Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Odd-Lots in Nasdaq Securities, 34646-34648 [06-5418]
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34646
Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
be used under certain Pension Benefit
Guaranty Corporation regulations. These
rates and assumptions are published
elsewhere (or can be derived from rates
published elsewhere), but are collected
and published in this notice for the
convenience of the public. Interest rates
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: The required interest rate for
determining the variable-rate premium
under part 4006 applies to premium
payment years beginning in June 2006.
The interest assumptions for performing
multiemployer plan valuations
following mass withdrawal under part
4281 apply to valuation dates occurring
in July 2006.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Attorney, Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005,
202–326–4024. (TTY/TDD users may
call the Federal relay service toll-free at
1–800–877–8339 and ask to be
connected to 202–326–4024.)
SUPPLEMENTARY INFORMATION:
Variable-Rate Premiums
Section 4006(a)(3)(E)(iii)(II) of the
Employee Retirement Income Security
Act of 1974 (ERISA) and § 4006.4(b)(1)
of the PBGC’s regulation on Premium
Rates (29 CFR part 4006) prescribe use
of an assumed interest rate (the
‘‘required interest rate’’) in determining
a single-employer plan’s variable-rate
premium. The required interest rate is
the ‘‘applicable percentage’’ (currently
85 percent) of the annual yield on 30year Treasury securities for the month
preceding the beginning of the plan year
for which premiums are being paid (the
‘‘premium payment year’’). The required
interest rate to be used in determining
variable-rate premiums for premium
payment years beginning in June 2006 is
4.42 percent (i.e., 85 percent of the 5.20
percent Treasury Securities Rate for
May 2006).
The Pension Funding Equity Act of
2004 (‘‘PFEA’’)—under which the
required interest rate is 85 percent of the
annual rate of interest determined by
the Secretary of the Treasury on
amounts invested conservatively in
long-term investment grade corporate
bonds for the month preceding the
beginning of the plan year for which
premiums are being paid—applies only
for premium payment years beginning
in 2004 or 2005. Congress is considering
legislation that would extend the PFEA
rate for one more year. If legislation that
changes the rules for determining the
required interest rate for plan years
beginning in June 2006 is adopted, the
VerDate Aug<31>2005
15:47 Jun 14, 2006
Jkt 208001
PBGC will promptly publish a Federal
Register notice with the new rate.
The following table lists the required
interest rates to be used in determining
variable-rate premiums for premium
payment years beginning between July
2005 and June 2006.
For premium payment years
beginning in:
July 2005 ..............................
August 2005 .........................
September 2005 ...................
October 2005 ........................
November 2005 ....................
December 2005 ....................
January 2006 ........................
February 2006 ......................
March 2006 ...........................
April 2006 .............................
May 2006 ..............................
June 2005 .............................
2006, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) submitted to
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by Amex. Amex filed the
proposed rule change as a ‘‘nonThe required
controversial’’ rule change pursuant to
interest rate is: Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
4.47
it effective upon filing with the
4.56
4.61 Commission. The Commission is
4.62 publishing this notice to solicit
4.83 comments on the proposed rule change
4.91 from interested persons.
3.95
3.90
3.89
4.02
4.30
4.42
Multiemployer Plan Valuations
Following Mass Withdrawal
The PBGC’s regulation on Duties of
Plan Sponsor Following Mass
Withdrawal (29 CFR part 4281)
prescribes the use of interest
assumptions under the PBGC’s
regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044). The interest assumptions
applicable to valuation dates in June
2006 under part 4044 are contained in
an amendment to part 4044 published
elsewhere in today’s Federal Register.
Tables showing the assumptions
applicable to prior periods are codified
in appendix B to 29 CFR part 4044.
Issued in Washington, DC, on this 8th day
of June 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. E6–9346 Filed 6–14–06; 8:45 am]
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Amex proposes to extend for an
additional twelve-month period ending
June 30, 2007, the Exchange’s pilot
program for odd-lot execution
procedures for Nasdaq securities traded
on the Exchange pursuant to unlisted
trading privileges. There is no proposed
new rule text. Amex is making no
changes to the pilot program as it
currently operates, other than extending
it through June 30, 2007.5
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Amex included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. Amex has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
BILLING CODE 7709–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53956; File No. SR–Amex–
2006–55]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Odd-Lots in Nasdaq Securities
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 25,
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00058
1. Purpose
The Commission approved, and the
Exchange implemented, a pilot program
for odd-lot order 6 executions in Nasdaq
securities transacted on the Exchange
pursuant to unlisted trading privileges.7
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Telephone conversation between Sudhir
Bhattacharyya, Assistant General Counsel, and Mia
Zur, Special Counsel, Division of Market
Regulation, Commission, on June 7, 2006.
6 An odd-lot order is an order for less than 100
shares.
7 See Commentary .05 of Amex Rule 205, which
describes the manner of executing odd-lot orders in
general, and which for Nasdaq securities, references
4 17
June 7, 2006.
1 15
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
The pilot program was originally
approved on August 2, 2002, for a sixmonth period, was most recently
extended on December 30, 2005, and is
due to expire on June 30, 2006.8
Accordingly, as a result of the numerous
prior extensions and the Exchange’s
intention to continue the pilot program,
the Exchange currently proposes a
twelve-month extension.
Under the Exchange’s current pilot
program, after the opening of trading in
Nasdaq securities, odd-lot market orders
and executable odd-lot limit orders are
executed at the qualified national best
bid or offer 9 at the time the order is
received at the trading post or through
Amex Order File. Odd-lot market orders
and executable odd-lot limit orders
entered before the opening of trading in
Nasdaq securities are executed at the
price of the first round-lot or part of
round-lot transaction on the Exchange.
Non-executable limit orders, stop
orders, stop limit orders, orders filled
after the close, and non-regular way
traders are executed in accordance with
Amex Rules 205 A(2), A(3), A(4), C(1),
and C(2), respectively. Orders to buy or
sell ‘‘at the close’’ are filled at the price
of the closing round-lot sale on the
Exchange. In a locked market condition,
odd-lot market orders and executable
odd-lot limit orders are executed at the
locked market price. In a crossed market
condition, odd-lot market orders are
executed at the mean of the bid and
offer prices when the displayed national
best bid is higher than the displayed
Amex Rule 118(j), specifically describing the
Exchange’s odd-lot execution procedures for
Nasdaq securities.
8 The pilot program originally approved on
August 2, 2002, was subsequently extended on July
14 and December 24, 2003; June 14 and December
27, 2004; July 6 and January 13, 2006. See
Securities Exchange Act Release Nos. 46304
(August 2, 2002), 67 FR 51903 (August 9, 2002);
48174 (July 14, 2003), 68 FR 43409 (July 22, 2003);
48995 (December 24, 2003); 68 FR 75670 (December
31, 2003); 49855 (June 14, 2004), 69 FR 35399 (June
24, 2004); 50934 (December 27, 2004), 70 FR 412
(January 4, 2005); 51975 (July 6, 2005), 70 FR 40409
(July 13, 2005); and 53116 (January 13, 2006), 71
FR (January 23, 2006).
9 In Amex Rule 118(j), the qualified national best
bid and offer for a Nasdaq security means the
highest bid and lowest offer, respectively,
disseminated (A) by the Exchange or (B) by another
market center participating in the Plan; provided,
however, that the bid and offer in another such
market center will be considered in determining the
qualified national best bid or offer in a stock only
if (i) the quotation conforms to the requirements of
Amex Rule 127, (ii) the quotation does not result
in a locked or crossed market, (iii) the market center
is not experiencing operational or system problems
with respect to the dissemination of quotation
information, and (iv) the bid or offer is ‘‘firm,’’ that
is, members o the market center dissemination the
bid of offer are not relieved of their obligations with
respect to such bid of offer under paragraph (c)(2)
of Rule 602 of Regulation NMS pursuant to the
‘‘unusual market’’ exception of paragraph (a)(3) of
Rule 602 of Regulation NMS.
VerDate Aug<31>2005
15:47 Jun 14, 2006
Jkt 208001
national best offer by $.05 or less. When
the displayed national best bid is higher
than the displayed national best offer by
more than $.05, odd-odd market orders
are executed when the crossed market
condition no longer exits. In addition, in
a crossed market conditio, executable
odd-lot limit orders are executed at the
crossed market bid price (in the case of
an order to sell) or at the crossed market
offer price (in the case of an order to
buy). For example, if the bid and offer
are 20.10 and 20.00, respectively, an
executable odd-lot sell limit order
priced at 20.10 or less will be executed
at 20.10 and an executable odd-lot buy
limit order priced at 20.00 or higher will
be executed at 20.00.
The Exchange believes that the
existing odd-lot execution procedures
have operated efficiently. Furthermore,
the Exchange has received no
complaints from members or the public
regarding odd-lot executions. Therefore,
the Exchange seeks an extension to the
pilot program for an additional twelvemonth period ending June 30, 2007,
which will provide the Exchange time
to assess further enhancements to the
odd-lot execution procedures.
2. Statutory Basis
Amex believes that the proposed rule
change is consistent with Section 6(b) of
the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principle of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, to protect
investors and the public interest, and is
not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex does not believes that the
proposed rule change 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 comments were solicited
or received with respect to the proposed
rule change.
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00059
Fmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest, the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13 As required by Rule
19b–4(f)(6)(iii), Amex provided the
Commission with written notice of its
intent to file the proposed rule change
at least five business days prior to filing
the proposal with the Commission or
such shorter period as designated by the
Commission.
At any time within 60 days of the
filing of such proposal rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment from (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomment@sec.gov. Please include File
Number SR–Amex–2006–55 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Amex–2006–55. 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
12 15
13 17
Sfmt 4703
34647
E:\FR\FM\15JNN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
15JNN1
34648
Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Notices
Internet Web site (https://www.sec.gov/
rules/sro.html). 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 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 will be
available for inspection and copying at
the principal office of the Amex. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2006–55 and should
be submitted on or before July 6, 2006.
For the Commission, by the Division of
Market Regulations, pursuant to delegated
authority.14
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06–5418 Filed 6–14–06; 8:45 am]
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53949; File No. SR–CHX–
2006–04]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of a Proposed Rule Change
and Amendment Nos. 1 and 2 Thereto
Relating to the Transfer of Securities
Among Co-Specialists Within a
Specialist Firm
jlentini on PROD1PC65 with NOTICES
June 6, 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 8,
2006, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ 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 the CHX. On May 3, 2006, CHX filed
Amendment No. 1 to the proposed rule
14 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
15:47 Jun 14, 2006
Jkt 208001
change.3 On May 22, 2006, CHX filed
Amendment No. 2 to the proposed rule
change.4 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested parties.
Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CHX proposes to amend its rules
to permit the transfer of securities to
different co-specialists within a
specialist firm. Below is the text of the
proposed rule change, as amended.
Proposed new language is in italics; 5
proposed deletions are in [brackets].
ARTICLE XXX
Registration and Appointment
RULE 1. No Participant shall act as a
specialist or co-specialist on the
Exchange in any security unless
registered as such in the particular
security. Except for the intrafirm
transfers of registration permitted by
Section I.2 of Interpretation and Policy
.01 of this Rule, [R]registration as either
a specialist or co-specialist shall be
subject to the approval of the Exchange.
*
*
*
*
*
An applicant for initial registration as
a co-specialist shall, or as otherwise
may be determined by the Committee on
Specialist Assignment and Evaluation
be required to serve for a period of six
months in the capacity of relief
specialist under continuous supervision
of a registered co-specialist. No
application for co-specialist in a
particular issue will be considered by
the Committee on Specialist Assignment
and Evaluation (and no intrafirm
transfer permitted by Section I.2 of
Interpretation and Policy .01 of this
Rule may be made) prior to the time that
3 In Amendment No. 1, the Exchange revised the
rule text of the proposed rule change to clarify the
application of the proposal to intrafirm transfers
and revised the purpose section to discuss the
proposed provision requiring the specialist unit to
accurately represent its plans in the specialist
application regarding designating a particular cospecialist to trade a security.
4 In Amendment No. 2, the Exchange revised the
rule text of the proposed rule change to clarify the
impact of a intrafirm transfer on the deregistration
and registration of individual co-specialists within
a specialist firm and made non-substantive changes
to the proposed rule text. The proposed rule text
set forth in Amendment No. 2 superceded and
replaced the rule text set forth in the initial filing
and Amendment No. 1 in its entirety.
5 The Exchange inadvertently failed to designate
the phrase ‘‘as either a specialist or co-specialist’’
in the first paragraph of CHX Rule 1 as proposed
new text. For clarity, the new text has been
underlined herein. The Exchange has committed to
file an amendment reflecting the fact that this
phrase is new text prior to Commission approval of
the proposed rule change.
Frm 00060
Fmt 4703
.01 COMMITTEE ON SPECIALIST
ASSIGNMENT AND EVALUATION
ASSIGNMENT FUNCTION
I. EVENTS LEADING TO ASSIGNMENT
PROCEEDINGS
Specialists
PO 00000
the individual has satisfied these
training requirements.
*
*
*
*
*
Unless required by [Subject to] the
provisions of Article XXX, Rule 8 or
when permitted by Section I.2 of
Interpretation and Policy .01 of this
Rule, a specialist, co-specialist or relief
specialist shall not relinquish their
positions until permission to do so is
received from the Committee on
Specialist Assignment and Evaluation.
* * * Interpretations and Policies:
Sfmt 4703
*
*
*
*
*
1. No change.
2. Specialist Request. Any specialist
unit and co-specialist may ask to be
deregistered in one or more of its
assigned securities, and the Committee
on Specialist Assignment and
Evaluation (the Committee) will hear all
such requests. The Committee will
initiate a reassignment proceeding if it
believes that such action is called for.
The Committee may initiate a
reassignment proceeding on the basis
that if the merits of the request are not
established the security must be
retained by the registered specialist if no
other unit appears to be able to make a
better market or if no other unit applies.
*
*
*
*
*
Exception, Intrafirm transfers that
meet the criteria below do not require
the submission of an application or the
approval of the Committee and will not
result in a proceeding by the Committee
to reassign the security to another cospecialist or specialist firm.
Because a specialist unit is
responsible both financially and as a
regulatory matter for the activities of its
co-specialists, a specialist unit might,
from time to time, determine that the
responsibility for trading one or more
securities should be transferred from
one co-specialist to another within the
same specialist unit. Without seeking
prior Committee approval, a specialist
unit may transfer the responsibility for
trading securities among the cospecialists associated with its firm, so
long as (1) the specialist unit
immediately notifies the Exchange, in
the manner required by the Exchange, of
each such transfer; and (2) when such
a transfer is made within six months of
an initial assignment of the security to
the specialist unit, the specialist unit
must inform the Exchange, in writing, of
its reasons for making the change. Each
such transfer by the specialist unit
E:\FR\FM\15JNN1.SGM
15JNN1
]]>Agencies
[Federal Register Volume 71, Number 115 (Thursday, June 15, 2006)]
[Notices]
[Pages 34646-34648]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5418]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53956; File No. SR-Amex-2006-55]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Odd-Lots in Nasdaq Securities
June 7, 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 25, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by Amex. Amex filed the
proposed rule change as a ``non-controversial'' rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Amex proposes to extend for an additional twelve-month period
ending June 30, 2007, the Exchange's pilot program for odd-lot
execution procedures for Nasdaq securities traded on the Exchange
pursuant to unlisted trading privileges. There is no proposed new rule
text. Amex is making no changes to the pilot program as it currently
operates, other than extending it through June 30, 2007.\5\
---------------------------------------------------------------------------
\5\ Telephone conversation between Sudhir Bhattacharyya,
Assistant General Counsel, and Mia Zur, Special Counsel, Division of
Market Regulation, Commission, on June 7, 2006.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Amex included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. 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 Commission approved, and the Exchange implemented, a pilot
program for odd-lot order \6\ executions in Nasdaq securities
transacted on the Exchange pursuant to unlisted trading privileges.\7\
[[Page 34647]]
The pilot program was originally approved on August 2, 2002, for a six-
month period, was most recently extended on December 30, 2005, and is
due to expire on June 30, 2006.\8\ Accordingly, as a result of the
numerous prior extensions and the Exchange's intention to continue the
pilot program, the Exchange currently proposes a twelve-month
extension.
---------------------------------------------------------------------------
\6\ An odd-lot order is an order for less than 100 shares.
\7\ See Commentary .05 of Amex Rule 205, which describes the
manner of executing odd-lot orders in general, and which for Nasdaq
securities, references Amex Rule 118(j), specifically describing the
Exchange's odd-lot execution procedures for Nasdaq securities.
\8\ The pilot program originally approved on August 2, 2002, was
subsequently extended on July 14 and December 24, 2003; June 14 and
December 27, 2004; July 6 and January 13, 2006. See Securities
Exchange Act Release Nos. 46304 (August 2, 2002), 67 FR 51903
(August 9, 2002); 48174 (July 14, 2003), 68 FR 43409 (July 22,
2003); 48995 (December 24, 2003); 68 FR 75670 (December 31, 2003);
49855 (June 14, 2004), 69 FR 35399 (June 24, 2004); 50934 (December
27, 2004), 70 FR 412 (January 4, 2005); 51975 (July 6, 2005), 70 FR
40409 (July 13, 2005); and 53116 (January 13, 2006), 71 FR (January
23, 2006).
---------------------------------------------------------------------------
Under the Exchange's current pilot program, after the opening of
trading in Nasdaq securities, odd-lot market orders and executable odd-
lot limit orders are executed at the qualified national best bid or
offer \9\ at the time the order is received at the trading post or
through Amex Order File. Odd-lot market orders and executable odd-lot
limit orders entered before the opening of trading in Nasdaq securities
are executed at the price of the first round-lot or part of round-lot
transaction on the Exchange. Non-executable limit orders, stop orders,
stop limit orders, orders filled after the close, and non-regular way
traders are executed in accordance with Amex Rules 205 A(2), A(3),
A(4), C(1), and C(2), respectively. Orders to buy or sell ``at the
close'' are filled at the price of the closing round-lot sale on the
Exchange. In a locked market condition, odd-lot market orders and
executable odd-lot limit orders are executed at the locked market
price. In a crossed market condition, odd-lot market orders are
executed at the mean of the bid and offer prices when the displayed
national best bid is higher than the displayed national best offer by
$.05 or less. When the displayed national best bid is higher than the
displayed national best offer by more than $.05, odd-odd market orders
are executed when the crossed market condition no longer exits. In
addition, in a crossed market conditio, executable odd-lot limit orders
are executed at the crossed market bid price (in the case of an order
to sell) or at the crossed market offer price (in the case of an order
to buy). For example, if the bid and offer are 20.10 and 20.00,
respectively, an executable odd-lot sell limit order priced at 20.10 or
less will be executed at 20.10 and an executable odd-lot buy limit
order priced at 20.00 or higher will be executed at 20.00.
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\9\ In Amex Rule 118(j), the qualified national best bid and
offer for a Nasdaq security means the highest bid and lowest offer,
respectively, disseminated (A) by the Exchange or (B) by another
market center participating in the Plan; provided, however, that the
bid and offer in another such market center will be considered in
determining the qualified national best bid or offer in a stock only
if (i) the quotation conforms to the requirements of Amex Rule 127,
(ii) the quotation does not result in a locked or crossed market,
(iii) the market center is not experiencing operational or system
problems with respect to the dissemination of quotation information,
and (iv) the bid or offer is ``firm,'' that is, members o the market
center dissemination the bid of offer are not relieved of their
obligations with respect to such bid of offer under paragraph (c)(2)
of Rule 602 of Regulation NMS pursuant to the ``unusual market''
exception of paragraph (a)(3) of Rule 602 of Regulation NMS.
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The Exchange believes that the existing odd-lot execution
procedures have operated efficiently. Furthermore, the Exchange has
received no complaints from members or the public regarding odd-lot
executions. Therefore, the Exchange seeks an extension to the pilot
program for an additional twelve-month period ending June 30, 2007,
which will provide the Exchange time to assess further enhancements to
the odd-lot execution procedures.
2. Statutory Basis
Amex believes that the proposed rule change is consistent with
Section 6(b) of the Act,\10\ in general, and furthers the objectives of
Section 6(b)(5) of the Act,\11\ in particular, in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principle of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, to protect investors
and the public interest, and is not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Amex does not believes that the proposed rule change 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 comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not become operative for 30 days from the date of filing,
or such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\12\ and Rule 19b-4(f)(6) thereunder.\13\ As required by Rule 19b-
4(f)(6)(iii), Amex provided the Commission with written notice of its
intent to file the proposed rule change at least five business days
prior to filing the proposal with the Commission or such shorter period
as designated by the Commission.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such proposal rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment from (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comment@sec.gov. Please include
File Number SR-Amex-2006-55 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2006-55. 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
[[Page 34648]]
Internet Web site (https://www.sec.gov/rules/sro.html). 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 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 will be available for inspection and copying at the principal
office of the Amex. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-Amex-2006-55 and should be submitted on or before July 6, 2006.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulations,
pursuant to delegated authority.\14\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06-5418 Filed 6-14-06; 8:45 am]
BILLING CODE 8010-01-M
