Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change To Extend the Term of Index-Linked Securities, 71000 [E6-20762]

Download as PDF 71000 Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54844; File No. SR–Amex– 2006–88] Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change To Extend the Term of Index-Linked Securities November 30, 2006. On September 20, 2006, the American Stock Exchange LLC (‘‘Amex’’ 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 Section 107D(b) of the Amex Company Guide 3 to extend the maximum duration of index-linked securities (‘‘Index-Linked Securities’’) from ten (10) years to thirty (30) years. The proposed rule change was published for comment in the Federal Register on October 27, 2006.4 The Commission received no comment letters on the proposal. Section 107D of the Amex Company Guide currently sets forth eleven criteria that the issue and the issuer must meet in order to list and trade Index-Linked Securities pursuant to the generic listing standards.5 One of the criteria the Exchange considers for the listing and trading of Index-Linked Securities pursuant to 107D is that the term of the issue must be a minimum term of one year but not greater than ten years. Proposed Section 107D(b) would extend the duration of the term of the issue from ten years to thirty years. 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.6 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,7 which requires, 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Section 107D provides for the listing and trading of Index-Linked Securities pursuant to Rule 19b– 4(e) under the Act (the ‘‘generic listing standards’’). 4 See Securities Exchange Act Release No. 54629 (October 19, 2006), 71 FR 63056. 5 The Exchange may submit a rule filing pursuant to Section 19(b)(2) of the Act to permit the listing and trading of index linked securities that do not otherwise meet the generic listing criteria set forth in Section 107D. 6 In approving the proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). sroberts on PROD1PC70 with NOTICES 2 17 VerDate Aug<31>2005 17:29 Dec 06, 2006 Jkt 211001 among other things, that Exchange rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. Amending Section 107D should provide the Exchange with more flexibility in responding to the increased demand from issuers to list and trade Index-Linked Securities that are greater than ten years in duration. The Commission notes that corporate bonds and other fixed-income products historically have been issued with terms of up to, or greater than, thirty years.8 In addition, the Commission has approved amendments to the generic listing standards for equity-linked notes that removed the maximum term limits for those securities.9 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (SR–Amex–2006– 88) be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–20762 Filed 12–6–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54832; File No. SR–BSE– 2006–46] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Amending Rules To Require Securities Become Eligible for a Direct Registration System November 29, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on October 26, 2006, the Boston Stock Exchange, Inc. (‘‘BSE’’) filed with the Securities and Exchange Commission 8 See also Section 104 of the Amex Company Guide setting forth the standards for listing debt securities. 9 See Securities Exchange Act Release No. 42110 (November 5, 1999), 64 FR 61677 (November 12, 1999) (SR–Amex–9–33); 41992 (October 7, 1999), 64 FR 56007 (October 15, 1999) (SR–NYSE–99–22); 42313 (January 4, 2000), 65 FR 2205 (January 13, 2000) (SR–CHX–99–19). 10 15 U.S.C. 78f(b)(5). 11 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which items have been prepared primarily by BSE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change BSE proposes to amend its rules to require securities of all listed companies become eligible to participate in a Direct Registration System (‘‘DRS’’) administered by a clearing agency registered under Section 17A of the Act. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, BSE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. BSE has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change (1) Purpose DRS, as administered by The Depository Trust Company (‘‘DTC’’), is an electronic system that allows an investor to establish either through the issuer’s transfer agent or through the investor’s broker-dealer a book-entry position on the books of the issuer and to electronically transfer her position between the transfer agent and the broker-dealer.3 DRS, therefore, allows an investor to have securities registered in her name without having a certificate issued to her and to electronically transfer, thereby eliminating the risk and delays associated with the use of certificates, her securities to her brokerdealer in order to effect a transaction. Ownership is recorded in book-entry form, and instead of receiving a physical 2 The Commission has modified portions of the text of the summaries prepared by BSE. 3 Currently, the only registered clearing agency operating a DRS is DTC. For a description of DRS and the DRS facilities administered by DTC, see Securities Exchange Act Release Nos. 37931 (November 7, 1996), 61 FR 58600 (November 15, 1996), [File No. SR–DTC–96–15] (order granting approval to establish DRS) and 41862 (September 10, 1999), 64 FR 51162 (September 21, 1999), [File No. SR–DTC–99–16] (order approving implementation of the Profile Modification System). E:\FR\FM\07DEN1.SGM 07DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Notices]
[Page 71000]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20762]



[[Page 71000]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54844; File No. SR-Amex-2006-88]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change To Extend the Term of Index-Linked 
Securities

 November 30, 2006.
    On September 20, 2006, the American Stock Exchange LLC (``Amex'' 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 Section 107D(b) of the Amex Company Guide 
\3\ to extend the maximum duration of index-linked securities (``Index-
Linked Securities'') from ten (10) years to thirty (30) years. The 
proposed rule change was published for comment in the Federal Register 
on October 27, 2006.\4\ The Commission received no comment letters on 
the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Section 107D provides for the listing and trading of Index-
Linked Securities pursuant to Rule 19b-4(e) under the Act (the 
``generic listing standards'').
    \4\ See Securities Exchange Act Release No. 54629 (October 19, 
2006), 71 FR 63056.
---------------------------------------------------------------------------

    Section 107D of the Amex Company Guide currently sets forth eleven 
criteria that the issue and the issuer must meet in order to list and 
trade Index-Linked Securities pursuant to the generic listing 
standards.\5\ One of the criteria the Exchange considers for the 
listing and trading of Index-Linked Securities pursuant to 107D is that 
the term of the issue must be a minimum term of one year but not 
greater than ten years. Proposed Section 107D(b) would extend the 
duration of the term of the issue from ten years to thirty years.
---------------------------------------------------------------------------

    \5\ The Exchange may submit a rule filing pursuant to Section 
19(b)(2) of the Act to permit the listing and trading of index 
linked securities that do not otherwise meet the generic listing 
criteria set forth in Section 107D.
---------------------------------------------------------------------------

    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.\6\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\7\ which requires, among 
other things, that Exchange rules be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. Amending Section 107D should 
provide the Exchange with more flexibility in responding to the 
increased demand from issuers to list and trade Index-Linked Securities 
that are greater than ten years in duration. The Commission notes that 
corporate bonds and other fixed-income products historically have been 
issued with terms of up to, or greater than, thirty years.\8\ In 
addition, the Commission has approved amendments to the generic listing 
standards for equity-linked notes that removed the maximum term limits 
for those securities.\9\
---------------------------------------------------------------------------

    \6\ In approving the proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See also Section 104 of the Amex Company Guide setting forth 
the standards for listing debt securities.
    \9\ See Securities Exchange Act Release No. 42110 (November 5, 
1999), 64 FR 61677 (November 12, 1999) (SR-Amex-9-33); 41992 
(October 7, 1999), 64 FR 56007 (October 15, 1999) (SR-NYSE-99-22); 
42313 (January 4, 2000), 65 FR 2205 (January 13, 2000) (SR-CHX-99-
19).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-Amex-2006-88) be, and hereby 
is, approved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(5).

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

    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-20762 Filed 12-6-06; 8:45 am]
BILLING CODE 8011-01-P

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