Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Continuation of a Quote Assist Feature in Options on a Pilot Basis, 35140-35142 [E5-3092]

Download as PDF 35140 Federal Register / Vol. 70, No. 115 / Thursday, June 16, 2005 / Notices individuals or employment agencies sponsoring the applications. Information in this system of records is provided by: (a) The individual to whom the information pertains; (b) Peace Corps officials; (c) Other sources contacted to provide additional information about the individual under appropriate routine uses listed above in the notice. System exempted from certain provisions of the Privacy Act: Pursuant to 5 U.S.C. 552a(k)(4), records contained within this system that are required by statute to be maintained and used solely for statistical purposes are exempted from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f). Pursuant to 5 U.S.C. 552a(k)(5)), certain records contained within this system contain confidential source information and are exempted from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f). Pursuant to 5 U.S.C. 552a(k)(6), records that contain testing or examination material the release of which may compromise testing or examination procedures are also exempted from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f). Dated: June 6, 2005. Gilbert Smith, Associate Director for Management. [FR Doc. 05–11843 Filed 6–10–05; 3:21 pm] the Medicare program for persons covered by the Railroad Retirement system. The collection obtains the information needed to determine eligibility and for the amount due for covered hospital services received in Canada. FOR FURTHER INFORMATION CONTACT: Copies of the forms and supporting documents can be obtained from Charles Mierzwa, the agency clearance officer ((312) 751–3363) or Charles.Mierzwa@rrb.gov. Comments regarding the information collection should be addressed to Ronald J. Hodapp, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 60611–2092 or Ronald.Hodapp@rrb.gov and to the OMB Desk Officer for the RRB, at the Office of Management and Budget, Room 10230, New Executive Office Building, Washington, DC 20503. Charles Mierzwa, Clearance Officer. [FR Doc. 05–11871 Filed 6–15–05; 8:45 am] BILLING CODE 7905–01–P RAILROAD RETIREMENT BOARD Sunshine Act; Notice of Public Meeting BILLING CODE 6051–01–M RAILROAD RETIREMENT BOARD Agency Forms Submitted for OMB Review SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the Railroad Retirement Board (RRB) has submitted the following proposal(s) for the collection of information to the Office of Management and Budget for review and approval. Summary of Proposal(s) (1) Collection title: Application for Reimbursement for Hospital Services in Canada. (2) Form(s) submitted: AA–104. (3) OMB Number: 3220–0086. (4) Expiration date of current OMB clearance: 07/31/2005. (5) Type of request: Extension of a currently approved collection. (6) Respondents: Individuals or households. (7) Estimated annual number of respondents: 50. (8) Total annual responses: 50. (9) Total annual reporting hours: 8. (10) Collection description: The Railroad Retirement Board administers VerDate jul<14>2003 16:57 Jun 15, 2005 Jkt 205001 Notice is hereby given that the Railroad Retirement Board will hold a meeting on June 22, 2005, 9:30 a.m., at the Board’s meeting room on the 8th floor of its headquarters building, 844 North Rush Street, Chicago, Illinois, 60611. The agenda for this meeting follows: (1) Discussion on the Hiring Plan, Considering All Positions (Field Service and Others). (2) Field Committee Report. (3) Projected RRB Staffing Through Fiscal Year 2007. The entire meeting will be open to the public. The person to contact for more information is Beatrice Ezerski, Secretary to the Board, Phone No. 312– 751–4920. Dated: June 13, 2005. Beatrice Ezerski, Secretary to the Board. [FR Doc. 05–11972 Filed 6–14–05; 10:50 am] Frm 00079 Fmt 4703 [Release No. 34–51812; File No. SR–Amex– 2005–054] Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Continuation of a Quote Assist Feature in Options on a Pilot Basis June 9, 2005. 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 May 18, 2005, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) submitted to the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Amex. On May 31, 2005, the Amex filed Amendment No. 1 to the proposed rule change.3 On June 2, 2005, the Amex filed Amendment No. 2 to the proposed rule change.4 The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 5 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to amend Amex Rule 950(g) to extend its pilot program implementing a quote-assist feature until April 30, 2006. The text of the proposed rule change is available on Amex’s Web site (https:// www.amex.com), at the Amex’s principal office, 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, the Amex included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 made technical changes to the proposed rule text and made a clarifying change to Section III of the filing. 4 Amendment No. 2 made technical changes to the proposed rule text and to Exhibit 4 of the filing. 5 15 U.S.C. 78s(b)(3)(A). BILLING CODE 7905–01–M PO 00000 SECURITIES AND EXCHANGE COMMISSION 2 17 Sfmt 4703 E:\FR\FM\16JNN1.SGM 16JNN1 Federal Register / Vol. 70, No. 115 / Thursday, June 16, 2005 / Notices rule change. The text of these statements may be examined at the places specified in Item IV 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 Statutory Basis for, the Proposed Rule Change program basis until April 30, 2006, or until all products are trading on the ANTE System,8 whichever occurs first. There are currently only three option classes not yet trading on the ANTE System. These products, which are all index options, will be put on the ANTE System once issues relating to the System’s quote calculation methodology for these products are corrected. The Exchange notes that the quote assist feature does not relieve the specialists of their obligation to display customer limit orders immediately. To the extent that a specialist excessively relies on the quote assist feature to display eligible limit orders without attempting to address the orders immediately, the specialist could be violating Amex Rule 958A(e). However, brief or intermittent reliance on the quote assist feature by a specialist during an unexpected surge in trading activity in an option class would not violate Amex Rule 958A(e) if used when the specialist is not physically able to address all the eligible limit orders within 30 seconds. The Exchange has issued a regulatory notice discussing the issue of excessive reliance on the quote assist feature. The Exchange will continue to conduct surveillance to ensure that specialists comply with their obligation to execute or book all eligible limit orders within the time period prescribed by Exchange rules or policy. The Exchange commits to conducting surveillance designed to detect whether specialists, as a matter of course, rely on the quote-assist feature to display all eligible limit orders. A practice of excessive reliance upon the quote assist feature will be reviewed by Member Firm Regulation as a possible due diligence violation and/or a violation of Amex Rule 958A(e). The Exchange runs its limit order display exception report at various display intervals in an attempt to detect a pattern suggestive of undue reliance on the quote assist feature. The Exchange reports to the Commission every three months the statistical data it uses to determine whether there has been impermissible reliance on the quote assist feature by specialists. Purpose Exchange Rule 958A(e) currently requires all option specialists to execute or display customer limit orders that improve the bid or offer by price or size immediately upon receipt, unless one of the exceptions set forth in the rule applies. ‘‘Immediately upon receipt’’ is defined in the rule ‘‘as soon as practicable which shall mean, under normal market conditions, no later than 30 seconds after receipt.’’ 6 In order to assist the specialists in complying with Amex Rule 958A(e) as described above, at the end of June 2004, the Exchange provided specialists with an automated quote assist feature as part of the Amex Options Display Book (also referred to as ‘‘AODB’’) on a pilot basis.7 The quote assist feature automatically displays eligible limit orders within a configurable time that can only be set on a floor-wide basis by the Exchange. While all customer limit orders are expected to be displayed immediately, the quote assist feature can be set to automatically display limit orders at or close to the end of the 30second time frame, or within any other shorter time frame established by the Exchange. In the event there are instances where the specialist has not yet addressed the order within the applicable 30-second period, the quote assist feature will automatically display the eligible customer limit order in the limit order book at or close to the end of that period. The quote assist feature helps to ensure that eligible customer limit orders are displayed within the required time period then in effect. Commentary .01 to Amex Rule 950(g) requires the specialist to maintain and keep active the limit order quote assist feature. The Exchange has established the time frame within which the quote assist feature displays eligible customer limit orders, which time frame does not exceed the customer limit order display requirement set forth in Amex Rule 958A(e). The Exchange now proposes to extend the quote assist feature on a pilot 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6 of the Act,9 in general, and furthers the objectives of Section 6(b)(5) of the Act,10 in particular, in that it is 6 See Securities Exchange Act Release No. 51062 (January 21, 2005), 70 FR 4163 (January 28, 2005). 7 See Securities Exchange Act Release No. 49797 (June 3, 2004), 69 FR 32637 (June 10, 2004). 8 See Securities Exchange Act Release No. 49747 (May 20, 2004), 69 FR 30344 (May 27, 2004). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(5). VerDate jul<14>2003 15:42 Jun 15, 2005 Jkt 205001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 35141 designed to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade. The quote assist feature provides a mechanism to ensure that eligible customer limit orders are displayed within the appropriate time frame. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any inappropriate 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 either 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 proposed rule change has been designated by the Amex as a ‘‘noncontroversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 11 and subparagraph (f)(6) of Rule 19b–4 thereunder.12 Consequently, because the foregoing rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, and the Exchange provided the Commission with written notice of its intent to file the proposed rule change at least five days prior to the filing date, it has become effective pursuant to Section 19(b)(3)(A) of the Act 13 and Rule 19b– 4(f)(6) thereunder.14 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Amex has requested that the Commission waive the 30-day operative delay specified in Rule 19b–4(f)(6) so that the Amex may continue the quote assist pilot program for three products not yet trading on the ANTE System. The Exchange states that the proposed 11 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 13 15 U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b–4(f)(6). 12 17 E:\FR\FM\16JNN1.SGM 16JNN1 35142 Federal Register / Vol. 70, No. 115 / Thursday, June 16, 2005 / Notices rule is substantially similar to comparable rules the Commission has approved for the Amex,15 the Chicago Board Options Exchange, Inc. (‘‘CBOE’’),16 and the New York Stock Exchange, Inc. (‘‘NYSE’’).17 Accordingly, the Amex believes that its proposal does not raise new regulatory issues, significantly affect the protection of investors or the public interest, or impose any significant burden on competition. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest.18 The Commission believes that the Amex’s proposal raises no new issues or regulatory concerns that the Commission did not consider in approving the Amex, CBOE, and NYSE proposals. At any time within 60 days of the filing of the 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.19 IV. 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2005–054 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–9303. 15 See Securities Exchange Act Release No. 42952 (June 16, 2000), 65 FR 39210 (June 23, 2000). 16 See Securities Exchange Act Release No. 47701 (April 18, 2003), 68 FR 22426 (April 28, 2003). 17 See Securities Exchange Act Release No. 41386 (May 10, 1999), 64 FR 26809 (May 17, 1999). 18 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 19 For purposes of calculating the 60-day abrogation period, the Commission considers the proposal to have been filed on June 2, 2005, the date the Amex filed Amendment No. 2. VerDate jul<14>2003 15:42 Jun 15, 2005 Jkt 205001 All submissions should refer to File Number SR–Amex–2005–054. 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 (https://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 the 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–2005–054 and should be submitted on or before July 7, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.20 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–3092 Filed 6–15–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51815; File No. SR–Amex– 2005–55] Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing of Proposed Rule Change Relating to the Continuation of a Quote Assist Feature in Options on a Pilot Basis June 9, 2005. 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 May 19, 2005, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission PO 00000 20 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00081 Fmt 4703 Sfmt 4703 (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Amex. 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 Amex proposes to extend its pilot program implementing a quote-assist feature retroactively from April 30, 2005 to May 18, 2005. The text of the proposed rule change is available on the Amex’s Web site (www.amex.com), at the Amex’s principal office, 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, the 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. The 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 Exchange Rule 958A(e) currently requires all option specialists to execute or display customer limit orders that improve the bid or offer by price or size immediately upon receipt, unless one of the exceptions set forth in the rule applies. ‘‘Immediately upon receipt’’ is defined in the rule ‘‘as soon as practicable which shall mean, under normal market conditions, no later than 30 seconds after receipt.’’ 3 In order to assist the specialists in complying with Amex Rule 958A(e) as described above, at the end of June 2004, the Exchange provided specialists with an automated quote assist feature as part of the Amex Options Display Book (also referred to as ‘‘AODB’’) on a pilot program basis.4 The pilot program expired on April 30, 2005, and was extended on May 18, 2005, for those products not on the ANTE System.5 The 3 See Securities Exchange Act Release No. 51062 (January 21, 2005), 70 FR 4163 (January 28, 2005). 4 See Securities Exchange Act Release No. 49797 (June 3, 2004), 69 FR 32637 (June 10, 2004). 5 See SR–Amex–2005–54, filed May 18, 2005. E:\FR\FM\16JNN1.SGM 16JNN1

Agencies

[Federal Register Volume 70, Number 115 (Thursday, June 16, 2005)]
[Notices]
[Pages 35140-35142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3092]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51812; File No. SR-Amex-2005-054]


Self-Regulatory Organizations; American Stock Exchange, LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendments No. 1 and 2 Thereto Relating to Continuation of a Quote 
Assist Feature in Options on a Pilot Basis

June 9, 2005.
    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 May 18, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Amex. On May 31, 2005, 
the Amex filed Amendment No. 1 to the proposed rule change.\3\ On June 
2, 2005, the Amex filed Amendment No. 2 to the proposed rule change.\4\ 
The Exchange filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \5\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 made technical changes to the proposed rule 
text and made a clarifying change to Section III of the filing.
    \4\ Amendment No. 2 made technical changes to the proposed rule 
text and to Exhibit 4 of the filing.
    \5\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

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

    The Amex proposes to amend Amex Rule 950(g) to extend its pilot 
program implementing a quote-assist feature until April 30, 2006. The 
text of the proposed rule change is available on Amex's Web site 
(https://www.amex.com), at the Amex's principal office, 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, the Amex included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed

[[Page 35141]]

rule change. The text of these statements may be examined at the places 
specified in Item IV 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 
Statutory Basis for, the Proposed Rule Change

Purpose
    Exchange Rule 958A(e) currently requires all option specialists to 
execute or display customer limit orders that improve the bid or offer 
by price or size immediately upon receipt, unless one of the exceptions 
set forth in the rule applies. ``Immediately upon receipt'' is defined 
in the rule ``as soon as practicable which shall mean, under normal 
market conditions, no later than 30 seconds after receipt.'' \6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 51062 (January 21, 
2005), 70 FR 4163 (January 28, 2005).
---------------------------------------------------------------------------

    In order to assist the specialists in complying with Amex Rule 
958A(e) as described above, at the end of June 2004, the Exchange 
provided specialists with an automated quote assist feature as part of 
the Amex Options Display Book (also referred to as ``AODB'') on a pilot 
basis.\7\ The quote assist feature automatically displays eligible 
limit orders within a configurable time that can only be set on a 
floor-wide basis by the Exchange. While all customer limit orders are 
expected to be displayed immediately, the quote assist feature can be 
set to automatically display limit orders at or close to the end of the 
30-second time frame, or within any other shorter time frame 
established by the Exchange. In the event there are instances where the 
specialist has not yet addressed the order within the applicable 30-
second period, the quote assist feature will automatically display the 
eligible customer limit order in the limit order book at or close to 
the end of that period. The quote assist feature helps to ensure that 
eligible customer limit orders are displayed within the required time 
period then in effect. Commentary .01 to Amex Rule 950(g) requires the 
specialist to maintain and keep active the limit order quote assist 
feature. The Exchange has established the time frame within which the 
quote assist feature displays eligible customer limit orders, which 
time frame does not exceed the customer limit order display requirement 
set forth in Amex Rule 958A(e).
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 49797 (June 3, 
2004), 69 FR 32637 (June 10, 2004).
---------------------------------------------------------------------------

    The Exchange now proposes to extend the quote assist feature on a 
pilot program basis until April 30, 2006, or until all products are 
trading on the ANTE System,\8\ whichever occurs first. There are 
currently only three option classes not yet trading on the ANTE System. 
These products, which are all index options, will be put on the ANTE 
System once issues relating to the System's quote calculation 
methodology for these products are corrected.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 49747 (May 20, 
2004), 69 FR 30344 (May 27, 2004).
---------------------------------------------------------------------------

    The Exchange notes that the quote assist feature does not relieve 
the specialists of their obligation to display customer limit orders 
immediately. To the extent that a specialist excessively relies on the 
quote assist feature to display eligible limit orders without 
attempting to address the orders immediately, the specialist could be 
violating Amex Rule 958A(e). However, brief or intermittent reliance on 
the quote assist feature by a specialist during an unexpected surge in 
trading activity in an option class would not violate Amex Rule 958A(e) 
if used when the specialist is not physically able to address all the 
eligible limit orders within 30 seconds. The Exchange has issued a 
regulatory notice discussing the issue of excessive reliance on the 
quote assist feature.
    The Exchange will continue to conduct surveillance to ensure that 
specialists comply with their obligation to execute or book all 
eligible limit orders within the time period prescribed by Exchange 
rules or policy. The Exchange commits to conducting surveillance 
designed to detect whether specialists, as a matter of course, rely on 
the quote-assist feature to display all eligible limit orders. A 
practice of excessive reliance upon the quote assist feature will be 
reviewed by Member Firm Regulation as a possible due diligence 
violation and/or a violation of Amex Rule 958A(e). The Exchange runs 
its limit order display exception report at various display intervals 
in an attempt to detect a pattern suggestive of undue reliance on the 
quote assist feature. The Exchange reports to the Commission every 
three months the statistical data it uses to determine whether there 
has been impermissible reliance on the quote assist feature by 
specialists.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act,\9\ in general, and furthers the objectives 
of Section 6(b)(5) of the Act,\10\ in particular, in that it is 
designed to prevent fraudulent and manipulative acts and practices and 
to promote just and equitable principles of trade. The quote assist 
feature provides a mechanism to ensure that eligible customer limit 
orders are displayed within the appropriate time frame.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate 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 either 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 proposed rule change has been designated by the Amex as a 
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of 
the Act \11\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\12\ 
Consequently, because the foregoing rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from the date on which it 
was filed, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest, 
and the Exchange provided the Commission with written notice of its 
intent to file the proposed rule change at least five days prior to the 
filing date, it has become effective pursuant to Section 19(b)(3)(A) of 
the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The Amex has requested that the 
Commission waive the 30-day operative delay specified in Rule 19b-
4(f)(6) so that the Amex may continue the quote assist pilot program 
for three products not yet trading on the ANTE System. The Exchange 
states that the proposed

[[Page 35142]]

rule is substantially similar to comparable rules the Commission has 
approved for the Amex,\15\ the Chicago Board Options Exchange, Inc. 
(``CBOE''),\16\ and the New York Stock Exchange, Inc. (``NYSE'').\17\ 
Accordingly, the Amex believes that its proposal does not raise new 
regulatory issues, significantly affect the protection of investors or 
the public interest, or impose any significant burden on competition.
---------------------------------------------------------------------------

    \15\ See Securities Exchange Act Release No. 42952 (June 16, 
2000), 65 FR 39210 (June 23, 2000).
    \16\ See Securities Exchange Act Release No. 47701 (April 18, 
2003), 68 FR 22426 (April 28, 2003).
    \17\ See Securities Exchange Act Release No. 41386 (May 10, 
1999), 64 FR 26809 (May 17, 1999).
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public 
interest.\18\ The Commission believes that the Amex's proposal raises 
no new issues or regulatory concerns that the Commission did not 
consider in approving the Amex, CBOE, and NYSE proposals.
---------------------------------------------------------------------------

    \18\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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.\19\
---------------------------------------------------------------------------

    \19\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposal to have been filed on June 2, 
2005, the date the Amex filed Amendment No. 2.
---------------------------------------------------------------------------

IV. 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 (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2005-054 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File Number SR-Amex-2005-054. 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 (https://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 the 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-2005-054 and should be submitted on or before July 
7, 2005.
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    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\20\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-3092 Filed 6-15-05; 8:45 am]
BILLING CODE 8010-01-P
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