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, 50996-50997 [E7-17479]

Download as PDF 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 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 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 Federal Register / Vol. 72, No. 171 / Wednesday, September 5, 2007 / Notices 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–2007–93 on the subject line. SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 11012 and # 11013] Ohio Disaster # OH–00012 U.S. Small Business Administration. ACTION: Notice. AGENCY: rfrederick on PROD1PC67 with NOTICES SUMMARY: This is a Notice of the Presidential declaration of a major disaster for the State of Ohio (FEMA– 1720–DR), dated 08/27/2007. Incident: Severe Storms, Flooding, Paper Comments and Tornadoes. • Send paper comments in triplicate Incident Period: 08/20/2007 and to Nancy M. Morris, Secretary, continuing. Securities and Exchange Commission, Effective Date: 08/27/2007. 100 F Street, NE., Washington, DC Physical Loan Application Deadline 20549–1090. Date: 10/26/2007. All submissions should refer to File Economic Injury (EIDL) Loan Number SR–Amex–2007–93. This file Application Deadline Date: 05/27/2008. number should be included on the ADDRESSES: Submit completed loan subject line if e-mail is used. To help the applications to: U.S. Small Business Commission process and review your Administration, Processing and comments more efficiently, please use Disbursement Center, 14925 Kingsport only one method. The Commission will Road, Fort Worth, TX 76155. post all comments on the Commission’s FOR FURTHER INFORMATION CONTACT: A. Internet Web site (https://www.sec.gov/ Escobar, Office of Disaster Assistance, rules/sro.shtml). Copies of the U.S. Small Business Administration, submission, all subsequent 409 3rd Street, SW., Suite 6050, amendments, all written statements Washington, DC 20416. with respect to the proposed rule SUPPLEMENTARY INFORMATION: Notice is change that are filed with the hereby given that as a result of the Commission, and all written President’s major disaster declaration on communications relating to the 08/27/2007, applications for disaster proposed rule change between the Commission and any person, other than loans may be filed at the address listed above or other locally announced those that may be withheld from the locations. public in accordance with the The following areas have been provisions of 5 U.S.C. 552, will be determined to be adversely affected by available for inspection and copying in the disaster: the Commission’s Public Reference Primary Counties (Physical Damage and Room, 100 F Street, NE., Washington, Economic Injury Loans): DC 20549, on official business days Allen, Crawford, Hancock, Putnam, between the hours of 10 a.m. and 3 p.m. Richland, Wyandot. Copies of such filing also will be Contiguous Counties (Economic Injury available for inspection and copying at Loans Only): the principal office of the Exchange. All Ohio: Ashland, Auglaize, Defiance, comments received will be posted Hardin, Henry, Huron, Knox, without change; the Commission does Marion, Morrow, Paulding, Seneca, not edit personal identifying Van Wert, Wood. information from submissions. You The Interest Rates are: should submit only information that you wish to make available publicly. All Percent submissions should refer to File Number SR–Amex–2007–93 and should be submitted on or before September 26, For Physical Damage: Homeowners With Credit Avail2007. able Elsewhere ...................... 6.250 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E7–17479 Filed 9–4–07; 8:45 am] BILLING CODE 8010–01–P 14 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 13:51 Sep 04, 2007 Jkt 211001 Homeowners Without Credit Available Elsewhere .............. Businesses With Credit Available Elsewhere ...................... Other (Including Non-Profit Organizations) With Credit Available Elsewhere .............. Businesses And Non-Profit Organizations Without Credit Available Elsewhere .............. PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 3.125 8.000 50997 Percent For Economic Injury: Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere .............. 4.000 The number assigned to this disaster for physical damage is 110126 and for economic injury is 110130. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E7–17528 Filed 9–4–07; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10968] Vermont Disaster Number VT–00005 U.S. Small Business Administration. ACTION: Amendment 1. AGENCY: SUMMARY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of Vermont (FEMA–1715–DR), dated 08/03/2007. Incident: Severe Storms and Flooding. Incident Period: 07/09/2007 through 07/11/2007. Effective Date: 08/24/2007. Physical Loan Application Deadline Date: 10/02/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing And Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the State of VERMONT, dated 08/03/2007, is hereby amended to include the following areas as adversely affected by the disaster. Primary Counties: Caledonia, Orleans. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Number 59008) 5.250 Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E7–17530 Filed 9–4–07; 8:45 am] 4.000 BILLING CODE 8025–01–P E:\FR\FM\05SEN1.SGM 05SEN1

Agencies

[Federal Register Volume 72, Number 171 (Wednesday, September 5, 2007)]
[Notices]
[Pages 50996-50997]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17479]


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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.
---------------------------------------------------------------------------

    \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).
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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 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
    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\
---------------------------------------------------------------------------

    \5\ The options transaction charge is the collective of the 
Options Transaction Fee, the Options Comparison Fee, and the Options 
Floor Brokerage fee, as noted on the Options Fee Schedule.
    \6\ See Securities Exchange Act Release No. 56002 (July 2, 
2007), 72 FR 37548 (July 10, 2007) (SR-Amex 2007-55).
    \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'').
---------------------------------------------------------------------------

    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:

------------------------------------------------------------------------
                                                              Rebate per
        Monthly directed order volume (in contracts)           contract
------------------------------------------------------------------------
0-1,000,000................................................        $0.05
1,000,001-2,000,000........................................          .10
2,000,001-3,000,000........................................         .125
3,000,001 and up...........................................          .15
------------------------------------------------------------------------

    Rebates would be capped at 100% of transaction charges so that once 
a Directed Order Participant's transaction charges reach zero, the 
Exchange would not pay out any additional credits.\8\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \9\ See supra note 7.
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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,

[[Page 50997]]

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-2007-93 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-2007-93. 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, 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-2007-93 and should be 
submitted on or before September 26, 2007.

    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. E7-17479 Filed 9-4-07; 8:45 am]
BILLING CODE 8010-01-P
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