Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change and Amendment No. 2 Thereto Relating to the Member Firm Guarantee for FLEX Equity Options, 49492 [E6-13932]

Download as PDF sroberts on PROD1PC70 with NOTICES 49492 Federal Register / Vol. 71, No. 163 / Wednesday, August 23, 2006 / Notices following e-mail address: FR0627@ustr.eop.gov, with ‘‘Special 301 Out-of-Cycle Review: Indonesia, Canada, Chile, Latvia and Saudi Arabia’’ in the subject line, or (ii) by fax, to (202) 395–9458, with a confirmation copy sent electronically to the e-mail address above. FOR FURTHER INFORMATION CONTACT: Rachel S. Bae, Director for Intellectual Property, Office of the United States Trade Representative, at (202) 395– 4510. SUPPLEMENTARY INFORMATION: Pursuant to Section 182 of the Trade Act, USTR must identify those countries that deny adequate and effective protection for intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. Those countries that have the most onerous or egregious acts, policies, or practices and whose acts, policies, or practices have the greatest adverse impact (actual or potential) on relevant U.S. products may be identified as Priority Foreign Countries. Acts, policies, or practices that are the basis of a country’s designation as a Priority Foreign Country are normally the subject of an investigation under the Section 301 provisions of the Trade Act. On April 28, 2006, USTR announced the results of the 2006 Special 301 review, including an announcement that Out-of-Cycle Reviews (OCRs) would be conducted for Indonesia, Canada, Chile, Latvia and Saudi Arabia. Additional countries may also be reviewed as a result of the comments received pursuant to this notice, or as warranted by events. Requirements For Comments: Comments should include a description of the problems experienced, and the effect of the acts, policies, and practices on U.S. industry. Comments should be as detailed as possible and should provide all necessary information for assessing the effect of the acts, policies, and practices. Any comments that include quantitative loss claims should be accompanied by the methodology used in calculating such estimated losses. Comments must be in English. No submissions will be accepted via postal service mail. Documents should be submitted as either WordPerfect, MS Word, or text (.TXT) files. Supporting documentation submitted as spreadsheets is acceptable as Quattro Pro or Excel files. A submitter requesting that information contained in a comment be treated as confidential business information must certify that such information is business VerDate Aug<31>2005 16:04 Aug 22, 2006 Jkt 208001 confidential and would not customarily be released to the public by the submitter. A non-confidential version of the comment must also be provided. For any document containing business confidential information, the file name of the business confidential version should begin with the characters ‘‘BC– ’’, and the file name of the public version should begin with the character ‘‘P–’’. The ‘‘P–’’ or ‘‘BC–’’ should be followed by the name of the submitter. Submissions should not include separate cover letters; information that might appear in a cover letter should be included in the submission itself. To the extent possible, any attachments to the submission should be included in the same file as the submission itself, and not as separate files. All comments should be addressed to Sybia Harrison, Special Assistant to the Section 301 Committee, and sent (i) Electronically, to the following e-mail address: FR0627@ustr.eop.gov, with ‘‘Special 301 Out-of-Cycle Review: Indonesia, Canada, Chile, Latvia and Saudi Arabia’’ in the subject line, or (ii) by fax, to (202) 395–9458, with a confirmation copy sent electronically to the e-mail address above. Public Inspection of Submissions: Within one business day of receipt, nonconfidential submissions will be placed in a public file, open for inspection at the USTR reading room, Office of the United States Trade Representative, Annex Building, 1724 F Street, NW., Room 1, Washington, DC. An appointment to review the file must be scheduled at least 48 hours in advance and may be made by calling Jacqueline Caldwell at (202) 395–6186. The USTR reading room is open to the public from 10 a.m. to 12 noon and from 1 p.m. to 4 p.m., Monday through Friday. Victoria Espinel, Assistant USTR for Intellectual Property. [FR Doc. E6–13916 Filed 8–22–06; 8:45 am] BILLING CODE 3190–W6–P [Release No. 34–54327; File No. SR–Amex– 2006–47] Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change and Amendment No. 2 Thereto Relating to the Member Firm Guarantee for FLEX Equity Options August 16, 2006. On May 12, 2006, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Frm 00082 Fmt 4703 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–13932 Filed 8–22–06; 8:45 am] BILLING CODE 8010–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 A ‘‘member firm guarantee’’ provides, under certain conditions, a member firm with the ability to cross a specified percentage of a customer order with its own proprietary order before specialists and/or registered options traders in the trading crowd can participate in the transaction. 4 See Securities Exchange Act Release No. 54104 (July 5, 2006), 71 FR 39374. 5 15 U.S.C. 78f(b). 6 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 8 See Securities Exchange Act Release No. 42455 (February 24, 2000), 65 FR 11388 (March 2, 2000). See also Securities Exchange Act Release No. 51275 (February 28, 2005), 70 FR 10709 (March 4, 2005) (File No. SR–Amex–2005–002). 9 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). 2 17 SECURITIES AND EXCHANGE COMMISSION PO 00000 Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to amend Amex Rule 904G(e)(iii) to increase the member firm guarantee for FLEX equity options from 25% to 40%.3 The Amex filed Amendment No. 1 to the proposed rule change on June 5, 2006 and subsequently withdrew Amendment No. 1. The Amex filed Amendment No. 2 to the proposed rule change on June 12, 2006. The proposed rule change, as amended, was published for comment in the Federal Register on July 12, 2006.4 The Commission received no comments on the proposal. This order approves the proposed rule change. After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b) of the Act 5 and the rules and regulations thereunder applicable to a national securities exchange,6 and in particular with Section 6(b)(5) of the Act.7 The Commission notes that under the proposal the member firm guarantee for FLEX equity options could not exceed 40% of an order. The Commission has found with respect to participation guarantees in other contexts that a maximum guarantee of 40% is not inconsistent with statutory standards of competition and free and open markets.8 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–Amex–2006– 47), as amended, is hereby approved. Sfmt 4703 E:\FR\FM\23AUN1.SGM 23AUN1

Agencies

[Federal Register Volume 71, Number 163 (Wednesday, August 23, 2006)]
[Notices]
[Page 49492]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13932]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54327; File No. SR-Amex-2006-47]


 Self-Regulatory Organizations; American Stock Exchange LLC; 
Order Approving Proposed Rule Change and Amendment No. 2 Thereto 
Relating to the Member Firm Guarantee for FLEX Equity Options

August 16, 2006.
    On May 12, 2006, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ to amend Amex Rule 904G(e)(iii) to increase the member 
firm guarantee for FLEX equity options from 25% to 40%.\3\ The Amex 
filed Amendment No. 1 to the proposed rule change on June 5, 2006 and 
subsequently withdrew Amendment No. 1. The Amex filed Amendment No. 2 
to the proposed rule change on June 12, 2006. The proposed rule change, 
as amended, was published for comment in the Federal Register on July 
12, 2006.\4\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ A ``member firm guarantee'' provides, under certain 
conditions, a member firm with the ability to cross a specified 
percentage of a customer order with its own proprietary order before 
specialists and/or registered options traders in the trading crowd 
can participate in the transaction.
    \4\ See Securities Exchange Act Release No. 54104 (July 5, 
2006), 71 FR 39374.
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of Section 6(b) of the 
Act \5\ and the rules and regulations thereunder applicable to a 
national securities exchange,\6\ and in particular with Section 6(b)(5) 
of the Act.\7\ The Commission notes that under the proposal the member 
firm guarantee for FLEX equity options could not exceed 40% of an 
order. The Commission has found with respect to participation 
guarantees in other contexts that a maximum guarantee of 40% is not 
inconsistent with statutory standards of competition and free and open 
markets.\8\
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    \5\ 15 U.S.C. 78f(b).
    \6\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See Securities Exchange Act Release No. 42455 (February 24, 
2000), 65 FR 11388 (March 2, 2000). See also Securities Exchange Act 
Release No. 51275 (February 28, 2005), 70 FR 10709 (March 4, 2005) 
(File No. SR-Amex-2005-002).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2006-47), as amended, is 
hereby approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-13932 Filed 8-22-06; 8:45 am]
BILLING CODE 8010-01-P