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 the ANTE System on a Pilot Basis, 39812-39814 [E5-3622]

Download as PDF 39812 Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices Electronic Comments SECURITIES AND EXCHANGE COMMISSION [File No. 1–12432] Issuer Delisting; Notice of Application of American Power Conversion Corporation To Withdraw Its Common Stock, $.01 Par Value, From Listing and Registration on the Pacific Exchange, Inc. • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/delist.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include the File Number 1–12432 or; Paper Comments July 1, 2005. On June 16, 2005, American Power Conversion Corporation, a Massachusetts corporation, (‘‘Issuer’’), filed an application with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 12(d) of the Securities Exchange Act of 1934 (‘‘Act’’)1 and Rule 12d2–2(d) thereunder,2 to withdraw its common stock, $.01 par value (‘‘Security’’), from listing and registration on the Pacific Exchange, Inc. (‘‘PCX’’). On June 9, 2005, the Board of Directors (‘‘Board’’) of the Issuer approved a resolution to withdraw the Security from listing and registration on PCX. In making the decision to withdraw the Security from PCX, the Board considered the following: (i) The Issuer maintains the principal listing for the Security on the Nasdaq National Market System (‘‘Nasdaq’’); and (ii) the maintenance of multiple listings requires incremental time, effort, and expense in ensuring compliance with the rules and disclosure requirements of both Nasdaq and PCX. The Issuer stated in its application that it has complied with PCX rules by providing PCX the required documents governing the withdrawal of securities from listing and registration on PCX. The Issuer’s application relates solely to withdrawal of the Security from listing on PCX and from registration under Section 12(b) of the Act,3 and shall not affect its obligation to be registered under Section 12(g) of the Act.4 Any interested person may, on or before July 27, 2005, comment on the facts bearing upon whether the application has been made in accordance with the rules of PCX, and what terms, if any, should be imposed by the Commission for the protection of investors. All comment letters may be submitted by either of the following methods: 1 15 U.S.C. 78l(d). CFR 240.12d2–2(d). 3 15 U.S.C. 78l(b). 4 15 U.S.C. 78l(g). 2 17 VerDate jul<14>2003 16:03 Jul 08, 2005 • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–9303. All submissions should refer to File Number 1–12432. This file number should be included on the subject line if e-mail is used. To help us 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/delist.shtml). Comments are also available for public inspection and copying in the Commission’s Public Reference Room. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. The Commission, based on the information submitted to it, will issue an order granting the application after the date mentioned above, unless the Commission determines to order a hearing on the matter. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 5 Jonathan G. Katz, Secretary. [FR Doc. 05–13547 Filed 7–8–05; 8:45 am] and quarterly reports for its fiscal years 2000, 2001, 2002, 2003 and 2004. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Pacific Vision Group, Inc., because it is delinquent in its filing obligations under Section 13(a) of the Securities Exchange Act of 1934, having not filed its annual and quarterly reports for its fiscal years 2001, 2002, 2003 and 2004. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Idoleyez Corporation because it is delinquent in its filing obligations under Section 13(a) of the Securities Exchange Act of 1934, having not filed any periodic reports since it filed on August 21, 2003 a Form 10–QSB for the period ended June 20, 2003. The Commission is of the opinion that the public interest and the protection of investors require a suspension in the trading in the securities of the abovelisted companies. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of the above-listed companies is suspended for the period from 9:30 a.m. EDT on July 7, 2005, through 11:59 p.m. EDT on July 20, 2005. By the Commission. Jill M. Peterson, Assistant Secretary. [FR Doc. 05–13631 Filed 7–7–05; 12:02 pm] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8010–01–P [Release No. 34–51955; File No. SR–Amex– 2005–057] SECURITIES AND EXCHANGE COMMISSION 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 the ANTE System on a Pilot Basis [File No. 500–1] In the Matter of Asia4Sale.com, Inc., Pacific Vision Group, Inc., and Idoleyez Corporation; Order of Suspension of Trading June 30, 2005. July 7, 2005. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Asia4Sale.com, Inc., because it is delinquent in its filing obligations under Section 13(a) of the Securities Exchange Act of 1934, having not filed its annual 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 24, 2005, the American Stock Exchange LLC. (‘‘Amex’’ or ‘‘Exchange’’) submitted to the Securities and Exchange Commission (‘‘Commission’’) 1 15 5 17 Jkt 205001 PO 00000 CFR 200.30–3(a)(1). Frm 00098 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\11JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 11JYN1 Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices 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 24, 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 Rule 950–ANTE (g) and 958A–ANTE (e) 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 (http:// 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 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 1. Purpose Exchange Rule 958A–ANTE (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 3 Amendment No. 1 made a clarifying change to Section III of the filing. 4 Amendment No. 2 changed the proposed rule text to clarify that the specialist has an obligation to execute or display customer options limit orders immediately or in no event later than 30 seconds after receipt. 5 15 U.S.C. 78s(b)(3)(A). VerDate jul<14>2003 16:03 Jul 08, 2005 Jkt 205001 normal market conditions, no later than 30 seconds after receipt.’’ 6 In order to assist the specialists in complying with Amex Rule 958A– ANTE (e) as described above, the ANTE System 7 provides specialists with an automated quote assist feature on a pilot basis. The quote assist feature automatically displays eligible limit orders within a configurable time that can be set on a class-by-class 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– ANTE (g) currently requires the specialist to maintain and keep active the limit order quote assist feature. The specialist may establish 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–ANTE (e). The specialist may deactivate the quote assist feature provided Floor Official approval is obtained. The specialist must obtain Floor Official approval as soon as practicable but in no event later than three minutes after deactivation. If the specialist does not receive approval within three minutes after deactivation, the Exchange will review the matter as a regulatory issue. Floor Officials will grant approval only in instances when there is an unusual influx of orders or movement of the underlying that would result in gap pricing or other unusual circumstances. The Exchange will document all instances where a Floor Official has granted approval. The Exchange now proposes to extend the quote assist feature on a pilot basis until April 30, 2006. The Exchange also proposes to move the text of Commentary .01 to Amex Rule 958A– ANTE (e), since the approval of the Amex’s limit order display rule negates 6 See Securities Exchange Act Release No. 51062 (January 21, 2005), 70 FR 4163 (January 28, 2005). 7 See Securities Exchange Act Release No. 49747 (May 20, 2004), 69 FR 30344 (May 27, 2004). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 39813 the need for the application of the specialist’s due diligence obligation found in Amex Rule 156 and made applicable to options trading by Amex Rule 950–ANTE (g). 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–ANTE (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 Rule 958A–ANTE (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. The Exchange commits to conduct surveillance designed to detect whether specialists, as a matter of course, rely on the quoteassist 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 violation of Amex Rule 958A–ANTE (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, as amended, is consistent with Section 6 of the Act, in general,8 and furthers the objectives of Section 6(b)(5) of the Act, in particular,9 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. 8 15 9 15 E:\FR\FM\11JYN1.SGM U.S.C. 78f. U.S.C. 78f(b)(5). 11JYN1 39814 Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices 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 10 and subparagraph (f)(6) of Rule 19b–4 thereunder.11 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 12 and Rule 19b– 4(f)(6) thereunder.13 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 on the ANTE System uninterrupted. The Exchange states that the proposed rule is substantially similar to comparable rules the Commission has approved for the Amex,14 the Chicago Board Options Exchange (‘‘CBOE’’),15 and the New 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(6). 14 See Securities Act Release No. 42952 (June 16, 2000), 65 FR 39210 (June 23, 2000). 15 See Securities Act Release No. 47701 (April 18, 2003), 68 FR 22426 (April 28, 2003). 11 17 VerDate jul<14>2003 16:03 Jul 08, 2005 Jkt 205001 York Stock Exchange (‘‘NYSE’’).16 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.17 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 the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further the purposes of the Act.18 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2005–057 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–2005–057. 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 16 See Securities Act Release No. 41386 (May 10, 1999), 64 FR 26809 (May 17, 1999). 17 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). 18 For purposes of calculating the 60-day abrogation period, the Commission considers the proposal to have been filed on June 24, 2005, the date the Amex filed Amendment No. 2. PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 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 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–2005–057 and should be submitted on or before August 1, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.19 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–3622 Filed 7–8–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51958; File No. SR–CME– 2005–02] Self-Regulatory Organization; Chicago Mercantile Exchange; Notice of Filing and Immediate Effectiveness of Proposed Rules Governing Security Futures Adjustments June 30, 2005. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–7 thereunder,2 notice is hereby given that on May 4, 2005, the Chicago Mercantile Exchange (‘‘CME’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by the Exchange. CME has also certified the proposed rule change with the Commodity Futures Trading Commission (‘‘CFTC’’) under Section 5c(c) of the Commodity 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(7). 2 17 CFR 240.19b–7. 1 15 E:\FR\FM\11JYN1.SGM 11JYN1

Agencies

[Federal Register Volume 70, Number 131 (Monday, July 11, 2005)]
[Notices]
[Pages 39812-39814]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3622]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51955; File No. SR-Amex-2005-057]


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 the ANTE System on a Pilot Basis

June 30, 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 24, 2005, the American Stock Exchange LLC. (``Amex'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission'')

[[Page 39813]]

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 24, 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 a clarifying change to Section III of 
the filing.
    \4\ Amendment No. 2 changed the proposed rule text to clarify 
that the specialist has an obligation to execute or display customer 
options limit orders immediately or in no event later than 30 
seconds after receipt.
    \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 Rule 950-ANTE (g) and 958A-ANTE (e) 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 (http://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 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

1. Purpose
    Exchange Rule 958A-ANTE (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-ANTE (e) as described above, the ANTE System \7\ provides 
specialists with an automated quote assist feature on a pilot basis. 
The quote assist feature automatically displays eligible limit orders 
within a configurable time that can be set on a class-by-class 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-ANTE (g) currently requires the 
specialist to maintain and keep active the limit order quote assist 
feature. The specialist may establish 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-ANTE (e). The specialist may deactivate the 
quote assist feature provided Floor Official approval is obtained. The 
specialist must obtain Floor Official approval as soon as practicable 
but in no event later than three minutes after deactivation. If the 
specialist does not receive approval within three minutes after 
deactivation, the Exchange will review the matter as a regulatory 
issue. Floor Officials will grant approval only in instances when there 
is an unusual influx of orders or movement of the underlying that would 
result in gap pricing or other unusual circumstances. The Exchange will 
document all instances where a Floor Official has granted approval.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 49747 (May 20, 
2004), 69 FR 30344 (May 27, 2004).
---------------------------------------------------------------------------

    The Exchange now proposes to extend the quote assist feature on a 
pilot basis until April 30, 2006. The Exchange also proposes to move 
the text of Commentary .01 to Amex Rule 958A-ANTE (e), since the 
approval of the Amex's limit order display rule negates the need for 
the application of the specialist's due diligence obligation found in 
Amex Rule 156 and made applicable to options trading by Amex Rule 950-
ANTE (g).
    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-ANTE (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 Rule 958A-ANTE (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. The Exchange commits to conduct 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 violation of Amex Rule 958A-ANTE (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, as amended, is 
consistent with Section 6 of the Act, in general,\8\ and furthers the 
objectives of Section 6(b)(5) of the Act, in particular,\9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).

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

[[Page 39814]]

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 \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\ 
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 on 
the ANTE System uninterrupted. The Exchange states that the proposed 
rule is substantially similar to comparable rules the Commission has 
approved for the Amex,\14\ the Chicago Board Options Exchange 
(``CBOE''),\15\ and the New York Stock Exchange (``NYSE'').\16\ 
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.
---------------------------------------------------------------------------

    \14\ See Securities Act Release No. 42952 (June 16, 2000), 65 FR 
39210 (June 23, 2000).
    \15\ See Securities Act Release No. 47701 (April 18, 2003), 68 
FR 22426 (April 28, 2003).
    \16\ See Securities 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.\17\ 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.
---------------------------------------------------------------------------

    \17\ 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 the rule change if it 
appears to the Commission that the action is necessary or appropriate 
in the public interest, for the protection of investors, or would 
otherwise further the purposes of the Act.\18\
---------------------------------------------------------------------------

    \18\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposal to have been filed on June 24, 
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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Amex-2005-057 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-2005-057. 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 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-2005-057 and should be submitted on or before 
August 1, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3622 Filed 7-8-05; 8:45 am]
BILLING CODE 8010-01-P