[Federal Register: March 5, 2007 (Volume 72, Number 42)]
[Notices]
[Page 9794-9796]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05mr07-84]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55348; File No. SR-Amex-2007-18]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval to Proposed
Rule Change and Amendment No. 1 Thereto To Provide for an Optional
Exchange-Provided Fingerprinting Service and To Amend Its Member Fees
To Include a Processing Fee for the Fingerprinting Service
February 26, 2007.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 7, 2007, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. On February 16, 2007, Amex submitted Amendment No. 1 to the
proposed rule change. This order provides notice of the proposed rule
change as modified by Amendment No. 1 and approves the proposed rule
change as amended on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 9795]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to provide for an in-house optional
fingerprinting service and to modify its Member Fees to include a fee
for such fingerprinting service.\3\
---------------------------------------------------------------------------
\3\ Telephone conversation between Nyieri Nazarian, Assistant
General Counsel, Amex, and Cyndi N. Rodriguez, Special Counsel,
Division of Market Regulation, Commission, on February 23, 2007.
---------------------------------------------------------------------------
The text of the proposed rule change is available at Amex, the
Commission's Public Reference Room, and http://www.amex.com.
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 Exchange 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 III below. The Exchange 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 proposes to provide for an optional fingerprinting
service and to amend its Member Fees to include a fee for this service
for members or member applicants.\4\ The Exchange intends to establish
this in-house fingerprinting service to facilitate the member
registration process.
---------------------------------------------------------------------------
\4\ Id.
---------------------------------------------------------------------------
A member or member applicant must currently use an external
fingerprinting service to have fingerprints taken and will incur
whatever costs are associated therewith. Currently, the member or
member applicant must forward fingerprints to the National Association
of Securities Dealers, Inc. (``NASD'') for processing and is charged a
$35.00 fee \5\ from NASD's Internet-based Central Registration
Depository (WEB CRD). This fee includes a $13 fingerprint submission
fee that is also charged for results processed through Amex.\6\ NASD
forwards the results to the FBI to conduct the standard criminal
background check. Approximately $22.00 of the $35.00 amount is paid to
the FBI for this background check. The member or member applicant also
incurs any costs associated with mailing the fingerprints. The Exchange
believes that this process has proven lengthy and burdensome for
members and member applicants.
---------------------------------------------------------------------------
\5\ See Footnote 4 to the Exchange's Registration and IDC Fees
Section of the Amex Fee Schedule.
\6\ See Section 4 of Schedule A to the NASD By-Laws.
---------------------------------------------------------------------------
Furthermore, the $25.50 ``Fingerprint Processing Fee'' on the
current Amex Fee Schedule is assessed when a current member simply
needs his or her fingerprints submitted to the FBI for a background
check. In this case, the member would need an expedited background
check conducted because of a seat change or transfer. In this
situation, the fingerprinting takes place in-house, and the prints are
sent to the FBI by the Exchange. The results are then returned to the
Exchange on an expedited basis. The member would also pay the $35.00
fee to NASD for registration with WEB CRD.\7\
---------------------------------------------------------------------------
\7\ As the Exchange clarified in Amendment No. 1, when a member
pays the $25.50 fingerprint fee, he or she has his or her
fingerprints taken in-house and must also pay a $35.00 fee to NASD
for registration with WEB CRD. See Amendment No. 1.
---------------------------------------------------------------------------
To expedite the fingerprinting process, the Exchange now proposes
to offer an optional in-house fingerprinting service for all members
and member applicants for a $45.00 fee. Members or member applicants
choosing to avail themselves of the Exchange's proposed service would
have their fingerprints taken in-house. The Exchange would forward the
fingerprints to the FBI in order for the FBI to conduct the background
check.\8\ Upon receiving the results, the Exchange would forward the
results of the criminal background check to NASD. In this case, the
$13.00 fingerprint submission fee would be charged for results
processed through Amex.\9\ The Exchange believes that collapsing the
steps into one package will speed up this process and be less
burdensome for members and member applicants. The Exchange notes that
the current option, as well as the $25.50 option, shall continue to
remain in place.
---------------------------------------------------------------------------
\8\ $22.00 out of the $45.00 amount would be paid to the FBI.
\9\ NASD would collect this $13.00 fee. The Exchange clarified
in Amendment No. 1 that members or member applicants opting to have
their fingerprints taken in-house under the proposed new program
would pay a $45.00 fee as well as the $13.00 fee to WEB CRD. See
Amendment No. 1.
---------------------------------------------------------------------------
Furthermore, the Exchange proposes to include an additional
footnote in the Member Fees section of the Amex Fee Schedule to note
that the $45.00 fee would only be assessed on members and member
applicants who partake in the Exchange's optional in-house
fingerprinting service. The Exchange further proposes to correct a
typographical error by deleting footnote 3 from the Examination Fees
section and replacing it with the correct footnote 2.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\10\ in general, and furthers the objectives of Section 6(b)(5) of the
Act \11\ in particular, in that it is designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
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
No written comments were solicited or received with respect to the
proposed rule change.
III. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2007-18 on the subject line.
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-2007-18. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your
[[Page 9796]]
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-2007-18 and should be
submitted on or before March 26, 2007.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
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.\12\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\13\ which requires, among
other things, that the Exchange's rules be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\12\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that offering an optional in-house
fingerprinting service may provide Exchange members and member
applicants with an expedited and less burdensome alternative for
obtaining and processing their fingerprints at the Exchange as part of
the Exchange's registration process. The Commission further believes
that the additional changes to the Exchange's Member Fees schedule
serve to clarify the fees associated with the Exchange's new
fingerprinting service.
Accelerated Approval
The Commission finds good cause, consistent with Section 19(b)(2)
of the Act,\14\ for approving this proposed rule change, as amended,
before the thirtieth day after the publication of notice thereof in the
Federal Register because it would enable the Exchange to implement the
optional in-house fingerprinting service immediately, providing members
and member applicants another way to be fingerprinted.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\15\ that the proposed rule change (SR-Amex-2007-18), as modified
by Amendment No. 1, be, and it hereby is, approved on an accelerated
basis.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3746 Filed 3-2-07; 8:45 am]
BILLING CODE 8010-01-P