Self-Regulatory Organizations; American Stock Exchange, LLC.; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change Modifying an Aspect of the Definition of Independent Director, 45282-45283 [E7-15725]

Download as PDF 45282 Federal Register / Vol. 72, No. 155 / Monday, August 13, 2007 / Notices 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 estimate 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. Comments should be directed to: R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 60 days of this notice. Dated: August 6, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–15764 Filed 8–10–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56210; File No. SR–Amex– 2007–58] Self-Regulatory Organizations; American Stock Exchange, LLC.; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change Modifying an Aspect of the Definition of Independent Director jlentini on PROD1PC65 with NOTICES August 6, 2007. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) and Rule 19b–4 thereunder,2 notice is hereby given that on June 8, 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 Exchange. This order provides notice of the proposed rule change and approves the proposed rule change on an accelerated basis. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Aug<31>2005 16:19 Aug 10, 2007 Jkt 211001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Section 121A(2)(b) of its Company Guide (‘‘Guide’’) to modify an aspect of the definition of ‘‘independent director.’’ The text of the proposed rule change is available at Amex, 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. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose Under current Section 121A(2)(b) of the Guide, a director of a listed issuer is generally precluded from being considered ‘‘independent’’ if that director has received more than $60,000 in compensation from the issuer or any parent or subsidiary of the issuer during any period of twelve consecutive months within the three years preceding the determination of independence.3 The Exchange proposes to raise this amount to $100,000, which is the same amount specified by both the New York Stock Exchange, LLC. (‘‘NYSE’’) 4 and NASDAQ Stock Market, LLC. (‘‘Nasdaq’’) 5 in their comparable provisions. The Exchange believes that the current $60,000 threshold was originally based on the disclosure threshold set by the Commission in Regulation S–K, Item 404.6 The Exchange notes that the Commission last year adopted a proposal to raise the threshold in Item 404 of Regulation S–K to $120,000 7 and 3 See Section 121A(2)(b) of the Guide. Section 303A.02(b)(ii) of the NYSE Listed Company Manual. 5 See Nasdaq Rule 4200(a)(15)(B). 6 17 CFR 229.404. 7 See Securities Exchange Act Release No. 54302A (August 29, 2006), 71 FR 53158 (September 8, 2006). recently approved Nasdaq’s proposal to raise the compensation threshold in its definition of independent director from $60,000 to $100,000.8 As a result, the Exchange believes that it would be appropriate to also raise its compensation threshold. Further, the Exchange believes that by making its ‘‘bright line’’ test with respect to the maximum amount of compensation a director can receive from the issuer (or any parent or subsidiary) consistent with the equivalent tests of NYSE and Nasdaq, it will provide a uniform standard for issuers to understand and apply. However, the Exchange notes that even if a director passes the ‘‘bright line’’ test as proposed to be amended, an issuer’s board of directors must still make an affirmative determination that such director has no relationship whatsoever with the issuer that would interfere with the director’s exercise of independent judgment.9 2. Statutory Basis The Exchange states that the proposed rule change is consistent with Section 6(b) of the Act 10 in general, and furthers the objectives of Section 6(b)(5) of the Act 11 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 a national market system, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition According to the Exchange, the proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change will promote greater uniformity with the corporate governance standards of other markets. 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. 4 See PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 8 See Securities Exchange Act Release No. 55463 (March 13, 2007), 72 FR 13327 (March 21, 2007) (SR–NASDAQ–2006–041). 9 See Section 121A(2) of the Guide. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). E:\FR\FM\13AUN1.SGM 13AUN1 Federal Register / Vol. 72, No. 155 / Monday, August 13, 2007 / Notices the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.12 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,13 which requires, among other things, that the Exchange’s rules be designed to prevent fraudulent Electronic Comments and manipulative acts and practices, to promote just and equitable principles of • Use the Commission’s Internet trade, to remove impediments to and comment form (https://www.sec.gov/ perfect the mechanism of a free and rules/sro.shtml); or open market and a national market • Send an e-mail to rulesystem, and, in general, to protect comments@sec.gov. Please include File investors and the public interest. The Number SR–Amex–2007–58 on the proposed rule change would raise the subject line. amount of compensation that precludes Paper Comments a director from being an ‘‘independent • Send paper comments in triplicate director’’ from $60,000 to $100,000. The to Nancy M. Morris, Secretary, Commission believes that this change Securities and Exchange Commission, will promote greater uniformity among 100 F Street, NE., Washington, DC the corporate governance listing 20549–1090. standards of national securities exchanges because it aligns Amex’s rule All submissions should refer to File with the equivalent rules at Nasdaq 14 Number SR–Amex–2007–58. This file and the NYSE.15 number should be included on the The Commission finds good cause, subject line if e-mail is used. To help the consistent with Section 19(b)(2) of the Commission process and review your Act,16 for approving this proposed rule comments more efficiently, please use change before the thirtieth day after the only one method. The Commission will post all comments on the Commission’s publication of notice thereof in the Federal Register. As noted above, the Internet Web site (https://www.sec.gov/ proposed rule change would harmonize rules/sro.shtml). Copies of the Amex’s standard concerning the submission, all subsequent maximum amount of compensation an amendments, all written statements independent director could receive from with respect to the proposed rule the issuer (or its parent or subsidiary) change that are filed with the with the standard of other markets. As Commission, and all written such, the Commission believes the communications relating to the proposal raises no new regulatory issues proposed rule change between the Commission and any person, other than and that no reasonable purpose would be served by delaying its those that may be withheld from the implementation. public in accordance with the provisions of 5 U.S.C. 552, will be V. Conclusion available for inspection and copying in It is therefore ordered, pursuant to the Commission’s Public Reference Section 19(b)(2) of the Act,17 that the Room, 100 F Street, NE., Washington, proposed rule change (SR–Amex–2007– DC 20549, on official business days 58), be, and it hereby is, approved on an between the hours of 10 a.m. and 3 p.m. accelerated basis. Copies of such filing also will be available for inspection and copying at For the Commission, by the Division of Market Regulation, pursuant to delegated the principal office of Amex. All authority.18 comments received will be posted Florence E. Harmon, without change; the Commission does Deputy Secretary. not edit personal identifying information from submissions. You [FR Doc. E7–15725 Filed 8–10–07; 8:45 am] should submit only information that BILLING CODE 8010–01–P you wish to make available publicly. All 12 In approving this proposal, the Commission has submissions should refer to File Number SR–Amex–2007–58 and should considered its impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). be submitted on or before September 4, 13 15 U.S.C. 78f(b)(5). 2007. 14 jlentini on PROD1PC65 with NOTICES 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: 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 VerDate Aug<31>2005 16:19 Aug 10, 2007 Jkt 211001 See Nasdaq Rule 4200(a)(15)(b) and IM–4200— ‘‘Definition of Independence.’’ 15 See Section 303A.02(b)(ii) of the NYSE Listed Company Manual. 16 15 U.S.C. 78s(b)(2). 17 Id. 18 17 CFR 200.30–3(a)(12). PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 45283 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56214; File No. SR–CBOE– 2007–92] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Transaction Fees for Credit Default Options August 7, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 27, 2007, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) 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 has designated this proposal as one establishing or changing a due, fee, or other charge imposed by CBOE under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 4(f)(2) 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 its Fees Schedule to establish fees for transactions in certain Credit Default Options (‘‘CDOs’’). The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.org/Legal), at the Exchange’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, CBOE 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 those 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 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 E:\FR\FM\13AUN1.SGM 13AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 155 (Monday, August 13, 2007)]
[Notices]
[Pages 45282-45283]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15725]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56210; File No. SR-Amex-2007-58]


Self-Regulatory Organizations; American Stock Exchange, LLC.; 
Notice of Filing and Order Granting Accelerated Approval to Proposed 
Rule Change Modifying an Aspect of the Definition of Independent 
Director

August 6, 2007.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 8, 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 Exchange. This order 
provides notice of the proposed rule change and approves the proposed 
rule change on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Section 121A(2)(b) of its Company 
Guide (``Guide'') to modify an aspect of the definition of 
``independent director.''
    The text of the proposed rule change is available at Amex, 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. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Under current Section 121A(2)(b) of the Guide, a director of a 
listed issuer is generally precluded from being considered 
``independent'' if that director has received more than $60,000 in 
compensation from the issuer or any parent or subsidiary of the issuer 
during any period of twelve consecutive months within the three years 
preceding the determination of independence.\3\ The Exchange proposes 
to raise this amount to $100,000, which is the same amount specified by 
both the New York Stock Exchange, LLC. (``NYSE'') \4\ and NASDAQ Stock 
Market, LLC. (``Nasdaq'') \5\ in their comparable provisions.
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    \3\ See Section 121A(2)(b) of the Guide.
    \4\ See Section 303A.02(b)(ii) of the NYSE Listed Company 
Manual.
    \5\ See Nasdaq Rule 4200(a)(15)(B).
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    The Exchange believes that the current $60,000 threshold was 
originally based on the disclosure threshold set by the Commission in 
Regulation S-K, Item 404.\6\ The Exchange notes that the Commission 
last year adopted a proposal to raise the threshold in Item 404 of 
Regulation S-K to $120,000 \7\ and recently approved Nasdaq's proposal 
to raise the compensation threshold in its definition of independent 
director from $60,000 to $100,000.\8\ As a result, the Exchange 
believes that it would be appropriate to also raise its compensation 
threshold.
---------------------------------------------------------------------------

    \6\ 17 CFR 229.404.
    \7\ See Securities Exchange Act Release No. 54302A (August 29, 
2006), 71 FR 53158 (September 8, 2006).
    \8\ See Securities Exchange Act Release No. 55463 (March 13, 
2007), 72 FR 13327 (March 21, 2007) (SR-NASDAQ-2006-041).
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    Further, the Exchange believes that by making its ``bright line'' 
test with respect to the maximum amount of compensation a director can 
receive from the issuer (or any parent or subsidiary) consistent with 
the equivalent tests of NYSE and Nasdaq, it will provide a uniform 
standard for issuers to understand and apply. However, the Exchange 
notes that even if a director passes the ``bright line'' test as 
proposed to be amended, an issuer's board of directors must still make 
an affirmative determination that such director has no relationship 
whatsoever with the issuer that would interfere with the director's 
exercise of independent judgment.\9\
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    \9\ See Section 121A(2) of the Guide.
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2. Statutory Basis
    The Exchange states that the proposed rule change is consistent 
with Section 6(b) of the Act \10\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \11\ 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 
a national market system, and, in general, to protect investors and the 
public interest.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    According to the Exchange, the proposed rule change does not impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that the 
proposed rule change will promote greater uniformity with the corporate 
governance standards of other markets.

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.

[[Page 45283]]

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-2007-58 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-2007-58. 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-2007-58 and should be 
submitted on or before September 4, 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 exchange.\12\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\13\ which requires, among 
other things, that the Exchange's rules 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 proposed 
rule change would raise the amount of compensation that precludes a 
director from being an ``independent director'' from $60,000 to 
$100,000. The Commission believes that this change will promote greater 
uniformity among the corporate governance listing standards of national 
securities exchanges because it aligns Amex's rule with the equivalent 
rules at Nasdaq \14\ and the NYSE.\15\
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    \12\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ See Nasdaq Rule 4200(a)(15)(b) and IM-4200--``Definition of 
Independence.''
    \15\ See Section 303A.02(b)(ii) of the NYSE Listed Company 
Manual.
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    The Commission finds good cause, consistent with Section 19(b)(2) 
of the Act,\16\ for approving this proposed rule change before the 
thirtieth day after the publication of notice thereof in the Federal 
Register. As noted above, the proposed rule change would harmonize 
Amex's standard concerning the maximum amount of compensation an 
independent director could receive from the issuer (or its parent or 
subsidiary) with the standard of other markets. As such, the Commission 
believes the proposal raises no new regulatory issues and that no 
reasonable purpose would be served by delaying its implementation.
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    \16\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\17\ that the proposed rule change (SR-Amex-2007-58), be, and it 
hereby is, approved on an accelerated basis.
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    \17\ Id.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
Florence E. Harmon,
Deputy Secretary.
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    \18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E7-15725 Filed 8-10-07; 8:45 am]
BILLING CODE 8010-01-P

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