Professional Documents
Culture Documents
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Federal Register / Vol. 70, No. 202 / Thursday, October 20, 2005 / Notices 61161
Amex has designated the proposed rule per contract licensing fee for the orders industry. Accordingly, the Exchange
change as establishing or changing a of specialists, registered options traders seeks, through this proposal, to better
due, fee, or other charge, pursuant to (‘‘ROTs’’), firms, non-member market align its transaction charges with the
Section 19(b)(3)(A)(ii) of the Act,3 and makers and broker-dealers, that is cost of providing products.
Rule 19b–4(f)(2) 4 thereunder, which collected on every option transaction in
2. Statutory Basis
renders the proposal effective upon designated products in which such
filing with the Commission. The market participant is a party.5 Amex believes the proposed rule
Commission is publishing this notice to The purpose of the proposal is to change is consistent with Section 6(b)(4)
solicit comments on the proposed rule establish an options licensing fee in of the Act 8 because it is an equitable
change from interested persons. connection with options on FDM. allocation of reasonable dues, fees and
Specifically, Amex seeks to charge an other charges among exchange members
I. Self-Regulatory Organization’s options licensing fee of $0.12 per and other persons using exchange
Statement of the Terms of Substance of contract side in connection with FDM facilities.
the Proposed Rule Change options for specialist, ROT, firm, non- B. Self-Regulatory Organization’s
The Exchange proposes to modify its member market maker and broker-dealer Statement on Burden on Competition
Options Fee Schedule by adopting a per orders executed on the Exchange. In all
contract license fee in connection with cases, the fees set forth in the Options The Exchange believes that the
the orders of specialists, registered Fee Schedule are charged only to proposed rule change does not impose
options traders (‘‘ROTs’’), firms, non- Exchange members through whom the any burden on competition that is not
member market makers and broker- orders are placed. necessary or appropriate in furtherance
dealers in connection with options The proposed options licensing fee of the purposes of the Act.
transactions in the First Trust Dow will allow the Exchange to recoup its C. Self-Regulatory Organization’s
Jones Select MicroCap Index Fund costs in connection with the index Statement on Comments on the
(‘‘FDM’’). license fee for the trading of FDM Proposed Rule Change Received From
The text of the proposed rule change options. The fees will be collected on Members, Participants or Others
is available on Amex’s Web site at every order of a specialist, ROT, firm,
http://www.amex.com, the Office of the non-member market maker and broker- No written comments were solicited
Secretary, Amex and at the dealer executed on the Exchange. The or received with respect to the proposed
Commission’s Public Reference Room. Exchange believes that requiring the rule change.
II. Self-Regulatory Organization’s payment of a per contract licensing fee III. Date of Effectiveness of the
Statement of the Purpose of, and in connection with FDM options by Proposed Rule Change and Timing for
Statutory Basis for, the Proposed Rule those market participants that are the Commission Action
Change beneficiaries of Exchange index license The foregoing proposed rule change
agreements is justified and consistent has become effective pursuant to
In its filing with the Commission, with the rules of the Exchange.
Amex included statements concerning Section 19(b)(3)(A)(ii) of the Act,9 and
The Exchange notes that in recent
the purpose of and basis for the Rule 19b–4(f)(2) 10 thereunder, because
years it has revised a number of fees to
proposed rule change and discussed any it establishes or changes a due, fee, or
better align Exchange fees with the
comments it received on the proposed other charge imposed by the Exchange.
actual cost of delivering services and
rule change. The text of these statements At any time within 60 days of the filing
reduce Exchange subsidies of such
may be examined at the places specified of the proposed rule change, the
services.6 Implementation of this
in Item IV below. The Exchange has Commission may summarily abrogate
proposal is consistent with the
prepared summaries, set forth in reduction and/or elimination of these such rule change if it appears to the
Sections A, B, and C below, of the most subsidies. Amex believes that these fees Commission that such action is
significant aspects of such statements. will help to allocate to those market necessary or appropriate in the public
participants engaging in FDM options a interest, for the protection of investors,
A. Self-Regulatory Organization’s or otherwise in furtherance of the
Statement of the Purpose of, and the fair share of the related costs of offering
such options. purposes of the Act.
Statutory Basis for, the Proposed Rule
Change The Exchange asserts that the IV. Solicitation of Comments
proposal is equitable as required by
1. Purpose Interested persons are invited to
Section 6(b)(4) of the Act.7 In
submit written data, views, and
The Exchange has entered into connection with the adoption of an
arguments concerning the foregoing,
numerous agreements with issuers and options licensing fee for FDM options,
including whether the proposed rule
owners of indexes for the purpose of the Exchange notes that charging an
change is consistent with the Act.
trading options on certain exchange- options licensing fee, where applicable,
Comments may be submitted by any of
traded funds (‘‘ETFs’’) and securities to all market participant orders except
the following methods:
indexes. The requirement to pay an for customer orders is reasonable given
index license fee to third parties is a the competitive pressures in the Electronic Comments
condition to the listing and trading of • Use the Commission’s Internet
5 See Securities Exchange Act Release No. 52493
these ETF and index options. In many comment form (http://www.sec.gov/
(September 22, 2005), 70 FR 56941 (September 29,
cases, the Exchange is required to pay 2005) (SR–Amex–2005–087). rules/sro.shtml); or
a significant licensing fee to issuers or 6 See Securities Exchange Act Release Nos. 45360 • Send an e-mail to rule-
index owners that may not be (January 29, 2002), 67 FR 5626 (February 6, 2002) comments@sec.gov. Please include File
reimbursed. In an effort to recoup the (SR–Amex–2001–102) and 44286 (May 9, 2001), 66 Number SR–Amex–2005–098 on the
costs associated with certain index FR 27187 (May 16, 2001) (SR–Amex–2001–22).
7 15 U.S.C. 78f(b)(4). Seciton 6(b)(4) states that the
subject line.
licenses, the Exchange has established a rules of a national securities exchange provide for
8 15 U.S.C. 78f(b)(4).
the equitable allocation of reasonable dues, fees,
3 15 U.S.C. 78s(b)(3)(A)(ii). 9 15 U.S.C. 78s(b)(3)(A)(ii).
and other charges among its members and issuers
4 17 CFR 240.19b–4(f)(2). and other persons using its facilities. 10 17 CFR 240.19b–4(f)(2).
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61162 Federal Register / Vol. 70, No. 202 / Thursday, October 20, 2005 / Notices
Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 and, in certain cases, the type of issue
notice is hereby given that on being traded. The Exchange’s order
• Send paper comments in triplicate September 1, 2005, the Chicago Stock processing fees include a fee for the
to Jonathan G. Katz, Secretary, Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’) processing of odd-lot orders, subject to
Securities and Exchange Commission, filed with the Securities and Exchange a monthly maximum. The odd-lot order
100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the processing fees have not been amended
20549–9303. All submissions should proposed rule change as described in since 1991, whereas other order
refer to File Number SR–Amex–2005– Items I, II, and III below, which items processing and transaction fees have
098. This file number should be have been prepared by CHX. CHX has consistently been updated.
included on the subject line if e-mail is designated the proposed rule change as In this proposal, the Exchange seeks
used. To help the Commission process establishing or changing a due, fee, or to update the odd-lot order processing
and review your comments more other charge imposed by the Exchange fee by decreasing the per trade fee to
efficiently, please use only one method. pursuant to Section 19(b)(3)(A)(ii) of the $0.30 per trade, subject to an increased
The Commission will post all comments Act 3 and Rule 19b–4(f)(2) thereunder,4 monthly maximum of $800.00.
on the Commission’s Internet Web site which renders the proposal effective Additionally, the proposal would
(http://www.sec.gov/rules/sro.shtml). upon filing with the Commission. The eliminate the existing order processing
Copies of the submission, all subsequent Commission is publishing this notice to fee exemption for odd-lot orders in the
amendments, all written statements solicit comments on the proposed rule stocks comprising the Standard & Poor’s
with respect to the proposed rule change from interested persons. 500 Stock Price Index. The Exchange
change that are filed with the has represented that these fees are
Commission, and all written I. Self-Regulatory Organization’s
Statement of the Terms of Substance of charged only to members.
communications relating to the Finally, this proposal deletes a
proposed rule change between the the Proposed Rule Change
reference to a transaction fee exemption
Commission and any person, other than CHX, pursuant to Rule 19b–4 of the for transactions that take place during
those that may be withheld from the Act, proposes to amend its Participant the ‘‘E-Session,’’ which was an extended
public in accordance with the Fee Schedule (the ‘‘Fee Schedule’’) to trading session from 3:30 p.m. to 5:30
provisions of 5 U.S.C. 552, will be modify the order processing fees p.m., Central Time. When the Exchange
available for inspection and copying in charged for odd-lot transactions. eliminated this trading session, the
the Commission’s Public Reference II. Self-Regulatory Organization’s Exchange amended its rules to delete
Room. Copies of the filing also will be Statement of the Purpose of, and references to the E-Session.
available for inspection and copying at Statutory Basis for, the Proposed Rule Accordingly, this remaining provision
the principal office of Amex. All Change of the Fee Schedule is obsolete.
comments received will be posted
without change; the Commission does In its filing with the Commission, the 2. Statutory Basis
not edit personal identifying Exchange included statements
CHX believes that the proposed rule
information from submissions. You concerning the purpose of, and basis for,
change is consistent with Section 6(b)(4)
should submit only information that the proposed rule change and discussed
of the Act 6 in that it provides for the
you wish to make available publicly. All any comments it received on the
equitable allocation of reasonable dues,
submissions should refer to File proposed rule change. The text of these
fees, and other charges among its
Number SR–Amex–2005–098 and statements may be examined at the
members.
places specified in Item IV below. The
should be submitted on or before
Exchange has prepared summaries, set B. Self-Regulatory Organization’s
November 10, 2005.
forth in Sections A, B, and C below, of Statement on Burden on Competition
For the Commission, by the Division of the most significant aspects of such
Market Regulation, pursuant to delegated CHX does not believe that the
statements.
authority.11 proposed rule change will impose any
Jonathan G. Katz, A. Self-Regulatory Organization’s burden on competition that is not
Secretary. Statement of the Purpose of, and necessary or appropriate in furtherance
Statutory Basis for, the Proposed Rule of the purposes of the Act.
[FR Doc. E5–5785 Filed 10–19–05; 8:45 am]
Change
BILLING CODE 8010–01–P C. Self-Regulatory Organization’s
1. Purpose Statement on Comments on the
Under the current Fee Schedule, the Proposed Rule Change Received From
SECURITIES AND EXCHANGE Exchange charges its members for Members, Participants, or Others
COMMISSION transaction and order processing fees.5 No written comments were solicited
These charges are denoted in the Fee or received with respect to the proposed
[Release No. 34–52601; File No. SR-CHX– Schedule according to the type of order rule change.
2005–24]
1 15 U.S.C. 78s(b)(1). II. Date of Effectiveness of the Proposed
Self-Regulatory Organizations; 2 17 CFR 240.19b–4. Rule Change and Timing for
Chicago Stock Exchange, Inc.; Notice 3 15 U.S.C. 78s(b)(3)(A)(ii). Commission Action
of Filing and Immediate Effectiveness 4 17 CFR 240.19b–4(f)(2).
The foregoing rule change has become
of Proposed Rule Change Relating to 5 The Exchange has confirmed that it assesses
effective pursuant to Section
Odd-Lot Order Processing Fees order processing fees only against its members and
not against non-members. Persons holding trading 19(b)(3)(A)(ii) of the Act 7 and
October 13, 2005. permits are ‘‘members’’ for the purposes of the Act, subparagraph (f)(2) of Rule 19b–4
which CHX characterizes as ‘‘participants.’’ thereunder 8 because it establishes or
Pursuant to Section 19(b)(1) of the Telephone conversation between Leah Mesfin,
Securities Exchange Act of 1934 Special Counsel, Division of Market Regulation,
6 15 U.S.C. 78f(b)(4).
Commission, and Kathleen M. Boege, Vice
7 15 U.S.C. 78s(b)(3)(A)(ii).
President & Associate General Counsel, CHX, on
11 17 CFR 200.30–3(a)(12). September 26, 2005. 8 17 CFR 240.19b–4(f)(2).
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