Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating to the Continuation of a Quote Assist Feature in the ANTE System on a Pilot Program Basis, 26186-26188 [E7-8734]

Download as PDF 26186 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 cprice-sewell on PROD1PC66 with NOTICES Extension: Rule 19h–1, SEC File No. 270–247, OMB Control No. 3235–0259. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (‘‘Commission’’) intends to submit to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. • Rule 19h–1 (17 CFR 240.19h–1): SRO notification of admission and/or continuance despite statutory disqualification. Rule 19h–1 (‘‘Rule’’) under the Securities Exchange Act of 1934 (17 U.S.C. 78a et seq.) prescribes the form and content of notices and applications by self-regulatory organizations (‘‘SROs’’) regarding proposed admissions to, or continuances in, membership, participation or association with a member of any person subject to a statutory disqualification. The Commission uses the information provided in the submissions filed pursuant to Rule 19h–1 to review decisions by SROs to permit the entry into or continuance in the securities business of persons who have committed serious misconduct. The filings submitted pursuant to the Rule also permit inclusion of an application to the Commission for consent to associate with a member of an SRO notwithstanding a Commission order barring such association. The Commission reviews filings made pursuant to the Rule to ascertain whether it is in the public interest to permit the employment in the securities business of persons subject to statutory disqualification. The filings contain information that is essential to the staff’s review and ultimate determination on whether an association or employment is in the public interest and consistent with investor protection. It is estimated that approximately 5 respondents will make submissions pursuant to this rule annually and that they each will make 5 responses, for a total burden of 200 hours, based upon past submissions (25 × 8 = 200). The staff estimates that the average number VerDate Aug<31>2005 15:36 May 07, 2007 Jkt 211001 of hours necessary to complete a submission pursuant to Rule 19h–1 is 8 hours. The average cost per hour for completion of a submission is approximately $101. Therefore, the total cost of compliance for the respondents is $20,200. (25 responses × 8 hours per response × $101 per hour). Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Direct your written comments to R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 60 days of this notice. Dated: April 30, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8737 Filed 5–7–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55685; File No. SR–Amex– 2007–41] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating to the Continuation of a Quote Assist Feature in the ANTE System on a Pilot Program Basis April 30, 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 April 24, 2006, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00116 Fmt 4703 Sfmt 4703 Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice and order to solicit comments on the proposed rule change from interested persons and to grant accelerated approval to the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Amex Rule 958A—ANTE (e) (the ‘‘Rule’’) to extend until April 30, 2008, its pilot program implementing a quoteassist feature in the Exchange’s ANTE system (‘‘Pilot Program’’). The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room and (https:// www.amex.com/). 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 proposed rule change. The text of these statements may be examined at the places specified in Item III 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 Rule currently requires all option specialists to execute or display customer limit orders that improve the bid or offer by price or size immediately upon receipt, unless one of the exceptions set forth in the Rule applies. ‘‘Immediately upon receipt’’ is defined in the Rule ‘‘as soon as practicable which shall mean, under normal market conditions, no later than 30 seconds after receipt’’.3 In order to assist the specialists in complying with the Rule as described above, the ANTE System provides specialists with an automated quote assist feature on a pilot program basis.4 3 See Securities Exchange Act Release No. 51062 (January 21, 2005) 70 FR 4163 (January 28, 2005). 4 See Securities Exchange Act Release Nos. 49747 (May 20, 2004), 69 FR 30344, 30347 (May 27, 2004) (approving implementation of the ANTE system, E:\FR\FM\08MYN1.SGM 08MYN1 cprice-sewell on PROD1PC66 with NOTICES Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices The quote assist feature automatically displays eligible limit orders within a configurable time that can be set on a class-by-class basis by the Exchange. The time frame within which limit orders must be addressed, a maximum of 30 seconds under the Rule, may be set to a shorter time period by the Exchange. The specialist maintaining the quote assist feature may then use the feature to automatically display orders within a shorter time period than the time period set by the Exchange. While all customer limit orders are expected to be displayed immediately, the quote assist feature can be set to automatically display limit orders at or close to the end of the 30-second time frame or within any other shorter time frame established by the Exchange. In instances where the specialist has not addressed the order within the applicable 30-second period, the quote assist feature will automatically display the eligible customer limit order in the limit order book at or close to the end of that period. The quote assist feature helps to ensure that eligible customer limit orders are displayed within the required time period then in effect. Rule 958A—ANTE (e)(4) currently requires the specialist to maintain and keep active the limit order quote assist feature. The specialist may establish the time frame within which the quote assist feature displays eligible customer limit orders, which time frame does not exceed the customer limit order display requirement set forth in the Rule. The specialist may deactivate the quote assist feature provided Floor Official approval is obtained. The specialist must obtain Floor Official approval as soon as practicable but in no event later than three minutes after deactivation. If the specialist does not receive approval within three minutes after deactivation, the Exchange will review the matter as a regulatory issue. Floor Officials will grant approval only in instances when there is an unusual influx of orders or movement of the underlying that would result in gap pricing or other unusual circumstances. The Exchange will document all instances where a Floor Official has granted approval. The Exchange notes that the quote assist feature does not relieve the specialists of their obligation to display customer limit orders immediately. To the extent that a specialist excessively relies on the quote assist feature to display eligible limit orders without including the quote assist feature on a pilot basis); 51955 (June 30, 2005), 70 FR 39812 (July 11, 2005) (extending the Pilot Program until April 30, 2006); and 53950 (June 6, 2006) 71 FR 34401 (June 14, 2006) (extending the Pilot Program until April 30, 2007). VerDate Aug<31>2005 15:36 May 07, 2007 Jkt 211001 attempting to address the orders immediately, the specialist could be violating the Rule. However, brief or intermittent reliance on the quote assist feature by a specialist during an unexpected surge in trading activity in an option class would not violate the Rule if used when the specialist is not physically able to address all the eligible limit orders within 30 seconds. The Exchange has issued a regulatory notice discussing excessive reliance on the quote assist feature. The Exchange will continue to conduct surveillance to ensure that specialists comply with their obligation to execute or book all eligible limit orders within the time period prescribed by Exchange rules. The Exchange commits to conduct surveillance designed to detect whether specialists as a matter of course rely on the quoteassist feature to display all eligible limit orders. A practice of excessive reliance upon the quote assist feature will be reviewed by the Division of Regulation and Compliance as a possible violation of the Rule. The Exchange runs its limit order display exception report at various display intervals in an attempt to detect a pattern suggestive of undue reliance on the quote assist feature. The Exchange reports to the Commission every three months the statistical data it uses to determine whether there has been impermissible reliance on the quote assist feature by specialists. The Exchange now proposes to continue the quote assist feature on a pilot program basis from April 30, 2007 until April 30, 2008. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,5 in general, and furthers the objectives of Section 6(b)(5) of the Act,6 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade. 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. 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. 5 15 6 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00117 Fmt 4703 Sfmt 4703 26187 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: 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–2007–41 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Amex–2007–41. 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 such 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–2007–41 and should be submitted on or before May 29, 2007. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change 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 E:\FR\FM\08MYN1.SGM 08MYN1 26188 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices exchange.7 In particular, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act,8 which requires, among other things, that the rules of the Exchange be designed 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 believes that the quote assist feature should help to ensure that eligible customer limit orders are displayed within the required time period. The Commission notes that the Exchange represents that it will continue to conduct surveillance to ensure that specialists comply with their obligation to execute or book all eligible limit orders within the time period prescribed by Exchange rules, and that excessive reliance upon the quote assist feature will be reviewed by the Exchange as a possible violation of the Rule. The Exchange has requested that the Commission approve the proposed rule change prior to the thirtieth day after publication of notice of the filing in the Federal Register. The Commission believes that granting accelerated approval will allow the Exchange to continue to operate the Pilot Program without interruption. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,9 for approving the proposal prior to the thirtieth day after publication of the notice of the filing thereof in the Federal Register. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (SR–Amex–2007– 41) is hereby approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8734 Filed 5–7–07; 8:45 am] cprice-sewell on PROD1PC66 with NOTICES BILLING CODE 8010–01–P 7 In approving the proposed rule, the Commission has considered the rule’s impact on efficiency, competition and capital formation. See 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(2). 10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:36 May 07, 2007 Jkt 211001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55684; File No. SR–BSE– 2007–17] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the $1 Strike Pilot Program for an Additional Year April 30, 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 April 25, 2007, 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, II, and III below, which Items have been substantially prepared by BSE. The Exchange has filed the proposal as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders it 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 its rules to extend its $1 strike pilot program (‘‘Pilot Program’’) for an additional year until June 5, 2008. The text of the proposed rule change is available at BSE, the Commission’s Public Reference Room, and https:// www.bostonstock.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, BSE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. BSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 2 17 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to extend the Pilot Program 5 under the Rules of the Boston Options Exchange (‘‘BOX’’) for an additional year. The Pilot Program allows the Boston Options Exchange Regulation (‘‘BOXR’’), the department of BSE with the delegated regulatory authority over BOX, to list options on a pilot basis on up to five selected underlying equities trading below $20 at $1 strike price intervals and to list $1 strike prices on any equity option included in the $1 strike price pilot program of any other options exchange until June 5, 2007. The proposed rule change retains the text of Supplementary Material .02 to Section 6 of Chapter IV of the BOX Rules, as currently established on a pilot basis, and seeks to extend the operation of the Pilot Program for another year until June 5, 2008. Chapter IV, Section 6 of the BOX Rules establishes guidelines regarding the addition of options series for trading on BOX. Under the Pilot Program, in order to be eligible for selection into the Pilot Program, the underlying stock must close below $20 on its primary market on the previous trading day. If selected for the Pilot Program, BOXR may list strike prices at $1 intervals from $3 to $20, but no $1 strike price may be listed that is greater than $5 from the underlying stock’s closing price on its primary market on the previous day. BOXR also may list $1 strikes on any other options class designated by another options exchange that employs a similar pilot program under its rules. BOXR may not list longterm option series (‘‘LEAPS’’) at $1 strike price intervals for any class selected for the Pilot Program. BOXR also is restricted from listing any series that would result in strike prices being $0.50 apart. The Pilot Program was initially proposed in reaction to the general decrease in stock prices and the proliferation of stocks trading below $20, including some of the most widely held and actively traded equity securities listed on the New York Stock 5 BSE implemented the Pilot Program in February 2004 and extended it three times through June 5, 2007. See Securities Exchange Act Release Nos. 49292 (February 20, 2004), 69 FR 8993 (February 26, 2004) (SR–BSE–2004–01) (establishing the Pilot Program); 49806 (June 4, 2004), 69 FR 32640 (June 10, 2004) (SR–BSE–2004–22); 51778 (June 2, 2005), 70 FR 33562 (June 8, 2005) (SR–BSE–2005–18); and 53855 (May 24, 2006), 71 FR 30973 (May 31, 2006) (SR–BSE–2006–19). E:\FR\FM\08MYN1.SGM 08MYN1

Agencies

[Federal Register Volume 72, Number 88 (Tuesday, May 8, 2007)]
[Notices]
[Pages 26186-26188]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8734]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55685; File No. SR-Amex-2007-41]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval of a Proposed 
Rule Change Relating to the Continuation of a Quote Assist Feature in 
the ANTE System on a Pilot Program Basis

April 30, 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 April 24, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Commission is publishing this notice and order to solicit comments 
on the proposed rule change from interested persons and to grant 
accelerated approval to the proposed rule change.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend Amex Rule 958A--ANTE (e) (the 
``Rule'') to extend until April 30, 2008, its pilot program 
implementing a quote-assist feature in the Exchange's ANTE system 
(``Pilot Program''). The text of the proposed rule change is available 
at the Exchange, the Commission's Public Reference Room and (https://
www.amex.com/).

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 proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III 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 Rule currently requires all option specialists to execute or 
display customer limit orders that improve the bid or offer by price or 
size immediately upon receipt, unless one of the exceptions set forth 
in the Rule applies. ``Immediately upon receipt'' is defined in the 
Rule ``as soon as practicable which shall mean, under normal market 
conditions, no later than 30 seconds after receipt''.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 51062 (January 21, 
2005) 70 FR 4163 (January 28, 2005).
---------------------------------------------------------------------------

    In order to assist the specialists in complying with the Rule as 
described above, the ANTE System provides specialists with an automated 
quote assist feature on a pilot program basis.\4\

[[Page 26187]]

The quote assist feature automatically displays eligible limit orders 
within a configurable time that can be set on a class-by-class basis by 
the Exchange. The time frame within which limit orders must be 
addressed, a maximum of 30 seconds under the Rule, may be set to a 
shorter time period by the Exchange. The specialist maintaining the 
quote assist feature may then use the feature to automatically display 
orders within a shorter time period than the time period set by the 
Exchange.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 49747 (May 20, 
2004), 69 FR 30344, 30347 (May 27, 2004) (approving implementation 
of the ANTE system, including the quote assist feature on a pilot 
basis); 51955 (June 30, 2005), 70 FR 39812 (July 11, 2005) 
(extending the Pilot Program until April 30, 2006); and 53950 (June 
6, 2006) 71 FR 34401 (June 14, 2006) (extending the Pilot Program 
until April 30, 2007).
---------------------------------------------------------------------------

    While all customer limit orders are expected to be displayed 
immediately, the quote assist feature can be set to automatically 
display limit orders at or close to the end of the 30-second time frame 
or within any other shorter time frame established by the Exchange. In 
instances where the specialist has not addressed the order within the 
applicable 30-second period, the quote assist feature will 
automatically display the eligible customer limit order in the limit 
order book at or close to the end of that period. The quote assist 
feature helps to ensure that eligible customer limit orders are 
displayed within the required time period then in effect. Rule 958A--
ANTE (e)(4) currently requires the specialist to maintain and keep 
active the limit order quote assist feature. The specialist may 
establish the time frame within which the quote assist feature displays 
eligible customer limit orders, which time frame does not exceed the 
customer limit order display requirement set forth in the Rule. The 
specialist may deactivate the quote assist feature provided Floor 
Official approval is obtained. The specialist must obtain Floor 
Official approval as soon as practicable but in no event later than 
three minutes after deactivation. If the specialist does not receive 
approval within three minutes after deactivation, the Exchange will 
review the matter as a regulatory issue. Floor Officials will grant 
approval only in instances when there is an unusual influx of orders or 
movement of the underlying that would result in gap pricing or other 
unusual circumstances. The Exchange will document all instances where a 
Floor Official has granted approval.
    The Exchange notes that the quote assist feature does not relieve 
the specialists of their obligation to display customer limit orders 
immediately. To the extent that a specialist excessively relies on the 
quote assist feature to display eligible limit orders without 
attempting to address the orders immediately, the specialist could be 
violating the Rule. However, brief or intermittent reliance on the 
quote assist feature by a specialist during an unexpected surge in 
trading activity in an option class would not violate the Rule if used 
when the specialist is not physically able to address all the eligible 
limit orders within 30 seconds. The Exchange has issued a regulatory 
notice discussing excessive reliance on the quote assist feature.
    The Exchange will continue to conduct surveillance to ensure that 
specialists comply with their obligation to execute or book all 
eligible limit orders within the time period prescribed by Exchange 
rules. The Exchange commits to conduct surveillance designed to detect 
whether specialists as a matter of course rely on the quote-assist 
feature to display all eligible limit orders. A practice of excessive 
reliance upon the quote assist feature will be reviewed by the Division 
of Regulation and Compliance as a possible violation of the Rule. The 
Exchange runs its limit order display exception report at various 
display intervals in an attempt to detect a pattern suggestive of undue 
reliance on the quote assist feature. The Exchange reports to the 
Commission every three months the statistical data it uses to determine 
whether there has been impermissible reliance on the quote assist 
feature by specialists.
    The Exchange now proposes to continue the quote assist feature on a 
pilot program basis from April 30, 2007 until April 30, 2008.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act,\6\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices and to promote just and equitable 
principles of trade.
---------------------------------------------------------------------------

    \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 Exchange does not believe that the proposed rule change will 
impose any 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. 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-2007-41 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Amex-2007-41. 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 such 
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-2007-41 and should be submitted on or before May 
29, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    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

[[Page 26188]]

exchange.\7\ In particular, the Commission finds that the proposed rule 
change is consistent with the requirements of Section 6(b)(5) of the 
Act,\8\ which requires, among other things, that the rules of the 
Exchange be designed 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.
---------------------------------------------------------------------------

    \7\ In approving the proposed rule, the Commission has 
considered the rule's impact on efficiency, competition and capital 
formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the quote assist feature should help 
to ensure that eligible customer limit orders are displayed within the 
required time period. The Commission notes that the Exchange represents 
that it will continue to conduct surveillance to ensure that 
specialists comply with their obligation to execute or book all 
eligible limit orders within the time period prescribed by Exchange 
rules, and that excessive reliance upon the quote assist feature will 
be reviewed by the Exchange as a possible violation of the Rule.
    The Exchange has requested that the Commission approve the proposed 
rule change prior to the thirtieth day after publication of notice of 
the filing in the Federal Register. The Commission believes that 
granting accelerated approval will allow the Exchange to continue to 
operate the Pilot Program without interruption. Accordingly, the 
Commission finds good cause, pursuant to Section 19(b)(2) of the 
Act,\9\ for approving the proposal prior to the thirtieth day after 
publication of the notice of the filing thereof in the Federal 
Register.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-Amex-2007-41) is hereby 
approved on an accelerated basis.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).

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

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-8734 Filed 5-7-07; 8:45 am]
BILLING CODE 8010-01-P
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