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Notice

Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Electronic Access Fee

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Start Preamble October 12, 2006.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) [1] and Rule 19b-4 thereunder,[2] notice is hereby given that on October 4, 2006, the American Stock Exchange LLC (“Amex” or “Exchange”) submitted Start Printed Page 61810to 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. Amex filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act [3] and Rule 19b-4(f)(2) thereunder,[4] which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to amend Amex's Member Fee Schedule to reduce the Electronic Access Fee from $61,363 to $30,000. The text of the proposed rule change is available on Amex's Web site at http://www.amex.com, at the principal office of Amex, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, Amex 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. Amex 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 purpose of this proposal is to amend Amex's Member Fee Schedule to reduce the Electronic Access Fee from $61,363 to $30,000. Amex currently charges a $61,363 electronic access fee (“Fee”) to Associate member firms [5] which route order flow to the Exchange. Eleven out of the 42 Associate member firms currently registered with Amex pay the Fee each year.[6]

All new Associate members were required to pay the Fee when it was established in August of 2000.[7] The Exchange proposes to revise the Fee to reflect the current prices of seats and the prices to lease a seat. The fee change will not affect the value of the regular seats.

Of the 42 current Associate member firms, only two have been approved since August 2000, subjecting them to payment of the Fee. Furthermore, the number of Associate member firms with electronic access capability has significantly decreased over the past few years as such firms either terminate or change their status to an off-floor, regular membership.

The Exchange believes that the new reduced Fee will not undermine other Amex member firms and will appeal to regional firms interested in sending order flow to Amex, without the need for a physical presence at the Exchange. The Exchange asserts that the proposal is equitable as required by Section 6(b)(4) of the Act.

2. Statutory Basis

Amex believes that the proposed rule change is consistent with Section 6(b) of the Act,[8] in general, and furthers the objectives of Section 6(b)(4) of the Act,[9] in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using exchange facilities.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will impose any 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 proposed rule 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 charge applicable only to a member imposed by the Exchange, and, therefore, has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act [10] and subparagraph (f)(2) of Rule 19b-4 thereunder.[11] At any time within 60 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, 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, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:

Electronic Comments

Paper Comments

  • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC, 20549-1090.

All submissions should refer to File Number SR-Amex-2006-97. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/​rules/​sro.shtml). 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. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of Amex. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-Amex-2006-97 and should be submitted on or before November 9, 2006.

Start Signature
Start Printed Page 61811

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.[12]

J. Lynn Taylor,

Assistant Secretary.

End Signature End Preamble

Footnotes

3.  15 U.S.C. 78s(b)(3)(A)(ii).

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5.  An Associate member firm is not required to own or lease a seat to qualify as a member firm.

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6.  The Fee is billed once a year in the fall for the upcoming fiscal year.

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7.  See Securities Exchange Act Release No. 43279 (September 11, 2000), 65 FR 56606 (September 19, 2000) (approving File No. SR-Amex-2000-44); see also Securities Exchange Act Release No. 44337 (May 22, 2001), 66 FR 29369 (May 30, 2001) (approving File No. SR-Amex-2001-15).

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10.  15 U.S.C. 78s(b)(3)(A)(ii).

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[FR Doc. E6-17392 Filed 10-18-06; 8:45 am]

BILLING CODE 8011-01-P