[Federal Register Volume 73, Number 2 (Thursday, January 3, 2008)]
[Notices]
[Pages 523-524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25569]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57052; File No. SR-Amex-2007-140]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Options Licensing Fee Changes
December 27, 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 December 21, 2007, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the Exchange.
The Exchange has designated this proposal as one establishing or
changing a due, fee, or other charge applicable only to a member,
pursuant to 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.
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\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
Amex proposes to modify its Options Fee Schedule.
The text of the proposed rule change is available at the Exchange,
on the Exchange's Web site at http://www.amex.com, 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 has entered into numerous agreements with index
providers for the purpose of trading index options. The requirement to
pay an index license fee to such third parties is a condition to the
listing and trading of these index options. In many cases, the Exchange
is required to pay a significant licensing fee to issuers or index
owners that may not be reimbursed. In an effort to recoup the costs
associated with index licenses, the Exchange has previously established
a per-contract licensing fee for firms, specialists, registered options
traders (``ROTs''), remote registered options traders (``RROTs''),
supplemental registered options traders (``SROTs''), non-member market
makers, and broker-dealers that is collected on every transaction in
designated products in which a firm, specialist, ROT, RROT, SROT, non-
member market maker, or broker-dealer is a party. The licensing fees
currently imposed are set forth in the Exchange's Options Fee Schedule.
The Exchange is proposing to amend its Options Fee Schedule to
increase the licensing fees for options on the Nasdaq-100 Index (NDX)
and Mini-Nasdaq-100 Index (MNX). Currently, the licensing fees for
these index options are $0.15 per contract side. As a result of a
recent change to the licensing agreement for NDX and MNX, the Exchange
is now being charged a higher license fee. Accordingly, the Exchange
now proposes to charge $ 0.16 per contract side for NDX and MNX
options, effective January 2, 2008.
The Exchange submits that the proposed license fee will provide the
Exchange with additional revenue and allow the Exchange to recoup its
costs associated with the trading of NDX and MNX options. Furthermore,
the Amex believes that this fee will help to allocate to those firms,
specialists, ROTs, RROTs, SROTs, non-member market makers, and broker-
dealers transacting in NDX and MNX options a fair share of the related
costs of offering such options. Accordingly, the Exchange believes that
the proposed fee is reasonable.
The Exchange asserts that the proposal is equitable as required by
section 6(b)(4) of the Act.\5\
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\5\ Section 6(b)(4) requires that the rules of a national
securities exchange provide for the equitable allocation of
reasonable dues, fees, and other charges among its members and
issuers and other persons using its facilities. 15 U.S.C. 78f(b)(4).
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[[Page 524]]
2. Statutory Basis
The proposed fee change is consistent with section 6(b)(4) of the
Act \6\ regarding the equitable allocation of reasonable dues, fees,
and other charges among exchange members and other persons using
exchange facilities.
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\6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
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 rule change is establishing or changing a
due, fee, or other charge applicable only to a member, it has become
effective pursuant to section 19(b)(3)(A)(ii) of the Act \7\ and Rule
19b-4(f)(2) thereunder.\8\ 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-Amex-2007-140 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-2007-140. 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-2007-140 and should be
submitted on or before January 24, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-25569 Filed 1-2-08; 8:45 am]
BILLING CODE 8011-01-P