Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Give Retroactive Effect to Its Revenue Sharing Program for ETF Quoting Participants, 18592-18593 [E8-7026]
Download as PDF
18592
Federal Register / Vol. 73, No. 66 / Friday, April 4, 2008 / 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
No. SR–Phlx–2008–23 on the subject
line.
ebenthall on PRODPC61 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–Phlx–2008–23. 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, 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–Phlx–2008–23 and should
be submitted on or before April 25,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6961 Filed 4–3–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57578; File No. SR–Amex–
2008–34]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of Proposed Rule Change To
Give Retroactive Effect to Its Revenue
Sharing Program for ETF Quoting
Participants
March 28, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 27,
2008, 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.
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
retroactively apply a previously-adopted
revenue sharing program (‘‘RSP’’) for
Designated Amex Remote Traders
(‘‘DARTs’’), ETF specialists, and
registered traders (collectively, ‘‘ETF
quoting participants’’) on the Exchange.
The text of the proposed rule change is
available at Amex’s principal office, 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,
Amex 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.
BILLING CODE 8011–01–P
1 15
20 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:24 Apr 03, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00103
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to
retroactively apply its previouslyadopted RSP for ETF quoting
participants on the Exchange, as
described below. The RSP was first put
in place by the Exchange for ETF
specialists and registered traders,
effective July 1, 2007, and was to last
through December 31, 2007 unless
otherwise extended.3 The Exchange
then inadvertently failed to file to
extend the RSP at the expiration of that
time period, but, upon realizing the
error (when recently expanding the RSP
to DARTs), promptly filed to reinstate
the RSP for all ETF quoting participants,
effective March 18, 2008.4 The RSP is
now in effect through the end of
September 2008.
The purpose of the instant filing is to
seek approval to retroactively apply the
now-reinstated RSP for the time period
January 1, 2008 through March 17, 2008
in order to effectively assure continuity
of the RSP from its inception for all ETF
quoting participants on the Exchange,
who have continued to quote
aggressively in the expectation of
receiving RSP payments flowing
therefrom. To date, the Exchange
believes that the current RSP has been
beneficial in creating incentives for ETF
quoting participants and does not
believe it fair to withhold RSP payments
for the retroactive period from ETF
quoting participants solely because of
the Exchange’s inadvertent error.
Retroactive application of the RSP will
satisfy all ETF quoting participants’
expectations.
For the retroactive period, the RSP
will operate under the same terms
established in the RSP Release.5
Specifically:
• RSP payments will be made from
the Exchange’s general revenues and not
be limited to a particular revenue
source.
• ETF specialists may receive an
aggregate RSP payment (calculated
monthly) of as much as $0.0024 per
share (or 24 cents per 100 shares)
whenever the specialist either buys or
3 3 See Securities Exchange Act Release No.
55893 (June 29, 2007), 72 FR 37059 (July 6, 2007)
(SR–Amex–2007–68) (‘‘RSP Release’’).
4 See Securities Exchange Act Release No. 57541
(March 20, 2008) (SR–Amex–2008–25), 73 FR 16400
(March 27, 2008) (reinstating RSP for all ETF
quoting participants); see also Securities Exchange
Act Release No. 57540 (March 20, 2008), 73 FR
16399 (March 27, 2008) (SR–Amex–2008–23)
(expanding RSP to DARTs).
5 See supra note 3.
E:\FR\FM\04APN1.SGM
04APN1
Federal Register / Vol. 73, No. 66 / Friday, April 4, 2008 / Notices
sells his specialty ETF on the Exchange
and is a provider of liquidity in that
transaction (e.g., the specialist’s quote is
traded against or the specialist offsets an
order imbalance as part of an opening or
closing transaction). The RSP payment
is comprised of $0.0004 per share (or 4
cents per 100 shares) for all shares
executed on the Exchange in their
specialty ETF (irrespective of whether
the specialist is the provider of
liquidity), plus another $0.0020 (or 20
cents per 100 shares) if the specialist is
the provider of liquidity in the
transaction. If the specialist is not the
liquidity provider, then the RSP
payment is limited to $0.0004 per share
executed on the Exchange in its
specialty ETF.
• Registered traders in ETFs will
receive an RSP payment of $0.0010 per
share (or 10 cents per 100 shares)
whenever the registered trader either
buys or sells an ETF on the Exchange
and is a provider of liquidity in that
transaction.6
• No ETF quoting participant will
receive an RSP payment when another
ETF quoting participant is a contraparty to the same transaction.
• RSP payments will be made on
transactions in securities trading at less
than $1 only in amounts proportionate
to the amount on which the Exchange
collects revenue.
• Customer transaction charges are
capped at $100 per transaction, meaning
that the transaction charge of $0.0023
per share is assessed only on the first
43,478 shares executed, and an ETF
quoting participant would receive an
RSP payment based only on the first
43,478 shares executed.
2. Statutory Basis
ebenthall on PRODPC61 with NOTICES
Amex believes the proposed rule
change is consistent with Section 6(b) of
the Act 7 in general, and furthers the
objectives of Section 6(b)(4) of the Act 8
in particular, in that it is intended to
assure the equitable allocation of
reasonable dues, fees, and other charges
among its members and issuers and
other persons using its facilities.
Specifically, the Exchange proposes to
retroactively apply the RSP to assure
continuity of the program from its
inception and to assure fairness for the
ETF quoting participants.
6 The RSP for DARTs, although described in SR–
Amex–2008–23 and SR–Amex–2008–25 (see supra
note 4), does not require any retroactive application
because DARTs did not actually begin trading on
the Exchange until after the effective date of Amex’s
filing reinstating the RSP.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
VerDate Aug<31>2005
15:24 Apr 03, 2008
Jkt 214001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve the proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–2008–34 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–2008–34. 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
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
18593
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 the 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–2008–34 and should
be submitted on or before April 25,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7026 Filed 4–3–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57581; File No. SR–Amex–
2008–31]
Self-Regulatory Organizations;
American Stock Exchange, LLC;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Quarterly
Options Series Pilot Program To
Permit the Listing of Additional Series
March 31, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 25,
2008, the American Stock Exchange,
LLC (‘‘Exchange’’ or ‘‘Amex’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. The Exchange has designated
this proposal as non-controversial under
9 17
CFR 200.30–3(a)(12)
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\04APN1.SGM
04APN1
Agencies
[Federal Register Volume 73, Number 66 (Friday, April 4, 2008)]
[Notices]
[Pages 18592-18593]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7026]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57578; File No. SR-Amex-2008-34]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Give Retroactive Effect to
Its Revenue Sharing Program for ETF Quoting Participants
March 28, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 27, 2008, 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. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to retroactively apply a previously-adopted
revenue sharing program (``RSP'') for Designated Amex Remote Traders
(``DARTs''), ETF specialists, and registered traders (collectively,
``ETF quoting participants'') on the Exchange. The text of the proposed
rule change is available at Amex's principal office, 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, Amex 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 proposes to retroactively apply its previously-adopted
RSP for ETF quoting participants on the Exchange, as described below.
The RSP was first put in place by the Exchange for ETF specialists and
registered traders, effective July 1, 2007, and was to last through
December 31, 2007 unless otherwise extended.\3\ The Exchange then
inadvertently failed to file to extend the RSP at the expiration of
that time period, but, upon realizing the error (when recently
expanding the RSP to DARTs), promptly filed to reinstate the RSP for
all ETF quoting participants, effective March 18, 2008.\4\ The RSP is
now in effect through the end of September 2008.
---------------------------------------------------------------------------
\3\ 3 See Securities Exchange Act Release No. 55893 (June 29,
2007), 72 FR 37059 (July 6, 2007) (SR-Amex-2007-68) (``RSP
Release'').
\4\ See Securities Exchange Act Release No. 57541 (March 20,
2008) (SR-Amex-2008-25), 73 FR 16400 (March 27, 2008) (reinstating
RSP for all ETF quoting participants); see also Securities Exchange
Act Release No. 57540 (March 20, 2008), 73 FR 16399 (March 27, 2008)
(SR-Amex-2008-23) (expanding RSP to DARTs).
---------------------------------------------------------------------------
The purpose of the instant filing is to seek approval to
retroactively apply the now-reinstated RSP for the time period January
1, 2008 through March 17, 2008 in order to effectively assure
continuity of the RSP from its inception for all ETF quoting
participants on the Exchange, who have continued to quote aggressively
in the expectation of receiving RSP payments flowing therefrom. To
date, the Exchange believes that the current RSP has been beneficial in
creating incentives for ETF quoting participants and does not believe
it fair to withhold RSP payments for the retroactive period from ETF
quoting participants solely because of the Exchange's inadvertent
error. Retroactive application of the RSP will satisfy all ETF quoting
participants' expectations.
For the retroactive period, the RSP will operate under the same
terms established in the RSP Release.\5\ Specifically:
---------------------------------------------------------------------------
\5\ See supra note 3.
---------------------------------------------------------------------------
RSP payments will be made from the Exchange's general
revenues and not be limited to a particular revenue source.
ETF specialists may receive an aggregate RSP payment
(calculated monthly) of as much as $0.0024 per share (or 24 cents per
100 shares) whenever the specialist either buys or
[[Page 18593]]
sells his specialty ETF on the Exchange and is a provider of liquidity
in that transaction (e.g., the specialist's quote is traded against or
the specialist offsets an order imbalance as part of an opening or
closing transaction). The RSP payment is comprised of $0.0004 per share
(or 4 cents per 100 shares) for all shares executed on the Exchange in
their specialty ETF (irrespective of whether the specialist is the
provider of liquidity), plus another $0.0020 (or 20 cents per 100
shares) if the specialist is the provider of liquidity in the
transaction. If the specialist is not the liquidity provider, then the
RSP payment is limited to $0.0004 per share executed on the Exchange in
its specialty ETF.
Registered traders in ETFs will receive an RSP payment of
$0.0010 per share (or 10 cents per 100 shares) whenever the registered
trader either buys or sells an ETF on the Exchange and is a provider of
liquidity in that transaction.\6\
---------------------------------------------------------------------------
\6\ The RSP for DARTs, although described in SR-Amex-2008-23 and
SR-Amex-2008-25 (see supra note 4), does not require any retroactive
application because DARTs did not actually begin trading on the
Exchange until after the effective date of Amex's filing reinstating
the RSP.
---------------------------------------------------------------------------
No ETF quoting participant will receive an RSP payment
when another ETF quoting participant is a contra-party to the same
transaction.
RSP payments will be made on transactions in securities
trading at less than $1 only in amounts proportionate to the amount on
which the Exchange collects revenue.
Customer transaction charges are capped at $100 per
transaction, meaning that the transaction charge of $0.0023 per share
is assessed only on the first 43,478 shares executed, and an ETF
quoting participant would receive an RSP payment based only on the
first 43,478 shares executed.
2. Statutory Basis
Amex believes the proposed rule change is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(4) of the Act \8\ in particular, in that it is intended to assure
the equitable allocation of reasonable dues, fees, and other charges
among its members and issuers and other persons using its facilities.
Specifically, the Exchange proposes to retroactively apply the RSP to
assure continuity of the program from its inception and to assure
fairness for the ETF quoting participants.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding, or (ii) as to
which the Exchange consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2008-34 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-2008-34. 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 the 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-2008-34 and should be
submitted on or before April 25, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12)
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7026 Filed 4-3-08; 8:45 am]
BILLING CODE 8011-01-P