Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Interim Members, 39692-39694 [E6-11031]

Download as PDF 39692 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Notices between the agency and small business concerns’’ with respect to the collection of information and the control of paperwork. This information is posted on the following Web site: http:// www.business.gov/sbpra. FOR FURTHER INFORMATION CONTACT: Keith B. Belton, Office of Information and Regulatory Affairs, Office of Management and Budget, E-mail: kbelton@omb.eop.gov, Telephone: (202) 395–4815. Inquiries may be submitted by facsimile to (202) 395–7285. SUPPLEMENTARY INFORMATION: A. Background The Small Business Paperwork Relief Act of 2002 (Pub. L. 107–198) requires OMB to ‘‘publish in the Federal Register and make available on the Internet (in consultation with the Small Business Administration) on an annual basis a list of the compliance assistance resources available to small businesses’’ (44 U.S.C. 3504(c)(6)). In addition, under another provision of this Act, ‘‘each agency shall, with respect to the collection of information and the control of paperwork, establish 1 point of contact in the agency to act as a liaison between the agency and small business concerns’’ (44 U.S.C. 3506(i)(1)). OMB has, with the active assistance and support of the Small Business Administration (SBA) and the Small Business and Agriculture Enforcement Ombudsman (SBA Ombudsman), assembled a list of the compliance assistance resources available to small businesses. This list is available today on the following Web site: http:// www.business.gov/sbpra. There is also a link to this information on the OMB Web site and the SBA Ombudsman’s Web site. Steven D. Aitken, Acting Administrator, Office of Information and Regulatory Affairs. [FR Doc. E6–10964 Filed 7–12–06; 8:45 am] BILLING CODE 3110–01–P SECURITIES AND EXCHANGE COMMISSION sroberts on PROD1PC70 with NOTICES [Release No. 34–54109; File No. SR–Amex– 2006–27] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2 Thereto Relating to Interim Members July 6, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 VerDate Aug<31>2005 17:46 Jul 12, 2006 Jkt 208001 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 23, 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, II, and III below, which Items have been prepared by Amex. On June 15, 2006, Amex filed Amendment No. 1 to the proposed rule change.3 On June 27, 2006, Amex 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 persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Amex proposes to amend Amex Rule 353 to limit members and member organizations from allocating their seats to interim members on the Floor of the Exchange for a maximum of fifteen aggregate days that may be used consecutively or non-consecutively for a one-year period beginning on the date of approval as an interim member (‘‘approval date’’). In addition, the Exchange is proposing revisions to the Amex Constitution and the Amex Fee Schedule to correspond with the changes to Amex Rule 353. The text of the proposed rule change is available on Amex’s Web site at http://www.amex.com, at Amex’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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. U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaced the original filing in its entirety. 4 Amendment No. 2 clarifies that an interim member may be designated or redesignated by a member or member organization as an interim member after it has exhausted the fifteen day allocation even if this occurs prior to the end of the one-year period. Amendment No. 2 also makes technical corrections to the purpose section and the rule text in Exhibit 5. PO 00000 1 15 2 17 Frm 00038 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose An interim member is an individual, pre-qualified by the Exchange, who is designated by a member or member organization to temporarily use the membership for a specified period of time when the member is absent from the Trading Floor.5 Currently, Amex Rule 353 permits unfettered temporary allocation of a membership to an interim member so long as the duration is no less than one day and no more than one year. The proposed amendment to Amex Rule 353 significantly reduces the maximum number of days an interim member can receive such designation. The new maximum would be reduced to fifteen days that may be used by each interim member consecutively or nonconsecutively for a one-year period beginning on the approval date. If an interim member has exhausted the fifteen day period, even if this occurs prior to end of the one-year period, the member or member organization may regain interim membership status by designating another interim member, or redesignating the same interim member to the seat by filing documents required by the Membership Services Department and paying the maintenance fee in accordance with Article VII, Section 1(g) of the Amex Constitution. The Exchange believes that allowing unlimited allocation to interim members lessens the value of memberships by increasing the number of unleased seats. By permitting the designation of interim members, the Exchange is essentially permitting individuals who do not own or lease seats to operate as members. This circumvention of seat leasing and ownership may artificially lessen the value of a membership by decreasing its demand. However, the Exchange also believes that the Interim Member program has served a useful function on the Floor. Specifically, it provides members with protection should illnesses or emergencies arise and also provides coverage when vacation is taken. The Exchange believes that the proposed amendment to Amex Rule 353 effectively balances concerns over having adequate emergency coverage on 5 Article IV, Section 3(e) of the Amex Constitution explicitly states that the designation of an interim member is ‘‘subject to and in accordance with such rules as may be adopted from time to time by the Board of Governors.’’ Amex Rule 353 more specifically sets forth the requirements, rights and limitations of interim members. E:\FR\FM\13JYN1.SGM 13JYN1 sroberts on PROD1PC70 with NOTICES Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Notices the Floor versus concerns over the devaluation of memberships. Article IV, Section 3(e) and Article VII, Section 1(g) of the Amex Constitution specify the fees associated with the Interim Member program. The proposed amendments would eliminate the $250 allocation fee and all references thereto. Article IV, Section 1(f) and Article VII, Section 1(c) of the Amex Constitution reference the initiation fee associated with the transfer of a membership pursuant to a special transfer agreement.6 The proposed amendment would permit this fee to be waived by rule, which will permit Amex to offer financial incentives to those interim members who wish to subsequently lease a seat. The Member Fee Schedule sets forth the fees that Amex charges its members. The changes thereto will correspond with the amendments proposed to the Interim Member program. The Exchange believes that if the proposed rule change was implemented at the start of 2005, approximately half of the 21 interim members would have exhausted their fifteen aggregate days by the beginning of November. Upon approval of these amendments by the Commission, the fifteen days will begin to deplete for all interim members currently on seats for the duration of the year for which they are qualified for interim membership, as well as each time an interim member is approved to the program. The Exchange acknowledges that some members will incur additional expense as a result of the proposed restrictions to the Interim Member program. The proposed amendments to the Amex Constitution and Rules and the Member Fee Schedule are meant to provide economic relief to these members. Currently, the $250 allocation fee is a flat fee that the Exchange charges each time an interim member is designated to a seat. The elimination of the $250 allocation fee will permit members to effectively use the fifteen days for emergencies, illness, and vacations. Specifically, the elimination of the allocation fee will facilitate members who designate interim members on a non-consecutive basis. The $1,500 initiation fee is charged whenever a member enters into a special transfer agreement. The waiving of this initiation fee for those who wish to lease a seat immediately following their allotted time as an interim member will provide relief to members who encounter serious emergencies, as well as offer a financial incentive for interim members to enter into special transfer agreements. No change is proposed for the $1,500 maintenance fee that members pay when an interim member is pre-qualified by the Exchange. Finally, the Exchange proposes to clarify in Amex Rule 353 and Article IV, Section 3(e) of the Amex Constitution that an interim member will become effective upon submission of the appropriate form to and approval by the Membership Services Department. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(5) of the Act,8 in particular, in that it is designed 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. In addition, the Exchange further believes that the proposed rule change is consistent with Section 6(b) of the Act,9 in general, and furthers the objectives of Section 6(b)(4) of the Act,10 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal 6 A special transfer agreement is an agreement between the owner of a regular or options principal membership and an individual who is authorized to use the membership for a specified period of time or until the occurrence of a specified event. VerDate Aug<31>2005 17:46 Jul 12, 2006 Jkt 208001 PO 00000 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). 8 15 Frm 00039 Fmt 4703 Sfmt 4703 39693 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 amended 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–Amex–2006–27 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–2006–27. 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 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 E:\FR\FM\13JYN1.SGM 13JYN1 39694 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Notices submissions should refer to File Number SR–Amex–2006–27 and should be submitted on or before August 3, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–11031 Filed 7–12–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54107; File No. SR–CHX– 2006–18] Self-Regulatory Organization; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change Amending a Notice Provision Relating to the Renewal of Trading Permits and Policy .01 to CHX Article II, Rule 3, to allow a Participant to cancel a trading permit in 2006 if the Participant provided notice to CHX at any time during the 60 days preceding February 9, 2006. According to CHX, CHX Article II, Rule 3, caused some confusion among its Participants. The Commission therefore finds that the proposed rule change is an appropriate one time relief to allow CHX Participants to cancel their trading permits. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (SR–CHX–2006– 18) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–11004 Filed 7–12–06; 8:45 am] BILLING CODE 8010–01–P July 6, 2006. On May 10, 2006, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend the 60-day notice requirement to cancel trading permits for 2006. The proposed rule change was published for comment in the Federal Register on June 1, 2006.3 The Commission received no comments regarding the proposal. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.4 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 which requires that the rules of the an exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national securities system, and, in general, to protect investors and the public interest. CHX Article II, Rule 3, requires Participants to provide CHX with 60days notice to cancel a trading permit. The Exchange proposes in Interpretation 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 53859 (May 24, 2006), 71 FR 31241. 4 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). sroberts on PROD1PC70 with NOTICES 1 15 VerDate Aug<31>2005 17:46 Jul 12, 2006 Jkt 208001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54113 File No. SR–ISE– 2006–24] Self-Regulatory Organizations; International Securities Exchange, Inc.; Order Approving a Proposed Rule Change and Amendment No. 1 Thereto and Notice of Filing and Order Granting Accelerated Approval to Amendments No. 2 and 3 Thereto To Permit the Listing and Trading of Quarterly Options Series July 7, 2006. I. Introduction On May 2, 2006, the International Securities Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to initiate a one-year pilot program that would allow the Exchange to list and trade options series that expire at the close of business on the last business day of a calendar quarter (‘‘Quarterly Options Series’’). The Exchange filed Amendment No. 1 with the Commission on May 17, 2006.3 The amended proposal was published for comment in U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 In Amendment No. 1, a partial amendment, the Exchange made minor modifications to the proposed rule text. PO 00000 6 15 7 17 Frm 00040 Fmt 4703 Sfmt 4703 the Federal Register on June 1, 2006.4 No comments were received regarding the amended proposal. The Exchange filed Amendments No. 2 and 3 with the Commission on July 6, 2006, and July 7, 2006, respectively.5 This notice and order approves the proposed rule change and Amendment No. 1 thereto, solicits comment on Amendments No. 2 and 3, and approves Amendments No. 2 and 3 on an accelerated basis. II. Description of Proposed Rule ISE proposes to amend its rules to establish a pilot program to list and trade Quarterly Options Series, which would expire at the close of business on the last business day of a calendar quarter (‘‘Pilot Program’’). Under the proposal, the Exchange could select up to five approved options classes 6 on which Quarterly Options Series could be opened. A series could be opened on any business day and would expire at the close of business on the last business day of a calendar quarter. The Exchange also could list and trade Quarterly Options Series on any options class that is selected by another exchange that employs a similar pilot program. For each class selected for the Pilot Program, the Exchange would list series that expire at the end of the next four consecutive calendar quarters, as well as the fourth quarter of the following calendar year. Quarterly Options Series listed on currently approved options classes would be P.M. settled and, in all other respects, would settle in the same manner as do the monthly expiration series in the same options class. The strike price for each series would be fixed at a price per share, with two strike prices above and two strike prices below the value of the underlying security at about the time that a Quarterly Options Series is opened for trading on the Exchange. The interval between strike prices on Quarterly Options Series would be the same as the interval between strike prices for series in the same options class that expire in accordance with the normal monthly expiration cycles. In Amendment No. 3, 4 See Securities Exchange Act Release No. 53857 (May 24, 2006), 71 FR 31246 (‘‘Notice’’). 5 In Amendment No. 2, a partial amendment, the Exchange modified the provision of the proposed rule text under which the Exchange may list additional strike prices for Quarterly Options Series. In Amendment No. 3, a partial amendment, the Exchange modified the proposed rule text to provide that the Exchange may list Quarterly Options Series with strike prices that are within $5.00 from the closing price of the underlying security on the preceding trading day. See discussion in Part II, infra. 6 Quarterly Options Series may be opened on indexes or on Exchange Traded Funds that satisfy the applicable listing criteria under ISE rules. E:\FR\FM\13JYN1.SGM 13JYN1

Agencies

[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Notices]
[Pages 39692-39694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11031]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54109; File No. SR-Amex-2006-27]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendments No. 1 and 2 
Thereto Relating to Interim Members

July 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 23, 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, II, 
and III below, which Items have been prepared by Amex. On June 15, 
2006, Amex filed Amendment No. 1 to the proposed rule change.\3\ On 
June 27, 2006, Amex 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 persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the original filing in its 
entirety.
    \4\ Amendment No. 2 clarifies that an interim member may be 
designated or redesignated by a member or member organization as an 
interim member after it has exhausted the fifteen day allocation 
even if this occurs prior to the end of the one-year period. 
Amendment No. 2 also makes technical corrections to the purpose 
section and the rule text in Exhibit 5.
---------------------------------------------------------------------------

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

    Amex proposes to amend Amex Rule 353 to limit members and member 
organizations from allocating their seats to interim members on the 
Floor of the Exchange for a maximum of fifteen aggregate days that may 
be used consecutively or non-consecutively for a one-year period 
beginning on the date of approval as an interim member (``approval 
date''). In addition, the Exchange is proposing revisions to the Amex 
Constitution and the Amex Fee Schedule to correspond with the changes 
to Amex Rule 353.
    The text of the proposed rule change is available on Amex's Web 
site at http://www.amex.com, at Amex's principal office, and at the 
Commission's Public Reference Room.

 II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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
    An interim member is an individual, pre-qualified by the Exchange, 
who is designated by a member or member organization to temporarily use 
the membership for a specified period of time when the member is absent 
from the Trading Floor.\5\ Currently, Amex Rule 353 permits unfettered 
temporary allocation of a membership to an interim member so long as 
the duration is no less than one day and no more than one year. The 
proposed amendment to Amex Rule 353 significantly reduces the maximum 
number of days an interim member can receive such designation. The new 
maximum would be reduced to fifteen days that may be used by each 
interim member consecutively or non-consecutively for a one-year period 
beginning on the approval date.
---------------------------------------------------------------------------

    \5\ Article IV, Section 3(e) of the Amex Constitution explicitly 
states that the designation of an interim member is ``subject to and 
in accordance with such rules as may be adopted from time to time by 
the Board of Governors.'' Amex Rule 353 more specifically sets forth 
the requirements, rights and limitations of interim members.
---------------------------------------------------------------------------

    If an interim member has exhausted the fifteen day period, even if 
this occurs prior to end of the one-year period, the member or member 
organization may regain interim membership status by designating 
another interim member, or redesignating the same interim member to the 
seat by filing documents required by the Membership Services Department 
and paying the maintenance fee in accordance with Article VII, Section 
1(g) of the Amex Constitution. The Exchange believes that allowing 
unlimited allocation to interim members lessens the value of 
memberships by increasing the number of unleased seats. By permitting 
the designation of interim members, the Exchange is essentially 
permitting individuals who do not own or lease seats to operate as 
members. This circumvention of seat leasing and ownership may 
artificially lessen the value of a membership by decreasing its demand. 
However, the Exchange also believes that the Interim Member program has 
served a useful function on the Floor. Specifically, it provides 
members with protection should illnesses or emergencies arise and also 
provides coverage when vacation is taken. The Exchange believes that 
the proposed amendment to Amex Rule 353 effectively balances concerns 
over having adequate emergency coverage on

[[Page 39693]]

the Floor versus concerns over the devaluation of memberships.
    Article IV, Section 3(e) and Article VII, Section 1(g) of the Amex 
Constitution specify the fees associated with the Interim Member 
program. The proposed amendments would eliminate the $250 allocation 
fee and all references thereto.
    Article IV, Section 1(f) and Article VII, Section 1(c) of the Amex 
Constitution reference the initiation fee associated with the transfer 
of a membership pursuant to a special transfer agreement.\6\ The 
proposed amendment would permit this fee to be waived by rule, which 
will permit Amex to offer financial incentives to those interim members 
who wish to subsequently lease a seat.
---------------------------------------------------------------------------

    \6\ A special transfer agreement is an agreement between the 
owner of a regular or options principal membership and an individual 
who is authorized to use the membership for a specified period of 
time or until the occurrence of a specified event.
---------------------------------------------------------------------------

    The Member Fee Schedule sets forth the fees that Amex charges its 
members. The changes thereto will correspond with the amendments 
proposed to the Interim Member program.
    The Exchange believes that if the proposed rule change was 
implemented at the start of 2005, approximately half of the 21 interim 
members would have exhausted their fifteen aggregate days by the 
beginning of November. Upon approval of these amendments by the 
Commission, the fifteen days will begin to deplete for all interim 
members currently on seats for the duration of the year for which they 
are qualified for interim membership, as well as each time an interim 
member is approved to the program.
    The Exchange acknowledges that some members will incur additional 
expense as a result of the proposed restrictions to the Interim Member 
program. The proposed amendments to the Amex Constitution and Rules and 
the Member Fee Schedule are meant to provide economic relief to these 
members. Currently, the $250 allocation fee is a flat fee that the 
Exchange charges each time an interim member is designated to a seat. 
The elimination of the $250 allocation fee will permit members to 
effectively use the fifteen days for emergencies, illness, and 
vacations. Specifically, the elimination of the allocation fee will 
facilitate members who designate interim members on a non-consecutive 
basis. The $1,500 initiation fee is charged whenever a member enters 
into a special transfer agreement. The waiving of this initiation fee 
for those who wish to lease a seat immediately following their allotted 
time as an interim member will provide relief to members who encounter 
serious emergencies, as well as offer a financial incentive for interim 
members to enter into special transfer agreements. No change is 
proposed for the $1,500 maintenance fee that members pay when an 
interim member is pre-qualified by the Exchange.
    Finally, the Exchange proposes to clarify in Amex Rule 353 and 
Article IV, Section 3(e) of the Amex Constitution that an interim 
member will become effective upon submission of the appropriate form to 
and approval by the Membership Services Department.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\8\ in particular, in that it 
is designed 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. 
In addition, the Exchange further believes that the proposed rule 
change is consistent with Section 6(b) of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\10\ in 
particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members, issuers and other persons using its facilities.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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

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

 III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    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 amended 
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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-Amex-2006-27 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-2006-27. 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 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

[[Page 39694]]

submissions should refer to File Number SR-Amex-2006-27 and should be 
submitted on or before August 3, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-11031 Filed 7-12-06; 8:45 am]
BILLING CODE 8010-01-P