[Federal Register: May 13, 2008 (Volume 73, Number 93)]
[Notices]
[Page 27582-27583]
[DOCID:fr13my08-95]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57794; File No. SR-Amex-2008-34]

Self-Regulatory Organizations; American Stock Exchange LLC; Order
Approving a Proposed Rule Change To Give Retroactive Effect to Its
Revenue Sharing Program for ETF Quoting Participants

May 7, 2007.
    On March 27, 2008, the American Stock Exchange LLC (``Amex'' or

``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposal to retroactively apply its revenue sharing
program (``RSP'') for Designated Amex Remote Traders (``DARTs''), ETF
specialists, and registered traders (collectively, ``ETF quoting
participants''). The proposal was published for comment in the Federal
Register on April 4, 2008.\3\ The Commission received no comments on
the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57578 (March 28,
2008), 73 FR 18592.
---------------------------------------------------------------------------

    The RSP was first put in place by the Exchange for ETF specialists
and registered traders, effective July 1, 2007, and was to last through
December 31, 2007 unless otherwise extended.\4\ The Exchange
inadvertently failed to file to extend the RSP at the expiration of
that time period, but, upon realizing the error, promptly filed to
reinstate the RSP for all ETF quoting participants, effective March 18,
2008.\5\ The RSP is now in effect through the end of September 2008.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 55893 (June 29,
2007), 72 FR 37059 (July 6, 2007) (SR-Amex-2007-68) (``RSP
Release'').
    \5\ See Securities Exchange Act Release No. 57541 (March 20,
2008) (SR-Amex-2008-25), 73 FR 16400 (March 27, 2008) (reinstating
RSP for all ETF quoting participants); see also Securities Exchange
Act Release No. 57540 (March 20, 2008), 73 FR 16399 (March 27, 2008)
(SR-Amex-2008-23) (expanding RSP to DARTs).
---------------------------------------------------------------------------

    The Exchange now seeks to retroactively apply the RSP for the time
period January 1, 2008 through March 17, 2008 (the ``retroactive
period'') in order to provide continuity in the RSP for all ETF quoting
participants on the Exchange, who continued to quote aggressively
during the retroactive period in the expectation of receiving RSP
payments. RSP payments for the retroactive period will be made pursuant
to the same terms established in the RSP Release.\6\
---------------------------------------------------------------------------

    \6\ See supra note 4.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\7\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(4) of the Act,\8\ which requires the equitable allocation
of reasonable dues, fees, and other charges among Exchange members and
other persons using Exchange facilities. In approving this proposal,
the Commission notes the Exchange's statements that ETF quoting
participants have relied on the expectation of RSP payments during the
retroactive period, and that the Exchange does not believe it fair to
withhold RSP payments from ETF quoting participants for the retroactive
period solely because of the Exchange's inadvertent failure to extend
the RSP.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-Amex-2008-34) be,
and it hereby is, approved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E8-10562 Filed 5-12-08; 8:45 am]

BILLING CODE 8010-01-P