Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Certain Changes Pertaining to the Enforcement of Decorum Policies, 73489-73490 [E5-7194]

Download as PDF Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be designed 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.8 The Commission believes that this proposal is a reasonable means of providing investors with greater flexibility to establish equity options positions that can be better tailored to meet their investment objectives. The Commission has previously noted a concern with the pressures on system capacity caused by the proliferation of illiquid options series. However, this proposal should not exacerbate the problem of increased quote traffic. As a result of this proposal, Amex will be permitted to list options with $2.50 strike price intervals with strike prices between $50 and $75, but the total number of classes that Amex is authorized to list pursuant to its $2.50 Strike Price Interval Program remains unchanged. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–Amex–2005– 067) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Jonathan G. Katz, Secretary. [FR Doc. E5–7189 Filed 12–9–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52881; File No. SR–Amex– 2005–119] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Certain Changes Pertaining to the Enforcement of Decorum Policies December 2, 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 November 18, 2005, the American Stock Exchange 8 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 9 15 VerDate Aug<31>2005 17:51 Dec 09, 2005 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 Amex. The Exchange has filed the proposed rule change pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(b) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 amend Amex Rule 22 to authorize two Floor Officials, in consultation with a designated senior executive officer of the Exchange, to summarily exclude a member or person associated with a member or member organization from the Exchange premises for not longer than the remainder of the trading day for specified violations of the Exchange’s decorum policies. The text of the proposed rule change is available on the Amex’s Web site at https://www.amex.com, the Office of the Secretary, the Amex, 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 proposal. 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 the Statutory Basis for, the Proposed Rule Change Purpose 1. Purpose In 2002, the Commission approved a Chicago Board Options Exchange, Inc. (‘‘CBOE’’) rule change allowing two CBOE Floor Officials, in consultation with a designated senior executive officer of that exchange, to summarily exclude from the CBOE’s premises a member or person associated with a member for the following serious 3 15 4 17 Jkt 208001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00060 Fmt 4703 Sfmt 4703 73489 violations of floor decorum: physical violence, unbusinesslike conduct, harassment, failure to abide by a Floor Official’s ruling, property damage, enabling or assisting a suspended member or associated person to gain improper access to the floor, and failure to supervise a visitor.5 The Exchange believes that it should have similar explicit authority to summarily exclude for short periods of time members and associated persons that commit serious breaches of floor decorum. In this regard, the Amex proposes to adopt a summary exclusion rule similar CBOE Rule 6.20. The proposed Amex rule, like CBOE’s Rule 6.20, would permit the summary suspension of a member or person associated with a member or member organization for the balance of a trading day by two Floor Officials, acting in consultation with a designated senior executive officer of the Exchange. Summary suspension from the Amex floor would be permitted in situations involving the following serious violation of floor decorum: physical violence, unbusinesslike conduct,6 harassment (as set forth in Amex Rule 16), failure to abide by a Floor Official’s ruling, property damage, enabling or assisting a suspended member or associated person to gain improper access to the floor, and failure to supervise a visitor. The proposed Amex rule also would permit an excluded person to request reinstatement to the trading floor from two Floor Officials after a sufficient cooling-off period has elapsed so that the excluded person no longer poses an immediate threat to the safety of persons or property or to the orderly conduct of business. The proposed rule requires that at least one of the Floor Officials who considers a request for reinstatement must have participated in the initial suspension decision to ensure that the persons considering reinstatement are adequately apprised of the circumstances of the suspension. The Amex believes that having the authority to temporarily exclude disruptive or potentially dangerous persons from the Exchange’s premises would assist the Exchange in defusing volatile situations, safeguarding trading floor personnel and facilities. The Amex further believes that the proposal also may benefit investors by minimizing disruptions to the maintenance of a fair and orderly market. The procedures for 5 See Securities Exchange Act Release No. 46823 (November 13, 2002), 67 FR 70275 (November 21, 2002). 6 In general, ‘‘unbusinesslike conduct’’ is conduct, other than harassment, that disrupts trading. E:\FR\FM\12DEN1.SGM 12DEN1 73490 Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices readmission would permit an excluded person to return to the Floor once he or she no longer poses a threat to persons or property or no longer threatens the maintenance of a fair and orderly market. 2. Statutory Basis The Amex believes that the proposed rule change is consistent with section 6(b) of the Act,7 in general, and furthers the objectives of section 6(b)(5),8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will 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. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION 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–2005–119 on the subject line. [Release No. 34–52895; File No. SR–BSE– 2005–48] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Requiring Its Member To Provide Electronic Mail Addresses to the Exchange December 5, 2005. Paper Comments: Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Jonathan G. Katz, Secretary, notice is hereby given that on October Securities and Exchange Commission, 28, 2005, the Boston Stock Exchange, 100 F Street, NE., Washington, DC Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with 20549–9303. the Securities and Exchange All submissions should refer to File Commission (‘‘Commission’’) the Number SR–Amex–2005–119. This file proposed rule change as described in number should be included on the Items I, II, and III below, which Items subject line if e-mail is used. To help the have been prepared by the Exchange. Commission process and review your On November 23, 2005, the BSE filed comments more efficiently, please use Amendment No. 1 to the proposed rule only one method. The Commission will change.3 The Commission is publishing post all comments on the Commission’s this notice to solicit comments on the proposed rule change, as amended, from Internet Web site (https://www.sec.gov/ interested persons. rules/sro.shtml). Copies of the submission, all subsequent I. Self-Regulatory Organization’s amendments, all written statements Statement of the Terms of Substance of with respect to the proposed rule the Proposed Rule Change change that are filed with the The BSE proposes to amend its rules Commission, and all written to require members and member communications relating to the organizations to provide e-mail proposed rule change between the addresses to the Exchange for use in Commission and any person, other than transmitting notices and other those that may be withheld from the communications. Below is the text of public in accordance with the the proposed rule change. Proposed new provisions of 5 U.S.C. 552, will be language is in italics. available for inspection and copying in Rules of the Boston Stock Exchange the Commission’s Public Reference Section. Copies of such filing also will Chapter XXV—Registration of Memberbe available for inspection and copying Corporations at the principal office of the Amex. All SEC. 1. A member of the Exchange comments received will be posted may register a corporation as a memberwithout change; the Commission does corporation of the Exchange, upon not edit personal identifying application by the member and the information from submissions. You corporation, subject to the following should submit only information that terms and conditions: you wish to make available publicly. (a)—(n) No change. All submissions should refer to File Designation of Electronic Mail No. SR–Amex–2005–119 and should be Addresses submitted on or before January 3, 2006. (o) Every member and member For the Commission, by the Division of organization shall designate one or Market Regulation, pursuant to delegated more electronic mail addresses for the authority.11 purpose of receiving Exchange notices Jonathan G. Katz, and communications and shall promptly update those electronic mail Secretary. addresses when those addresses change [FR Doc. E5–7194 Filed 12–9–05; 8:45 am] BILLING CODE 8010–01–P U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(3)(A). 10 10 17 CFR 240.19b–4(f)(6). 1 15 7 15 VerDate Aug<31>2005 17:51 Dec 09, 2005 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, BSE made clarifying changes to its statement of purpose for the proposed rule change. 2 17 11 17 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\12DEN1.SGM 12DEN1

Agencies

[Federal Register Volume 70, Number 237 (Monday, December 12, 2005)]
[Notices]
[Pages 73489-73490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7194]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52881; File No. SR-Amex-2005-119]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Make Certain Changes Pertaining to the Enforcement of Decorum Policies

December 2, 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 November 18, 2005, 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 
Amex. The Exchange has filed the proposed rule change pursuant to 
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(b) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to amend Amex Rule 22 to authorize two Floor 
Officials, in consultation with a designated senior executive officer 
of the Exchange, to summarily exclude a member or person associated 
with a member or member organization from the Exchange premises for not 
longer than the remainder of the trading day for specified violations 
of the Exchange's decorum policies.
    The text of the proposed rule change is available on the Amex's Web 
site at https://www.amex.com, the Office of the Secretary, the Amex, 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 proposal. 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 the 
Statutory Basis for, the Proposed Rule Change Purpose

1. Purpose
    In 2002, the Commission approved a Chicago Board Options Exchange, 
Inc. (``CBOE'') rule change allowing two CBOE Floor Officials, in 
consultation with a designated senior executive officer of that 
exchange, to summarily exclude from the CBOE's premises a member or 
person associated with a member for the following serious violations of 
floor decorum: physical violence, unbusinesslike conduct, harassment, 
failure to abide by a Floor Official's ruling, property damage, 
enabling or assisting a suspended member or associated person to gain 
improper access to the floor, and failure to supervise a visitor.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 46823 (November 13, 
2002), 67 FR 70275 (November 21, 2002).
---------------------------------------------------------------------------

    The Exchange believes that it should have similar explicit 
authority to summarily exclude for short periods of time members and 
associated persons that commit serious breaches of floor decorum. In 
this regard, the Amex proposes to adopt a summary exclusion rule 
similar CBOE Rule 6.20.
    The proposed Amex rule, like CBOE's Rule 6.20, would permit the 
summary suspension of a member or person associated with a member or 
member organization for the balance of a trading day by two Floor 
Officials, acting in consultation with a designated senior executive 
officer of the Exchange. Summary suspension from the Amex floor would 
be permitted in situations involving the following serious violation of 
floor decorum: physical violence, unbusinesslike conduct,\6\ harassment 
(as set forth in Amex Rule 16), failure to abide by a Floor Official's 
ruling, property damage, enabling or assisting a suspended member or 
associated person to gain improper access to the floor, and failure to 
supervise a visitor. The proposed Amex rule also would permit an 
excluded person to request reinstatement to the trading floor from two 
Floor Officials after a sufficient cooling-off period has elapsed so 
that the excluded person no longer poses an immediate threat to the 
safety of persons or property or to the orderly conduct of business. 
The proposed rule requires that at least one of the Floor Officials who 
considers a request for reinstatement must have participated in the 
initial suspension decision to ensure that the persons considering 
reinstatement are adequately apprised of the circumstances of the 
suspension.
---------------------------------------------------------------------------

    \6\ In general, ``unbusinesslike conduct'' is conduct, other 
than harassment, that disrupts trading.
---------------------------------------------------------------------------

    The Amex believes that having the authority to temporarily exclude 
disruptive or potentially dangerous persons from the Exchange's 
premises would assist the Exchange in defusing volatile situations, 
safeguarding trading floor personnel and facilities. The Amex further 
believes that the proposal also may benefit investors by minimizing 
disruptions to the maintenance of a fair and orderly market. The 
procedures for

[[Page 73490]]

readmission would permit an excluded person to return to the Floor once 
he or she no longer poses a threat to persons or property or no longer 
threatens the maintenance of a fair and orderly market.
2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
section 6(b) of the Act,\7\ in general, and furthers the objectives of 
section 6(b)(5),\8\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, it has become effective pursuant to section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 10 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change 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-2005-119 on the subject line.

Paper Comments:

     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 SR-Amex-2005-119. 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 Section. 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 No. SR-Amex-2005-119 and 
should be submitted on or before January 3, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7194 Filed 12-9-05; 8:45 am]
BILLING CODE 8010-01-P
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