Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify the Method by Which Specialists Execute Odd-Lot Market Orders in Rule 205-AEMI, 36078-36079 [E7-12681]
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36078
Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Notices
Committee’s continuance is no longer in
the public interest.
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Furthermore, upon establishment of
the Committee, and in accordance with
section 10(a) of the Federal Advisory
Committee Act, 5 U.S.C. App. 10a,
notice is hereby given that the first
meeting of the Committee will be held
on August 2, 2007 in the Auditorium,
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By the Commission.
Dated: June 27, 2007.
Nancy M. Morris,
Committee Management Officer.
[FR Doc. E7–12740 Filed 6–29–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55949; File No. SR–Amex–
2007–61]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Clarify
the Method by Which Specialists
Execute Odd-Lot Market Orders in Rule
205—AEMI
jlentini on PROD1PC65 with NOTICES
June 25, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
1 15
2 17
22:57 Jun 29, 2007
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt
clarifying changes to Rule 205—AEMI to
specify that a specialist on the Exchange
executes unelected odd-lot market
orders, along with all other outstanding
unexecuted odd-lot market orders on
the AEMI book, at the price of the
specialist’s quote 30 seconds after the
later of (i) the entry of such order into
AEMI or (ii) the last round-lot election
of a previously entered odd-lot market
order.
The text of the proposed rule change
is available on Exchange’s Web site
(https://www.amex.com), at Amex’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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, Proposed Rule
Change
1. Purpose
Pursuant to its most recent
amendment, Rule 205—AEMI(b)
currently specifies that, to the extent an
odd-lot market order is not elected by a
round-lot transaction within 30 seconds
of entry into AEMI, such order will be
executed against the specialist’s quote
3 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Aug<31>2005
notice is hereby given that on June 21,
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, II, and
III below, which Items have been
substantially prepared by Amex. Amex
has filed this proposal pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(5) 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.
4 17
Jkt 211001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(5).
Frm 00112
Fmt 4703
Sfmt 4703
30 seconds after entry of the order into
AEMI.5
The Exchange is now submitting the
instant rule change to clarify, more
consistently with the way the AEMI
system has been configured, that such
unelected unexecuted odd-lot market
orders are executed, along with all other
outstanding unexecuted odd-lot market
orders on the AEMI book, at the price
of the specialist’s quote 30 seconds after
the later of (i) the entry of such order
into AEMI or (ii) the last round-lot
election of a previously entered odd-lot
market order.
While the current version of Rule
205—AEMI(b) implies that every oddlot market order has a unique 30-second
timer for execution (if not elected by
virtue of an earlier round-lot
transaction), the instant rule change is
necessary to clarify that, in certain
limited scenarios, an unelected odd-lot
market order can receive executions in
under 30 seconds (where tied to
executions of earlier-entered odd-lot
market orders) 6 and, in rare
circumstances, more than 30 seconds.7
2. Statutory Basis
The proposed rule change is designed
to be consistent with Section 6(b) of the
Act,8 in general, and furthers the
objectives of Section 6(b)(5) of the Act,9
in particular, in that it is 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 national market system and, in
5 See Securities Exchange Act Release No. 55762
(May 15, 2007), 72 FR 28529 (May 21, 2007).
6 The Exchange estimates that executed odd-lot
volume that may fall into this category is less than
15,000 shares per day, or less than 1.5% of all oddlot executed volume and less than 0.03% of Amex
executed volume.
7 The Exchange estimates that this occurs only
several times per day when, within a 30-second
window, multiple odd-lot market orders are entered
followed by round-lot transactions insufficient in
size to elect all of them. In such circumstances,
remaining unelected odd-lot market order(s) may
take more than 30 seconds after their entry to
execute, depending on the timing of subsequent
round-lot transactions. For example, if three 50share market buy orders are entered at :01, :02, and
:03 seconds, followed at :29 seconds by execution
of a new 100 share order at $10, the first two market
buy orders are both executed against the specialist
at $10 at :29 seconds. Then, the timer in AEMI
resets back to zero, and the remaining 50-share
market buy order is executed against the specialist
upon the earlier of (i) the next round-lot transaction
(at the price of said transaction) or (ii) the
expiration of 30 seconds (at the price of the
specialist’s then best offer), resulting in execution
anywhere from 26 to 56 seconds after original entry
into AEMI.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
E:\FR\FM\02JYN1.SGM
02JYN1
Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Notices
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change will impose
no 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
Because the proposed rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) have the
effect of limiting the access to or
availability of an existing order entry or
trading system of the Exchange, the
foregoing rule change has become
effective immediately pursuant to
Section 19(b)(3)(A)(iii) of the Act 10 and
Rule 19b–4(f)(5) thereunder.11 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 the 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:
jlentini on PROD1PC65 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2007–61 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–2007–61. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of 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–2007–61 and should
be submitted on or before July 23, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–12681 Filed 6–29–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55955; File No. SR–Amex–
2007–57]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
the Extension of the Pilot Period
Applicable to the Listing and Trading
of Options on the ishares MSCI
Emerging Markets Index
June 25, 2007.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
10 15
U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(5).
VerDate Aug<31>2005
22:57 Jun 29, 2007
1 15
Jkt 211001
PO 00000
Frm 00113
notice is hereby given that on June 5,
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, II, and
III below, which Items have been
substantially prepared by the Exchange.
The Exchange filed the proposed rule
change as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A) 3 of the Act 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 extend the
pilot period applicable to the listing and
trading of options on the iShares MSCI
Emerging Markets Index Fund (‘‘Fund
Options’’). Amex is not proposing any
textual changes to its rules.
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 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
On May 17, 2006, the Commission
approved an Amex proposal to list and
trade the Fund Options for a 60-day
pilot period that expired July 2, 2006
(the ‘‘Pilot’’).5 The Commission
approved 90-day extensions of the Pilot
on June 30, 2006 6 and September
29, 2006,7 respectively. In addition, the
Commission on January 3, 2007,
approved a 180-day extension to the
3 15
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Fmt 4703
Sfmt 4703
36079
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 53824
(May 17, 2006), 71 FR 30003 (May 24, 2006).
6 See Securities Exchange Act Release No. 54081
(June 30, 2006), 71 FR 38911 (July 10, 2006).
7 See Securities Exchange Act Release No. 54553
(September 29, 2006), 71 FR 59561 (October 10,
2006).
4 17
E:\FR\FM\02JYN1.SGM
02JYN1
]]>Agencies
[Federal Register Volume 72, Number 126 (Monday, July 2, 2007)]
[Notices]
[Pages 36078-36079]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12681]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55949; File No. SR-Amex-2007-61]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Clarify the Method by Which Specialists Execute Odd-Lot Market Orders
in Rule 205--AEMI
June 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 June 21, 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, II,
and III below, which Items have been substantially prepared by Amex.
Amex has filed this proposal pursuant to Section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(5) 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.
---------------------------------------------------------------------------
\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)(5).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt clarifying changes to Rule 205--AEMI
to specify that a specialist on the Exchange executes unelected odd-lot
market orders, along with all other outstanding unexecuted odd-lot
market orders on the AEMI book, at the price of the specialist's quote
30 seconds after the later of (i) the entry of such order into AEMI or
(ii) the last round-lot election of a previously entered odd-lot market
order.
The text of the proposed rule change is available on Exchange's Web
site (https://www.amex.com), at Amex's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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, Proposed Rule Change
1. Purpose
Pursuant to its most recent amendment, Rule 205--AEMI(b) currently
specifies that, to the extent an odd-lot market order is not elected by
a round-lot transaction within 30 seconds of entry into AEMI, such
order will be executed against the specialist's quote 30 seconds after
entry of the order into AEMI.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55762 (May 15,
2007), 72 FR 28529 (May 21, 2007).
---------------------------------------------------------------------------
The Exchange is now submitting the instant rule change to clarify,
more consistently with the way the AEMI system has been configured,
that such unelected unexecuted odd-lot market orders are executed,
along with all other outstanding unexecuted odd-lot market orders on
the AEMI book, at the price of the specialist's quote 30 seconds after
the later of (i) the entry of such order into AEMI or (ii) the last
round-lot election of a previously entered odd-lot market order.
While the current version of Rule 205--AEMI(b) implies that every
odd-lot market order has a unique 30-second timer for execution (if not
elected by virtue of an earlier round-lot transaction), the instant
rule change is necessary to clarify that, in certain limited scenarios,
an unelected odd-lot market order can receive executions in under 30
seconds (where tied to executions of earlier-entered odd-lot market
orders) \6\ and, in rare circumstances, more than 30 seconds.\7\
---------------------------------------------------------------------------
\6\ The Exchange estimates that executed odd-lot volume that may
fall into this category is less than 15,000 shares per day, or less
than 1.5% of all odd-lot executed volume and less than 0.03% of Amex
executed volume.
\7 \ The Exchange estimates that this occurs only several times
per day when, within a 30-second window, multiple odd-lot market
orders are entered followed by round-lot transactions insufficient
in size to elect all of them. In such circumstances, remaining
unelected odd-lot market order(s) may take more than 30 seconds
after their entry to execute, depending on the timing of subsequent
round-lot transactions. For example, if three 50-share market buy
orders are entered at :01, :02, and :03 seconds, followed at :29
seconds by execution of a new 100 share order at $10, the first two
market buy orders are both executed against the specialist at $10 at
:29 seconds. Then, the timer in AEMI resets back to zero, and the
remaining 50-share market buy order is executed against the
specialist upon the earlier of (i) the next round-lot transaction
(at the price of said transaction) or (ii) the expiration of 30
seconds (at the price of the specialist's then best offer),
resulting in execution anywhere from 26 to 56 seconds after original
entry into AEMI.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is designed to be consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ in particular, in that it is 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 national market system and, in
[[Page 36079]]
general, to protect investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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 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
Because the proposed rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) have the effect of limiting
the access to or availability of an existing order entry or trading
system of the Exchange, the foregoing rule change has become effective
immediately pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and
Rule 19b-4(f)(5) thereunder.\11\ 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 the furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------
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-2007-61 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-2007-61. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of 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-2007-61 and should be
submitted on or before July 23, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-12681 Filed 6-29-07; 8:45 am]
BILLING CODE 8010-01-P
