Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending the Payment for Order Flow Plan To Apply the Current Marketing Fee to Orders Sent to Directed Order Participants, 50994-50996 [E7-17478]

Download as PDF 50994 Federal Register / Vol. 72, No. 171 / Wednesday, September 5, 2007 / Notices rfrederick on PROD1PC67 with NOTICES section 22(e) was designed to prevent. Applicants state that the SAI for each International Fund will disclose those local holidays (over the period of at least one year following the date of the SAI), if any, that are expected to prevent the delivery of redemption proceeds in seven calendar days, and the maximum number of days needed to deliver the proceeds for the relevant International Fund. Future Relief 3. Applicants also seek to amend the Prior Order to modify the terms under which the Trust may offer Future Funds. The Prior Order is currently subject to a condition that does not permit relief for Future Funds unless applicants request and receive with respect to such Future Fund, either exemptive relief from the Commission or a no-action letter from the Division of Investment Management of the Commission, or the Future Fund could be listed on an Exchange without the need for a filing pursuant to rule 19b– 4 under the Exchange Act. 4. The order would amend the Prior Order to delete this condition. Any Future Fund will: (a) Be advised by the Adviser, or an entity controlled by or under common control with the Adviser; (b) track an Underlying Index that is created, compiled, sponsored or maintained by an entity that is not an affiliated person, as defined in section 2(a)(3) of the Act, or an affiliated person of an affiliated person, of the Adviser, the Distributor, the Trust or any SubAdviser or promoter of a Fund; and (c) comply with the respective terms and conditions of the Prior Order, as amended by the present application. 5. Applicants believe that the modification of the future relief available under the Prior Order would be consistent with sections 6(c) and 17(b) of the Act and that granting the requested relief will facilitate the timely creation of Future Funds by removing the need to seek additional exemptive relief. Applicants submit that the terms and conditions of the Prior Order have been appropriate for the existing Funds and would remain appropriate for Future Funds. Applicants also submit that tying exemptive relief under the Act to the ability of a Future Fund to be listed on an Exchange without the need for a rule 19b–4 filing under the Exchange Act is not necessary to meet the standards under sections 6(c) and 17(b) of the Act. Applicants’ Condition Applicants agree that any order granting the requested relief will be subject to the same conditions as those VerDate Aug<31>2005 13:51 Sep 04, 2007 Jkt 211001 imposed by the Prior Order, except for condition 1 to the Prior Order, which will be deleted. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Nancy M. Morris, Secretary. [FR Doc. E7–17499 Filed 9–4–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56330; File No. SR–Amex– 2007–92] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending the Payment for Order Flow Plan To Apply the Current Marketing Fee to Orders Sent to Directed Order Participants August 28, 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 August 20, 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 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 from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Payment for Order Flow Plan to apply the current marketing fee to orders sent to Directed Order Participants.5 The text 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). 5 The Exchange’s Directed Order Program (the ‘‘Program’’) was recently approved by the Commission. See Securities Exchange Act Release No. 56269 (August 15, 2007), 72 FR 47086 (August 22, 2007) (Notice of Filing and Order Granting Accelerated Approval of SR–Amex 2007–75). A Directed Order Participant, as defined in proposed Rule 996–ANTE is any specialist, Registered 2 17 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// www.amex.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change, and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. Amex has substantially prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the current fee schedule to apply the marketing fee charged to equity options (the ‘‘Payment for Order Flow Plan’’) to orders sent to Directed Order Participants.6 A Directed Order Participant may choose to opt in or opt out of the Payment for Order Flow Plan.7 If the Directed Order Participant chooses to opt into the Payment for Order Flow Plan, the Exchange will collect the applicable marketing fee per contract from the participating specialists, ROTs, RROTs, and SROTs, for all electronic customer orders directed to that Directed Order Participant. The pool of funds collected would be used to fund Options Trader (‘‘ROT’’), Supplemental Registered Options Trader (‘‘SROT’’), and Remote Registered Options Trader (‘‘RROT’’) that enters into arrangements with an Order Flow Provider, whereby they could receive directed orders upon meeting certain eligibility requirements. 6 Under the current plan, the Exchange charges an equity options marketing fee of $0.75, $0.35, or $0.40 per contract solely to customer orders that are from payment accepting firms with whom a specialist or SROT has negotiated a payment for order flow arrangement. SPDR Options are currently subject to a $1.00 or $.40 per contract fee. The $0.75 and $0.35 fee solely applies to those orders that are executed electronically through the Exchange’s ANTE system, while the $0.40 fee applies to those series of equity options, exchange traded fund share options (including SPY options), Trust Issued Receipt Options, NDX, and RUT options that are manually executed customer orders of 1,000 contracts or greater. 7 Once a Directed Order Participant opts into the Payment for Order Flow Plan, no notice to the Exchange is required in a subsequent month unless there is a change in the participation status. E:\FR\FM\05SEN1.SGM 05SEN1 rfrederick on PROD1PC67 with NOTICES Federal Register / Vol. 72, No. 171 / Wednesday, September 5, 2007 / Notices Payment for Order Flow arrangements with payment accepting firms. A Directed Order Participant who chooses to opt into the Payment for Order Flow Plan must notify the Exchange of the election to participate in the Payment for Order Flow Plan no later than two business days prior to the date on which the marketing fee would be assessed. Directed Order Participants may only opt into or out of the Exchange’s Payment for Order Flow Plan one time in any given month. If at any time during a month a Directed Order Participant opts into the Payment for Order Flow Plan, the marketing fee would be assessed for that remaining portion of the month commencing on the third business day following notice to the Exchange. Directed Order Participants who enter into a Payment for Order Flow arrangement with an Order Flow Provider will be given instructions as to how to submit their payment directions. The Exchange will not be involved in negotiating the terms governing the orders that qualify for payment or the amount of any payment. The Exchange will, however, pay the requested amount to the Order Flow Provider on behalf of the Directed Order Participant. The requested amount is limited to the amount billed and collected for that month, plus any excess funds that were carried over from previous months (funds collected but not requested by a Directed Order Participant). The Exchange will further provide administrative support for the program in such matters as maintaining the funds, keeping track of the number of qualified orders each Directed Order Participant directs to the Exchange, and making payments to the Order Flow Providers on behalf of, and at the direction of, the Directed Order Participants. Separate pools of funds will be available to each Directed Order Participant solely for those trades where the marketing fee was assessed, at the post it was collected. This pool of funds will be used by each Directed Order Participant to attract customer orders to the Exchange from Order Flow Providers.8 The Exchange notes that Directed Order Participants are limited to spending any funds collected from SROTs only in those options classes in which the SROT is able to trade. Directed Order Participants participating in the Exchange’s current Payment for Order Flow Plan will be 8 The Exchange notes that if a specialist acts as a Directed Order recipient and specialist, there shall be two separate pools of funds collected for each. VerDate Aug<31>2005 13:51 Sep 04, 2007 Jkt 211001 50995 rebated any unused funds at the end of a quarter on a pro rata basis.9 Finally, the Exchange proposes to amend Footnote 11 in the Options Fee Schedule, to clarify that that the $.40 options marketing fee, which only applies to manually executed orders, shall not be applicable to Directed Orders, since they are solely electronically executed orders. IV. Solicitation of Comments 2. Statutory Basis • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2007–92 on the subject line. The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act 10 in general, and section 6(b)(4) of the Act 11 in particular, in that it is designed to provide for an 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 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 12 and Rule 19b–4(f)(2) 13 thereunder, because it establishes or changes a due, fee, or other charge imposed by the Exchange. Accordingly, the proposal will take effect upon filing with the Commission. At any time within 60 days of the filing of such proposed rule change the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 9 Specialists, SROTs, RROTs, or ROTs participating in the Exchange’s current marketing fee program are rebated any unused funds at the end of a quarter on a pro rata basis. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 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 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–2007–92. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F. Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. 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–2007–92 and should be submitted on or before September 26, 2007. E:\FR\FM\05SEN1.SGM 05SEN1 50996 Federal Register / Vol. 72, No. 171 / Wednesday, September 5, 2007 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E7–17478 Filed 9–4–07; 8:45 am] 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. BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56331; File No. SR–Amex– 2007–93] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Options Directed Order Participant Transaction Charge Rebate Program August 28, 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 August 20, 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 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 from interested persons. rfrederick on PROD1PC67 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to extend the transaction charge rebates currently applicable to supplemental registered options traders (‘‘SROTs’’) to all Directed Order Participants. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// 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 14 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 VerDate Aug<31>2005 13:51 Sep 04, 2007 Jkt 211001 The Exchange notes that Directed Order Participants are entitled to the options transaction charge rebate, which is separate and apart from the Exchange’s Payment for Order Flow Plan.9 The proposed options transaction charge rebate, which is provided to Directed Order Participants, will not come from the marketing fees collected on those transactions. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 10 in general, and Section 6(b)(4) of the Act 11 in particular, in that it is designed to provide for an equitable allocation of reasonable dues, fees, and other charges among exchange members and other persons using exchange facilities. 1. Purpose The Exchange proposes to extend the options transaction charge 5 rebates currently applicable to SROTs 6 to all Directed Order Participants (including SROTs) that provide liquidity to the Exchange and receive electronic directed customer orders (the ‘‘Directed Order Fee Rebate Program’’). This Directed Order Fee Rebate Program would provide fee rebates to Directed Order Participants that provide order flow to the Exchange from an order flow provider firm.7 This proposal would allow the Exchange to provide Directed Order Participants with options transaction charge rebates for the number of options contracts that are electronically directed to them and executed on the Exchange. The following rebate schedule is proposed: 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 Monthly directed order volume Rebate per Commission Action (in contracts) contract The foregoing proposed rule change 0–1,000,000 .............................. $0.05 has been designated as a fee change 1,000,001–2,000,000 ................ .10 pursuant to Section 19(b)(3)(A)(ii) of the 2,000,001–3,000,000 ................ .125 Act 12 and Rule 19b–4(f)(2) 13 3,000,001 and up ..................... .15 thereunder, because it establishes or changes a due, fee, or other charge Rebates would be capped at 100% of imposed by the Exchange. Accordingly, transaction charges so that once a the proposal will take effect upon filing Directed Order Participant’s transaction with the Commission. At any time charges reach zero, the Exchange would within 60 days of the filing of such not pay out any additional credits.8 proposed rule change the Commission may summarily abrogate such rule 5 The options transaction charge is the collective change if it appears to the Commission of the Options Transaction Fee, the Options that such action is necessary or Comparison Fee, and the Options Floor Brokerage appropriate in the public interest, for fee, as noted on the Options Fee Schedule. 6 See Securities Exchange Act Release No. 56002 the protection of investors, or otherwise (July 2, 2007), 72 FR 37548 (July 10, 2007) (SR– in furtherance of the purposes of the Amex 2007–55). Act. 7 See Securities Exchange Act Release No. 56269 (August 15, 2007), 72 FR 47086 (August 22, 2007) (Notice of Filing and Order Granting Accelerated Approval of SR–Amex 2007–75). Generally, for purposes of the Directed Order Flow Program, a directed order is deemed to be an electronic customer order from an order flow provider that is directed to a specific specialist, registered options trader (‘‘ROT’’), SROT, or remote registered options trader (‘‘RROT’’). 8 For example, a Directed Order Participant which pays $100,000 in transaction charges per month, could not receive more than a $100,000 rebate. PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, 9 See supra note 7. U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b–4(f)(2). 10 15 E:\FR\FM\05SEN1.SGM 05SEN1

Agencies

[Federal Register Volume 72, Number 171 (Wednesday, September 5, 2007)]
[Notices]
[Pages 50994-50996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17478]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56330; File No. SR-Amex-2007-92]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Amending the Payment for Order Flow Plan To Apply the Current Marketing 
Fee to Orders Sent to Directed Order Participants

August 28, 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 August 20, 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 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 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 amend its Payment for Order Flow Plan to 
apply the current marketing fee to orders sent to Directed Order 
Participants.\5\ The text of the proposed rule change is available at 
the Exchange, the Commission's Public Reference Room, and http://
www.amex.com.
---------------------------------------------------------------------------

    \5\ The Exchange's Directed Order Program (the ``Program'') was 
recently approved by the Commission. See Securities Exchange Act 
Release No. 56269 (August 15, 2007), 72 FR 47086 (August 22, 2007) 
(Notice of Filing and Order Granting Accelerated Approval of SR-Amex 
2007-75). A Directed Order Participant, as defined in proposed Rule 
996-ANTE is any specialist, Registered Options Trader (``ROT''), 
Supplemental Registered Options Trader (``SROT''), and Remote 
Registered Options Trader (``RROT'') that enters into arrangements 
with an Order Flow Provider, whereby they could receive directed 
orders upon meeting certain eligibility requirements.
---------------------------------------------------------------------------

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change, and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. Amex has substantially prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the current fee schedule to apply 
the marketing fee charged to equity options (the ``Payment for Order 
Flow Plan'') to orders sent to Directed Order Participants.\6\
---------------------------------------------------------------------------

    \6\ Under the current plan, the Exchange charges an equity 
options marketing fee of $0.75, $0.35, or $0.40 per contract solely 
to customer orders that are from payment accepting firms with whom a 
specialist or SROT has negotiated a payment for order flow 
arrangement. SPDR Options are currently subject to a $1.00 or $.40 
per contract fee. The $0.75 and $0.35 fee solely applies to those 
orders that are executed electronically through the Exchange's ANTE 
system, while the $0.40 fee applies to those series of equity 
options, exchange traded fund share options (including SPY options), 
Trust Issued Receipt Options, NDX, and RUT options that are manually 
executed customer orders of 1,000 contracts or greater.
---------------------------------------------------------------------------

    A Directed Order Participant may choose to opt in or opt out of the 
Payment for Order Flow Plan.\7\ If the Directed Order Participant 
chooses to opt into the Payment for Order Flow Plan, the Exchange will 
collect the applicable marketing fee per contract from the 
participating specialists, ROTs, RROTs, and SROTs, for all electronic 
customer orders directed to that Directed Order Participant. The pool 
of funds collected would be used to fund

[[Page 50995]]

Payment for Order Flow arrangements with payment accepting firms.
---------------------------------------------------------------------------

    \7\ Once a Directed Order Participant opts into the Payment for 
Order Flow Plan, no notice to the Exchange is required in a 
subsequent month unless there is a change in the participation 
status.
---------------------------------------------------------------------------

    A Directed Order Participant who chooses to opt into the Payment 
for Order Flow Plan must notify the Exchange of the election to 
participate in the Payment for Order Flow Plan no later than two 
business days prior to the date on which the marketing fee would be 
assessed. Directed Order Participants may only opt into or out of the 
Exchange's Payment for Order Flow Plan one time in any given month. If 
at any time during a month a Directed Order Participant opts into the 
Payment for Order Flow Plan, the marketing fee would be assessed for 
that remaining portion of the month commencing on the third business 
day following notice to the Exchange.
    Directed Order Participants who enter into a Payment for Order Flow 
arrangement with an Order Flow Provider will be given instructions as 
to how to submit their payment directions. The Exchange will not be 
involved in negotiating the terms governing the orders that qualify for 
payment or the amount of any payment. The Exchange will, however, pay 
the requested amount to the Order Flow Provider on behalf of the 
Directed Order Participant. The requested amount is limited to the 
amount billed and collected for that month, plus any excess funds that 
were carried over from previous months (funds collected but not 
requested by a Directed Order Participant).
    The Exchange will further provide administrative support for the 
program in such matters as maintaining the funds, keeping track of the 
number of qualified orders each Directed Order Participant directs to 
the Exchange, and making payments to the Order Flow Providers on behalf 
of, and at the direction of, the Directed Order Participants.
    Separate pools of funds will be available to each Directed Order 
Participant solely for those trades where the marketing fee was 
assessed, at the post it was collected. This pool of funds will be used 
by each Directed Order Participant to attract customer orders to the 
Exchange from Order Flow Providers.\8\ The Exchange notes that Directed 
Order Participants are limited to spending any funds collected from 
SROTs only in those options classes in which the SROT is able to trade. 
Directed Order Participants participating in the Exchange's current 
Payment for Order Flow Plan will be rebated any unused funds at the end 
of a quarter on a pro rata basis.\9\
---------------------------------------------------------------------------

    \8\ The Exchange notes that if a specialist acts as a Directed 
Order recipient and specialist, there shall be two separate pools of 
funds collected for each.
    \9\ Specialists, SROTs, RROTs, or ROTs participating in the 
Exchange's current marketing fee program are rebated any unused 
funds at the end of a quarter on a pro rata basis.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to amend Footnote 11 in the Options 
Fee Schedule, to clarify that that the $.40 options marketing fee, 
which only applies to manually executed orders, shall not be applicable 
to Directed Orders, since they are solely electronically executed 
orders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \10\ in general, and section 6(b)(4) of 
the Act \11\ in particular, in that it is designed to provide for an 
equitable allocation of reasonable dues, fees, and other charges among 
exchange members and other persons using exchange facilities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 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 \12\ and Rule 
19b-4(f)(2) \13\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed by the Exchange. Accordingly, the proposal 
will take effect upon filing with the Commission. At any time within 60 
days of the filing of such proposed rule change the Commission may 
summarily abrogate such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2007-92 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-2007-92. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F. Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the Exchange. 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-2007-92 and should be 
submitted on or before September 26, 2007.


[[Page 50996]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E7-17478 Filed 9-4-07; 8:45 am]
BILLING CODE 8010-01-P