Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Elimination of the Prohibition on Computer Generated Orders, 30971-30973 [E6-8321]

Download as PDF Federal Register / Vol. 71, No. 104 / Wednesday, May 31, 2006 / Notices from Cedel’s, satisfies the requirements of section 17A(b)(3)(C) because Clearstream provides for participant participation in management through the two advisory groups. Section 17A(b)(1) of the Act authorizes the Commission to exempt applicants from some or all of the requirements of section 17A if it finds such exemptions are consistent with the public interest, the protection of investors, and the purposes of section 17A, including the prompt and accurate clearance and settlement of securities transactions and the safeguarding of securities and funds.22 Therefore, the Commission invites commenters to address whether continuing the 1997 Exemptive Order as requested by Clearstream and as described above, subject to the continuation of the conditions and limitations set forth in that order, would further the goals of and would remain consistent with section 17A. In particular, the Commission seeks comment on whether the revised governance structure, including the addition of advisory committees, such as the User Advisory Group and the Credit Advisory Group, in lieu of directors elected by system participants, continues to meet the requirements of fair representation under section 17A(b)(3)(C) of the Act. Additionally, the Commission invites comments on amending the 1997 Exemptive Order to permit Clearstream to file volume information on a quarterly basis with the Commission rather than on a monthly basis.23 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the application 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 600–29 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, jlentini on PROD1PC65 with NOTICES 22 15 U.S.C. 78q–1(b)(1). 23 The 1997 Exemptive Order directs Clearstream to file monthly volume information with the Commission. The Commission is considering amending the 1997 Exemptive Order to permit Clearstream to file volume reports on a quarterly basis. See Modified Euroclear Exemptive Order (directing Euroclear Bank to file quarterly volume reports with the Commission). VerDate Aug<31>2005 17:52 May 30, 2006 Jkt 208001 Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number 600–29. 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 application that are filed with the Commission, and all written communications relating to the application 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, 100 F Street, NE., Washington, DC 20549. 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 600–29 and should be submitted on or before June 21, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.24 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–8320 Filed 5–30–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53853; File No. SR–Amex– 2006–46] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto Relating to the Elimination of the Prohibition on Computer Generated Orders May 23, 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 May 9, 2006, the American Stock Exchange LLC CFR 200.30–3(a)(16). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 30971 (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by Amex. On May 11, 2006, Amex filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons, and is approving the proposal on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to eliminate Amex Rules 934(b) and 934–ANTE(b) relating to the prohibition of computer generated orders. The text of the proposed rule change is available on the Amex’s Web site (http://www.amex.com), at the Amex’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 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 III 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 Exchange proposes that the amendment to the Amex Rules pursuant to this proposal be effective on May 8, 2006. The Exchange proposes to eliminate the prohibition on computer generated orders set forth in Amex Rules 934(b) and 934–ANTE(b). Originally, Amex Rules 934(b) and 934–ANTE(b) were adopted to protect registered options traders (‘‘ROTs’’) because, at the time, allowing electronic entry directly into the Exchange’s order routing system could give customers and broker-dealers with order-generating systems a significant advantage over Amex ROTs. Since the adoption of Amex Rules 934(b) and 934–ANTE(b), the Exchange 24 17 1 15 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 3 Amendment No. 1 supersedes and replaces the original rule filing in its entirety. E:\FR\FM\31MYN1.SGM 31MYN1 30972 Federal Register / Vol. 71, No. 104 / Wednesday, May 31, 2006 / Notices has implemented ANTE as well as other electronic trading enhancements minimizing the concerns raised by the rules. For example, ANTE permits specialists and ROTs to submit proprietary quotes electronically,4 which reduces the risk of multiple executions of orders delivered in rapid succession before the specialist or ROT is able to revise its quotation. In addition, the Exchange recently received Commission approval for an ANTE enhancement known as the ‘‘Quote Risk Manager.’’ The Quote Risk Manager is a risk management tool allowing specialists and ROTs to automatically adjust their quotes if a certain number of trades are executed within a certain period of time.5 Therefore, specialists and ROTs now have the ability to manage their exposure more quickly and efficiently, thereby obviating the need for both Amex Rules 934(b) and 934–ANTE(b). The Exchange also believes that the removal of the prohibition on computer generated orders should enhance access to the Exchange and therefore provide additional liquidity. 2. Statutory Basis jlentini on PROD1PC65 with NOTICES The Exchange believes that the proposed rule change, as amended, is consistent with the provisions of section 6(b) of the Act,6 in general, and with section 6(b)(5) of the Act,7 in particular, in that it is designed 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. 4 See Securities Exchange Act Release No. 49747 (May 20, 2004), 69 FR 30344 (May 27, 2004) (SR– Amex–2003–89). 5 See Securities Exchange Act Release No. 53148 (January 19, 2006), 71 FR 4386 (January 26, 2006) (SR–Amex–2005–131). 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 17:52 May 30, 2006 Jkt 208001 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. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Amex–2006–46 and should be submitted on or before June 21, 2006. IV. Commission’s Findings and Order Granting Accelerated Approval of a Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change, as amended, is consistent with the Act and the rules and regulations thereunder applicable to a III. Solicitation of Comments national securities exchange.8 In particular, the Commission believes that Interested persons are invited to the proposal is consistent with section submit written data, views, and 6(b)(5) of the Act,9 which requires that arguments concerning the foregoing, the rules of an exchange be designed to including whether the proposed rule prevent fraudulent and manipulative change, as amended, is consistent with the Act. Comments may be submitted by acts and practices, to promote just and equitable principles of trade, to foster any of the following methods: cooperation and coordination with Electronic Comments persons engaged in regulating, clearing, settling, processing information with • Use the Commission’s Internet respect to, and facilitating transactions comment form (http://www.sec.gov/ in securities, to remove impediments to rules/sro.shtml); or and perfect the mechanism of a free and • Send an e-mail to ruleopen market and a national market comments@sec.gov. Please include File system, and in general, to protect Number SR–Amex–2006–46 on the investors and the public interest; and subject line. are not designed to permit unfair Paper Comments discrimination between customers, issuers brokers, or dealers, or to regulate • Send paper comments in triplicate by virtue of any authority conferred by to Nancy M. Morris, Secretary, the Act matters not related to the Securities and Exchange Commission, purposes of the Act or the Station Place, 100 F Street, NE., administration of the Exchange. Washington, DC 20549–1090. Specifically, the Commission believes All submissions should refer to File that the proposal is designed to permit Number SR–Amex–2006–46. This file increased access to the Exchange, and number should be included on the subject line if e-mail is used. To help the therefore should help provide additional liquidity for orders executed Commission process and review your on the Exchange. comments more efficiently, please use Under section 19(b)(2) of the Act,10 only one method. The Commission will the Commission may not approve any post all comments on the Commission’s proposed rule change prior to the Internet Web site (http://www.sec.gov/ thirtieth day after the date of rules/sro.shtml). Copies of the publication of the notice of filing submission, all subsequent thereof, unless the Commission finds amendments, all written statements good cause for so doing. The with respect to the proposed rule Commission hereby finds good cause for change that are filed with the approving the proposed rule change, as Commission, and all written amended, prior to the thirtieth day after communications relating to the publishing notice of filing thereof in the proposed rule change between the Commission and any person, other than Federal Register. The Commission does not believe that the proposal would those that may be withheld from the significantly affect the protection of public in accordance with the investors or the public interest, and provisions of 5 U.S.C. 552, will be would not impose any significant available for inspection and copying in burden on competition. the Commission’s Public Reference The Commission notes that it has Room. Copies of such filing also will be recently approved the deletion of the available for inspection and copying at the principal office of the Exchange. All 8 In approving this proposal, the Commission has comments received will be posted considered its impact on efficiency, competition, without change; the Commission does and capital formation. See 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(5). not edit personal identifying 10 15 U.S.C. 78s(b)(2). information from submissions. You No written comment were solicited or received with respect to the proposed rule change. PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 E:\FR\FM\31MYN1.SGM 31MYN1 Federal Register / Vol. 71, No. 104 / Wednesday, May 31, 2006 / Notices Chicago Board Options Exchange (‘‘CBOE’’) Rule 6.8A11 and the Philadelphia Stock Exchange (‘‘Phlx’’) Rule 1080(i).12 Both of these rules had prohibited the entry of electronically generated orders. The Commission believes that the proposed rule change, as amended, raises no new regulatory issues and that a full notice and comment period is not necessary. For the reasons set forth above, the Commission finds good cause to accelerate approval of the proposed rule change, as amended, pursuant to section 19(b)(2) of the Act. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SR–Amex–2006– 46), as amended, is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Nancy M. Morris, Secretary. [FR Doc. E6–8321 Filed 5–30–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53855; File No. SR–BSE– 2006–19] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend Until June 5, 2007, a Pilot Program for Listing Options on Selected Stocks Trading Below $20 at One-Point Intervals May 24, 2006. jlentini on PROD1PC65 with NOTICES 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 22, 2006, the Boston Stock Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the BSE. The BSE filed the proposal pursuant to section 19(b)(3)(A) of the 11 See Securities Exchange Act Release No. 51030 (January 12, 2005), 70 FR 3404 (January 24, 2005) (SR–CBOE–2004–91). 12 See Securities Exchange Act Release No. 48648 (October 16, 2003), 68 FR 60762 (October 23, 2003) (SR–Phlx–2003–37). 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Aug<31>2005 17:52 May 30, 2006 Jkt 208001 Act,3 and Rule 19b–4(f)(6) 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 BSE proposes to amend Supplementary Material .02 to Chapter IV, Section 6, ‘‘Series of Options Contracts Open for Trading,’’ of the rules of the Boston Options Exchange (‘‘BOX’’) to extend until June 5, 2007, the pilot program for listing options series on selected stocks trading below $20 at one-point intervals (‘‘Pilot Program’’). The text of the proposed rule change is available on the BSE’s Web site (http://www.bostonstock.com), at the BSE’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 BSE 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 BSE 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 purpose of the proposed rule change is to extend the Pilot Program 5 under the BOX Rules for an additional year, until June 5, 2007. The Pilot Program allows the Boston Options Exchange Regulation, LLC (‘‘BOXR’’), the wholly owned subsidiary of the BSE with the delegated regulatory authority 3 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 5 The BSE implemented the Pilot Program in February 2004 and extended it twice through June 5, 2006. See Securities Exchange Act Release Nos. 49292 (February 20, 2004), 69 FR 8993 (February 26, 2004) (notice of filing and immediate effectiveness of File No. SR–BSE–2004–01) (establishing the Pilot Program); 49806 (June 4, 2004), 69 FR 32640 (June 10, 2004) (notice of filing and immediate effectiveness of File No. SR–BSE– 2004–22) (extending the Pilot Program through June 5, 2005); and 51778 (June 2, 2005), 70 FR 33562 (June 8, 2005) (notice of filing and immediate effectiveness of File No. SR–BSE–2005–18) (extending the Pilot Program through June 5, 2006). 4 17 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 30973 over BOX, to list options on a pilot basis on up to five selected underlying equities trading below $20 at $1 strike price intervals, as provided under the terms of the Pilot Program. The Pilot Program also allows BOX to list $1 strike prices on any equity option included in the $1 strike price pilot program of any other options exchange until June 5, 2006. The proposed rule change retains the text of Supplementary Material .02 to Section 6 of Chapter IV of the BOX Rules, as currently established on a pilot basis, and seeks to extend the operation of the Pilot Program for another year. Chapter IV, Section 6 of the Box Rules establishes guidelines regarding the addition of options series for trading on BOX. Under the Pilot Program, to be eligible for selection into the Pilot Program, the underlying stock must close below $20 on its primary market on the previous trading day. If selected for the Pilot Program, BOX may list strike prices at $1 intervals from $3 to $20, but no $1 strike price may be listed that is greater than $5 from the underlying stock’s closing price on its primary market on the previous day. BOX also may list $1 strikes on any other options class designated by another options exchange that employs a similar pilot program under its rules. BOX may not list long-term option series (‘‘LEAPS’’) at $1 strike price intervals for any class selected for the Pilot Program. BOX also is restricted from listing any series that would result in strike prices being $0.50 apart. The Pilot Program initially was proposed in reaction to the general decrease in stock prices and the proliferation of stocks trading below $20, including some of the most widely held and actively traded equity securities listed on the New York Stock Exchange, the American Stock Exchange, and Nasdaq. The BSE notes that many of these stocks are still trading below $20, including, for example, Oracle, Micron Technology, EMC Corp, and Motorola. When a stock underlying an option trades at a lower price, it requires a larger percentage gain in the price of the stock for an option to become in-themoney. For example, if a stock trades at $10, an investor that wants to purchase a slightly out-of-the-money call option would have to buy the $12.50 call. At these levels, the stock price would need to increase by 25% to reach in-themoney status. The BSE notes that a 25% or higher gain in the price of the underlying stock is especially large given the lessened degree of volatility that recently has accompanied many stocks and options. According to the E:\FR\FM\31MYN1.SGM 31MYN1

Agencies

[Federal Register Volume 71, Number 104 (Wednesday, May 31, 2006)]
[Notices]
[Pages 30971-30973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8321]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53853; File No. SR-Amex-2006-46]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change and Amendment No. 1 Thereto Relating to the Elimination of 
the Prohibition on Computer Generated Orders

May 23, 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 May 9, 2006, 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 and 
II below, which Items have been prepared by Amex. On May 11, 2006, Amex 
filed Amendment No. 1 to the proposed rule change.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons, and is approving the proposal on 
an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 supersedes and replaces the original rule 
filing in its entirety.
---------------------------------------------------------------------------

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

    The Exchange proposes to eliminate Amex Rules 934(b) and 934-
ANTE(b) relating to the prohibition of computer generated orders.
    The text of the proposed rule change is available on the Amex's Web 
site (http://www.amex.com), at the Amex'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 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 III 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 Exchange proposes that the amendment to the Amex Rules pursuant 
to this proposal be effective on May 8, 2006.
    The Exchange proposes to eliminate the prohibition on computer 
generated orders set forth in Amex Rules 934(b) and 934-ANTE(b). 
Originally, Amex Rules 934(b) and 934-ANTE(b) were adopted to protect 
registered options traders (``ROTs'') because, at the time, allowing 
electronic entry directly into the Exchange's order routing system 
could give customers and broker-dealers with order-generating systems a 
significant advantage over Amex ROTs. Since the adoption of Amex Rules 
934(b) and 934-ANTE(b), the Exchange

[[Page 30972]]

has implemented ANTE as well as other electronic trading enhancements 
minimizing the concerns raised by the rules. For example, ANTE permits 
specialists and ROTs to submit proprietary quotes electronically,\4\ 
which reduces the risk of multiple executions of orders delivered in 
rapid succession before the specialist or ROT is able to revise its 
quotation. In addition, the Exchange recently received Commission 
approval for an ANTE enhancement known as the ``Quote Risk Manager.'' 
The Quote Risk Manager is a risk management tool allowing specialists 
and ROTs to automatically adjust their quotes if a certain number of 
trades are executed within a certain period of time.\5\ Therefore, 
specialists and ROTs now have the ability to manage their exposure more 
quickly and efficiently, thereby obviating the need for both Amex Rules 
934(b) and 934-ANTE(b). The Exchange also believes that the removal of 
the prohibition on computer generated orders should enhance access to 
the Exchange and therefore provide additional liquidity.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 49747 (May 20, 
2004), 69 FR 30344 (May 27, 2004) (SR-Amex-2003-89).
    \5\ See Securities Exchange Act Release No. 53148 (January 19, 
2006), 71 FR 4386 (January 26, 2006) (SR-Amex-2005-131).
---------------------------------------------------------------------------

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,\6\ in 
general, and with section 6(b)(5) of the Act,\7\ in particular, in that 
it is designed 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comment were solicited or received with respect to the 
proposed rule change.

III. 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-2006-46 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-2006-46. 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 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-2006-46 and should be submitted on or before June 
21, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of a 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change, as amended, is consistent with the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\8\ 
In particular, the Commission believes that the proposal is consistent 
with section 6(b)(5) of the Act,\9\ which requires that the rules of an 
exchange be designed 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 are 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 purposes of the Act or 
the administration of the Exchange. Specifically, the Commission 
believes that the proposal is designed to permit increased access to 
the Exchange, and therefore should help provide additional liquidity 
for orders executed on the Exchange.
---------------------------------------------------------------------------

    \8\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Under section 19(b)(2) of the Act,\10\ the Commission may not 
approve any proposed rule change prior to the thirtieth day after the 
date of publication of the notice of filing thereof, unless the 
Commission finds good cause for so doing. The Commission hereby finds 
good cause for approving the proposed rule change, as amended, prior to 
the thirtieth day after publishing notice of filing thereof in the 
Federal Register. The Commission does not believe that the proposal 
would significantly affect the protection of investors or the public 
interest, and would not impose any significant burden on competition.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission notes that it has recently approved the deletion of 
the

[[Page 30973]]

Chicago Board Options Exchange (``CBOE'') Rule 6.8A\11\ and the 
Philadelphia Stock Exchange (``Phlx'') Rule 1080(i).\12\ Both of these 
rules had prohibited the entry of electronically generated orders. The 
Commission believes that the proposed rule change, as amended, raises 
no new regulatory issues and that a full notice and comment period is 
not necessary.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 51030 (January 12, 
2005), 70 FR 3404 (January 24, 2005) (SR-CBOE-2004-91).
    \12\ See Securities Exchange Act Release No. 48648 (October 16, 
2003), 68 FR 60762 (October 23, 2003) (SR-Phlx-2003-37).
---------------------------------------------------------------------------

    For the reasons set forth above, the Commission finds good cause to 
accelerate approval of the proposed rule change, as amended, pursuant 
to section 19(b)(2) of the Act.

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the Act, 
that the proposed rule change (SR-Amex-2006-46), as amended, is hereby 
approved on an accelerated basis.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-8321 Filed 5-30-06; 8:45 am]
BILLING CODE 8010-01-P