
Routed to Another Market Center,'' and ``Pass-Through Charges to Orders
Routed to Another Market Center Through the NMS Linkage Plan'' will
remain the same.
Transaction Charges for ETFs
Similar to equities as set forth above, Amex is proposing that
transaction charges for ETFs be assessed based generally on the
previous fee schedule for all market participants monthly on a per-
share basis with the application of various caps and discounts.
Specifically, the Exchange is proposing the following changes to the
current ETF Fee Schedule: (i) Adoption of transaction charges for
customers of $0.34 per 100 shares for all ETFs; \10\ (ii) adoption of a
$100 cap on the fee charged per transaction for each customer trade;
(iii) adoption of a waiver of transaction charges for electronic orders
of up to 2,400 shares (this fee waiver will not apply to electronic
orders of a member or member organization trading as an agent for the
account of a non-member competing market maker); \11\ (iv) adoption of
a five percent discount on the total amount of customer transaction
charges; (v) adoption of an additional value-based fee for transactions
of non-member competing market makers of $0.000075 times the total
value of orders entered by a member or member organization trading as
agent for the account of a non-member competing market makers; \12\
(vi) adoption of transaction charges for specialists and registered
traders of $0.03 per 100 shares per trade for all ETFs; and (vii)
adoption of a monthly specialist fee cap of $400,000.
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\10\ This charge was reduced to $0.30 by a subsequent filing
that the Exchange submitted, SR-Amex-2007-28.
\11\ SR-Amex-2007-30 also eliminates the provision barring the
application of the fee waiver to non-member competing market makers
retroactively to March 1, 2007. Hence, as of March 1, 2007, non-
member competing market makers are eligible for this fee waiver.
\12\ This fee was subsequently eliminated by SR-Amex-2007-28.
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The other provisions of the current ETF Fee Schedule including the
``Order Cancellation Fee,'' ``Clearing Charges for Orders Routed to
Another Market Center,'' and ``Pass-Through Charges to Orders Routed to
Another Market Center Through the NMS Linkage Plan'' will remain the
same.
Nasdaq UTP Equity Fee Schedule
The separate Nasdaq UTP Equity Fee Schedule was eliminated with the
adoption of the new Equity Fee Schedule since all securities traded on
the Exchange based on unlisted trading privileges (including Nasdaq UTP
securities) were covered under the Tier One pricing provisions of the
new Equity Fee Schedule. The Exchange is now proposing to revert back
to the Nasdaq UTP Equity Fee Schedule in place prior to January 2,
2007. Specifically, the Exchange proposes to: (i) Adopt a transaction
charge for specialists of $0.10 per 100 shares; however, the Exchange
will waive this transaction charge to those specialists that do not
charge commissions to customers in Nasdaq UTP securities; (ii) adopt a
transaction charge for member and non-member customers of $0.15 per 100
shares; (iii) adopt a five percent discount on the total amount of
customer transaction charges; (iv) adopt a transaction charge for
member and non-member competing market makers of $0.15 per 100 shares;
(v) adopt a transaction charge for Amex Equity Traders of $0.15 per 100
shares; and (vi) adopt a $50 cap on the fee charged for each side of a
cross transaction.
* * * * *
The Exchange will impose these transaction charges on its members
and
[[Page 13322]]
member organizations effective February 22, 2007.
2. Statutory Basis
The proposed fee change is consistent with Section 6(b)(4) of the
Act \13\ regarding the equitable allocation of reasonable dues, fees,
and other charges among exchange members and other persons using
exchange facilities.
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\13\ 15 U.S.C. 78f(b)(4).
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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 proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act \14\ and Rule 19b-4(f)(2) thereunder
\15\ because it establishes or 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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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
\15\ 17 CFR 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 No. SR-Amex-2007-23 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-2007-23. 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-2007-23 and should be submitted on or before April 10, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5059 Filed 3-20-07; 8:45 am]
BILLING CODE 8010-01-P