[Federal Register Volume 62, Number 67 (Tuesday, April 8, 1997)]
[Notices]
[Pages 16883-16884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8876]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38460; File No. SR-Amex-97-16]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange,
Inc. Relating to Equity Transaction Fee Changes
April 1, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 25, 1997, the
American Stock Exchange, Inc. (``Amex'' or ``Exchange'') filed with the
Securities Exchange Commission (``Commission'') the proposed rule
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 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 Amex is making certain changes to its schedule of transaction
charges imposed on trades in equity securities executed on the
Exchange. The text of the proposed rule 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
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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Amex is revising its schedule of equity transaction charges for
PER orders by expanding the exemption from share-based and value-based
transaction charges to include PER orders up to 1,099 shares, increased
from 500 shares.\2\ In addition, the value portion of the Amex's equity
transaction charge (based on the value of shares traded as opposed to
the other portion of the charge based on the number of shares traded),
will be subject to a maximum charge of $40 per trade.\3\
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\2\ The Commission notes that the Amex's Post Execution
Reporting (``PER'') system provides member firms with the means to
electronically transmit equity orders, up to volume limits specified
by the Exchange, directly to a specialist's post on the trading
floor of the Exchange. Securities Exchange Act Release No. 34869
(Oct. 20, 1994), 59 FR 54016.
\3\ The Commission notes that orders of competing market makers
do qualify for this fee cap. Telephone conversation between Michael
Cavalier, Associate General Counsel, Amex, and Anthony P. Pecora,
Attorney, Division of Market Regulation, SEC (Apr. 1, 1997).
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The exemption for PER orders up to 1,099 shares will not apply to
orders of a member or member organization trading as an agent for the
account of a non-member competing market maker. A ``competing market
maker'' will be defined as a specialist or market maker registered as
such on a registered stock exchange (other than the Amex), or a market
maker bidding and offering over-the-counter in an Amex-traded
security.\4\ The schedule of Amex share-based and value-based
transaction charges otherwise remains unchanged.
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\4\ The Commission notes that this definition of ``competing
market maker'' is identical to the definition used by the New York
Stock Exchange. See Securities Exchange Act Release No. 37273 (June
4, 1996), 61 FR 29438, at n.14 (approving a similar fee change
proposed by the NYSE).
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The Exchange's schedule of equity transaction charges, as revised,
is attached as Exhibit A to the filing and will be implemented by the
Exchange beginning May 30, 1997.
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 provides for the equitable
allocation of reasonable dues, fees, and other charges among the
Exchange's members and other persons using its 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 believes 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change constitutes 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 thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4.
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At any time within sixty 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,
[[Page 16884]]
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. 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 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Amex. All
submissions should refer to File No. SR-Amex-97-16 and should be
submitted by April 29, 1997.
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. 97-8876 Filed 4-7-97; 8:45 am]
BILLING CODE 8010-01-M
