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, 14313-14314 [E7-5549]
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Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55499; File No. SR–Amex–
2007–27]
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
March 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
28, 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 March 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend its
marketing fee program to customer
orders of 1,000 contracts or greater,
which are executed in open-outcry (i.e.,
manual executions).
The text of the proposed rule change
is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.amex.com.
sroberts on PROD1PC70 with NOTICES
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
27
VerDate Aug<31>2005
16:38 Mar 26, 2007
Jkt 211001
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
Currently, the options marketing fee is
assessed on those specialists, registered
options traders (‘‘ROTs’’), remote
registered options traders (‘‘RROTs’’),
and supplemental registered options
traders (‘‘SROTs’’) transactions
involving electronically executed
customer orders from firms that accept
payment for directing their orders to the
Exchange (‘‘payment accepting firms’’)
with whom a specialist or SROT has
negotiated a payment for order flow
arrangement.5
The Exchange is now proposing to
charge specialists and ROTs a fee of
$0.40 per contract on customer orders of
1,000 contracts or greater executed in
open-outcry (i.e., manual executions),
that are from payment accepting firms
with whom a specialist has negotiated a
payment for order flow arrangement.6
As with electronically executed
customer orders, 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.
5 For electronically executed customer orders, the
fee is $0.75 per contract on the transactions of
specialists, ROTs, RROTs, and SROTs in equity
options (except for SPDR options which will
continue to remain subject to the current fee level
of $1.00 per contract) as well as Nasdaq 100 Index
options (NDX) and Russell 2000 Index options
(RUT). Likewise, the fee is $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.
6 This fee is not applicable to SROTs and RROTs
because their trades are only executed
electronically.
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
14313
The Exchange notes that strategy
trades (i.e., dividend spreads, merger
spreads, short stock interest spreads)
executed manually will not be eligible
for payment under this proposal.7
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 payment accepting firms. Funds
collected on manual orders would only
be paid for the class they are collected,
and to the order flow provider they are
collected for. So long as it is within the
foregoing 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.
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.
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
7 Amendment No. 1 clarified in the Exchange’s
Options Fee Schedule that the marketing fee does
not apply to strategy trades executed manually.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
E:\FR\FM\27MRN1.SGM
27MRN1
14314
Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Notices
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2007–27 on the
subject line.
sroberts on PROD1PC70 with NOTICES
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–2007–27. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of 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
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 March 14,
2007, the date on which the Exchange filed
Amendment No. 1.
VerDate Aug<31>2005
16:38 Mar 26, 2007
Jkt 211001
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2007–27 and should
be submitted on or before April 17,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5549 Filed 3–26–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55500; File No. SR–Amex–
2007–22]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of Proposed Rule Change and
Amendment No. 1 Thereto To Amend
Its Minor Rule Violation Fine Systems
March 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
21, 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 March 20, 2007, the
Exchange filed Amendment No. 1 to the
proposed rule change. 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
The Exchange proposes to incorporate
violations of Amex Rule 131A—AEMI
and Commentary .03 to Amex Rule
958—ANTE into Part 1 of its Minor Rule
Violation Fine Systems (the ‘‘Plan’’).3
The text of the proposed rule change is
available at Amex, the Commission’s
Public Reference Room, and https://
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,
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Amex Rule 590.
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange’s Plan provides a
simplified procedure for the resolution
of minor rule violations. Codified in
Amex Rule 590, the Plan has three
distinct sections: (1) Part 1 (General
Rule Violations) covers substantive
matters that are nonetheless deemed to
be minor; (2) Part 2 (Floor Decorum
Violations) covers guidelines
concerning the personal appearance and
conduct of persons on the trading floor
and other operational matters; and (3)
Part 3 (Reporting Violations) covers the
late submission of routine reports
required to be filed with the Exchange.
The Exchange proposes to include
violations of Amex Rule 131A—AEMI
into Part 1 of the Plan. Amex Rule
131A–AEMI, which generally sets forth
procedures related to market-on-close
(‘‘MOC’’) and limit-on-close (‘‘LOC’’)
orders and expiration, is designed to
minimize price volatility on the close by
requiring members to enter all MOC and
LOC orders as early in the day as
possible. Amex Rule 131A—AEMI also
establishes deadlines for entering MOC
and LOC orders, restrictions on
canceling MOC and LOC orders,
requirements for publishing imbalances
on the consolidated tape, the order of
execution for MOC and LOC orders, and
procedures for days on which
derivative, index-related products (e.g.,
options, futures, and options on futures)
settle against opening prices.
The Exchange also proposes to
include violations of Commentary .03 to
Amex Rule 958—ANTE into Part 1 of
the Plan. Commentary .03 to Amex Rule
958-ANTE provides, in part, that, for
purposes of paragraph (a) of such rule,
at least 50% of the trading activity in
any quarter (measured in terms of
contract volume) of a registered options
trader must ordinarily be in classes to
which such registered options trader is
assigned, except for unusual
circumstances.4
13 17
1 15
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
4 The remaining provisions of Commentary .03 to
Amex Rule 958—ANTE are not to be included in
the Plan.
E:\FR\FM\27MRN1.SGM
27MRN1
]]>Agencies
[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Notices]
[Pages 14313-14314]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5549]
[[Page 14313]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55499; File No. SR-Amex-2007-27]
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
March 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 28, 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 March 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 7 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 extend its marketing fee program to
customer orders of 1,000 contracts or greater, which are executed in
open-outcry (i.e., manual executions).
The text of the proposed rule change is available at the Exchange,
the Commission's Public Reference Room, and https://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
Currently, the options marketing fee is assessed on those
specialists, registered options traders (``ROTs''), remote registered
options traders (``RROTs''), and supplemental registered options
traders (``SROTs'') transactions involving electronically executed
customer orders from firms that accept payment for directing their
orders to the Exchange (``payment accepting firms'') with whom a
specialist or SROT has negotiated a payment for order flow
arrangement.\5\
---------------------------------------------------------------------------
\5\ For electronically executed customer orders, the fee is
$0.75 per contract on the transactions of specialists, ROTs, RROTs,
and SROTs in equity options (except for SPDR options which will
continue to remain subject to the current fee level of $1.00 per
contract) as well as Nasdaq 100 Index options (NDX) and Russell 2000
Index options (RUT). Likewise, the fee is $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 Exchange is now proposing to charge specialists and ROTs a fee
of $0.40 per contract on customer orders of 1,000 contracts or greater
executed in open-outcry (i.e., manual executions), that are from
payment accepting firms with whom a specialist has negotiated a payment
for order flow arrangement.\6\
---------------------------------------------------------------------------
\6\ This fee is not applicable to SROTs and RROTs because their
trades are only executed electronically.
---------------------------------------------------------------------------
As with electronically executed customer orders, 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 Exchange notes that strategy trades (i.e., dividend spreads,
merger spreads, short stock interest spreads) executed manually will
not be eligible for payment under this proposal.\7\
---------------------------------------------------------------------------
\7\ Amendment No. 1 clarified in the Exchange's Options Fee
Schedule that the marketing fee does not apply to strategy trades
executed manually.
---------------------------------------------------------------------------
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 payment
accepting firms. Funds collected on manual orders would only be paid
for the class they are collected, and to the order flow provider they
are collected for. So long as it is within the foregoing 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.
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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.
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
[[Page 14314]]
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\
---------------------------------------------------------------------------
\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 March 14, 2007, the
date on which the Exchange filed Amendment No. 1.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2007-27 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-2007-27. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of 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-2007-27 and should be submitted on or before April 17, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5549 Filed 3-26-07; 8:45 am]
BILLING CODE 8010-01-P
