Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change To Amend Rule 777 Regarding Depository Eligibility, 74964-74965 [E6-21169]
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Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
changes a due, fee, or other charge
imposed by the Exchange. At any time
within 60 days of the filing of the
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
hsrobinson on PROD1PC76 with NOTICES
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
Number SR–Amex–2006–105 on the
subject line.
Number SR–Amex–2006–105 and
should be submitted on or before
January 3, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21161 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54882; File No. SR–Amex–
2006–80]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving Proposed Rule Change To
Amend Rule 777 Regarding Depository
Eligibility
December 6, 2006.
I. Introduction
On August 21, 2006, the American
Stock Exchange LLC (‘‘Amex’’) filed
with the Securities and Exchange
Paper Comments
Commission (‘‘Commission’’) proposed
rule change SR–Amex–2006–80
• Send paper comments in triplicate
pursuant to Section 19(b)(1) of the
to Nancy M. Morris, Secretary,
Securities Exchange Act of 1934
Securities and Exchange Commission,
(‘‘Act’’).1 Notice of the proposal was
Station Place, 100 F Street, NE,
published in the Federal Register on
Washington, DC 20549–1090.
September 21, 2006.2 No comment
All submissions should refer to File
letters were received. For the reasons
Number SR–Amex–2006–105. This file
discussed below, the Commission is
number should be included on the
subject line if e-mail is used. To help the approving the proposed rule change as
amended.
Commission process and review your
comments more efficiently, please use
II. Description
only one method. The Commission will
In general, Amex is amending its
post all comments on the Commission’s
depository eligibility requirement. The
Internet Web site (https://www.sec.gov/
rule change: (i) Deletes a reference to a
rules/sro.shtml). Copies of the
distinction between domestic and
submission, all subsequent
foreign issuers; (ii) deletes an exception
amendments, all written statements
for securities whose terms cannot be
with respect to the proposed rule
reasonably modified to meet the criteria
change that are filed with the
for depository eligibility at all securities
Commission, and all written
depositories; and (iii) deletes additional
communications relating to the
requirements imposed by the rule that
proposed rule change between the
Commission and any person, other than are no longer necessary.
Previously, before an issue of
those that may be withheld from the
securities could be listed, Rule 777(a)
public in accordance with the
required only a domestic issuer to
provisions of 5 U.S.C. 552, will be
represent to Amex that a CUSIP number
available for inspection and copying in
identifying the securities had been
the Commission’s Public Reference
Room. Copies of such filing also will be included in the file of eligible issues
maintained by a securities depository
available for inspection and copying at
the principal office of the Exchange. All registered with the Commission as a
clearing agency under section 17A of
comments received will be posted
the Act.3 The same requirement did not
without change; the Commission does
not edit personal identifying
12 17 CFR 200.30–3(a)(12).
information from submissions. You
1 15 U.S.C. 78s(b)(1).
should submit only information that
2 Securities Exchange Act Release No. 54442
you wish to make available publicly. All (September 14, 2006), 71 FR 55229.
3 15 U.S.C. 78q–1.
submissions should refer to File
VerDate Aug<31>2005
21:31 Dec 12, 2006
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Sfmt 4703
apply to foreign issuers. However,
exclusion of foreign issuers is no longer
necessary because they have the
capacity to comply with Rule 777 and
have been doing so voluntarily for years.
Amex’s rule change also deletes the
exception in Rule 777(a) for securities
whose terms cannot be reasonably
modified to meet the criteria for
depository eligibility at all securities
depositories. The exception was
originally included in Rule 777(a)
because, among other things, various
states and countries precluded the bookentry issuance of securities. Following
implementation of Rule 777(a),
however, most, if not all, states have
amended their corporate statutes to
allow for book-entry issuance, and as a
result the exception is no longer needed
to accommodate such issuers.
Furthermore, Amex’s rule change
deletes a provision that prevented new
issues distributed by an underwriting
syndicate prior to the date a securities
depository system for monitoring
repurchases of distributed shares by the
underwriting syndicate from becoming
depository eligible because such a
system has become available. Prior to
the availability of such a system, a
managing underwriter could delay the
date a security was deemed depository
eligible for up to three months after
commencement of trading on Amex.
Since the approval of Rule 777, The
Depository Trust Company (‘‘DTC’’) 4
implemented its Initial Public Offering
Tracking System 5 that enables lead
managers and syndicate members of
equity underwritings to monitor
repurchases of distributed shares in an
automated book-entry environment.
Since DTC has the capability to monitor
repurchases of distributed shares, the
requirements listed in Rule 777(b) are
no longer necessary, and Amex has
deleted Rule 777(b) in its entirety.
Finally, Amex has cross-referenced
rules 776 and 777 in Part 1 of the Amex
Company Guide to clarify that Rules 776
and 777 are initial and continued listing
standards applicable to companies
listed on Amex.
III. Discussion
Section 19(b) of the Act directs the
Commission to approve a proposed rule
change of a self-regulatory organization
if it finds that such proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
4 DTC is a securities depository registered with
the Commission under sections 17A and 19 of the
Act as a clearing agency.
5 Securities Exchange Act Release No. 37208 (May
13, 1996), 61 FR 25253 (May 20, 1996) [File No. SR–
DTC–95–27].
E:\FR\FM\13DEN1.SGM
13DEN1
Federal Register / Vol. 71, No. 239 / Wednesday, December 13, 2006 / Notices
such organization.6 Section 6(b)(5) of
the Act requires, among other things,
that the rules of an exchange be
designed to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities and
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system.7
The Commission finds that Amex’s rule
change is consistent with these
requirements. By revising its rule
regarding depository eligibility, Amex’s
proposed rule change fosters
cooperation and coordination with
persons engaged in clearing and settling
transactions in securities and perfects
the mechanism of a free and open
market and a national market system.8
IV. Conclusion
On the basis of the foregoing, 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 and in
particular Section 6(b)(5) of the Act and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
Amex–2006–80) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21169 Filed 12–12–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54884; File No. SR–BSE–
2006–52]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Order Granting Accelerated
Approval of a Proposed Rule Change
Relating to the Time a Marketable
Order Is Exposed on the BOX Book
December 6, 2006.
hsrobinson on PROD1PC76 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
U.S.C. 78s(b).
U.S.C. 78f(b)(5).
8 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
(‘‘Act’’), 1 and Rule 19b–4 thereunder, 2
notice is hereby given that on November
15, 2006, the Boston Stock Exchange,
Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by BSE. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons and is
approving the proposal on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Section 16 (Execution and Price/Time
Priority) of Chapter V of the Rules of the
Boston Options Exchange (‘‘BOX’’) to
reduce the time that an order is exposed
in the internal BOX market when BOX
is not matching the national best bid or
offer (‘‘NBBO’’) from three seconds to
one second. The text of the proposed
rule change is available on the
Exchange’s Internet Web site (https://
www.bostonstock.com), at the
Exchange’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, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposal. The text of these statements
may be examined at the places specified
in Item III below. The Exchange 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Section 16 (Execution and Price/Time
Priority) of Chapter V of the BOX Rules
to reduce the time that an order is
exposed in the internal BOX market
when the BOX best bid and offer
(‘‘BBO’’) is not matching the NBBO from
three seconds to one second. 3 The
6 15
7 15
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21:31 Dec 12, 2006
Jkt 211001
1 15
U.S.C. 78s(b)(l).
CFR 240. 19b–4.
3 See BOX Rules, Chapter V, Section 16(b)
‘‘Filtering of BOX In-Bound Orders to Prevent
Trade-Throughs.’’ This rule and the mechanism
utilized by BOX for this purpose are called the
‘‘Filter.’’
2 17
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
74965
Exchange’s experience with the Filter
has shown that one second is ample
time for any party interested in trading
with the exposed order at the NBBO to
generate and send its contra-side order
to the BOX Trading Host for matching.
Consequently, the Exchange believes
that a reduction in this exposure time
will not result in an appreciable
difference in the number of executions
on BOX through the use of the Filter. In
addition, the reduction in exposure time
will permit the earlier generation and
sending of an InterMarket Linkage P/A
Order in the case where BOX is unable
to provide the NBBO price. Therefore,
the Exchange believes that the filtered
order would have an improved chance
of being executed at the NBBO before
the market moves to the disfavor of the
order.4
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)5 of the Act, in general, and
furthers the objectives of Section
6(b)(5) 6 in particular in that it is
designed to promote just and equitable
principles of trade, and to protect
investors and the public interest.
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 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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
4 The Exchange asked the Commission to
incorporate in the Purpose section of this notice the
purpose discussion in the Form 19b–4 submitted
for this filing rather than the discussion in the
Exhibit 1 for the filing. E-mail communication
between Brian Donnelly, AVP Regulation &
Compliance, BSE, and Leah Mesfin, Special
Counsel, Division of Market Regulation,
Commission on December 5, 2006.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
E:\FR\FM\13DEN1.SGM
13DEN1
]]>Agencies
[Federal Register Volume 71, Number 239 (Wednesday, December 13, 2006)]
[Notices]
[Pages 74964-74965]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21169]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54882; File No. SR-Amex-2006-80]
Self-Regulatory Organizations; American Stock Exchange LLC; Order
Approving Proposed Rule Change To Amend Rule 777 Regarding Depository
Eligibility
December 6, 2006.
I. Introduction
On August 21, 2006, the American Stock Exchange LLC (``Amex'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-Amex-2006-80 pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'').\1\ Notice of the
proposal was published in the Federal Register on September 21,
2006.\2\ No comment letters were received. For the reasons discussed
below, the Commission is approving the proposed rule change as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 54442 (September 14,
2006), 71 FR 55229.
---------------------------------------------------------------------------
II. Description
In general, Amex is amending its depository eligibility
requirement. The rule change: (i) Deletes a reference to a distinction
between domestic and foreign issuers; (ii) deletes an exception for
securities whose terms cannot be reasonably modified to meet the
criteria for depository eligibility at all securities depositories; and
(iii) deletes additional requirements imposed by the rule that are no
longer necessary.
Previously, before an issue of securities could be listed, Rule
777(a) required only a domestic issuer to represent to Amex that a
CUSIP number identifying the securities had been included in the file
of eligible issues maintained by a securities depository registered
with the Commission as a clearing agency under section 17A of the
Act.\3\ The same requirement did not apply to foreign issuers. However,
exclusion of foreign issuers is no longer necessary because they have
the capacity to comply with Rule 777 and have been doing so voluntarily
for years.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
Amex's rule change also deletes the exception in Rule 777(a) for
securities whose terms cannot be reasonably modified to meet the
criteria for depository eligibility at all securities depositories. The
exception was originally included in Rule 777(a) because, among other
things, various states and countries precluded the book-entry issuance
of securities. Following implementation of Rule 777(a), however, most,
if not all, states have amended their corporate statutes to allow for
book-entry issuance, and as a result the exception is no longer needed
to accommodate such issuers.
Furthermore, Amex's rule change deletes a provision that prevented
new issues distributed by an underwriting syndicate prior to the date a
securities depository system for monitoring repurchases of distributed
shares by the underwriting syndicate from becoming depository eligible
because such a system has become available. Prior to the availability
of such a system, a managing underwriter could delay the date a
security was deemed depository eligible for up to three months after
commencement of trading on Amex. Since the approval of Rule 777, The
Depository Trust Company (``DTC'') \4\ implemented its Initial Public
Offering Tracking System \5\ that enables lead managers and syndicate
members of equity underwritings to monitor repurchases of distributed
shares in an automated book-entry environment. Since DTC has the
capability to monitor repurchases of distributed shares, the
requirements listed in Rule 777(b) are no longer necessary, and Amex
has deleted Rule 777(b) in its entirety.
---------------------------------------------------------------------------
\4\ DTC is a securities depository registered with the
Commission under sections 17A and 19 of the Act as a clearing
agency.
\5\ Securities Exchange Act Release No. 37208 (May 13, 1996), 61
FR 25253 (May 20, 1996) [File No. SR-DTC-95-27].
---------------------------------------------------------------------------
Finally, Amex has cross-referenced rules 776 and 777 in Part 1 of
the Amex Company Guide to clarify that Rules 776 and 777 are initial
and continued listing standards applicable to companies listed on Amex.
III. Discussion
Section 19(b) of the Act directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to
[[Page 74965]]
such organization.\6\ Section 6(b)(5) of the Act requires, among other
things, that the rules of an exchange be designed to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities and to remove impediments to and perfect the
mechanism of a free and open market and a national market system.\7\
The Commission finds that Amex's rule change is consistent with these
requirements. By revising its rule regarding depository eligibility,
Amex's proposed rule change fosters cooperation and coordination with
persons engaged in clearing and settling transactions in securities and
perfects the mechanism of a free and open market and a national market
system.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, 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 and in particular Section 6(b)(5) of the Act and
the rules and regulations thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-Amex-2006-80) be and
hereby is approved.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
\10\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21169 Filed 12-12-06; 8:45 am]
BILLING CODE 8011-01-P
