[Federal Register Volume 63, Number 19 (Thursday, January 29, 1998)]
[Notices]
[Pages 4506-4507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2188]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39570; File No. SR-Amex-98-2]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange,
Inc., To Revise the Exchange's Equity Fee Schedule To Include
Transactions in DIAMONDS
January 22, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 12, 1998, the
American Stock Exchange, Inc. (``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 prepared by the Exchange. 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange seeks to revise its Equity Fee Schedule to reflect to
transaction charges that will be imposed on trades in the newly listed
and traded product called DIAMONDS.TM The Exchange commenced
trading in DIAMONDS on January 20, 1998.
The text of the proposed rule change is available at the Office of
the Secretary, the Exchange, and at the Commission.
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.
[[Page 4507]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Purposed Rule Change
1. Purpose
The Exchange recently amended its Equity Fee Schedule to revise the
transaction charges that apply to trades in Standard & Poor's
Depositary Receipts (``SPDRs'') and Standard Poor's MidCap Depositary
Receipts (``MidCap SPDRs'') \2\. The transaction charges vary depending
on for whom the trade is executed. Under the updated fee schedule,
specialists are assessed a transaction charge of $.006 per share ($.60
per 100 shares), capped at $300 per trade (50,000 shares). Registered
Traders are assessed a transaction charge of $.007 per share ($.70 per
100 shares), capped at $350 per trade (50,000 shares). Off-floor orders
(both customer and broker-dealer) are assessed a transaction charge of
$.006 per share ($.60 per 100 shares), capped at $100 per trade
(16,667) shares).
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\2\ See Securities Exchange Act Release No. 39333 (Nov. 17.
1997), 62 FR 62795 (Nov. 25, 1997).
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In addition, orders up to 5,099 shares in SPDRs and MidCap SPDRs
routed to the Exchange floor electronically through the Exchange's Post
Execution Reporting (PER) System are exempt from transaction charges.
This provision is consistent with the waiver that also exempts from
transaction charges those PER System orders for up to 1,099 shares in
equity securities. However, neither of those exemptions may be applied
to a PER System order that is for the account of a non-member competing
market maker.\3\ Lastly, all trades executed on the Exchange in SPDRs
and MidCAP SPDRs are exempt from the Exchange's Regulatory Fee ($.00005
x Total Value).\4\
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\3\ The Amex Equity Fee Schedule defines a ``competing market
maker'' as a specialist or market maker registered as such on a
registered stock exchange (other than Amex), or a market maker
bidding and offering over-the-counter, in an Amex-traded security.
\4\ Like the previously described exemptions, this provision
does not apply to PER System orders that are for the accounts of
non-member competing market makers.
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The Exchange seeks to impose on DIAMONDS the same transaction
charge schedule that currently applies to trading in SPDRs and MidCap
SPDRs. As a result, all transaction charges and exemptions therefrom
now applicable to SPDRs and MidCap SPDRS will also apply to trades in
DIAMONDS. The exchange also proposed to charge the specialist in
DIAMONDS, in addition to the $.006 per share transaction charge, a
separate fee of $90,000 per month payable at the beginning of each
month.
These changes are intended to lower the costs incurred by users of
the DIAMONDS product while making the cost of trading DIAMONDS on the
Exchange comparable to the economics of trading this and functionally
similar products in other markets. The revisions to the Equity Fee
Schedule have been implemented by the Exchange concurrently with the
start of trading in DIAMONDS. Accordingly, the Exchange notified member
firms regarding the changes to the equity Fee Schedule, as well as the
date of their effectiveness.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\5\ in general, and furthers the objectives of
Section 6(b)(4),\6\ in particular, in that it is designed to assure the
equitable allocation of reasonable dues, fees, and other charges among
members, issuers, and other persons using the Exchange's facilities.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe the proposed rule change will impose
any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange did not solicit or receive written comments 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 establishes or changes a due,
fee, or other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and
subparagraph (e) of Rule 19b-4 \8\ thereunder. 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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(e).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submissions, 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 persons, 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 Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submissions should refer to File No. SR-Amex-98-2 and should be
submitted by February 19, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-2188 Filed 1-28-98; 8:45 am]
BILLING CODE 8010-01-M
