Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange-Traded Note Transaction Fees, 32617-32619 [E8-12803]
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Federal Register / Vol. 73, No. 111 / Monday, June 9, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
representative requirement and that
therefore an issuer representative must
be an officer or employee of an issuer
listed on a particular exchange. The
NASDAQ Exchange does not believe
that such a constrained interpretation is
warranted, however, in light of either
the existing language of the By-Laws or
the policies underlying them. Rather,
the NASDAQ Exchange believes that a
director of an issuer who is not also its
officer or employee would be fully
familiar with the concerns of public
companies and could therefore
adequately represent the issuer
community in the deliberations of the
NASDAQ Exchange and NASDAQ OMX
Boards. Moreover, with regard to the
NASDAQ Exchange Board, the
NASDAQ Exchange notes that Section
6(b)(3) of the Act 10 requires the
inclusion on the NASDAQ Exchange
Board of at least one director
‘‘representative of issuers and investors’’
but does not define this requirement
and that other self-regulatory
organizations appear to satisfy this
requirement through election of persons
that may serve as directors on other
boards. Indeed, the NASDAQ Exchange
believes that the requirement of a
director to represent issuers and
investors implies that a director of a
public company would be well suited to
fit this role, because the business of the
issuer is managed under the direction of
its board and because the director is the
fiduciary of investors in the issuer.
Nevertheless, to make it clear that the
definition of Non-Industry Director does
not serve as an impediment to a director
of an issuer serving as an issuer
representative, NASDAQ OMX and the
NASDAQ Exchange propose to amend
the definitions of Non-Industry Director
to insert appropriate references to the
director of an issuer.
2. Statutory Basis
The NASDAQ Exchange believes that
the proposed rule change is consistent
with the provisions of Section 6 of the
Act,11 in general, and with Sections
6(b)(1) and (b)(3) of the Act,12 in
particular, in that the proposal enables
the NASDAQ Exchange and NASDAQ
OMX to be so organized as to have the
capacity to be able to carry out the
purposes of the Act and to comply with
and enforce compliance by members
and persons associated with members
with provisions of the Act, the rules and
regulations thereunder, and the rules of
the exchange, and is designed to
provide that one or more directors of the
1015
U.S.C. 78f(b)(3).
U.S.C. 78f.
12 15 U.S.C. 78f(b)(1) and (3).
11 15
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NASDAQ Exchange shall be
representative of issuers and investors
and not associated with a member of the
exchange, broker, or dealer.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The NASDAQ Exchange does not
believe that the proposed rule change
will result in 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
Written comments were neither
solicited nor received.
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 self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
32617
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 NASDAQ
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–
NASDAQ–2008–043 and should be
submitted on or before June 30, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–12799 Filed 6–6–08; 8:45 am]
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
BILLING CODE 8010–01–P
Electronic Comments
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Exchange-Traded Note Transaction
Fees
• 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–NASDAQ–2008–043 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Florence E. Harmon, Acting
Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2008–043. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
PO 00000
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57902; File No. SR–Amex–
2008–45]
June 2, 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 May 23,
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, II, and
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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32618
Federal Register / Vol. 73, No. 111 / Monday, June 9, 2008 / Notices
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 apply the
Exchange-Traded Fund and TrustIssued Receipts Fee Schedule (‘‘ETF Fee
Schedule’’) to transactions in exchangetraded notes (‘‘ETNs’’).
The text of the proposed rule change
is available on Amex’s Web site at
https://www.amex.com, at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to apply the
ETF Fee Schedule to transactions in
ETNs beginning June 1, 2008.
ETNs are securities listed under
Sections 107D (Index-Linked
Securities), 107E (Commodity-Linked
Securities), 107F (Currency-Linked
Securities), 107G (Fixed Income-Linked
Securities), 107H (Futures-Linked
Securities), or 107I (CombinationLinked Securities) of the Amex
Company Guide that offer redemption at
least weekly to holders of such
securities. In February 2008, the
Commission approved an Exchange
proposal to permit ETNs to be subject to
the AEMI trading rules specific to
exchange-traded funds (‘‘ETFs’’).3
Currently, ETNs are subject to the
transaction charges for equities traded
on the Exchange. The instant proposal
would provide that ETNs be subject to
3 See Securities Exchange Act Release No. 57400
(February 29, 2008), 73 FR 12234 (March 6, 2008)
(SR–Amex–2007–109).
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the identical fees that currently apply to
ETFs traded on the Exchange.
Currently, ETF transaction charges
differ from equity transaction charges
relating to customer accounts 4 and are
$0.0023 per share (or $0.23 per 100
shares), subject to a $100 per transaction
cap, resulting in transaction charges
being assessed only on the first 43,478
shares. ETF and equity transaction
charges both include: (i) A $0.0004 per
share (or $0.04 per 100 shares) clearing
charge for orders routed to and executed
at another market center; (ii) a $0.0030
per share (or $0.30 per 100 shares)
charge for orders routed to and executed
at another market; and (iii) 0.3% of the
total dollar value for transactions in a
security with a share price of less than
$1.00 (for ETFs the per transaction
maximum fee of $100 applies).
Transactions in both ETFs and equities
also are subject to an order cancellation
fee.5
Consistent with the Exchange’s
current ETF revenue sharing program,
the Exchange proposes to distribute
revenue to the specialists, Registered
Traders, and DARTs as outlined below.
This is identical to the revenue sharing
program that exists in connection with
ETFs.
ETN specialists may receive an
aggregate revenue sharing program
payment (calculated monthly) of as
much as $0.0024 per share (or $0.24 per
100 shares) whenever the specialist
either buys or sells its specialty ETN on
the Exchange and is a provider of
4 Customer accounts are defined for purposes of
the fee schedule to include accounts for all market
participants except specialists, Registered Traders,
and Designated Amex Remote Traders (DARTs).
Therefore, customer accounts (and the fees charged
to them) include members’ off-floor proprietary
accounts, competing market makers on other
exchanges, and other member and non-member
broker-dealers.
5 The ETF and equity order cancellation fee
provides that the executing clearing member is
charged $0.25 for every additional equities and ETF
order sent for a mnemonic and cancelled through
Amex systems in a given month when the total
number of equities and ETF orders cancelled for
that mnemonic is more than 50 times the equities
and ETF orders executed through Amex systems for
that mnemonic in that same month. Cancellations
resulting from ‘‘Immediate or Cancel’’ or ‘‘Fill or
Kill’’ orders and cancellations entered to cancel at
the opening orders not executed at the opening will
not be counted towards the number of cancellations
used to determine whether the fee should be
applied to a mnemonic and will not be counted
when determining the amount of the cancellation
fee charged to an executing clearing member.
Executions of ‘‘Immediate or Cancel’’ and ‘‘Fill or
Kill’’ orders will however be counted towards the
number of executions. The Equities Order
Cancellation Fee and ETF Order Cancellation Fee
set forth in the Equity Fee Schedule and ETF Fee
Schedule, respectively, would be revised under this
proposal to clarify that ETN orders be included as
part of the calculation to determine whether the
order cancellation fee applies to a particular
executing clearing member.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
liquidity in that transaction (e.g. , whose
quote is traded against or who offsets an
order imbalance as part of an opening or
closing transaction). The revenue
sharing program payment is comprised
of $0.0004 per share (or $0.04 per 100
shares) for all shares executed on the
Exchange in its specialty ETN
(irrespective of whether the specialist is
the provider of liquidity), plus another
$0.0020 (or $0.20 per 100 shares) if the
specialist is the provider of liquidity in
the transaction. If the specialist is not
the liquidity provider, then the revenue
sharing program payment is limited to
$0.0004 per share executed on the
Exchange in its specialty ETN.6
A Registered Trader in ETNs will
receive a revenue sharing payment of
$0.0010 per share (or $0.10 per 100
shares) whenever the Registered Trader
either buys or sells an ETN on the
Exchange and is a provider of liquidity
in that transaction. A DART in ETNs
will receive a revenue sharing payment
of $0.0015 per share (or $0.15 per 100
shares) whenever the DART either buys
or sells an ETN on the Exchange and is
a provider of liquidity in that
transaction.7 Neither the specialist,
Registered Trader, nor DART will
receive a payment when it is a contraparty to the same transaction. It should
be noted that revenue sharing will also
be paid on transactions in securities
trading at less than $1.00 equal to the
amount collected by the Exchange.
However, the revenue sharing payment
will be paid only on the portion of a
transaction for which the Exchange
collects revenue.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 8
in general and furthers the objectives of
Section 6(b)(4) of the Act 9 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 believes that the proposal
provides for an equitable allocation of
reasonable fees among Exchange
members through the application of
existing ETF transaction charges to
ETNs.
6 See e-mail from Jeffrey Burns, Vice President
and Associate General Counsel, Amex, to Nathan
Saunders, Special Counsel, and Linda Jeng-Braun,
Attorney, Division of Trading and Markets,
Commission, dated May 29, 2008.
7 DARTs were recently added to the revenue
sharing program for ETFs. See Securities Exchange
Act Release No. 57540 (March 20, 2008), 73 FR
16399 (March 27, 2008) (SR–Amex–2008–23).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 73, No. 111 / Monday, June 9, 2008 / Notices
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
Because the foregoing proposed rule
change establishes or changes a due, fee,
or other charge imposed by the
Exchange, it has become effective upon
filing pursuant to Section 19(b)(3)(A) of
the Act 10 and Rule 19b–4(f)(2)
thereunder.11 At any time within 60
days of the filing of the proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
mstockstill on PROD1PC66 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2008–45 on the subject
line.
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 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 No.
SR–Amex–2008–45 and should be
submitted on or before June 30, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–12803 Filed 6–6–08; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 11256 and # 11257]
Arkansas Disaster Number AR–00020
U.S. Small Business
Administration.
ACTION: Amendment 2.
AGENCY:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Arkansas
(FEMA–1758–DR), dated 05/20/2008.
Paper Comments
Incident: Severe Storms, Flooding,
and Tornadoes.
• Send paper comments in triplicate
Incident Period: 05/02/2008 and
to Secretary, Securities and Exchange
continuing through 05/12/2008.
Commission, 100 F Street, NE.,
DATES: Effective Date: 05/12/2008.
Washington, DC 20549–1090.
Physical Loan Application Deadline
All submissions should refer to File
Date: 07/21/2008.
Number SR–Amex–2008–45. This file
EIDL Loan Application Deadline Date:
number should be included on the
subject line if e-mail is used. To help the 02/20/2009.
ADDRESSES: Submit completed loan
Commission process and review your
applications to: U.S. Small Business
comments more efficiently, please use
only one method. The Commission will Administration, Processing And
Disbursement Center, 14925 Kingsport
post all comments on the Commissions
Road, Fort Worth, TX 76155.
10 15
11 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
18:05 Jun 06, 2008
12 17
Jkt 214001
PO 00000
CFR 200.30–3(a)(12).
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32619
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 the State of Arkansas,
dated 05/20/2008 is hereby amended to
establish the incident period for this
disaster as beginning 05/02/2008 and
continuing through 05/12/2008.
All other information in the original
declaration remains unchanged.
FOR FURTHER INFORMATION CONTACT:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. E8–12871 Filed 6–6–08; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 11273]
California Disaster # CA–00083
Declaration of Economic Injury
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a notice of an
Economic Injury Disaster Loan (EIDL)
declaration for the State of California,
dated 06/03/2008.
Incident: California Salmon Fishery
Closure 2008.
Incident Period: 04/10/2008 and
continuing.
Effective Date: 06/03/2008.
EIDL Loan Application Deadline Date:
03/03/2009.
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: Notice is
hereby given that as a result of the
Administrator’s EIDL declaration,
applications for economic injury
disaster loans may be filed at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Del Norte,
Mendocino, Monterey, San Mateo,
DATES:
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]]>Agencies
[Federal Register Volume 73, Number 111 (Monday, June 9, 2008)]
[Notices]
[Pages 32617-32619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12803]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57902; File No. SR-Amex-2008-45]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Exchange-Traded Note Transaction Fees
June 2, 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 May 23, 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, II,
and
[[Page 32618]]
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 apply the Exchange-Traded Fund and Trust-
Issued Receipts Fee Schedule (``ETF Fee Schedule'') to transactions in
exchange-traded notes (``ETNs'').
The text of the proposed rule change is available on Amex's Web
site at https://www.amex.com, at the Exchange's principal office, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to apply the ETF Fee Schedule to transactions
in ETNs beginning June 1, 2008.
ETNs are securities listed under Sections 107D (Index-Linked
Securities), 107E (Commodity-Linked Securities), 107F (Currency-Linked
Securities), 107G (Fixed Income-Linked Securities), 107H (Futures-
Linked Securities), or 107I (Combination-Linked Securities) of the Amex
Company Guide that offer redemption at least weekly to holders of such
securities. In February 2008, the Commission approved an Exchange
proposal to permit ETNs to be subject to the AEMI trading rules
specific to exchange-traded funds (``ETFs'').\3\ Currently, ETNs are
subject to the transaction charges for equities traded on the Exchange.
The instant proposal would provide that ETNs be subject to the
identical fees that currently apply to ETFs traded on the Exchange.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 57400 (February 29,
2008), 73 FR 12234 (March 6, 2008) (SR-Amex-2007-109).
---------------------------------------------------------------------------
Currently, ETF transaction charges differ from equity transaction
charges relating to customer accounts \4\ and are $0.0023 per share (or
$0.23 per 100 shares), subject to a $100 per transaction cap, resulting
in transaction charges being assessed only on the first 43,478 shares.
ETF and equity transaction charges both include: (i) A $0.0004 per
share (or $0.04 per 100 shares) clearing charge for orders routed to
and executed at another market center; (ii) a $0.0030 per share (or
$0.30 per 100 shares) charge for orders routed to and executed at
another market; and (iii) 0.3% of the total dollar value for
transactions in a security with a share price of less than $1.00 (for
ETFs the per transaction maximum fee of $100 applies). Transactions in
both ETFs and equities also are subject to an order cancellation
fee.\5\
---------------------------------------------------------------------------
\4\ Customer accounts are defined for purposes of the fee
schedule to include accounts for all market participants except
specialists, Registered Traders, and Designated Amex Remote Traders
(DARTs). Therefore, customer accounts (and the fees charged to them)
include members' off-floor proprietary accounts, competing market
makers on other exchanges, and other member and non-member broker-
dealers.
\5\ The ETF and equity order cancellation fee provides that the
executing clearing member is charged $0.25 for every additional
equities and ETF order sent for a mnemonic and cancelled through
Amex systems in a given month when the total number of equities and
ETF orders cancelled for that mnemonic is more than 50 times the
equities and ETF orders executed through Amex systems for that
mnemonic in that same month. Cancellations resulting from
``Immediate or Cancel'' or ``Fill or Kill'' orders and cancellations
entered to cancel at the opening orders not executed at the opening
will not be counted towards the number of cancellations used to
determine whether the fee should be applied to a mnemonic and will
not be counted when determining the amount of the cancellation fee
charged to an executing clearing member. Executions of ``Immediate
or Cancel'' and ``Fill or Kill'' orders will however be counted
towards the number of executions. The Equities Order Cancellation
Fee and ETF Order Cancellation Fee set forth in the Equity Fee
Schedule and ETF Fee Schedule, respectively, would be revised under
this proposal to clarify that ETN orders be included as part of the
calculation to determine whether the order cancellation fee applies
to a particular executing clearing member.
---------------------------------------------------------------------------
Consistent with the Exchange's current ETF revenue sharing program,
the Exchange proposes to distribute revenue to the specialists,
Registered Traders, and DARTs as outlined below. This is identical to
the revenue sharing program that exists in connection with ETFs.
ETN specialists may receive an aggregate revenue sharing program
payment (calculated monthly) of as much as $0.0024 per share (or $0.24
per 100 shares) whenever the specialist either buys or sells its
specialty ETN on the Exchange and is a provider of liquidity in that
transaction (e.g. , whose quote is traded against or who offsets an
order imbalance as part of an opening or closing transaction). The
revenue sharing program payment is comprised of $0.0004 per share (or
$0.04 per 100 shares) for all shares executed on the Exchange in its
specialty ETN (irrespective of whether the specialist is the provider
of liquidity), plus another $0.0020 (or $0.20 per 100 shares) if the
specialist is the provider of liquidity in the transaction. If the
specialist is not the liquidity provider, then the revenue sharing
program payment is limited to $0.0004 per share executed on the
Exchange in its specialty ETN.\6\
---------------------------------------------------------------------------
\6\ See e-mail from Jeffrey Burns, Vice President and Associate
General Counsel, Amex, to Nathan Saunders, Special Counsel, and
Linda Jeng-Braun, Attorney, Division of Trading and Markets,
Commission, dated May 29, 2008.
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A Registered Trader in ETNs will receive a revenue sharing payment
of $0.0010 per share (or $0.10 per 100 shares) whenever the Registered
Trader either buys or sells an ETN on the Exchange and is a provider of
liquidity in that transaction. A DART in ETNs will receive a revenue
sharing payment of $0.0015 per share (or $0.15 per 100 shares) whenever
the DART either buys or sells an ETN on the Exchange and is a provider
of liquidity in that transaction.\7\ Neither the specialist, Registered
Trader, nor DART will receive a payment when it is a contra-party to
the same transaction. It should be noted that revenue sharing will also
be paid on transactions in securities trading at less than $1.00 equal
to the amount collected by the Exchange. However, the revenue sharing
payment will be paid only on the portion of a transaction for which the
Exchange collects revenue.
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\7\ DARTs were recently added to the revenue sharing program for
ETFs. See Securities Exchange Act Release No. 57540 (March 20,
2008), 73 FR 16399 (March 27, 2008) (SR-Amex-2008-23).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\8\ in general and furthers the objectives of Section 6(b)(4) of the
Act \9\ 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 believes that the proposal provides for an
equitable allocation of reasonable fees among Exchange members through
the application of existing ETF transaction charges to ETNs.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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[[Page 32619]]
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
Because the foregoing proposed rule change establishes or changes a
due, fee, or other charge imposed by the Exchange, it has become
effective upon filing pursuant to Section 19(b)(3)(A) of the Act \10\
and Rule 19b-4(f)(2) thereunder.\11\ At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2008-45 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2008-45. 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 Commissions 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 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 No. SR-Amex-2008-45 and should be submitted on or
before June 30, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-12803 Filed 6-6-08; 8:45 am]
BILLING CODE 8010-01-P
