Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Amend Its Minor Rule Violation Fine Systems, 24347 [E7-8312]
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Federal Register / Vol. 72, No. 84 / Wednesday, May 2, 2007 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55671; File No. SR–Amex–
2007–22]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1 Thereto,
To Amend Its Minor Rule Violation Fine
Systems
April 26, 2007.
On February 21, 2007, 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
incorporate violations of Amex Rule
131A—AEMI and Commentary .03 to
Amex Rule 958—ANTE into Part 1 of its
Minor Rule Violation Fine Systems
(‘‘Plan’’).3 On March 20, 2007, the
Exchange filed Amendment No. 1 to the
proposed rule change. The proposed
rule change, as amended, was published
for comment in the Federal Register on
March 27, 2007.4 The Commission
received no comments regarding the
proposal. The Commission is approving
the proposed rule change, as modified
by Amendment No. 1.
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.5 In particular, the
Commission believes that the proposal
is consistent with Section 6(b)(5) of the
Act,6 because a rule that is reasonably
designed to encourage members to
comply with Exchange rules should
help the Exchange carry out its
supervisory responsibilities and thereby
help protect investors and the public
interest.
The Commission further believes that
the proposal is consistent with Sections
6(b)(1) and 6(b)(6) of the Act,7 which
require that the rules of an exchange
enforce compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules. In
addition, because the Plan provides
15 U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
3 See Amex Rule 590.
4 See Securities Exchange Act Release No. 55500
(March 21, 2007), 72 FR 14314.
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(1) and 78f(b)(6).
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procedural rights to a person fined for
any violation of an Exchange rule that
is determined to be minor in nature to
contest the fine and permits disciplinary
proceedings on the matter, the
Commission believes that the Plan, as
amended by this proposal, provides a
fair procedure for the disciplining of
members and persons associated with
members, consistent with Sections
6(b)(7) and 6(d)(1) of the Act.8
Finally, the Commission finds that the
proposal is consistent with the public
interest, the protection of investors, or
otherwise in furtherance of the purposes
of the Act, as required by Rule 19d–
1(c)(2) under the Act,9 which governs
minor rule violation plans. The
Commission believes that the proposed
change to the Plan will strengthen the
Exchange’s ability to carry out its
oversight and enforcement
responsibilities as a self-regulatory
organization in cases where full
disciplinary proceedings are unsuitable
in view of the minor nature of the
particular violation.
In approving this proposed rule
change, the Commission in no way
minimizes the importance of
compliance with Amex rules and all
other rules subject to the imposition of
fines under the Exchange’s Plan. The
Commission believes that the violation
of any self-regulatory organization’s
rules, as well as Commission rules, is a
serious matter. However, the Plan
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that Amex will continue to
conduct surveillance with due diligence
and make a determination based on its
findings, on a case-by-case basis,
whether a fine of more or less than the
recommended amount is appropriate for
a violation under the Plan or whether a
violation requires formal disciplinary
action.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 10 and Rule
19d–1(c)(2) under the Act,11 that the
proposed rule change (SR–Amex–2007–
22), as modified by Amendment No. 1,
be, and hereby is, approved and
declared effective.
PO 00000
15 U.S.C. 78f(b)(7) and 78f(d)(1).
17 CFR 240.19d–1(c)(2).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 240.19d–1(c)(2).
8
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24347
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8312 Filed 5–1–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55668; File No. SR–
NASDAQ–2007–030]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Order Granting Accelerated
Approval of Proposed Rule Change
Relating to the Extension of a Fee Pilot
for National Quotation Data Service
April 25, 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 29, 2007,
The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) 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 substantially by the
Nasdaq. 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
Nasdaq proposes to re-establish
retroactively from January 1, 2007
through December 31, 2007, a pilot
program under Nasdaq Rule 7017(b),
which reduced from $50 to $10 the
monthly fee that non-professional users
pay to receive National Quotation Data
Service (‘‘NQDS’’).
The text of the proposed rule change
is available at https://
nasdaq.complinet.com, Nasdaq’s
principal office, and 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,
Nasdaq included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
12 See 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(44).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FEDREG\02MYN1.LOC
02MYN1
]]>Agencies
[Federal Register Volume 72, Number 84 (Wednesday, May 2, 2007)]
[Notices]
[Page 24347]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8312]
[[Page 24347]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55671; File No. SR-Amex-2007-22]
Self-Regulatory Organizations; American Stock Exchange LLC; Order
Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto,
To Amend Its Minor Rule Violation Fine Systems
April 26, 2007.
On February 21, 2007, 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 incorporate violations of Amex Rule 131A--AEMI
and Commentary .03 to Amex Rule 958--ANTE into Part 1 of its Minor Rule
Violation Fine Systems (``Plan'').\3\ On March 20, 2007, the Exchange
filed Amendment No. 1 to the proposed rule change. The proposed rule
change, as amended, was published for comment in the Federal Register
on March 27, 2007.\4\ The Commission received no comments regarding the
proposal. The Commission is approving the proposed rule change, as
modified by Amendment No. 1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Amex Rule 590.
\4\ See Securities Exchange Act Release No. 55500 (March 21,
2007), 72 FR 14314.
---------------------------------------------------------------------------
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.\5\ In
particular, the Commission believes that the proposal is consistent
with Section 6(b)(5) of the Act,\6\ because a rule that is reasonably
designed to encourage members to comply with Exchange rules should help
the Exchange carry out its supervisory responsibilities and thereby
help protect investors and the public interest.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission further believes that the proposal is consistent
with Sections 6(b)(1) and 6(b)(6) of the Act,\7\ which require that the
rules of an exchange enforce compliance with, and provide appropriate
discipline for, violations of Commission and Exchange rules. In
addition, because the Plan provides procedural rights to a person fined
for any violation of an Exchange rule that is determined to be minor in
nature to contest the fine and permits disciplinary proceedings on the
matter, the Commission believes that the Plan, as amended by this
proposal, provides a fair procedure for the disciplining of members and
persons associated with members, consistent with Sections 6(b)(7) and
6(d)(1) of the Act.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\8\ 15 U.S.C. 78f(b)(7) and 78f(d)(1).
---------------------------------------------------------------------------
Finally, the Commission finds that the proposal is consistent with
the public interest, the protection of investors, or otherwise in
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2)
under the Act,\9\ which governs minor rule violation plans. The
Commission believes that the proposed change to the Plan will
strengthen the Exchange's ability to carry out its oversight and
enforcement responsibilities as a self-regulatory organization in cases
where full disciplinary proceedings are unsuitable in view of the minor
nature of the particular violation.
---------------------------------------------------------------------------
\9\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
In approving this proposed rule change, the Commission in no way
minimizes the importance of compliance with Amex rules and all other
rules subject to the imposition of fines under the Exchange's Plan. The
Commission believes that the violation of any self-regulatory
organization's rules, as well as Commission rules, is a serious matter.
However, the Plan provides a reasonable means of addressing rule
violations that do not rise to the level of requiring formal
disciplinary proceedings, while providing greater flexibility in
handling certain violations. The Commission expects that Amex will
continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for a
violation under the Plan or whether a violation requires formal
disciplinary action.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\10\ and Rule 19d-1(c)(2) under the Act,\11\ that the proposed rule
change (SR-Amex-2007-22), as modified by Amendment No. 1, be, and
hereby is, approved and declared effective.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
\11\ 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ See 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8312 Filed 5-1-07; 8:45 am]
BILLING CODE 8010-01-P
