Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Shorten the Minimum Required Time Periods Required Between Tape Indications and Openings or Reopenings, 19988-19990 [E7-7553]

Download as PDF 19988 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices or futures contracts would not be subject to Exchange jurisdiction, but the Exchange could obtain information regarding the activities of such subsidiary or affiliate through surveillance sharing agreements with regulatory organizations of which such subsidiary or affiliate is a member. sroberts on PROD1PC70 with NOTICES III. Discussion and Commission Findings After careful consideration, 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 8 and, in particular, the requirements of Section 6 of the Act.9 Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,10 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, 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 market system, and, in general, to protect investors and the public interest. The Commission further believes that the proposal is consistent with Section 11A(a)(1)(C)(iii) of the Act,11 which sets forth Congress’ finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers, and investors of information with respect to quotations for and transaction in securities. Amex represented that quotation for and lastsale information regarding the futures contracts held by USNG, including the future contracts underlying the Benchmark Index are widely disseminated through a variety of market data vendors worldwide, including Bloomberg and Reuters. In addition, the Exchange further represented that real-time futures data is available by subscription from Reuters and Bloomberg. The NAV of the Units is available at the Web site of the Exchange. The Commission believes that Amex’s proposal is reasonable designed to promote transparency in the pricing of the Units, and to prevent trading when a reasonable degree of transparency cannot be assured. The 8 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78k–1(a)(1)(C)(iii). VerDate Aug<31>2005 18:52 Apr 19, 2007 Jkt 211001 proposal also appears reasonably designed to prevent the misuse of information by specialists. In support of this proposal, the Exchange has made the following representations: (1) The Exchange represented that it currently has in place an Information Sharing Agreement with the NYMEX and ICE Futures for the purpose of providing information in connection with trading in or related to futures contracts traded on the NYMEX and ICE Futures, respectively. To the extent that USNG invests in Natural Gas Interests traded on other exchanges, the Amex represented that it will seek to enter into Information Sharing arrangements with those particular exchanges. (2) Amex would distribute an information circular to Exchange members and member organizations, prior to the commencement of trading providing guidance with regard to member firm compliance responsibilities (including suitability recommendations) when handling transaction in the Units. In addition, investors purchasing Units directly from USNG (by delivery of the Deposit Amount) would receive a prospectus from USNG. Amex members purchasing Units from USNG for resale to investors would deliver a prospectus to such investors. (3) Amex submits that its surveillance procedures are adequate to deter and detect violations of Exchange rules relating to the trading of the Units. The surveillance procedures for the Units will be similar to those used for units of the United States Oil Fund, LP as well as other commodity-based trusts, trust issued receipts and exchange-traded funds. In addition, the surveillance procedures will incorporate and rely upon existing Amex surveillance procedures governing options and equities. (4) Amex represents that it prohibits the initial and/or continued listing of any security that is not in compliance with Rule 10A–3 under the Act.12 This order is conditioned on Amex’s adherence to these representations. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,13 that the proposed rule change (SR–Amex–2006– 112), as modified by Amendment No. 1, be, and is hereby approved. 12 See 13 15 PO 00000 17 CFR 240.10A–3. U.S.C. 78s(b)(2). Frm 00113 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–7486 Filed 4–19–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55636; File No. SR–Amex– 2007–32] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Shorten the Minimum Required Time Periods Required Between Tape Indications and Openings or Reopenings April 16, 2007. 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 30, 2007, 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 and II below, which Items have been prepared by the Amex. The Exchange has filed the proposal pursuant to Section 19(b)(3)(A) of the Act,3 and Rule 19b– 4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Amex Rules regarding openings and halts in trading to shorten the minimum time periods required between tape indications and openings or reopenings. The Exchange has designated this proposal as non-controversial and has requested that the Commission waive the 30-day pre-operative waiting period contained in Rule 19b–4(f)(6)(iii) under the Act.5 The text of the proposed rule change is available on the Amex’s Web site at https://www.amex.com, the Office of the Secretary, the Amex and at the Commission’s Public Reference Room. 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 5 17 CFR 240.19b–4(f)(6)(iii). 1 15 E:\FR\FM\20APN1.SGM 20APN1 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 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. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. sroberts on PROD1PC70 with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Specialists in equity-traded securities 6 are responsible for ensuring that their specialty securities open for trading as close to the opening bell as possible, and reopen for trading after a trading halt as soon as possible. After a trading halt, the specialist must strive to open or reopen a security in a manner that is not only timely, but is also fair and orderly. Ordinarily, before the opening bell, the specialist will assess existing market conditions and consider the balance of supply and demand for a security as reflected by orders represented in the market. Under certain conditions, he or she may provide this information to the market in the form of price indications that are published on the consolidated tape. In the event of a delayed opening, or the reopening of trading in a security after a trading halt, the specialist may be required to assess market conditions prior to the delayed opening or reopening, and publish a price indication to the market accordingly, while providing market participants with sufficient time to react and participate as they deem appropriate. Current rules require minimum time periods as long as ten minutes between a specialist’s dissemination of a price indication and the delayed opening or reopening of trading. Technological developments have increased the speed of communication since these rules were introduced, and market conditions may change substantially within the time periods now required between the indication and the opening or resumption of trading. Accordingly, the Exchange is proposing an amendment to 6 Equity-traded securities include stocks (both listed and those trading on an Unlisted Trading Privileges Basis), Exchange Traded Funds, and other securities that trade like equities. See Amex Rule 1A–AEMI(c). VerDate Aug<31>2005 18:52 Apr 19, 2007 Jkt 211001 the rules to provide flexibility to react quickly, when appropriate, by reducing the minimum amount of time required between indications and delayed openings or reopenings after a trading halt. Amex Rule 119–AEMI (governing indications, openings and reopenings) currently provides that the specialist may not open or reopen a stock that has been the subject of a halt or delayed opening until ten minutes have elapsed following the first indication. Where there is more than one indication, a minimum of five minutes must elapse from the last indication, provided that at least ten minutes has elapsed since the first indication. The Exchange proposes that these minimum time periods be shortened from ten minutes to three minutes after the first indication, and from three minutes to one minute after the last indication, provided that a minimum of three minutes have elapsed since the first indication. For a stock that is halted during the trading day, current rules require a minimum of five minutes between the first indication and the stock’s reopening. Where there is more than one indication, a minimum of three minutes must elapse from the last indication, provided that at least five minutes have elapsed after the first indication. The Exchange proposes that these time periods be shortened from five minutes to three minutes after the first indication, and from three minutes to one minute after the last indication, provided that a minimum of three minutes has elapsed after the dissemination of the first indication. If a stock is halted during the trading day due to an ‘‘equipment changeover,’’ a minimum of five minutes must elapse following the halt before trading resumes. Should a significant order imbalance develop 7 or a regulatory condition occur (i.e., news pending or news dissemination), current rules require a ten minute minimum halt period following the first indication before reopening for trading. The Exchange now proposes that the standard five minute period after an ‘‘equipment changeover’’ be shortened to one minute and the ten minute period be shortened to three minutes after an ‘‘equipment changeover’’ during which 7 A ‘‘significant order imbalance’’ is one which would result in a reopening at a price change constituting the greater of 1% or two points away from the last previous sale in a stock selling at $20 or more, one point or more away from the last previous sale in a stock selling at $10 or more (but less than $20), and one/half point or more away from the last previous sale in a stock selling at less than $10. See Amex Rule 119–AEMI(3)(a). PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 19989 a significant order imbalance or regulatory condition develops. The Exchange further proposes amendments to Exchange Rule 118– AEMI, Trading in Nasdaq Securities, to conform the minimum time periods required for openings and reopenings in securities traded on the Amex on an unlisted trading privileges basis to those proposed for listed securities. Additionally, the Exchange proposes a housekeeping change where references to a ‘‘Floor Governor’’ in Rule 119– AEMI would be changed to ‘‘Senior Floor Official’’ reflecting that the authority granted to a Floor Governor can be exercised by a Senior Floor Official.8 2. Statutory Basis The proposed rule change is consistent with Section 6(b) 9 of the Act in general and furthers the objectives of Section 6(b)(5) 10 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 facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change will impose no burden on competition. 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 The foregoing proposed rule change is subject to Section 19(b)(3)(A)(iii) of the Act 11 and Rule 19b–4(f)(6) thereunder 12 because the proposal: (i) Does not significantly affect the protection of 8 The Commission approved an amendment to Amex Rule 21 which provides that: ‘‘An Exchange Official who has been appointed as a Senior Floor Official has the same authority and responsibilities as a Floor Governor with respect to matters that arise on the Floor and require review or action by a Floor Governor or Senior Floor Official.’’ See Securities Exchange Act Release 51503 (April 7, 2005), 70 FR 19534 (April 13, 2005) (SR–Amex– 2004–65). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78s(b)(3)(A)(iii). 12 17 CFR 240.19b–4(f)(6). E:\FR\FM\20APN1.SGM 20APN1 19990 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) does not become operative prior to 30 days after the date of filing or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest; provided that the Exchange has given the Commission notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),13 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay.14 The Commission believes that such waiver is consistent with the protection of investors and the public interest because the proposed changes to the required minimum time periods between tape indications and openings and reopenings are substantially similar to a recently approved proposal submitted by the New York Stock Exchange LLC (‘‘NYSE’’).15 For this reason, the Commission designates the proposed rule change to be operative on April 2, 2007, as the Exchange proposed.16 At any time within 60 days of the filing of such 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 13 17 CFR 240.19b–4(f)(6)(iii). sroberts on PROD1PC70 with NOTICES 14 Id. 15 The Commission recently approved a substantially similar proposal from the NYSE that included identical changes to the required minimum time periods between tape indications and openings and reopenings. See Securities Exchange Act Release No. 54530 (September 28, 2006), 71 FR 58645 (October 3, 2006) (SR–NYSE– 2006–49). 16 For purposes only of accelerating the operative date of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). VerDate Aug<31>2005 18:52 Apr 19, 2007 Jkt 211001 change is consistent with the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–55639; File No. SR–BSE– 2007–15] • 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–2007–32 on the subject line. Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Existing BeX Fee Schedule April 16, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on April 2, to Nancy M. Morris, Secretary, 2007, the Boston Stock Exchange, Inc. Securities and Exchange Commission, (‘‘BSE’’ or ‘‘Exchange’’) filed with the 100 F Street, NE., Washington, DC Securities and Exchange Commission 20549–1090. (‘‘Commission’’) the proposed rule All submissions should refer to File change as described in Items I, II, and Number SR–Amex–2007–32. This file III below, which Items have been number should be included on the substantially prepared by the Exchange. subject line if e-mail is used. To help the The BSE has designated this proposal as one changing a due, fee, or other charge Commission process and review your under Section 19(b)(3)(A)(ii) of the Act 3 comments more efficiently, please use only one method. The Commission will and Rule 19b–4(f)(2) thereunder,4 which post all comments on the Commission’s renders the proposal effective upon filing with the Commission. The Internet Web site (https://www.sec.gov/ Commission is publishing this notice to rules/sro.shtml). Copies of the solicit comments on the proposed rule submission, all subsequent change from interested persons. amendments, all written statements with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the The BSE proposes to amend the proposed rule change between the Boston Equities Exchange (‘‘BeX’’) fee Commission and any person, other than schedule to provide for a credit in the those that may be withheld from the amount of $0.0027 to which Liquidity public in accordance with the Providers would be entitled. The text of provisions of 5 U.S.C. 552, will be the proposed rule change is available at available for inspection and copying in https://www.bostonstock.com, at the the Commission’s Public Reference BSE, and at the Commission’s Public Room. Copies of the filing also will be Reference Room. available for inspection and copying at II. Self-Regulatory Organization’s the principal office of the Amex. All Statement of the Purpose of, and comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying information from submissions. You In its filing with the Commission, the should submit only information that Exchange included statements you wish to make available publicly. All concerning the purpose of, and basis for, submissions should refer to File the proposed rule change and discussed Number SR–Amex–2007–32 and should any comments it received on the be submitted on or before May 11, 2007. proposed rule change. The text of these statements may be examined at the For the Commission, by the Division of places specified in Item IV below. The Market Regulation, pursuant to delegated Exchange has prepared summaries, set authority.17 forth in Sections A, B, and C below, of Nancy M. Morris, the most significant aspects of such Secretary. statements. Paper Comments [FR Doc. E7–7553 Filed 4–19–07; 8:45 am] BILLING CODE 8010–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 17 17 PO 00000 CFR 200.30–3(a)(12). Frm 00115 Fmt 4703 Sfmt 4703 E:\FR\FM\20APN1.SGM 20APN1

Agencies

[Federal Register Volume 72, Number 76 (Friday, April 20, 2007)]
[Notices]
[Pages 19988-19990]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7553]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55636; File No. SR-Amex-2007-32]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Shorten the Minimum Required Time Periods Required Between Tape 
Indications and Openings or Reopenings

April 16, 2007.
    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 30, 2007, 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 and 
II below, which Items have been prepared by the Amex. The Exchange has 
filed the proposal pursuant to Section 19(b)(3)(A) of the Act,\3\ and 
Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the Amex Rules regarding openings 
and halts in trading to shorten the minimum time periods required 
between tape indications and openings or reopenings. The Exchange has 
designated this proposal as non-controversial and has requested that 
the Commission waive the 30-day pre-operative waiting period contained 
in Rule 19b-4(f)(6)(iii) under the Act.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Amex's Web 
site at https://www.amex.com, the Office of the Secretary, the Amex and 
at the Commission's Public Reference Room.

[[Page 19989]]

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. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Specialists in equity-traded securities \6\ are responsible for 
ensuring that their specialty securities open for trading as close to 
the opening bell as possible, and reopen for trading after a trading 
halt as soon as possible. After a trading halt, the specialist must 
strive to open or reopen a security in a manner that is not only 
timely, but is also fair and orderly.
---------------------------------------------------------------------------

    \6\ Equity-traded securities include stocks (both listed and 
those trading on an Unlisted Trading Privileges Basis), Exchange 
Traded Funds, and other securities that trade like equities. See 
Amex Rule 1A-AEMI(c).
---------------------------------------------------------------------------

    Ordinarily, before the opening bell, the specialist will assess 
existing market conditions and consider the balance of supply and 
demand for a security as reflected by orders represented in the market. 
Under certain conditions, he or she may provide this information to the 
market in the form of price indications that are published on the 
consolidated tape. In the event of a delayed opening, or the reopening 
of trading in a security after a trading halt, the specialist may be 
required to assess market conditions prior to the delayed opening or 
reopening, and publish a price indication to the market accordingly, 
while providing market participants with sufficient time to react and 
participate as they deem appropriate.
    Current rules require minimum time periods as long as ten minutes 
between a specialist's dissemination of a price indication and the 
delayed opening or reopening of trading. Technological developments 
have increased the speed of communication since these rules were 
introduced, and market conditions may change substantially within the 
time periods now required between the indication and the opening or 
resumption of trading. Accordingly, the Exchange is proposing an 
amendment to the rules to provide flexibility to react quickly, when 
appropriate, by reducing the minimum amount of time required between 
indications and delayed openings or reopenings after a trading halt.
    Amex Rule 119-AEMI (governing indications, openings and reopenings) 
currently provides that the specialist may not open or reopen a stock 
that has been the subject of a halt or delayed opening until ten 
minutes have elapsed following the first indication. Where there is 
more than one indication, a minimum of five minutes must elapse from 
the last indication, provided that at least ten minutes has elapsed 
since the first indication. The Exchange proposes that these minimum 
time periods be shortened from ten minutes to three minutes after the 
first indication, and from three minutes to one minute after the last 
indication, provided that a minimum of three minutes have elapsed since 
the first indication.
    For a stock that is halted during the trading day, current rules 
require a minimum of five minutes between the first indication and the 
stock's reopening. Where there is more than one indication, a minimum 
of three minutes must elapse from the last indication, provided that at 
least five minutes have elapsed after the first indication. The 
Exchange proposes that these time periods be shortened from five 
minutes to three minutes after the first indication, and from three 
minutes to one minute after the last indication, provided that a 
minimum of three minutes has elapsed after the dissemination of the 
first indication.
    If a stock is halted during the trading day due to an ``equipment 
changeover,'' a minimum of five minutes must elapse following the halt 
before trading resumes. Should a significant order imbalance develop 
\7\ or a regulatory condition occur (i.e., news pending or news 
dissemination), current rules require a ten minute minimum halt period 
following the first indication before reopening for trading. The 
Exchange now proposes that the standard five minute period after an 
``equipment changeover'' be shortened to one minute and the ten minute 
period be shortened to three minutes after an ``equipment changeover'' 
during which a significant order imbalance or regulatory condition 
develops.
---------------------------------------------------------------------------

    \7\ A ``significant order imbalance'' is one which would result 
in a reopening at a price change constituting the greater of 1% or 
two points away from the last previous sale in a stock selling at 
$20 or more, one point or more away from the last previous sale in a 
stock selling at $10 or more (but less than $20), and one/half point 
or more away from the last previous sale in a stock selling at less 
than $10. See Amex Rule 119-AEMI(3)(a).
---------------------------------------------------------------------------

    The Exchange further proposes amendments to Exchange Rule 118-AEMI, 
Trading in Nasdaq Securities, to conform the minimum time periods 
required for openings and reopenings in securities traded on the Amex 
on an unlisted trading privileges basis to those proposed for listed 
securities. Additionally, the Exchange proposes a housekeeping change 
where references to a ``Floor Governor'' in Rule 119-AEMI would be 
changed to ``Senior Floor Official'' reflecting that the authority 
granted to a Floor Governor can be exercised by a Senior Floor 
Official.\8\
---------------------------------------------------------------------------

    \8\ The Commission approved an amendment to Amex Rule 21 which 
provides that: ``An Exchange Official who has been appointed as a 
Senior Floor Official has the same authority and responsibilities as 
a Floor Governor with respect to matters that arise on the Floor and 
require review or action by a Floor Governor or Senior Floor 
Official.'' See Securities Exchange Act Release 51503 (April 7, 
2005), 70 FR 19534 (April 13, 2005) (SR-Amex-2004-65).
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \9\ of the 
Act in general and furthers the objectives of Section 6(b)(5) \10\ 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 facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The proposed rule change will impose no burden on competition.

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

    The foregoing proposed rule change is subject to Section 
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder \12\ 
because the proposal: (i) Does not significantly affect the protection 
of

[[Page 19990]]

investors or the public interest; (ii) does not impose any significant 
burden on competition; and (iii) does not become operative prior to 30 
days after the date of filing or such shorter time as the Commission 
may designate if consistent with the protection of investors and the 
public interest; provided that the Exchange has given the Commission 
notice of its intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least five 
business days prior to the date of filing of the proposed rule change, 
or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay.\14\ The Commission 
believes that such waiver is consistent with the protection of 
investors and the public interest because the proposed changes to the 
required minimum time periods between tape indications and openings and 
reopenings are substantially similar to a recently approved proposal 
submitted by the New York Stock Exchange LLC (``NYSE'').\15\ For this 
reason, the Commission designates the proposed rule change to be 
operative on April 2, 2007, as the Exchange proposed.\16\
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ Id.
    \15\ The Commission recently approved a substantially similar 
proposal from the NYSE that included identical changes to the 
required minimum time periods between tape indications and openings 
and reopenings. See Securities Exchange Act Release No. 54530 
(September 28, 2006), 71 FR 58645 (October 3, 2006) (SR-NYSE-2006-
49).
    \16\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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:

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 Number SR-Amex-2007-32 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-2007-32. 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 the filing 
also will be available for inspection and copying at the principal 
office of the 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 submissions should refer to File Number 
SR-Amex-2007-32 and should be submitted on or before May 11, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-7553 Filed 4-19-07; 8:45 am]
BILLING CODE 8010-01-P
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