97-30864. Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the American Stock Exchange, Inc. Relating to Revised Equity Fee Schedule  

  • [Federal Register Volume 62, Number 227 (Tuesday, November 25, 1997)]
    [Notices]
    [Pages 62795-62796]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-30864]
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    
    [Release No. 34-39333; File No. SR-AMEX-97-36]
    
    
    Self-Regulatory Organizations; Notice of Filing and Immediate 
    Effectiveness of Proposed Rule Change by the American Stock Exchange, 
    Inc. Relating to Revised Equity Fee Schedule
    
    November 17, 1997.
        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
    (``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October 
    14, 1997, the American Stock Exchange, Inc. (``Amex'' or ``Exchange'') 
    filed with the Securities and Exchange Commission the fee change as 
    described in Items I, II and III below, which Items have been prepared 
    by the self-regulatory organization. The Commission is publishing this 
    notice to solicit comments on the fee change from interested persons.
    
    [[Page 62796]]
    
    I. Self-Regulatory Organization's Statement of the Terms of Substance 
    of the Proposed Rule Change
    
        The Amex has revised its schedule of fees imposed on trades in 
    Standard & Poor's Depositary Receipts 
    (``SPDRs'') and Standard & Poor's MidCap Depositary 
    Receipts (``MidCap SPDRs''). The text of the 
    fee change is available at the Office of the Secretary, the Amex 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 self-regulatory organization 
    included statements concerning the purpose of and basis for the fee 
    change and discussed any comments it received on the fee change. The 
    text of these statements may be examined at the places specified in 
    Item IV below. The self-regulatory organization 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 the 
    Statutory Basis for, the Proposed Rule Change
    
    1. Purpose
        The Exchange currently imposes a transaction charge and a 
    regulatory fee on trades in equity securities executed on the Exchange. 
    The Exchange's equity transaction charge is a two-part fee consisting 
    of a share charge and a value charge, based on the total number of 
    shares traded and the value of such shares, respectively. All equity 
    trades executed through the Exchange's Post Execution Reporting 
    (``PER'') order routing system up to 1,099 shares are exempt from 
    Exchange equity transaction charges (excluding only those for the 
    account of non-member competing dealers). The Exchange also imposes a 
    separate regulatory fee on all equity trades calculated at .00005 times 
    the total value of shares traded.
        The Exchange is now making revisions to its schedule of fees 
    relative to trades on the Exchange in SPDRs and MidCap SPDRs. The 
    Exchange will charge a different and separate fee which will vary 
    depending on for whom the trade was executed. Specialists will be 
    charged a transaction fee of $.006 per share ($.60 per 100 shares), 
    capped at $300 per trade. Registered Traders will be charged a 
    transaction fee of $.007 per share ($.70 per 100 shares), capped at 
    $350 per trade. Off-floor orders (both customer and broker-dealer) will 
    be charged a transaction fee of $.006 per share ($.60 per 100 shares), 
    capped at $100 per trade.
        In addition to the foregoing, orders up to 5,099 shares in SPDRs 
    and MidCap SPDRs routed to the Exchange Floor electronically through 
    the Exchange's PER System will not be assessed a transaction fee.\1\ 
    However, the new fee schedule will operate on a principle consistent 
    with that applied in the context of the Exchange's current fee waiver 
    in equities generally for PER orders up to 1,099 shares, in that the 
    various fee waivers in SPDRs and MidCap SPDRs will not be available to 
    PER orders for the account of a non-member competing marketmaker.
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        \1\ Very recently (see SR-AMEX-97-34) the Exchange had extended 
    a PER fee waiver to customer orders up to 5,099 shares in all 
    exchange-traded fund products (``EXTRA Funds''). This fee schedule 
    change was not implemented and is being replaced by the fee schedule 
    revisions being made herein.
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        These changes are calculated to lower costs to users of the 
    products while making the cost of trading on the Exchange comparable to 
    the economics of trading this and functionally similar products in 
    other markets. The revised equity fee schedule was implemented by the 
    Exchange on October 29, 1997. The Exchange will notify member firms as 
    to the date of effectiveness and as to any necessary modifications to 
    provide for proper identification of orders entitled to the fee 
    exemption.
    2. Statutory Basis
        The fee change is consistent with Section 6(b) of the Act in 
    general and furthers the objectives of Section 6(b)(4) \2\ in 
    particular in that it is intended 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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        \2\ 15 U.S.C. 78f(b)(4).
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    B. Self-Regulatory Organization's Statement on Burden on Competition
    
        The fee change will impose no burden on competition.
    
    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 
    fee change.
    
    III. Date of Effectiveness of the Proposed Rule Change and Timing for 
    Commission Action
    
        The foregoing rule change establishes or changes a due, fee or 
    other imposed by the Exchange and, therefore, has become effective 
    pursuant to Section 19(b)(3)(A) of the Act \3\ and subparagraph (e)(2) 
    of the Rule 19b-4 thereunder.\4\ At any time within 60 days of the 
    filing of such fee change, the Commission may summarily abrogate such 
    fee 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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        \3\ 15 U.S.C. 78s(b)(3)(A).
        \4\ 17 CFR 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, DC 20549. 
    Copies of the submission, all subsequent amendments, all written 
    statements with respect to the fee change that are filed with the 
    Commission, and all written communications relating to the fee 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 in Washington, DC. Copies of such filing will 
    also be available for inspection and copying at the principal office of 
    the Amex. All submissions should refer to File No. SR-AMEX-97-36 and 
    should be submitted by December 16, 1997.
    
        For the Commission by the Division of Market Regulation, 
    pursuant to delegated authority.\5\
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        \5\ 17 CFR 200.30-3(a)(12).
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    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 97-30864 Filed 11-24-97; 8:45 am]
    BILLING CODE 8010-01-M
    
    
    

Document Information

Published:
11/25/1997
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
97-30864
Pages:
62795-62796 (2 pages)
Docket Numbers:
Release No. 34-39333, File No. SR-AMEX-97-36
PDF File:
97-30864.pdf