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]
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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: https://
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: https://
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
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(‘‘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
https://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.
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2 17
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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.
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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.
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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
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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 (https://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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of 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
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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).
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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.
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7 17
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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.
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]]>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 https://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.
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\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).
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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 (https://
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 (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of 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\
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\11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-11031 Filed 7-12-06; 8:45 am]
BILLING CODE 8010-01-P
