Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate Certain Exchange Rules Prohibiting the Entering of Limit Orders on Both Sides of the Market on a Regular and Continuous Basis, 46689-46691 [E7-16394]
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Federal Register / Vol. 72, No. 161 / Tuesday, August 21, 2007 / Notices
46689
This action will be effective
without further notice on October 5,
2007 unless comments are received by
September 20, 2007 that would result in
a contrary determination.
ADDRESSES: You may submit comments
by e-mail to sglasow@peacecorps.gov.
Include Privacy Act System of Records
in the subject line of the message. You
may also submit comments by mail to
Suzanne Glasow, Office of the General
Counsel, Peace Corps, Suite 8200, 1111
20th Street, NW., Washington, DC
20526. Contact Suzanne Glasow for
copies of comments.
FOR FURTHER INFORMATION CONTACT:
Suzanne Glasow, Associate General
Counsel, 202–692–2150,
sglasow@peacecorps.gov.
ROUTINE USES OF RECORDS MAINTAINED IN THE
SYSTEM:
SECURITIES AND EXCHANGE
COMMISSION
General routine uses A–L apply to
this system.
[Release No. 34–56255; File No. SR–Amex–
2007–77]
The
Privacy Act, 5 U.S.C. 552a, provides that
the public will be given a 30-day period
in which to comment on the new
system. The Office of Management and
Budget (OMB), which has oversight
responsibility under the Act, requires a
40-day period in which to review the
proposed system. In accordance with 5
U.S.C. 552a, Peace Corps has provided
a report on this system to OMB and the
Congress.
SAFEGUARDS:
DATES:
SUPPLEMENTARY INFORMATION:
SYSTEM NAME:
PC–32, Volunteer Language Testing
Scores System.
Overseas Training Division, Training
and Staff Development Unit, Peace
Corps, 1111 20th St., NW., Washington,
DC 20526.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Any Peace Corps Trainee or currently
serving Volunteer.
CATEGORIES OF RECORDS IN THE SYSTEM:
Name, Volunteer Identification
Number, gender, Social Security
Number, country of service, region of
service, date of birth, project type,
project name or assigned sector,
language background, notes, test date,
language code, tester code, length of
preservice training, Educational Testing
Services/Teaching of Foreign Language
rating, certificate of language
proficiency, and reason not tested, if
applicable.
rmajette on PROD1PC64 with NOTICES
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
The Peace Corps Act, 22 U.S.C. 2501
et seq.
PURPOSE:
To record Educational Testing
Services/Teaching of Foreign Language
rating of Peace Corps Volunteers.
15:08 Aug 20, 2007
Jkt 211001
Peace Corps Volunteer host country
officials for review of their
qualifications for a program.
POLICIES AND PRACTICES FOR STORING,
RETRIEVING, ACCESSING, RETAINING, AND
DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
In a computerized database.
RETRIEVABILITY:
By name, region, gender, assigned
sector, or date tested.
Computer records are maintained in a
secure, password-protected computer
system.
RETENTION AND DISPOSAL:
Records in the computerized database
are kept for seven years after swear in
and five years after close of service.
SYSTEM MANAGER:
Chief, Overseas Training, Center for
Field Assistance and Applied Research
(CEN), 1111 20th St., NW., Washington,
DC 20526.
Any individual who wants to know
whether this system of records contains
a record about him or her, who wants
access to his or her record, or who
wants to contest the contents of a
record, should make a written request to
the System Manager. Requesters will be
required to provide adequate
identification, such as a driver’s license,
employee identification card, or other
identifying document. Additional
identification may be required in some
instances. Requests for correction or
amendment must identify the record to
be changed and the corrective action
sought. Complete Peace Corps Privacy
Act procedures are set out in 22 CFR
Part 308.
RECORD SOURCE CATEGORIES:
Record subject and official records of
Educational Testing Services/Teaching
of Foreign Language rating.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
Dated: August 15, 2007.
Wilbert Bryant,
Associate Director for Management.
[FR Doc. E7–16366 Filed 8–20–07; 8:45 am]
BILLING CODE 6051–01–P
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Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Eliminate
Certain Exchange Rules Prohibiting
the Entering of Limit Orders on Both
Sides of the Market on a Regular and
Continuous Basis
August 15, 2007.
PROCEDURES FOR NOTIFICATION, ACCESS, AND
CONTESTING:
SYSTEM LOCATION:
VerDate Aug<31>2005
RECORDS MAY ALSO BE DISCLOSED TO:
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 August 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
substantially prepared by the Exchange.
Amex has designated the proposed rule
change as constituting a ‘‘noncontroversial’’ rule change under
paragraph (f)(6) of Rule 19b–4,3 which
renders the proposal effective upon
receipt of this filing by 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
Rules 1000–AEMI, 1000A–AEMI, 1200–
AEMI, 1200A–AEMI, 1200B–AEMI,
1500–AEMI, and Rule 1400 to eliminate
the prohibition on the entering of
certain limit orders in Exchange Traded
Fund Shares and other equity derivative
products into the Exchange’s trading
systems.
The text of the proposed rule change
is available at the Amex, the
Commission’s Public Reference Room,
and 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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46690
Federal Register / Vol. 72, No. 161 / Tuesday, August 21, 2007 / Notices
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
rmajette on PROD1PC64 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In August 2001, the Exchange adopted
rules restricting the entry of certain
limit orders in Portfolio Depositary
Receipts, Index Fund Shares, and Trust
Issued Receipts. Subsequently, the
Exchange adopted the same rules for
trading in Commodity-Based Trust
Shares, Currency Trust Shares, Paired
Trust Shares, and Partnership Units
when those products began trading on
the Exchange. All of these products will
be collectively referred to herein as
‘‘Exchange Traded Fund Shares’’ or
‘‘ETFs.’’ Specifically, the rules provide
that members, acting as either principal
or agent, may not permit the entry of
orders into the Exchange’s electronic
order routing system if the orders are
limit orders for the account or accounts
of the same or related beneficial owners
and the limit orders are entered in such
a manner that the member or the
beneficial owner(s) effectively is
operating as a market maker by holding
itself out as willing to buy and sell such
securities on a regular or continuous
basis.
The Exchange adopted these rules
because its business model at that time
depended upon specialists and
registered traders for competition and
liquidity. To encourage participation by
specialists and registered traders, the
Exchange determined to limit the ability
of non-specialists/registered traders to
compete on equal terms within its
automated systems. The Exchange
determined that certain actions—
simultaneous entry of limit orders to
buy or sell the same ETF, multiple
acquisition and liquidation of positions
in the same ETF, and the entry of
multiple orders at different prices in the
same ETF—were tantamount to
operating as a market maker and gave
such members an advantage over the
specialist who was required to yield
priority to their orders. The adoption of
these rules by the Exchange did not,
however, confer market maker status on
such members for any purpose under
the Act or otherwise.
Since that time, trading in ETFs has
changed considerably. Most recently,
the implementation of the AEMI trading
system and the introduction of
Regulation NMS have changed the
VerDate Aug<31>2005
15:08 Aug 20, 2007
Jkt 211001
Exchange’s view of these restrictions
and the need to encourage order flow
from all types of liquidity providers,
particularly member firms trading for
their own proprietary accounts. ETF
specialists and registered traders now
have the ability to stream quotations
into the AEMI system using their own
proprietary quoting systems in a manner
that allows them to compete effectively
with orders from members’ proprietary
accounts. In addition, specialists and
registered traders have the ability to be
on parity with these orders from
members. Thus, the Exchange is
proposing to amend its rules to
eliminate the prohibition on limit orders
from members operating as market
makers. Management believes the
removal of these restrictions will
provide a level playing field for all
market participants on parity and
should enhance access to the Exchange
providing additional liquidity in our
ETFs.
The prohibition, however, will
continue to apply to customer agency
orders since those orders continue to
have priority over specialists and
registered traders. The rule prevents
certain customers from obtaining an
unfair advantage by acting as
unregistered specialists and traders
while having priority over the
specialists and registered traders by
virtue of their customer status.
Permitting customers to enter multiple
limit orders to such an extent that they
are effectively acting as market makers
in a secuirty, while at the same time
giving them priority over all other
orders on the book, gives such
customers an inordinate advantage over
other market participants.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b)(5) of the Act,4 which requires,
among other things, that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and practices, and, in general, to
protect investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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.
4 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00092
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective immediately pursuant to
Section 19(b)(3)(A)(iii) of the Act 5 and
Rule 19b–4(f)(6) thereunder 6 because it
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; or (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest.7
Rule 19b–4(f)(6) provides that the
proposal may not become operative for
30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. The Commission hereby waives
the 30 day pre-operative period.8 In an
order approving a proposed rule change
by the Chicago Board Options Exchange,
the Commission recognized that an
exchange may permit members to
submit orders on both sides of the
market on a regular or continuous basis,
even if such members are not registered
as market makers.9 Therefore, the
Commission believes that it is
consistent with the protection of
investors and the public interest to
waive the 30-day operative period so
that the proposal may become operative
upon filing.
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
5 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
7 Rule 19b–4(f)(6)(iii) requires that a selfregulatory organization submit to the Commission
written notice of its intent to file the proposed rule
change, along with a brief description and text of
the proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. Amex has satisfied the five-day prefiling notice requirement.
8 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
9 See Securities Exchange Act Release No. 38054
(December 16, 1996), 61 FR 67365, 67370
(December 20, 1996).
6 17
E:\FR\FM\21AUN1.SGM
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Federal Register / Vol. 72, No. 161 / Tuesday, August 21, 2007 / Notices
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2007–77 on the subject
line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–16394 Filed 8–20–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56253; File No. SR–BSE–
2007–40]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
of Proposed Rule Change To Extend
and Expand the Pilot Program To
Quote Certain Options in Pennies
August 15, 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 August
• Send paper comments in triplicate
10, 2007, the Boston Stock Exchange,
to Nancy M. Morris, Secretary,
Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (‘‘Commission’’) the
20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which items
No. SR–Amex–2007–77. This file
have been prepared by the BSE. The
number should be included on the
subject line if e-mail is used. To help the Commission is publishing this notice to
solicit comments on the proposed rule
Commission process and review your
change from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
The Exchange proposes to amend the
submission, all subsequent
Boston Options Exchange (‘‘BOX’’)
amendments, all written statements
Rules to reflect BOX’s continued
with respect to the proposed rule
participation in the Penny Pilot
change that are filed with the
Program, which would follow a twoCommission, and all written
phased extension schedule, first
communications relating to the
extending through March 27, 2008 and
proposed rule change between the
Commission and any person, other than then extending through March 27, 2009.
During this extension, the Exchange also
those that may be withheld from the
proposes a corresponding expansion of
public in accordance with the
the Penny Pilot Program, with each of
provisions of 5 U.S.C. 552, will be
the two expansion phases commencing
available for inspection and copying in
when its corresponding extension phase
the Commission’s Public Reference
becomes operative. The text of the
Room, 100 F Street, NE., Washington,
proposed rule change is available on the
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. BSE’s Web site at (https://
www.bostonstock.com), at the offices of
Copies of such filing will also be
the Exchange, and at the Commission’s
available for inspection and copying at
Public Reference Room.
the principal office of the Amex. All
comments received will be posted
II. Self-Regulatory Organization’s
without change; the Commission does
Statement of the Purpose of, and
not edit personal identifying
Statutory Basis for, the Proposed Rule
information from submissions. You
Change
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All
Exchange included statements
submissions should refer to File
Number SR–Amex–2007–77 and should
10 17 CFR 200.30–3(a)(12).
be submitted on or before September 11,
1 15 U.S.C. 78s(b)(1).
2007.
2 17 CFR 240.19b–4.
rmajette on PROD1PC64 with NOTICES
Paper Comments
VerDate Aug<31>2005
15:08 Aug 20, 2007
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PO 00000
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46691
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the BOX Rules to
reflect BOX’s continued participation in
the Penny Pilot Program, namely its
participation in a two-phased extension
and expansion of the program. The
Exchange proposes to amend Section
33, (‘‘Penny Pilot Program’’) to Chapter
V (‘‘Doing Business on BOX’’) of the
BOX Rules.
All six options exchanges, including
BOX, currently participate in the
thirteen class 3 Penny Pilot Program set
to expire on September 27, 2007.4 The
Exchange now proposes to both extend
and expand the Penny Pilot Program;
extending through March 27, 2008 and
expanding with an additional twentytwo options classes during that sixmonth extension period. The additional
twenty-two options classes would be as
follows: SPDRs (SPY); Apple, Inc.
(AAPL); Altria Group Inc. (MO);
Dendreon Corp. (DNDN); Amgen Inc.
(AMGN); Yahoo! Inc. (YHOO);
QUALCOMM Inc. (QCOM); General
Motors Corporation (GM); Energy Select
Sector (XLE); DIAMONDS Trust, Series
1 (DIA); Oil Services HOLDRs (OIH);
NYSE Euronext, Inc. (NYX); Cisco
Systems, Inc. (CSCO); Financial Select
Sector SPDR (XLF); AT&T Inc. (T);
Citigroup Inc. (C); Amazon.com Inc.
(AMZN); Motorola Inc. (MOT); Research
in Motion Ltd. (RIMM); FreeportMcMoRan Copper & Gold Inc. (FCX);
3 The thirteen option classes currently in the Pilot
are: Ishares Russell 2000 (IWM); NASDAQ–100
Index Tracking Stock (QQQQ); SemiConductor
Holders Trust (SMH); General Electric Company
(GE); Advanced Micro Devices, Inc. (AMD),
Microsoft Corporation (MSFT); Intel Corporation
(INTC); Caterpillar, Inc. (CAT); Whole Foods
Market, Inc. (WFMI); Texas Instruments, Inc. (TXN);
Flextronics International Ltd. (FLEX); Sun
Microsystems, Inc. (SUNW); and Agilent
Technologies, Inc. (A).
4 The Pilot Program is currently set to expire on
September 27, 2007. See Securities Exchange Act
Release No. 56149 (July 26, 2007), 72 FR 42450
(August 2, 2007) (SR–BSE–2007–38). See also
Securities Exchange Act Release No. 55155 (January
23, 2007), 72 FR 4741 (February 1, 2007) (SR–BSE–
2006–49) (‘‘Original Penny Pilot Program Approval
Order’’).
E:\FR\FM\21AUN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 161 (Tuesday, August 21, 2007)]
[Notices]
[Pages 46689-46691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-16394]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56255; File No. SR-Amex-2007-77]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Eliminate Certain Exchange Rules Prohibiting the Entering of Limit
Orders on Both Sides of the Market on a Regular and Continuous Basis
August 15, 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 August 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 substantially prepared by the Exchange.
Amex has designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4,\3\
which renders the proposal effective upon receipt of this filing by 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rules 1000-AEMI, 1000A-AEMI, 1200-
AEMI, 1200A-AEMI, 1200B-AEMI, 1500-AEMI, and Rule 1400 to eliminate the
prohibition on the entering of certain limit orders in Exchange Traded
Fund Shares and other equity derivative products into the Exchange's
trading systems.
The text of the proposed rule change is available at the Amex, the
Commission's Public Reference Room, and 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
[[Page 46690]]
places specified in Item IV below. The Exchange has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In August 2001, the Exchange adopted rules restricting the entry of
certain limit orders in Portfolio Depositary Receipts, Index Fund
Shares, and Trust Issued Receipts. Subsequently, the Exchange adopted
the same rules for trading in Commodity-Based Trust Shares, Currency
Trust Shares, Paired Trust Shares, and Partnership Units when those
products began trading on the Exchange. All of these products will be
collectively referred to herein as ``Exchange Traded Fund Shares'' or
``ETFs.'' Specifically, the rules provide that members, acting as
either principal or agent, may not permit the entry of orders into the
Exchange's electronic order routing system if the orders are limit
orders for the account or accounts of the same or related beneficial
owners and the limit orders are entered in such a manner that the
member or the beneficial owner(s) effectively is operating as a market
maker by holding itself out as willing to buy and sell such securities
on a regular or continuous basis.
The Exchange adopted these rules because its business model at that
time depended upon specialists and registered traders for competition
and liquidity. To encourage participation by specialists and registered
traders, the Exchange determined to limit the ability of non-
specialists/registered traders to compete on equal terms within its
automated systems. The Exchange determined that certain actions--
simultaneous entry of limit orders to buy or sell the same ETF,
multiple acquisition and liquidation of positions in the same ETF, and
the entry of multiple orders at different prices in the same ETF--were
tantamount to operating as a market maker and gave such members an
advantage over the specialist who was required to yield priority to
their orders. The adoption of these rules by the Exchange did not,
however, confer market maker status on such members for any purpose
under the Act or otherwise.
Since that time, trading in ETFs has changed considerably. Most
recently, the implementation of the AEMI trading system and the
introduction of Regulation NMS have changed the Exchange's view of
these restrictions and the need to encourage order flow from all types
of liquidity providers, particularly member firms trading for their own
proprietary accounts. ETF specialists and registered traders now have
the ability to stream quotations into the AEMI system using their own
proprietary quoting systems in a manner that allows them to compete
effectively with orders from members' proprietary accounts. In
addition, specialists and registered traders have the ability to be on
parity with these orders from members. Thus, the Exchange is proposing
to amend its rules to eliminate the prohibition on limit orders from
members operating as market makers. Management believes the removal of
these restrictions will provide a level playing field for all market
participants on parity and should enhance access to the Exchange
providing additional liquidity in our ETFs.
The prohibition, however, will continue to apply to customer agency
orders since those orders continue to have priority over specialists
and registered traders. The rule prevents certain customers from
obtaining an unfair advantage by acting as unregistered specialists and
traders while having priority over the specialists and registered
traders by virtue of their customer status. Permitting customers to
enter multiple limit orders to such an extent that they are effectively
acting as market makers in a secuirty, while at the same time giving
them priority over all other orders on the book, gives such customers
an inordinate advantage over other market participants.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(5) of the Act,\4\ which requires, among other things, that
the rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts and
practices, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective immediately pursuant
to Section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(6)
thereunder \6\ because it does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; or (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 240.19b-4(f)(6).
\7\ Rule 19b-4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written notice of its intent
to file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior
to the date of filing of the proposed rule change, or such shorter
time as designated by the Commission. Amex has satisfied the five-
day pre-filing notice requirement.
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Rule 19b-4(f)(6) provides that the proposal may not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. The Commission hereby waives the
30 day pre-operative period.\8\ In an order approving a proposed rule
change by the Chicago Board Options Exchange, the Commission recognized
that an exchange may permit members to submit orders on both sides of
the market on a regular or continuous basis, even if such members are
not registered as market makers.\9\ Therefore, the Commission believes
that it is consistent with the protection of investors and the public
interest to waive the 30-day operative period so that the proposal may
become operative upon filing.
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\8\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\9\ See Securities Exchange Act Release No. 38054 (December 16,
1996), 61 FR 67365, 67370 (December 20, 1996).
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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
[[Page 46691]]
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2007-77 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 No. SR-Amex-2007-77. 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 will also be available for
inspection and copying at the principal office of the Amex. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Amex-2007-77 and should be
submitted on or before September 11, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-16394 Filed 8-20-07; 8:45 am]
BILLING CODE 8010-01-P
