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As discussed in the Finance Notice - Amex Equity Fee Schedule effective 10/27/1999, the Amex® has implemented a new equity pricing schedule effective with the November 1999 billing cycle (which commenced on October 27, 1999). As a result of this new Equity Fee Schedule, it was necessary to modify PER Merged Order Log Commission Bill codes. The PER Merged Order Log provides unique codes to identify different types of orders and, in particular, to distinguish between billable and non-billable orders. Please review the Commission Bill Codes - as of October 27, 1999 for a new list of codes and definitions. Commission Bill Codes, prior to October 27, 1999, which define previously billable and non-billable items, are available by clicking here.
As background, the new pricing plan stipulates that, in general, small, system-delivered orders in equities (excluding Exchange-traded Fund products) are not billable by Amex specialists. In effect, the new pricing plan creates a new ‘target segment' of non-billable items determined primarily by order size (less than 2,100 shares) and delivery and execution mode (off floor delivered, system executed). Outside of that ‘target segment', the billing status of orders that were previously billable or non-billable will remain unchanged. See the Amex Finance Notice and fee schedule cited above for details.
Printed Report
A single character Commission Bill code may be found in the "COM" column of the printed Merged Order Log.
Machine Readable Output - MRO Autoroute # 01012391 (Y2K compliant version)
Commission Bill information is located in Positions 385 through 389 (5 bytes) of the machine readable log. Each position represents one contra as follows:
| Position | Corresponding Contra |
| 385 | 1st Contra (Positions 207-217) |
| 386 | 2nd Contra (Positions 218-228) |
| 387 | 3rd Contra (Positions 229-239) |
| 388 | 4th Contra (Positions 240-250) |
| 389 | 5th Contra (Positions 251-261) |
Questions concerning this circular may be directed to Brett Redfearn, Managing Director of Business Strategy and Equity Order Flow at (212) 306-1943.
"PER MERGED ORDER LOG"
Commission Bill Codes
as of October 27,1999
Printed Report: "COM" Column
MRO Auto Route # 01010391: Position 385- 389
| Code | Definition |
A | Non-billable -- All contra execution reports that are (i) within the ‘target segment' (off-floor, system -delivered and system executed customer equity orders under 2,100 shares, excluding Exchange Traded {EXTRA} funds); (ii) were previously billable (within old codes D, E, J, K, L); and (iii) are not orders from a member or member organization trading as an agent for the account of a non-member competing market maker. |
C | Non-billable -- All contra execution reports that are (i) within the ‘target segment' (for off-floor, system -delivered and system executed customer equity orders under 2,100 shares, excluding Exchange Traded (EXTRA) funds); (ii) were previously non-billable (within old codes A,C,F,G,H,I); and (iii) are not orders from a member or member organization trading as an agent for the account of a non-member competing market maker. |
D | Billable -- All contra execution reports that: (i) are outside of the ‘target segment' (i.e., excluding orders from new code A); (ii) were previously billable (within old codes D, E, J, K, L); and (iii) are not non-member competing market maker billable execution reports (i.e., excluding orders from new code K). |
F | Non-billable -- All contra execution reports that: (i) are outside of the ‘target segment' (i.e., excluding orders from new code C); (ii) were previously non-billable (within old codes A,C,F,G,H,I); and (iii) are not non-member competing market maker billable execution reports. |
G | Non-billable -- All contra execution reports that: (i) are within the ‘target segment' (off-floor, system -delivered and system executed customer equity orders under 2,100 shares); (ii) are orders from a member or member organization trading as an agent for the account of a non-member competing market maker; and (iii) were previously non-billable (within old codes A,C,F,G,H,I). |
I | Non-billable -- All contra execution reports that: (i) are outside the ‘target segment'; (ii) are orders from a member or member organization trading as an agent for the account of a non-member competing market maker; and (iii) were previously non-billable (within old codes A,C,F,G,H,I). |
J | Billable -- All contra execution reports that: (i) are within the ‘target segment' (off-floor, system -delivered and system executed customer equity orders under 2,100 shares); (ii) are orders from a member or member organization trading as an agent for the account of a non-member competing market maker; and (iii) were previously billable (within the subset of old codes D,E,J and L; or essentially pulled out from new code A above). |
K | Billable -- All contra execution reports that: (i) are outside of the new pricing ‘target segment' (e.g., over 2,099 shares); (ii) are orders from a member or member organization trading as an agent for the account of a non-member competing market maker; and (iii) were previously billable (within the subset of old codes D,E,J and L; and/or essentially pulled out from new code D above as part of screening for 'customer'). |
Notes About the New Codes:
- The number of codes has been reduced from eleven (11) to eight (8).
- Code definitions have changed in important ways (e.g., code D no longer only represents Market-On-Close orders), but remain the same with respect to whether that code is billable or non-billable (e.g., code D was "Billable" before and remains "Billable" now). This is important because software programs designed to capture "Billable" and "Non-billable" executions based upon these letter codes should continue to function effectively without requiring programming changes.
See New Specialist Bill Code Chart for a diagram intended to facilitate your understanding of these codes.
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