Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendment Nos. 1, 2, 3 and 4 Thereto Allowing Issuers of Listed Equity Securities, Structured Products, and Exchange Traded Funds a Right To Request a New Specialist, 16841-16845 [E6-4829]
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Federal Register / Vol. 71, No. 64 / Tuesday, April 4, 2006 / Notices
Act.8 For example, the Exchange
proposes to amend Commentary .02 to
Amex Rule 115 to remove the
reproduced text of Rule 11Ac1–1 under
the Act.
2. Statutory Basis
Amex believes that the proposed rule
change is consistent with Section 6(b) of
the Act,9 in general, and furthers the
objectives of Sections 6(b)(4) 10 and
6(b)(5) of the Act,11 in particular, in that
it is designed to provide an equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using the
Exchange’s facilities, and to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest; and is
not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers, or to
regulate by virtue of any authority
conferred by the Act matters not related
to the purpose of the Act or the
administration of the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex believes the proposed rule
change does not impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. Specifically, the
Exchange believes that the proposed
rule change will enhance competition
by allowing issuers listed on other
markets to add a listing on Amex
without being required to pay fees that
are duplicative of the fees already paid
to the other market.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
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No written comments were solicited
or received with respect to the proposed
rule change.
8 See Securities Exchange Act Release No. 51808
(June 9, 2005); 70 FR 37496 (June 29, 2005)(S7–10–
04). 17 CFR 242.602.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 rulecomments@sec.gov. Please include File
No. SR–Amex–2005–125 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Amex–2005–125. 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 Exchange. All
comments received will be posted
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16841
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–2005–125 and
should be submitted on or before April
25, 2006.12
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.
Nancy M. Morris,
Secretary.
[FR Doc. E6–4828 Filed 4–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53561; File No. SR–Amex–
2005–103]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of Proposed Rule Change and
Amendment Nos. 1, 2, 3 and 4 Thereto
Allowing Issuers of Listed Equity
Securities, Structured Products, and
Exchange Traded Funds a Right To
Request a New Specialist
March 29, 2006.
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 October
13, 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 prepared by Amex. On
January 26, 2006, Amex filed
Amendment No. 1 to the proposed rule
change.3 On January 30, 2006, Amex
filed Amendment No. 2 to the proposed
rule change.4 On February 17, 2006,
Amex filed Amendment No. 3 to the
proposed rule change.5 On March 6,
2006, Amex filed Amendment No. 4 to
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange proposed
further changes to Amex Rule 27(e) and (f) and
made revisions to the purpose section of the
proposed rule change.
4 In Amendment No. 2, the Exchange made
revisions to the purpose section of the proposed
rule change to discuss changes to the text of Amex
Rule 27(f) made in Amendment No. 1.
5 In Amendment No. 3, the Exchange proposed
further changes to Amex Rule 27(e) and (f) and
made revisions to the purpose section of the
proposed rule change.
1 15
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Federal Register / Vol. 71, No. 64 / Tuesday, April 4, 2006 / Notices
the proposed rule change.6 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 Exchange proposes to amend
Amex Rule 27 to give issuers of listed
equity securities and structured
products, as well as exchange traded
fund (‘‘ETF’’) sponsors, a right to
request a new specialist.
The text of the proposed rule change
is available on the Amex’s Web site
(https://www.amex.com), the Office of
the Secretary, Amex, and at the
Commission’s Public Reference Room.
The text of the proposed rule change
also appears below. Proposed new
language is italicized; proposed
deletions are in [brackets].
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Rule 27. Allocations Committee
(a)–(d) No change.
(e) (i) If the issuer of an [listed] equity
security to be initially listed on the
Exchange chooses to participate in the
allocation process, the Allocations
Committee shall prepare a list of
qualified specialists based on the
criteria set forth in paragraph (b). In the
case of an equity security, Exchange
Traded Fund or Structured Product, the
list shall consist of five specialists. [In
the case of an Exchange Traded Fund or
Structured Product, the list shall consist
of five specialists.] The issuer may
request that one or more specialists be
placed on the list of eligible specialists.
The Allocations Committee, however, is
not obligated to honor such requests.
Specialists that are subject to a
preclusion on new allocations as a
result of a disciplinary proceeding or
action by the Performance Committee
only are eligible for allocations of
‘‘related securities’’ as described in
Commentary .05 of this Rule. The issuer
may ask to meet with representatives of
the specialists units on the list.
The issuer shall select its specialist
from the list within five business days
of receiving the list by providing the
Exchange with a letter signed by person
of Secretary rank or higher indicating
the issuer’s choice of specialist. In the
case of an Exchange Traded Fund or
Structured Product, the selection may
be made by a senior officer of the
sponsor or issuer who has been
authorized to make such selection. If the
issuer does not make its selection in a
6 In Amendment No. 4, the Exchange proposed
minor technical changes to the text of Amex Rule
27(e) and (f).
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timely manner, the Allocation
Committee may select the specialist as
provided in paragraph (b) of this Rule.
This procedure only applies to issuers of
equity securities, and sponsors of
Exchange Traded Funds and Structured
Products that initially list on the
Exchange.
[The security shall remain with its
initial specialist for at least 120 days.
After that time, but during the first 12
months after listing, the issuer or
sponsor may request that the security be
reallocated should it become
dissatisfied with its specialist. This is
the case whether or not the issuer or
sponsor has participated in the selection
process. The issuer or sponsor is
expected to furnish an explanation for
the basis for its dissatisfaction, and if
after counseling the issuer or sponsor
and the specialist such change is still
desired, the Exchange shall reallocate
the security within 30 days. In any such
reallocation, the Exchange shall follow
the allocation procedures described in
this paragraph (e) unless the issuer or
sponsor requests the Allocations
Committee to select the specialist
without any issuer or sponsor input
under the procedures described in
paragraph (b) of this Rule.]
(ii) (a) The issuer of any listed equity
security or Structured Product or the
Exchange Traded Fund sponsor, may, at
any time after 120 days from the start
of trading on the Exchange, file a
written notice (‘‘Notice’’) with the officer
in charge of Equities Administration or
the officer in charge of the Exchange
Traded Fund Marketplace, as
applicable, signed by the issuer’s or
sponsor’s chief executive officer,
requesting a change of specialist unit for
‘‘good cause,’’ as defined below. The
issuer or sponsor is afforded one
opportunity to do so. The Notice shall
indicate the specific issues prompting
this request, and what steps, if any, have
been taken to try to address them before
the filing of the Notice. The officer in
charge of Equities Administration or the
officer in charge of the Exchange Traded
Fund Marketplace, as applicable, shall
provide copies of the Notice to the Chief
Regulatory Officer (‘‘CRO’’) and the
Committee on Floor Member
Performance.
(b) ‘‘Good cause,’’ for the purposes of
(e)(ii)(a), shall consist of the failure of
the specialist to make competitive
markets; the failure of the specialist unit
to risk capital commensurate with the
type of security; the failure of the
specialist unit to assign competent
personnel to the stock; or any
statements made publicly by the
specialist unit that substantially
denigrate the security. The Committee
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on Floor Member Performance shall
make any determination that ‘‘good
cause’’ does not exist, as defined herein.
Such a determination shall be made
prior to the commencement of an Issuer
or Sponsor Change of Specialist
Mediation (‘‘Mediation’’). In this
circumstance the issuer or sponsor may
appeal the decision of the Committee on
Floor Member Performance to the Amex
Adjudicatory Council. If the decision of
the Committee on Floor Member
Performance is upheld, there shall be no
Mediation, and the security shall not be
reallocated.
(iii) The officer in charge of Equities
Administration or the officer in charge
of the Exchange Traded Fund
Marketplace, as applicable, shall notify
the subject specialist unit that
Mediation is being commenced
pursuant to this provision, and shall
provide the specialist with a copy of the
Notice. Within two weeks, the specialist
unit may submit a written response to
either the officer in charge of Equities
Administration or the officer in charge
of the Exchange Traded Fund
Marketplace, as applicable. The officer
in charge of Equities Administration or
the officer in charge of the Exchange
Traded Fund Marketplace, as
applicable, shall provide copies of any
such written response to the CRO, and
the Committee on Floor Member
Performance. The date the specialist
submits a response shall be referred to
herein as the ‘‘Specialist Response
Date.’’ If the specialist does not submit
a response, there shall be no Mediation,
and the Allocation Committee shall be
convened to reallocate securities
pursuant to paragraph (b) of this Rule.
(iv) The CRO shall review the Notice
and any specialist response, and may
request a review of the matter by the
Regulatory Oversight Committee
(‘‘ROC’’) of the Exchange’s Board of
Directors. In addition, the Committee on
Floor Member Performance shall review
the Notice and any specialist response.
The Mediation process described
hereunder may continue during the
CRO’s reviews, however, where a review
by the ROC has been requested, no
change of specialist unit may occur
until the ROC makes a final
determination that it is appropriate to
permit such change. In making such
determination, the ROC may consider
all relevant regulatory issues, including
without limitation whether the
requested change appears to be in aid
or furtherance of conduct that is illegal
or violates Exchange rules, or is in
retaliation for a refusal by a specialist
to engage in conduct that is illegal or
violates Exchange rules. The ROC may
request a statement from the issuer or
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sponsor confirming that the request
does not stem in whole or in part from
the specialists’ refusal or failure to
engage in any wrongful action.
Notwithstanding the CRO, ROC and/or
Committee on Floor Member
Performance reviews of any matter
raised during the process described
herein, the Amex Division of Regulation
and Compliance (including Listing
Qualifications) and/or the NASD Amex
Division may at any time take any
regulatory action that it may determine
to be warranted.
(v) The Exchange shall facilitate a
mediation of the issues that have arisen
between the issuer or sponsor and the
specialist unit. The Exchange shall
appoint a committee consisting of at
least one floor broker, one senior floor
official, one upstairs governor, and two
independent governors for each
Mediation (‘‘the Mediation
Committee’’).
(vi) As soon as practicable after the
Specialist Response Date, the Mediation
Committee shall commence to meet with
representatives of the issuer or sponsor
and the specialist unit in an attempt to
mediate the matters indicated in the
Notice.
(vii) Any time after the filing of the
Notice, the issuer or sponsor may file
with the officer in charge of Equities
Administration or the officer in charge
of the Exchange Traded Fund
Marketplace, as applicable, a written
notice, signed by the issuer’s or
sponsor’s chief executive officer, that it
is concluding the Mediation because it
wishes to continue with the same
specialist unit.
(viii) After the expiration of one
month from the Specialist Response
Date, subject to the conclusion of any
review by the CRO and ROC, the issuer
and sponsor may file with the officer in
charge of Equities Administration or the
officer in charge of the Exchange Traded
Fund Marketplace a written notice,
signed by the issuer’s or sponsor’s chief
executive officer, that it wishes to
proceed with the change of specialist
unit. Subject to paragraph (c) above, as
soon as practicable thereafter, the
security shall be put up for allocation
following the procedures described in
paragraph (b) of this Rule.
(f) The Allocations Committee shall
be convened to reallocate securities
when (1) the Committee on Floor
Member Performance directs
reallocation, (2) a specialist requests to
be relieved of a particular security for
good cause, (3) an issuer or sponsor files
a written notice requesting a change of
specialist unit and the Mediation
Committee orders reallocation pursuant
to paragraph (e)(viii) of this Rule, or an
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issuer or sponsor files a written notice
requesting a change of specialist unit
and the specialist unit does not submit
a response, or [(3)] (4) a specialist’s
registration in a security is canceled due
to disciplinary action. Whenever the
Allocations Committee reallocates a
security for the reasons stated in (1)
through [(3)] (4) of this paragraph, the
Allocations Committee shall follow the
procedures described in paragraph (b) of
this Rule. The Allocations Committee
also shall be convened to reallocate
securities when [(4)] (5) a specialist
dissolves or recombines, [(5)] (6) a
specialist has been determined to be in
such financial or operating condition
that it cannot be permitted to continue
to specialize in one or more of its
specialty securities with safety to
investors, its creditors or other
members, or [(6)] (7) a specialist has
become subject to the pre-borrowing
requirement of Rule 203(b)(3) of
Regulation SHO under the Securities
Exchange Act of 1934 with respect to
one of its specialty securities or, in the
case of an options specialist, with
respect to the underlying security. The
Allocations Committee shall follow the
procedures described in paragraphs (g)
or (h) of this Rule, as appropriate,
whenever it reallocates securities for the
reasons stated in [(4)] (5) through [(6)]
(7) of this paragraph.
(g)–(i) No change.
* * * Commentary
No change.
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, as amended, and
discussed any comments it received on
the proposed rule change, as amended.
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
The Amex proposes to set forth
procedures in Amex Rule 27, whereby
issuers of equity securities, structured
products and ETF sponsors may request
a new specialist.
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16843
Current Amex Rule 27
Amex Rule 27(e) currently gives the
issuer of an equity security or a
structured product and the sponsor of
an ETF a one-time right to request a
reallocation to a different specialist unit
within one (1) year from the original
listing. The Exchange believes that the
one-year restriction on this right does
not provide an adequate amount of time
for issuers to reach an informed opinion
regarding a specialist. Moreover, the
one-year limit does not address
dissatisfaction linked to fundamental
changes in a specialist unit due to
transfers of specialist books or changes
in a unit.
Proposed Amex Rule 27
Amex proposes in Amex Rule 27(e)(ii)
that at any time after 120 days from the
start of trading of an issue, an issuer or
sponsor may request a specialist
reassignment by filing a written notice
(‘‘Notice’’) with the officer in charge of
Equities Administration or the officer in
charge of the ETF Marketplace, as
applicable, indicating the specific issues
prompting the request and the steps
previously taken to attempt to address
them. The issuer or sponsor may make
this request for ‘‘good cause.’’ Amex
proposes to define ‘‘good cause’’ as the
failure of the specialist to make
competitive markets; the failure of the
specialist unit to risk capital
commensurate with the type of security;
the failure of the specialist unit to assign
competent personnel to the securities;
or any statements made publicly by the
specialist unit that substantially
denigrate the security.
Further, the Amex proposes that the
officer in charge of Equities
Administration or the officer in charge
of the ETF Marketplace, as applicable,
will provide copies of the Notice to the
Chief Regulatory Officer of the Exchange
(‘‘CRO’’) and to the Committee on Floor
Member Performance. In addition, the
officer in charge of Equities
Administration or the officer in charge
of the ETF Marketplace, as applicable,
will notify the subject specialist unit
that mediation is being commenced
with respect to the request for
reassignment, and will provide the
specialist with a copy of the Notice. The
specialist unit may submit a written
response to the officer in charge of
Equities Administration or the officer in
charge of the ETF Marketplace within
two (2) weeks, which response will be
provided to the CRO and the Committee
on Floor Member Performance. If the
specialist unit does not submit a
response during this two-week time
period, however, there will be no
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Federal Register / Vol. 71, No. 64 / Tuesday, April 4, 2006 / Notices
further assessment by the CRO or
Committee on Floor Member
Performance, and ultimately no
mediation. The Allocations Committee
will be convened to reallocate securities
pursuant to Amex Rule 27(b).
The Exchange proposes in Amex Rule
27(e)(iv) that the CRO will review the
Notice and any specialist response, and
may request a review of the matter by
the Regulatory Oversight Committee
(‘‘ROC’’) of the Exchange’s Board of
Governors. In addition, the Committee
on Floor Member Performance will
review the Notice and any specialist
response. The Committee on Floor
Member Performance will make any
determination that ‘‘good cause,’’ as
proposed to be defined in Amex Rule
27(e)(ii)(b), does not exist prior to the
commencement of the mediation. A
Committee on Floor Member
Performance determination that ‘‘good
cause’’ does not exist will preclude the
commencement of mediation. In this
circumstance, the security will not be
reallocated and the issuer or sponsor
may request an appeal of the decision of
the Committee on Floor Member
Performance to be heard by the Amex
Adjudicatory Council.7 If the Committee
on Floor Member Performance decision
is upheld, then the security will not be
reallocated.
Proposed Amex Rule 27(e)(v)
provides that the Exchange will
facilitate mediation of the issues that
have arisen between the issuer or
sponsor and the specialist unit, which
may be conducted pending the outcome
of the CRO’s and, if applicable, the
ROC’s review of the request. However,
as set forth in proposed Amex Rule
27(e)(iv), where a review by the ROC
has been requested, no change of
specialist unit may occur until the ROC
makes a final determination that it is
appropriate to permit such change. In
making such determination, the ROC
may consider all relevant regulatory
issues, including without limitation
whether the requested change appears
to be in aid or furtherance of conduct
that is illegal or violates Exchange rules,
or in retaliation for a refusal by a
specialist to engage in conduct that is
illegal or violates Exchange rules.
Moreover, the Amex proposes that,
notwithstanding review by the CRO,
ROC and/or Committee on Floor
Member Performance of any matter
raised during the process described
herein, the Amex Division of Regulation
and Compliance (including Listing
Qualifications) and/or the NASD Amex
Division may at any time take any
7 See Article II, Section 7(a) of the Amex
Constitution.
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regulatory action that it may determine
to be warranted. The Amex represents
that reassignment may not occur
without prior notice that the CRO has
decided not to refer the matter to the
ROC or that the ROC has determined
that the change is appropriate.
The Exchange proposes a committee
consisting of at least one (1) floor
broker, one (1) senior floor official, one
(1) upstairs governor, and two (2)
independent governors for each
mediation (‘‘the Mediation
Committee’’). The Mediation Committee
will meet with representatives of the
issuer or sponsor and the specialist unit
in an attempt to mediate the matters
indicated in the Notice. During the
course of the mediation, the issuer or
sponsor may conclude the mediation if
it determines that it wishes to continue
with the same specialist unit. In the
alternative, after the expiration of one
month from the time of the specialist’s
response, subject to the conclusion of
any review by the CRO and ROC, the
issuer or sponsor may file written notice
with the officer in charge of Equities
Administration or the officer in charge
of the ETF Marketplace, as applicable,
signed by the issuer’s or sponsor’s chief
executive officer, that it wishes to
proceed with the change of specialist
unit. The new specialist unit will be
selected by the Allocations Committee
pursuant to Amex Rule 27(b).
Finally, the Exchange proposes to
amend Amex Rule 27(f) to provide that,
in addition to the circumstances
provided for in the existing rule, the
Allocations Committee will be
convened to reallocate securities when
an issuer or sponsor files a written
notice requesting a change of specialist
unit and the Mediation Committee
orders reallocation pursuant to
proposed paragraph (e)(viii) of Amex
Rule 27, or an issuer or sponsor files a
written notice requesting a change of
specialist unit and the specialist unit
does not submit a response.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with the provisions of
Section 6(b) of the Act,8 in general, and
with Section 6(b)(5) of the Act,9 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.
8 15
9 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00089
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change, as amended,
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
The Exchange did not receive any
written comments on the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, as amended; or
B. Institute proceedings to determine
whether the proposed rule change, as
amended, should be disapproved.
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–2005–103 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Amex–2005–103. 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
E:\FR\FM\04APN1.SGM
04APN1
Federal Register / Vol. 71, No. 64 / Tuesday, April 4, 2006 / Notices
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 Exchange. 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–2005–103 and
should be submitted on or before April
25, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–4829 Filed 4–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53558; File No. SR–CBOE–
2006–28]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change and Amendment No. 1
Thereto To Clarify the Application of
Certain Exchange Rules to the Trading
of Options on Exchange-Traded Fund
Shares
sroberts on PROD1PC70 with NOTICES
March 28, 2006.
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 March 16,
2006, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 prepared by the Exchange.
On March 27, 2006, the Exchange filed
Amendment No. 1 to the proposed rule
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
18:55 Apr 03, 2006
Jkt 208001
change.3 The Exchange filed the
proposed rule change as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 4 and Rule 19b–4(f)(6) thereunder,5
which renders the proposal 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 Exchange proposes to make
amendments to clarify the application of
certain Exchange rules to the trading of
options on exchange-traded fund
(‘‘ETF’’) shares.
The text of the proposed rule change,
as amended, is available on the
Exchange’s Web site (https://
www.cboe.com), at the Exchange’s
Office of the Secretary, 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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of those
statements may be examined at the
places specified in Item IV below and is
set forth in Sections A, B, and C below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange currently trades, among
other things, options on ETFs. In
conjunction with a recent review of
Exchange rules, this filing proposes to
make amendments to clarify the
application of certain Exchange rules to
the trading of ETF options.
First, this filing proposes to make
certain clarifying changes to CBOE Rule
6.3. CBOE Rule 6.3 pertains to trading
halts and provides generally that
Exchange Floor Officials may halt
trading in any security in the interests
of maintaining a fair and orderly market.
Though the rule has general
applicability to all securities traded on
the Exchange and authorizes trading
3 In Amendment No. 1, the Exchange made minor
clarifying and technical changes to the proposed
rule change.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
16845
halts in any such security, certain of the
factors identified in the rule that may be
considered in making a decision to halt
trading vary depending on the particular
type of Exchange traded security while
other factors apply generally to all
securities.
For example, the rule currently
references factors for considering halts
in the case of (i) a stock option, (ii) any
security other than an option, and (iii)
an index warrant or an index UIT
interest and also references general,
non-security type specific factors
pertaining to rotations and unusual
conditions or circumstances.6 The rule
is being amended to change the
references in the list of factors from
particular types of securities (such as
‘‘stock options’’) to more general
references (such as ‘‘an option on a
security’’).
Additionally, the Exchange is
proposing to add similar clarifying
language in Interpretation .04 of CBOE
Rule 6.3, which addresses trading halts
on the Exchange when a regulatory halt
in an underlying stock has been
declared in the primary market (a
‘‘regulatory halt’’). Since such regulatory
halts may be declared for securities
other than stock options, such as ETF
options, Interpretation .04 is being
amended to clarify that, in general, a
halt on the Exchange can be made when
there is a regulatory halt in the
underlying security. This revision
makes clear Interpretation .04’s
applicability to stock options, ETF
options, and any other such options for
which there is an underlying security.
Second, this filing proposes to amend
CBOE Rule 7.4, which rule pertains to
certain obligations of Order Book
Officials (‘‘OBOs’’). Specifically, CBOE
Rule 7.4(a)(2) describes what types of
orders shall ordinarily be accepted by
an OBO and certain OBO
responsibilities pertaining to the
processing of orders that are submitted
6 The existing rule text provides that ‘‘[a]mong the
factors that may be considered in making [a
determination to halt trading] are whether: (i) In the
case of a stock option, trading in the underlying
security has been halted or suspended in the
primary market, (ii) in the case of a stock option,
the opening of such underlying security has been
delayed because of unusual circumstances, (iii) in
the case of any security other than an option, (A)
the opening of such security has been delayed due
to order imbalances, (B) the Exchange has been
advised that the issuer of the security is about to
make an important announcement affecting such
issue, or (C) trading in such security has been
halted or suspended in the primary market for such
security. (iv) In the case of an index warrant or an
index UIT interest, trading in index options has
been halted pursuant to the provisions of Rule 24.7,
(v) the extent to which the rotation has been
completed or other factors regarding the status of
the rotation, or (vi) other unusual conditions or
circumstances are present.’’ CBOE Rule 6.3(a).
E:\FR\FM\04APN1.SGM
04APN1
]]>Agencies
[Federal Register Volume 71, Number 64 (Tuesday, April 4, 2006)]
[Notices]
[Pages 16841-16845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4829]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53561; File No. SR-Amex-2005-103]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Proposed Rule Change and Amendment Nos. 1, 2, 3 and
4 Thereto Allowing Issuers of Listed Equity Securities, Structured
Products, and Exchange Traded Funds a Right To Request a New Specialist
March 29, 2006.
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 October 13, 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 prepared by Amex. On January 26,
2006, Amex filed Amendment No. 1 to the proposed rule change.\3\ On
January 30, 2006, Amex filed Amendment No. 2 to the proposed rule
change.\4\ On February 17, 2006, Amex filed Amendment No. 3 to the
proposed rule change.\5\ On March 6, 2006, Amex filed Amendment No. 4
to
[[Page 16842]]
the proposed rule change.\6\ 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\ In Amendment No. 1, the Exchange proposed further changes to
Amex Rule 27(e) and (f) and made revisions to the purpose section of
the proposed rule change.
\4\ In Amendment No. 2, the Exchange made revisions to the
purpose section of the proposed rule change to discuss changes to
the text of Amex Rule 27(f) made in Amendment No. 1.
\5\ In Amendment No. 3, the Exchange proposed further changes to
Amex Rule 27(e) and (f) and made revisions to the purpose section of
the proposed rule change.
\6\ In Amendment No. 4, the Exchange proposed minor technical
changes to the text of Amex Rule 27(e) and (f).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Amex Rule 27 to give issuers of
listed equity securities and structured products, as well as exchange
traded fund (``ETF'') sponsors, a right to request a new specialist.
The text of the proposed rule change is available on the Amex's Web
site (https://www.amex.com), the Office of the Secretary, Amex, and at
the Commission's Public Reference Room. The text of the proposed rule
change also appears below. Proposed new language is italicized;
proposed deletions are in [brackets].
Rule 27. Allocations Committee
(a)-(d) No change.
(e) (i) If the issuer of an [listed] equity security to be
initially listed on the Exchange chooses to participate in the
allocation process, the Allocations Committee shall prepare a list of
qualified specialists based on the criteria set forth in paragraph (b).
In the case of an equity security, Exchange Traded Fund or Structured
Product, the list shall consist of five specialists. [In the case of an
Exchange Traded Fund or Structured Product, the list shall consist of
five specialists.] The issuer may request that one or more specialists
be placed on the list of eligible specialists. The Allocations
Committee, however, is not obligated to honor such requests.
Specialists that are subject to a preclusion on new allocations as a
result of a disciplinary proceeding or action by the Performance
Committee only are eligible for allocations of ``related securities''
as described in Commentary .05 of this Rule. The issuer may ask to meet
with representatives of the specialists units on the list.
The issuer shall select its specialist from the list within five
business days of receiving the list by providing the Exchange with a
letter signed by person of Secretary rank or higher indicating the
issuer's choice of specialist. In the case of an Exchange Traded Fund
or Structured Product, the selection may be made by a senior officer of
the sponsor or issuer who has been authorized to make such selection.
If the issuer does not make its selection in a timely manner, the
Allocation Committee may select the specialist as provided in paragraph
(b) of this Rule. This procedure only applies to issuers of equity
securities, and sponsors of Exchange Traded Funds and Structured
Products that initially list on the Exchange.
[The security shall remain with its initial specialist for at least
120 days. After that time, but during the first 12 months after
listing, the issuer or sponsor may request that the security be
reallocated should it become dissatisfied with its specialist. This is
the case whether or not the issuer or sponsor has participated in the
selection process. The issuer or sponsor is expected to furnish an
explanation for the basis for its dissatisfaction, and if after
counseling the issuer or sponsor and the specialist such change is
still desired, the Exchange shall reallocate the security within 30
days. In any such reallocation, the Exchange shall follow the
allocation procedures described in this paragraph (e) unless the issuer
or sponsor requests the Allocations Committee to select the specialist
without any issuer or sponsor input under the procedures described in
paragraph (b) of this Rule.]
(ii) (a) The issuer of any listed equity security or Structured
Product or the Exchange Traded Fund sponsor, may, at any time after 120
days from the start of trading on the Exchange, file a written notice
(``Notice'') with the officer in charge of Equities Administration or
the officer in charge of the Exchange Traded Fund Marketplace, as
applicable, signed by the issuer's or sponsor's chief executive
officer, requesting a change of specialist unit for ``good cause,'' as
defined below. The issuer or sponsor is afforded one opportunity to do
so. The Notice shall indicate the specific issues prompting this
request, and what steps, if any, have been taken to try to address them
before the filing of the Notice. The officer in charge of Equities
Administration or the officer in charge of the Exchange Traded Fund
Marketplace, as applicable, shall provide copies of the Notice to the
Chief Regulatory Officer (``CRO'') and the Committee on Floor Member
Performance.
(b) ``Good cause,'' for the purposes of (e)(ii)(a), shall consist
of the failure of the specialist to make competitive markets; the
failure of the specialist unit to risk capital commensurate with the
type of security; the failure of the specialist unit to assign
competent personnel to the stock; or any statements made publicly by
the specialist unit that substantially denigrate the security. The
Committee on Floor Member Performance shall make any determination that
``good cause'' does not exist, as defined herein. Such a determination
shall be made prior to the commencement of an Issuer or Sponsor Change
of Specialist Mediation (``Mediation''). In this circumstance the
issuer or sponsor may appeal the decision of the Committee on Floor
Member Performance to the Amex Adjudicatory Council. If the decision of
the Committee on Floor Member Performance is upheld, there shall be no
Mediation, and the security shall not be reallocated.
(iii) The officer in charge of Equities Administration or the
officer in charge of the Exchange Traded Fund Marketplace, as
applicable, shall notify the subject specialist unit that Mediation is
being commenced pursuant to this provision, and shall provide the
specialist with a copy of the Notice. Within two weeks, the specialist
unit may submit a written response to either the officer in charge of
Equities Administration or the officer in charge of the Exchange Traded
Fund Marketplace, as applicable. The officer in charge of Equities
Administration or the officer in charge of the Exchange Traded Fund
Marketplace, as applicable, shall provide copies of any such written
response to the CRO, and the Committee on Floor Member Performance. The
date the specialist submits a response shall be referred to herein as
the ``Specialist Response Date.'' If the specialist does not submit a
response, there shall be no Mediation, and the Allocation Committee
shall be convened to reallocate securities pursuant to paragraph (b) of
this Rule.
(iv) The CRO shall review the Notice and any specialist response,
and may request a review of the matter by the Regulatory Oversight
Committee (``ROC'') of the Exchange's Board of Directors. In addition,
the Committee on Floor Member Performance shall review the Notice and
any specialist response. The Mediation process described hereunder may
continue during the CRO's reviews, however, where a review by the ROC
has been requested, no change of specialist unit may occur until the
ROC makes a final determination that it is appropriate to permit such
change. In making such determination, the ROC may consider all relevant
regulatory issues, including without limitation whether the requested
change appears to be in aid or furtherance of conduct that is illegal
or violates Exchange rules, or is in retaliation for a refusal by a
specialist to engage in conduct that is illegal or violates Exchange
rules. The ROC may request a statement from the issuer or
[[Page 16843]]
sponsor confirming that the request does not stem in whole or in part
from the specialists' refusal or failure to engage in any wrongful
action. Notwithstanding the CRO, ROC and/or Committee on Floor Member
Performance reviews of any matter raised during the process described
herein, the Amex Division of Regulation and Compliance (including
Listing Qualifications) and/or the NASD Amex Division may at any time
take any regulatory action that it may determine to be warranted.
(v) The Exchange shall facilitate a mediation of the issues that
have arisen between the issuer or sponsor and the specialist unit. The
Exchange shall appoint a committee consisting of at least one floor
broker, one senior floor official, one upstairs governor, and two
independent governors for each Mediation (``the Mediation Committee'').
(vi) As soon as practicable after the Specialist Response Date, the
Mediation Committee shall commence to meet with representatives of the
issuer or sponsor and the specialist unit in an attempt to mediate the
matters indicated in the Notice.
(vii) Any time after the filing of the Notice, the issuer or
sponsor may file with the officer in charge of Equities Administration
or the officer in charge of the Exchange Traded Fund Marketplace, as
applicable, a written notice, signed by the issuer's or sponsor's chief
executive officer, that it is concluding the Mediation because it
wishes to continue with the same specialist unit.
(viii) After the expiration of one month from the Specialist
Response Date, subject to the conclusion of any review by the CRO and
ROC, the issuer and sponsor may file with the officer in charge of
Equities Administration or the officer in charge of the Exchange Traded
Fund Marketplace a written notice, signed by the issuer's or sponsor's
chief executive officer, that it wishes to proceed with the change of
specialist unit. Subject to paragraph (c) above, as soon as practicable
thereafter, the security shall be put up for allocation following the
procedures described in paragraph (b) of this Rule.
(f) The Allocations Committee shall be convened to reallocate
securities when (1) the Committee on Floor Member Performance directs
reallocation, (2) a specialist requests to be relieved of a particular
security for good cause, (3) an issuer or sponsor files a written
notice requesting a change of specialist unit and the Mediation
Committee orders reallocation pursuant to paragraph (e)(viii) of this
Rule, or an issuer or sponsor files a written notice requesting a
change of specialist unit and the specialist unit does not submit a
response, or [(3)] (4) a specialist's registration in a security is
canceled due to disciplinary action. Whenever the Allocations Committee
reallocates a security for the reasons stated in (1) through [(3)] (4)
of this paragraph, the Allocations Committee shall follow the
procedures described in paragraph (b) of this Rule. The Allocations
Committee also shall be convened to reallocate securities when [(4)]
(5) a specialist dissolves or recombines, [(5)] (6) a specialist has
been determined to be in such financial or operating condition that it
cannot be permitted to continue to specialize in one or more of its
specialty securities with safety to investors, its creditors or other
members, or [(6)] (7) a specialist has become subject to the pre-
borrowing requirement of Rule 203(b)(3) of Regulation SHO under the
Securities Exchange Act of 1934 with respect to one of its specialty
securities or, in the case of an options specialist, with respect to
the underlying security. The Allocations Committee shall follow the
procedures described in paragraphs (g) or (h) of this Rule, as
appropriate, whenever it reallocates securities for the reasons stated
in [(4)] (5) through [(6)] (7) of this paragraph.
(g)-(i) No change.
* * * Commentary
No change.
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, as
amended, and discussed any comments it received on the proposed rule
change, as amended. 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
The Amex proposes to set forth procedures in Amex Rule 27, whereby
issuers of equity securities, structured products and ETF sponsors may
request a new specialist.
Current Amex Rule 27
Amex Rule 27(e) currently gives the issuer of an equity security or
a structured product and the sponsor of an ETF a one-time right to
request a reallocation to a different specialist unit within one (1)
year from the original listing. The Exchange believes that the one-year
restriction on this right does not provide an adequate amount of time
for issuers to reach an informed opinion regarding a specialist.
Moreover, the one-year limit does not address dissatisfaction linked to
fundamental changes in a specialist unit due to transfers of specialist
books or changes in a unit.
Proposed Amex Rule 27
Amex proposes in Amex Rule 27(e)(ii) that at any time after 120
days from the start of trading of an issue, an issuer or sponsor may
request a specialist reassignment by filing a written notice
(``Notice'') with the officer in charge of Equities Administration or
the officer in charge of the ETF Marketplace, as applicable, indicating
the specific issues prompting the request and the steps previously
taken to attempt to address them. The issuer or sponsor may make this
request for ``good cause.'' Amex proposes to define ``good cause'' as
the failure of the specialist to make competitive markets; the failure
of the specialist unit to risk capital commensurate with the type of
security; the failure of the specialist unit to assign competent
personnel to the securities; or any statements made publicly by the
specialist unit that substantially denigrate the security.
Further, the Amex proposes that the officer in charge of Equities
Administration or the officer in charge of the ETF Marketplace, as
applicable, will provide copies of the Notice to the Chief Regulatory
Officer of the Exchange (``CRO'') and to the Committee on Floor Member
Performance. In addition, the officer in charge of Equities
Administration or the officer in charge of the ETF Marketplace, as
applicable, will notify the subject specialist unit that mediation is
being commenced with respect to the request for reassignment, and will
provide the specialist with a copy of the Notice. The specialist unit
may submit a written response to the officer in charge of Equities
Administration or the officer in charge of the ETF Marketplace within
two (2) weeks, which response will be provided to the CRO and the
Committee on Floor Member Performance. If the specialist unit does not
submit a response during this two-week time period, however, there will
be no
[[Page 16844]]
further assessment by the CRO or Committee on Floor Member Performance,
and ultimately no mediation. The Allocations Committee will be convened
to reallocate securities pursuant to Amex Rule 27(b).
The Exchange proposes in Amex Rule 27(e)(iv) that the CRO will
review the Notice and any specialist response, and may request a review
of the matter by the Regulatory Oversight Committee (``ROC'') of the
Exchange's Board of Governors. In addition, the Committee on Floor
Member Performance will review the Notice and any specialist response.
The Committee on Floor Member Performance will make any determination
that ``good cause,'' as proposed to be defined in Amex Rule
27(e)(ii)(b), does not exist prior to the commencement of the
mediation. A Committee on Floor Member Performance determination that
``good cause'' does not exist will preclude the commencement of
mediation. In this circumstance, the security will not be reallocated
and the issuer or sponsor may request an appeal of the decision of the
Committee on Floor Member Performance to be heard by the Amex
Adjudicatory Council.\7\ If the Committee on Floor Member Performance
decision is upheld, then the security will not be reallocated.
---------------------------------------------------------------------------
\7\ See Article II, Section 7(a) of the Amex Constitution.
---------------------------------------------------------------------------
Proposed Amex Rule 27(e)(v) provides that the Exchange will
facilitate mediation of the issues that have arisen between the issuer
or sponsor and the specialist unit, which may be conducted pending the
outcome of the CRO's and, if applicable, the ROC's review of the
request. However, as set forth in proposed Amex Rule 27(e)(iv), where a
review by the ROC has been requested, no change of specialist unit may
occur until the ROC makes a final determination that it is appropriate
to permit such change. In making such determination, the ROC may
consider all relevant regulatory issues, including without limitation
whether the requested change appears to be in aid or furtherance of
conduct that is illegal or violates Exchange rules, or in retaliation
for a refusal by a specialist to engage in conduct that is illegal or
violates Exchange rules. Moreover, the Amex proposes that,
notwithstanding review by the CRO, ROC and/or Committee on Floor Member
Performance of any matter raised during the process described herein,
the Amex Division of Regulation and Compliance (including Listing
Qualifications) and/or the NASD Amex Division may at any time take any
regulatory action that it may determine to be warranted. The Amex
represents that reassignment may not occur without prior notice that
the CRO has decided not to refer the matter to the ROC or that the ROC
has determined that the change is appropriate.
The Exchange proposes a committee consisting of at least one (1)
floor broker, one (1) senior floor official, one (1) upstairs governor,
and two (2) independent governors for each mediation (``the Mediation
Committee''). The Mediation Committee will meet with representatives of
the issuer or sponsor and the specialist unit in an attempt to mediate
the matters indicated in the Notice. During the course of the
mediation, the issuer or sponsor may conclude the mediation if it
determines that it wishes to continue with the same specialist unit. In
the alternative, after the expiration of one month from the time of the
specialist's response, subject to the conclusion of any review by the
CRO and ROC, the issuer or sponsor may file written notice with the
officer in charge of Equities Administration or the officer in charge
of the ETF Marketplace, as applicable, signed by the issuer's or
sponsor's chief executive officer, that it wishes to proceed with the
change of specialist unit. The new specialist unit will be selected by
the Allocations Committee pursuant to Amex Rule 27(b).
Finally, the Exchange proposes to amend Amex Rule 27(f) to provide
that, in addition to the circumstances provided for in the existing
rule, the Allocations Committee will be convened to reallocate
securities when an issuer or sponsor files a written notice requesting
a change of specialist unit and the Mediation Committee orders
reallocation pursuant to proposed paragraph (e)(viii) of Amex Rule 27,
or an issuer or sponsor files a written notice requesting a change of
specialist unit and the specialist unit does not submit a response.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with the provisions of Section 6(b) of the Act,\8\ in
general, and with Section 6(b)(5) of the Act,\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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, as
amended, 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
The Exchange did not receive any written comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve such proposed rule change, as amended; or
B. Institute proceedings to determine whether the proposed rule
change, as amended, should be disapproved.
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-2005-103 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2005-103. 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
[[Page 16845]]
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 Exchange. 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-2005-103 and should be
submitted on or before April 25, 2006.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-4829 Filed 4-3-06; 8:45 am]
BILLING CODE 8010-01-P
