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]

Download as PDF 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 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 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 E:\FR\FM\21AUN1.SGM 21AUN1 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 21AUN1 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 (http://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 (http://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 (http:// 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 Jkt 211001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 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 21AUN1

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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 (http://
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 (http://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\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-16394 Filed 8-20-07; 8:45 am]
BILLING CODE 8010-01-P