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66868 Federal Register / Vol. 70, No.

212 / Thursday, November 3, 2005 / Notices

Beginning on the effective date Commission is publishing this notice to or floor brokerage fees for customer
indicated herein, these rates supersede solicit comments on the proposed rule transactions in options on the Nasdaq
those established by the Department of change, as amended, from interested 100 Shares (symbol: QQQQ), the fee cap
Veterans Affairs and by the Director of persons. being proposed herein will not be
the Office of Management and Budget extended to options on that ETF.
I. Self-Regulatory Organization’s
on January 7, 2004 (69 FR 1062). The purpose of this proposal is to
Statement of the Terms of Substance of
Approved: September 9, 2005. help the Exchange remain competitive
the Proposed Rule Change
R. James Nicholson, in these products by providing a large
Amex proposes to adopt a cap on fees customer fee cap similar to those
Secretary of Veterans Affairs. for transactions in options on indexes, applied by other option exchanges to
Joshua B. Bolten, Exchange Traded Fund Shares (‘‘ETFs’’), the trading of options on indexes, ETFs,
Director, Office of Management and Budget. and Trust Issued Receipts (‘‘TIRs’’). The and TIRs. The Exchange proposes that
[FR Doc. 05–21933 Filed 11–2–05; 8:45 am] text of the proposed rule change is the fee cap proposed in this rule filing
BILLING CODE 3110–01–C available on Amex’s Web site (http:// be effective on October 3, 2005.
www.amex.com), at Amex’s principal
office, and at the Commission’s Public 2. Statutory Basis
SECURITIES AND EXCHANGE Reference Room. The Exchange believes that the
COMMISSION proposed rule change is consistent with
II. Self-Regulatory Organization’s
[Release No. 34–52686; File No. SR–Amex– Statement of the Purpose of, and Section 6(b) of the Act 8 in general, and
2005–099] Statutory Basis for, the Proposed Rule furthers the objectives of Section 6(b)(4)
Change of the Act 9 in particular, in that it is
Self-Regulatory Organizations; designed to provide for the equitable
American Stock Exchange LLC; Notice In its filing with the Commission, allocation of reasonable dues, fees, and
of Filing and Immediate Effectiveness Amex included statements concerning other charges among its members and
of a Proposed Rule Change and the purpose of, and basis for, the issuers and other persons using its
Amendment Nos. 1 and 2 Thereto proposed rule change, as amended, and facilities. In particular, the Exchange
Relating to the Adoption of a Cap on discussed any comments it received on believes that, since other options
Certain Fees for Options on Indexes, the proposal. The text of these exchanges have applied similar large
Exchange Traded Fund Shares, and statements may be examined at the customer fee caps to the trading of
Trust Issued Receipts places specified in Item IV below. The options on indexes, ETFs, and TIRs, the
Exchange has prepared summaries, set proposed customer fee cap will help the
October 27, 2005. forth in Sections A, B, and C below, of Exchange to remain competitive.
Pursuant to Section 19(b)(1) of the the most significant aspects of such
Securities Exchange Act of 1934 statements. B. Self-Regulatory Organization’s
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Statement on Burden on Competition
notice is hereby given that on A. Self-Regulatory Organization’s
Statement of the Purpose of, and the Amex does not believe that the
September 30, 2005, the American Stock proposed rule change will impose any
Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) Statutory Basis for, the Proposed Rule
Change burden on competition.
filed with the Securities and Exchange
Commission (‘‘Commission’’) the 1. Purpose C. Self-Regulatory Organization’s
proposed rule change as described in Statement on Comments on the
The Exchange proposes to put in
Items I, II, and III below, which Items Proposed Rule Change Received From
place a cap on certain fees charged to
have been prepared by the Exchange. Members, Participants or Others
members for customer transactions in
On October 17, 2005, the Exchange filed The Exchange did not solicit or
options on indexes, ETFs, and TIRs that
Amendment No. 1 to the proposed rule receive any written comments with
exceed certain volume levels.7
change.3 On October 21, 2005, the respect to the proposal.
Specifically, the Exchange will provide
Exchange filed Amendment No. 2 to the
a volume trade discount to members for II. Date of Effectiveness of the Proposed
proposed rule change.4 Amex has
customer transactions in the form of a Rule Change and Timing for
designated this proposal as one
cap on transaction, comparison, and Commission Action
establishing or changing a due, fee, or
floor brokerage fees in index, ETF, and
other charge imposed by a self- The foregoing proposed rule change,
TIR options. The fee cap will be applied
regulatory organization pursuant to as amended, has been designated as a
on a trade-by-trade basis. Thus, for
Section 19(b)(3)(A)(ii) of the Act 5 and fee change pursuant to Section
customer transactions in index, ETF,
Rule 19b–4(f)(2) thereunder,6 which 19(b)(3)(A)(ii) of the Act 10 and Rule
and TIR options of more than 2,000
renders the proposal effective upon 19b–4(f)(2) 11 thereunder. Accordingly,
contracts, the options transaction,
filing with the Commission. The the proposal is effective upon filing
comparison, and floor brokerage fees
will be charged to the member on the with the Commission. At any time
1 15 U.S.C. 78s(b)(1).
2 17 first 2,000 contracts only. As the within 60 days of the filing of the
CFR 240.19b–4.
3 In Amendment No. 1, the Exchange made Exchange does not currently charge proposed rule change, the Commission
clarifying changes to the purpose and statutory members the transaction, comparison, may summarily abrogate such rule
basis sections of the proposal and made non- change if it appears to the Commission
substantive changes to the text of the proposed rule 7 Effective September 1, 2005, the Exchange began that such action is necessary or
change. charging members a fee on customer transactions in appropriate in the public interest, for
4 In Amendment No. 2, the Exchange made
ETF and TIR options. The three types of fees— the protection of investors, or otherwise
clarifying changes to the purpose and statutory transaction ($0.08), comparison ($0.04), and floor
basis sections of the proposal and non-substantive brokerage ($0.03)—result in a total fee on ETF and 8 15 U.S.C. 78f(b).
changes to the statutory basis section and the text TIR options of $0.15 per contract side. See
of the proposed rule change. Securities Exchange Act Release No. 52493
9 15 U.S.C. 78f(b)(4).
5 15 U.S.C. 78s(b)(3)(A)(ii). 10 15 U.S.C. 78s(b)(3)(A)(ii).
(September 22, 2005), 70 FR 56941 (September 29,
6 17 CFR 240.19b–4(f)(2). 2005). 11 17 CFR 240.19b–4(f)(2).

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Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices 66869

in furtherance of the purposes of the should submit only information that approved by the SEC in 1995, [The
Act.12 you wish to make available publicly. All options exchanges] the Exchange may
submissions should refer to File select up to [200] 51 options classes on
III. Solicitation of Comments
Number SR–Amex–2005–099 and individual stocks for which the interval
Interested persons are invited to should be submitted on or before of strike prices will be $2.50 where the
submit written data, views, and November 25, 2005. strike price is greater than $25 but less
arguments concerning the foregoing, For the Commission, by the Division of than $50. [The 200 options classes are
including whether the proposed rule Market Regulation, pursuant to delegated selected by the various options
change, as amended, is consistent with authority.13 exchanges pursuant to any agreement
the Act. Comments may be submitted by Jonathan G. Katz, mutually agreed to by the individual
any of the following methods: Secretary. exchanges and approved by the
Electronic Comments [FR Doc. E5–6084 Filed 11–2–05; 8:45 am] Commission.] In addition to those
• Use the Commission’s Internet BILLING CODE 8010–01–P options selected by the Exchange, the
comment form (http://www.sec.gov/ strike price interval may be $2.50 in any
rules/sro.shtml); or multiply-traded option once another
SECURITIES AND EXCHANGE exchange trading that option selects
• Send an e-mail to rule- COMMISSION
comments@sec.gov. Please include File such option, as part of this program.
Number SR–Amex–2005–099 on the [Release No. 34–52690; File No. SR–Amex– [The Exchange and any of the other
subject line. 2005–067] options exchanges may also list strike
prices of $2.50 on any option class that
Paper Comments Self-Regulatory Organizations; was selected by the NYSE pursuant to
• Send paper comments in triplicate American Stock Exchange LLC; Notice this program.]
to Jonathan G. Katz, Secretary, of Filing of Proposed Rule Change To
Expand Its $2.50 Strike Price Program (b) In addition, on any option class
Securities and Exchange Commission, that has been selected as part of the
Station Place, 100 F Street, NE., October 27, 2005. $2.50 Strike Price Program pursuant to
Washington, DC 20549–9303. Pursuant to Section 19(b)(1) of the paragraph (a) above, the Exchange may
All submissions should refer to File Securities Exchange Act of 1934 list $2.50 strike prices between $50 and
Number SR–Amex–2005–099. This file (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 $75, provided the $2.50 strike prices
number should be included on the notice is hereby given that on June 17, between $50 and $75 are no more than
subject line if e-mail is used. To help the 2005, the American Stock Exchange LLC $10 from the closing price of the
Commission process and review your (‘‘Amex’’ or ‘‘Exchange’’) filed with the underlying stock in its primary market
comments more efficiently, please use Securities and Exchange Commission on the preceding day. For example, if an
only one method. The Commission will (‘‘Commission’’) the proposed rule option class has been selected as part of
post all comments on the Commission’s change as described in Items I, II, and
Internet Web site (http://www.sec.gov/ the $2.50 Strike Price Program, and the
III below, which Items have been underlying stock closes at $48.50 in its
rules/sro.shtml). Copies of the prepared by the Amex. The Commission
submission, all subsequent primary market, the Exchange may list
is publishing this notice to solicit the $52.50 strike price and the $57.50
amendments, all written statements comments on the proposed rule change
with respect to the proposed rule strike price on the next business day. If
from interested persons. an underlying security closes at $54, the
change that are filed with the
Commission, and all written I. Self-Regulatory Organization’s Exchange may list the $52.50 strike
communications relating to the Statement of the Terms of Substance of price, the $57.50 strike price and the
proposed rule change between the the Proposed Rule Change $62.50 strike price on the next business
Commission and any person, other than The Exchange proposes to amend day.
those that may be withheld from the Commentary .06 to Amex Rule 903 to (c) An option class shall remain in the
public in accordance with the expand the $2.50 Strike Price Program $2.50 Strike Price Program until
provisions of 5 U.S.C. 552, will be (‘‘2.50 Strike Program’’) for individual otherwise designated by the Exchange
available for inspection and copying in equity options to allow the listing of and a decertification notice is sent to
the Commission’s Public Reference 2.50 point strike prices between $50 and the Options Clearing Corporation.
Room. Copies of such filing also will be $75. Below is the text of the proposed
available for inspection and copying at rule change. Proposed new language is II. Self-Regulatory Organization’s
the principal office of the Exchange. All in italics; proposed deletions are in Statement of the Purpose of, and
comments received will be posted [brackets]. Statutory Basis for, the Proposed Rule
without change; the Commission does Change
* * * * *
not edit personal identifying
information from submissions. You Rule 903. Series of Options Open for In its filing with the Commission, the
Trading Amex included statements concerning
12 The effective date of the original proposed rule the purpose of and basis for the
(a) through (d). No Change.
change is September 30, 2005, the effective date of proposed rule change and discussed any
Amendment No. 1 is October 17, 2005, and the Commentary * * * comments it had received on the
effective date of Amendment No. 2 is October 21,
2005. For purposes of calculating the 60-day period .01 through .05 No Change. proposed rule change. The text of these
within which the Commission may summarily .06 (a) $2.50 Strike Price Program. statements may be examined at the
abrogate the proposed rule change, as amended, Pursuant to a program initially places specified in Item IV below. The
under Section 19(b)(3)(C) of the Act, the Amex has prepared summaries, set forth
Commission considers the period to commence on
October 21, 2005, the date on which the Exchange
13 17 CFR 200.30–3(a)(12). in Sections A, B, and C below, of the
submitted Amendment No. 2. See 15 U.S.C. 1 15 U.S.C. 78s(b)(1). most significant aspects of such
78s(b)(3)(C). 2 17 CFR 240.19b–4. statements.

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