Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Amend Rules 918 and 918-Ante Regarding Trading Rotations, Halts and Suspensions, 78474-78475 [E6-22398]

Download as PDF 78474 Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Notices 3.2 Verification and Commitments As discussed in the notice of availability published in the Federal Register on [DATE] for this TS improvement, plantspecific verifications were performed as follows: In addition, [LICENSEE] has proposed TS Bases consistent with TSTF–491 which provide guidance and details on how to implement the new requirements. Finally, [LICENSEE] has a Bases Control Program consistent with Section 5.5 of the Standard Technical Specifications (STS). 4.0 ENVIRONMENTAL EVALUATION The amendment changes requirements with respect to the installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20. The NRC staff has determined that the amendment adopting TSTF–491, Rev 2, involves no significant increase in the amounts and no significant change in the types of any effluents that may be released offsite, and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that TSTF–491, Rev 2, involves no significant hazards considerations, and there has been no public comment on the finding in Federal Register Notice 71 FR 193, October 5, 2006. Accordingly, the amendment meets the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendment. 5.0 REFERENCES 1. TSTF–491, Revision 2, ‘‘Removal of Main Steam and Main Feedwater Valve Isolation Times from Technical Specifications.’’ 2. NRC Model Safety Evaluation Report Enclosure 2 PROPOSED TECHNICAL SPECIFICATION CHANGES (MARKUP) Enclosure 3 pwalker on PROD1PC69 with NOTICES PROPOSED TECHNICAL SPECIFICATION PAGES [Clean copies of Licensee specific Technical Specification (TS) pages, corresponding to the TS pages changed by MaTSTF–491, Rev 0, are to be included in Enclosure 3] VerDate Aug<31>2005 18:15 Dec 28, 2006 Jkt 211001 Enclosure 4 PROPOSED CHANGES TO TECHNICAL SPECIFICATION BASES PAGES summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. [FR Doc. E6–22391 Filed 12–28–06; 8:45 am] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54995; File No. SR–Amex– 2006–77] Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Amend Rules 918 and 918—Ante Regarding Trading Rotations, Halts and Suspensions December 21, 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 August 16, 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 substantially prepared by the Exchange. On December 5, 2006, Amex filed Amendment No. 1 to the proposed rule change.3 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 The Exchange proposes to amend Amex Rules 918 and 918—ANTE regarding trading rotations, halts and suspensions. The text of the proposed rule change is available on Amex’s Web site (http://www.amex.com), at Amex’s Office of the Secretary, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 31 In Amendment No. 1, Amex made clarifying changes to the purpose section and made technical changes to the proposed rule text. 2 17 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 1. Purpose The Exchange proposes to eliminate reference to ‘‘primary market’’ set forth in Amex Rules 918(a) and 918— ANTE(a) and to amend the reference to ‘‘primary market’’ in Amex Rules 918(b) and 918—ANTE(b). The Exchange proposes to amend Amex Rules 918(a) and 918—ANTE(a) to delete the requirement that the opening of the trading rotation is dependent on the opening of the underlying security in the primary market. Currently, Amex Rules 918 and 918—ANTE(a) provide that a trading rotation shall be employed at the opening of each business day following the opening of the underlying security in the primary market. ‘‘Primary market’’ is defined in Amex Rules 900(b)(26) and 900—ANTE(b)(26) as (i) the principal exchange market in which the underlying security is traded so long as the underlying is principally traded on a national securities exchange, and (ii) the market reflected by the National Association of Securities Dealers Automated Quotation System (the ‘‘NASDAQ’’) if it is equity securities principally traded over-the-counter, or the market reflected by any widely recognized quotation dissemination system if it is any other type of security. As a result of the trading of underlying securities on multiple trading venues or markets (largely due to the introduction of Electronic Communication Networks or ‘‘ECNs’’), it has become increasingly difficult to determine, for purposes of Amex Rules 918(a) and 918—ANTE(a), which marketplace is the ‘‘primary market.’’ As an example, the Options Clearing Corporation (‘‘OCC’’) in connection with its methodology for obtaining underlying security prices at expiration changed to composite pricing.4 As a result of the number of securities exchanges and ECNs trading a particular underlying security, the Exchange submits that the analysis for determining the primary market has become overly burdensome and uncertain, subjecting Exchange staff to 4 A ‘‘composite’’ security price is defined as the last reported sale price from any primary listing market (i.e., Amex, NYSE and Nasdaq), participating regional exchanges or other markets. See OCC Memo to Members #18930 (May 29, 2003) and Securities Exchange Act Release No. 49045 (January 8, 2004), 69 FR 2377 (January 15, 2004). E:\FR\FM\29DEN1.SGM 29DEN1 pwalker on PROD1PC69 with NOTICES Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Notices instances of ‘‘second guessing’’ due to the varying degrees of interpretation. Accordingly, for market certainty, the Exchange submits that trading in an option should start once the underlying security has opened for trading regardless of the particular market. Amex Rules 918(b) and 918— ANTE(b) provide that trading on any Exchange option contract may be halted or suspended whenever the Exchange deems such action appropriate. Included in these rules is a list of factors that the Exchange may use to determine if a trading halt or suspension is warranted. Pursuant to Amex Rules 918(b)(1) and 918—ANTE(b)(1), the Exchange may consider to halt or suspend trading in an option contract if the underlying security has been halted or suspended in the primary market. Similarly, the Exchange may also consider, pursuant to Amex Rules 918(b)(2) and 918—ANTE(b)(2), halting or suspending trading in an option contract if the opening of such underlying stock in the primary market has been delayed due to unusual circumstances. As set forth above, the Exchange submits that the use of the term ‘‘primary market’’ is ambiguous and subject to varying degrees of interpretation. However, unlike openings, trading halts and suspensions should not directly correspond to a halt or suspension in the underlying in any market because such standard is too low for halting or suspending trading in an option. Accordingly, the Exchange proposes to implement trading halts and suspensions in any options contract if, with respect to Amex Rules 918(b)(1) and 918—ANTE(b)(1), the underlying security is subject to a trading halt or suspension across several markets or in the primary listed market. Similarly, a trading halt or suspension may also be implemented, with respect to Amex Rules 918(b)(2) and 918—ANTE(b)(2), if the opening of such underlying stock across several markets or in the primary listed market has been delayed due to unusual circumstances. The Exchange proposes to eliminate reference to ‘‘primary market’’ set forth in Amex Rule 918(a) and Rule 918— ANTE(a) and to amend the reference to ‘‘primary market’’ in Amex Rule 918(b) and Rule 918—ANTE(b). In addition, the Exchange also proposes to make clarifying changes to these rules so that trading rotations, halts and suspensions apply to any options on a stock, exchange traded fund and trust issued receipt. In Amendment No. 1, the Exchange noted that adding references to ‘‘exchange traded fund and trust issued receipt’’ to the proposed rule text VerDate Aug<31>2005 18:15 Dec 28, 2006 Jkt 211001 is intended to codify an existing practice on the Exchange. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6 of the Act5 in general and furthers the objectives of Section 6(b)(5) 6 in particular in that it is 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 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, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not 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 Amex consents, the Commission will: (A) By order approve such proposed rule change, as amended, 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 proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 5 15 6 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00081 Fmt 4703 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 Number SR–Amex 2006–77 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Amex 2006–77. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. 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 submissions should refer to File Number SR–Amex 2006–77 and should be submitted on or before January 19, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–22398 Filed 12–28–06; 8:45 am] BILLING CODE 8011–01–P 7 17 Sfmt 4703 78475 E:\FR\FM\29DEN1.SGM CFR 200.30–3(a)(12). 29DEN1

Agencies

[Federal Register Volume 71, Number 250 (Friday, December 29, 2006)]
[Notices]
[Pages 78474-78475]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22398]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54995; File No. SR-Amex-2006-77]


Self-Regulatory Organizations; American Stock Exchange, LLC; 
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To 
Amend Rules 918 and 918--Ante Regarding Trading Rotations, Halts and 
Suspensions

December 21, 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 August 16, 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 substantially prepared by the 
Exchange. On December 5, 2006, Amex filed Amendment No. 1 to the 
proposed rule change.\3\ 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.
    \31\ In Amendment No. 1, Amex made clarifying changes to the 
purpose section and made technical changes to the proposed rule 
text.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend Amex Rules 918 and 918--ANTE 
regarding trading rotations, halts and suspensions. The text of the 
proposed rule change is available on Amex's Web site (http://
www.amex.com), at Amex's Office of the Secretary, 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
    The Exchange proposes to eliminate reference to ``primary market'' 
set forth in Amex Rules 918(a) and 918--ANTE(a) and to amend the 
reference to ``primary market'' in Amex Rules 918(b) and 918--ANTE(b).
    The Exchange proposes to amend Amex Rules 918(a) and 918--ANTE(a) 
to delete the requirement that the opening of the trading rotation is 
dependent on the opening of the underlying security in the primary 
market. Currently, Amex Rules 918 and 918--ANTE(a) provide that a 
trading rotation shall be employed at the opening of each business day 
following the opening of the underlying security in the primary market. 
``Primary market'' is defined in Amex Rules 900(b)(26) and 900--
ANTE(b)(26) as (i) the principal exchange market in which the 
underlying security is traded so long as the underlying is principally 
traded on a national securities exchange, and (ii) the market reflected 
by the National Association of Securities Dealers Automated Quotation 
System (the ``NASDAQ'') if it is equity securities principally traded 
over-the-counter, or the market reflected by any widely recognized 
quotation dissemination system if it is any other type of security.
    As a result of the trading of underlying securities on multiple 
trading venues or markets (largely due to the introduction of 
Electronic Communication Networks or ``ECNs''), it has become 
increasingly difficult to determine, for purposes of Amex Rules 918(a) 
and 918--ANTE(a), which marketplace is the ``primary market.'' As an 
example, the Options Clearing Corporation (``OCC'') in connection with 
its methodology for obtaining underlying security prices at expiration 
changed to composite pricing.\4\ As a result of the number of 
securities exchanges and ECNs trading a particular underlying security, 
the Exchange submits that the analysis for determining the primary 
market has become overly burdensome and uncertain, subjecting Exchange 
staff to

[[Page 78475]]

instances of ``second guessing'' due to the varying degrees of 
interpretation. Accordingly, for market certainty, the Exchange submits 
that trading in an option should start once the underlying security has 
opened for trading regardless of the particular market.
---------------------------------------------------------------------------

    \4\ A ``composite'' security price is defined as the last 
reported sale price from any primary listing market (i.e., Amex, 
NYSE and Nasdaq), participating regional exchanges or other markets. 
See OCC Memo to Members 18930 (May 29, 2003) and Securities 
Exchange Act Release No. 49045 (January 8, 2004), 69 FR 2377 
(January 15, 2004).
---------------------------------------------------------------------------

    Amex Rules 918(b) and 918--ANTE(b) provide that trading on any 
Exchange option contract may be halted or suspended whenever the 
Exchange deems such action appropriate. Included in these rules is a 
list of factors that the Exchange may use to determine if a trading 
halt or suspension is warranted. Pursuant to Amex Rules 918(b)(1) and 
918--ANTE(b)(1), the Exchange may consider to halt or suspend trading 
in an option contract if the underlying security has been halted or 
suspended in the primary market. Similarly, the Exchange may also 
consider, pursuant to Amex Rules 918(b)(2) and 918--ANTE(b)(2), halting 
or suspending trading in an option contract if the opening of such 
underlying stock in the primary market has been delayed due to unusual 
circumstances.
    As set forth above, the Exchange submits that the use of the term 
``primary market'' is ambiguous and subject to varying degrees of 
interpretation. However, unlike openings, trading halts and suspensions 
should not directly correspond to a halt or suspension in the 
underlying in any market because such standard is too low for halting 
or suspending trading in an option. Accordingly, the Exchange proposes 
to implement trading halts and suspensions in any options contract if, 
with respect to Amex Rules 918(b)(1) and 918--ANTE(b)(1), the 
underlying security is subject to a trading halt or suspension across 
several markets or in the primary listed market. Similarly, a trading 
halt or suspension may also be implemented, with respect to Amex Rules 
918(b)(2) and 918--ANTE(b)(2), if the opening of such underlying stock 
across several markets or in the primary listed market has been delayed 
due to unusual circumstances.
    The Exchange proposes to eliminate reference to ``primary market'' 
set forth in Amex Rule 918(a) and Rule 918--ANTE(a) and to amend the 
reference to ``primary market'' in Amex Rule 918(b) and Rule 918--
ANTE(b). In addition, the Exchange also proposes to make clarifying 
changes to these rules so that trading rotations, halts and suspensions 
apply to any options on a stock, exchange traded fund and trust issued 
receipt. In Amendment No. 1, the Exchange noted that adding references 
to ``exchange traded fund and trust issued receipt'' to the proposed 
rule text is intended to codify an existing practice on the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act\5\ in general and furthers the objectives of 
Section 6(b)(5) \6\ in particular in that it is 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 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, and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The proposed rule change does not 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 Amex consents, the Commission will:
    (A) By order approve such proposed rule change, as amended, 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 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 Number SR-Amex 2006-77 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-Amex 2006-77. 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 the 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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 submissions should refer to 
File Number SR-Amex 2006-77 and should be submitted on or before 
January 19, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E6-22398 Filed 12-28-06; 8:45 am]
BILLING CODE 8011-01-P