Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Amendments to Exchange Training and Examination Requirements, 54486-54488 [E7-18822]
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Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Notices
Send or deliver comments
to—Rob Timmins, Business Operations
Manager, Presidential Management
Fellows Program, U.S. Office of
Personnel Management, 1900 E Street,
NW., Room 1425, Washington, DC
20415 and Brenda Aguilar, OPM Desk
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ADDRESSES:
Office of Personnel Management.
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[FR Doc. E7–18871 Filed 9–24–07; 8:45 am]
BILLING CODE 6325–38–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Plasticon International
Inc.; Order of Suspension of Trading
September 21, 2007.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Plasticon
International Inc. (‘‘Plasticon’’) because
Plasticon is delinquent on most of its
required filings since November 1997.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EDT on
September 21, 2007, through 11:59 p.m.
EDT on October 4, 2007.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 07–4731 Filed 9–21–07; 1:52 pm]
yshivers on PROD1PC62 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56457; File No. SR–Amex–
2007–54]
Self-Regulatory Organizations;
American Stock Exchange, LLC;
Notice of Filing and Order Granting
Accelerated Approval to Proposed
Rule Change, as Modified by
Amendment No. 1 Thereto, Relating to
Amendments to Exchange Training
and Examination Requirements
September 18, 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 1, 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.
On September 5, 2007, Amex filed
Amendment No. 1 to the proposed rule
change.3 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as modified by
Amendment No. 1 thereto, from
interested persons and approve the
proposed rule change on an accelerated
basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules governing training and
examination requirements.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 supersedes and replaces the
original rule filing in its entirety.
2 17
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Amex proposes certain clarifying
changes to its rules governing its
training and examination requirements.
These changes are in connection with
implementation of a mandatory annual
training program for all floor members
that addresses compliance with the
federal securities laws and Amex rules
to help prevent and deter unlawful
trading by floor members, as well as to
otherwise simplify and enhance the
Exchange’s existing training programs.4
The Exchange’s proposal would
require all floor members to participate
in a mandatory annual regulatory
training program, which would include
participation in any Exchange testing
programs in connection with the
mandatory training program. The
Exchange anticipates that the mandatory
training program would be organized
and grouped by floor member function
and therefore foresees holding separate
sessions for specialists, floor brokers,
and registered traders.
The Exchange also proposes to
enhance the new member qualification
program. The new member qualification
program currently in place requires all
prospective new members to participate
in a comprehensive training program
and successfully complete a
corresponding examination at the
conclusion of the training. Members
seeking to qualify as specialists must
successfully complete a separate
examination as well. The new program
would retain the new member training
program and examination as they
currently exist, but would replace the
specialist examination with an in-depth
training program. The Exchange
represents that it has found that new
specialist applicants, in preparing for
the specialist examination, focus
primarily on the requirements necessary
to pass the examination. The Exchange
believes that a more effective method of
training prospective specialists would
involve training specifically related to
specialists’ particular activities and
requirements. To this end, the Exchange
proposes to eliminate the specialist
4 Pursuant to an undertaking agreed to in
connection with the recent settlement of a
Commission administrative proceeding (the
‘‘Order’’), Amex agreed to enhance its existing
regulatory training programs for floor members and
certain staff members that addresses compliance
with the federal securities laws and Exchange rules
to help prevent and deter unlawful trading by floor
members. See Exchange Act Release No. 55507;
Administrative Proceeding File No. 3–12594 (March
22, 2007).
E:\FR\FM\25SEN1.SGM
25SEN1
Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Notices
examination and instead institute an indepth qualifying training program for
specialist applicants.
The specialist training sessions would
be structured in a manner similar to the
new member training program, which
covers the federal securities laws and
Amex rules applicable to the
prospective members’ proposed
functions. Likewise, the specialist
training sessions would be held in small
group settings to foster interaction, and
to ensure that all participants actively
engage in the training to help the
participants become fully cognizant of
the rules governing their floor
activities.5
Lastly, in connection with floor clerk
training, the Exchange proposes to
eliminate the initial test requirements
for new floor clerks but would maintain
the annual training requirement for all
floor clerks (post, booth and DK) active
in the business on the Exchange trading
floor (other than those performing
strictly ministerial functions).
Accordingly, the Exchange proposes
changes to the following rules:
yshivers on PROD1PC62 with NOTICES
Rule 50
Exchange Rule 50, Commentary .01,
currently governs examination
requirements for regular members
seeking to register as specialists and
regular or options principal members
seeking to register as registered traders.
The Exchange notes that in recent years,
the examination requirement for
registered traders has been subsumed
into the new member examination. As
stated above, the Exchange is proposing
to amend Rule 50 to replace the
specialist qualifying examination with a
mandatory qualifying training program,
which would include participation in
any Exchange testing in connection with
these mandatory training programs. The
requirement for registered trader
applicants to pass an examination has
been removed in this proposal, since
such examination has been subsumed
into the new member examination.
Proposed Commentary .03 to Rule 50
describes the requirement that all floor
members participate in a mandatory
annual regulatory training program,
which would include participation in
any Exchange testing programs in
connection with this mandatory training
program. This proposed Commentary
would subject members who fail to
satisfactorily complete the program to a
fine and, if warranted, preclusion from
5 The Exchange would offer the training programs
on a periodic basis sufficiently frequent to
reasonably accommodate demand and to ensure
that all floor members receive training as required
by the Order and in accordance with Amex rules.
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15:20 Sep 24, 2007
Jkt 211001
the trading floor until the requirement is
met.
Proposed Commentary .04 is similar
to proposed Commentary .03, except
that it describes the mandatory
regulatory training program for clerks.
This program is comparable to the
mandatory continuing education
program implemented through current
Exchange Rule 359A. The Exchange
proposes to incorporate this
requirement into Rule 50, and to
eliminate Rule 359A, since both govern
training requirements. The Exchange
believes that having only one rule
would help to simplify and clarify these
requirements. In this proposal, the
proposed rule text clarifies that clerks
who perform strictly ministerial
functions would be exempted.
Sanctions for noncompliance, which are
similar to those applicable to members,
are also described.
Finally, the Exchange proposes to add
new Commentary .05 to Rule 50 to state
that the Exchange will submit a rule
filing with the Commission, pursuant to
Section 19(b) of the Act, proposing any
new, or deleting any current, testing
requirements outlining the content of
such exam. The Exchange also
committed to issue a formal notice to its
membership notifying it of any changes
in the current testing requirements. In
addition, the Exchange moved the
reference to study guides as noted in
Commentary .03 to proposed
Commentary. 05.
Rule 110 and Rule 110–AEMI
Exchange Rule 110 and Rule 110–
AEMI govern requirements for
Registered Traders. Members applying
to register as Registered Traders are
required to pass a Registered Trader
Examination as prescribed by the
Exchange. In recent years, the
examination requirement for Registered
Traders has been subsumed into the
New Member Examination. The
Exchange therefore proposes to amend
both Rule 110 and Rule 110–AEMI to
eliminate this obsolete reference.
Pursuant to proposed Rule 50,
Registered Traders would be required to
participate in an Exchange-sponsored
mandatory training program, which
would include participation in any
Exchange testing in connection with
this mandatory training program.
Rule 353
Exchange Rule 353 governs regular
and options principal membership and
limited trading permit requirements and
references relevant examination
requirements. If a candidate is going to
be active on the Floor, he or she must
pass an examination before being
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
54487
permitted to execute orders on the
Floor. Specialist candidates must pass
an additional examination after a period
of training. The Exchange proposes to
eliminate the additional examination
required of specialist candidates after a
period of training as referenced in Rule
353. This proposed rule would instead
reference the new mandatory qualifying
training program for specialist
applicants. The Exchange believes that
the new mandatory qualifying training
program for specialists will be more
effective in training new specialist
applicants on the requirements
applicable to their respective member
functions.
Rule 359A
Exchange Rule 359A governs
mandatory continuing education for all
floor members and mandatory
continuing education and initial test
requirements for floor clerks of members
and member firms. Rule 359A presently
requires all floor members and floor
clerks of members (post, booth and DK)
to participate in the Exchangesponsored mandatory continuing
education program, which is conducted
online. Rule 359A would be eliminated
under this proposal. The rules
governing mandatory continuing
education and regulatory training would
be incorporated into Rule 50, and the
initial test requirements for new floor
clerks would be eliminated.
Finally, the Exchange notes that,
pursuant to the Order, all floor
members, as well as members of Amex’s
regulatory staff who are responsible for
the surveillance, investigation,
examination and discipline of floor
members, would be required to
participate in mandatory annual
regulatory training.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 6 of the Act
in general and furthers the objectives of
Section 6(b)(5) 7 in particular in that it
is designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system, and, in general, protect
investors and the public interest.
Furthermore, the proposed rule change
is consistent with the objectives of
Section 6(b)(6) 8 in that it is designed to
appropriately discipline or sanction
members for violation of the provisions
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(6).
7 15
E:\FR\FM\25SEN1.SGM
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54488
Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Notices
of this title, the rules or regulations
thereunder, or the rules of the Exchange.
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.
yshivers on PROD1PC62 with NOTICES
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.
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–2007–54 and should
be submitted on or before October 16,
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
III. Solicitation of Comments
the requirements of the Act and the
Interested persons are invited to
rules and regulations thereunder
submit written data, views, and
applicable to a national securities
arguments concerning the foregoing,
exchange.9 In particular, the
including whether the proposed rule
Commission finds that the proposed
change is consistent with the Act.
rule change is consistent with Section
Comments may be submitted by any of
6(b)(5) of the Act,10 which requires,
the following methods:
among other things, that the Exchange’s
rules be designed to prevent fraudulent
Electronic Comments
and manipulative acts and practices, to
• Use the Commission’s Internet
promote just and equitable principles of
comment form (https://www.sec.gov/
trade, to remove impediments to and
rules/sro.shtml); or
perfect the mechanism of a free and
• Send an e-mail to ruleopen market and a national market
comments@sec.gov. Please include File
system, and, in general, to protect
Number SR–Amex–2007–54 on the
investors and the public interest. The
subject line.
proposed rule change institutes a
mandatory annual training program for
Paper Comments
Amex floor members. The Commission
• Send paper comments in triplicate
believes that this proposal should allow
to Nancy M. Morris, Secretary,
the Exchange to more effectively train
Securities and Exchange Commission,
its members to ensure compliance by its
100 F Street, NE., Washington, DC
members with Exchange rules and the
20549–1090.
federal securities laws.
All submissions should refer to File
In addition, the Commission believes
Number SR–Amex–2007–54. This file
the proposed rule change is consistent
number should be included on the
with the objectives of Section 6(b)(6) 11
subject line if e-mail is used. To help the of the Act because it is designed to
Commission process and review your
allow Amex to discipline or sanction
comments more efficiently, please use
members under its Minor Rule Violation
only one method. The Commission will Fine System for violation of the
post all comments on the Commission’s provisions of the rules of the Exchange.
The Commission finds good cause,
Internet Web site (https://www.sec.gov/
consistent with Section 19(b)(2) of the
rules/sro.shtml). Copies of the
Act,12 to grant accelerated approval to
submission, all subsequent
the proposed rule change before the
amendments, all written statements
thirtieth day after the publication of
with respect to the proposed rule
notice thereof in the Federal Register.
change that are filed with the
As noted above, the proposed rule
Commission, and all written
change is in response to a Commission
communications relating to the
Order requiring Amex to enhance its
proposed rule change between the
Commission and any person, other than training program to help ensure
compliance by its members with
those that may be withheld from the
Exchange rules and federal securities
public in accordance with the
laws. The Commission believes that
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
9 In approving this proposal, the Commission has
the Commission’s Public Reference
considered its impact on efficiency, competition,
Room, 100 F Street, NE., Washington,
and capital formation. See 15 U.S.C. 78c(f).
DC 20549, on official business days
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(6).
between the hours of 10 a.m and 3 p.m.
12 15 U.S.C. 78s(b)(2).
Copies of such filing also will be
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15:20 Sep 24, 2007
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Frm 00072
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Sfmt 4703
mandatory training of Amex floor
members should be implemented as
soon as possible so that floor members
are made aware of their duties and
obligations under the federal securities
laws as well as the rules of the Amex.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–Amex–2007–
54), as modified by Amendment No. 1,
be, and it hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–18822 Filed 9–24–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56459; File No. SR–Amex–
2007–24]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Approval to a Proposed Rule
Change and Amendment No. 1 Thereto
To Retroactively Amend Transaction
Charges for Equities, ETFs, and
Nasdaq UTP Securities
September 18, 2007.
I. Introduction
On February 22, 2007, the American
Stock Exchange LLC (‘‘Amex’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
retroactively apply a revised fee
schedule to transactions in equities,
exchange-traded funds (‘‘ETFs’’), and
Nasdaq UTP securities from January 2,
2007 through February 21, 2007. On
August 10, 2007, the Exchange filed
Amendment No. 1 to the proposed rule
change. The proposed rule change, as
amended, was published for comment
in the Federal Register on August 17,
2007.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
13 Id.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 56238
(August 10, 2006), 72 FR 46253.
1 15
E:\FR\FM\25SEN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Notices]
[Pages 54486-54488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18822]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56457; File No. SR-Amex-2007-54]
Self-Regulatory Organizations; American Stock Exchange, LLC;
Notice of Filing and Order Granting Accelerated Approval to Proposed
Rule Change, as Modified by Amendment No. 1 Thereto, Relating to
Amendments to Exchange Training and Examination Requirements
September 18, 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 1, 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.
On September 5, 2007, Amex filed Amendment No. 1 to the proposed rule
change.\3\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as modified by Amendment No. 1 thereto,
from interested persons and approve the proposed rule change on an
accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 supersedes and replaces the original rule
filing in its entirety.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules governing training and
examination requirements.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
Amex proposes certain clarifying changes to its rules governing its
training and examination requirements. These changes are in connection
with implementation of a mandatory annual training program for all
floor members that addresses compliance with the federal securities
laws and Amex rules to help prevent and deter unlawful trading by floor
members, as well as to otherwise simplify and enhance the Exchange's
existing training programs.\4\
---------------------------------------------------------------------------
\4\ Pursuant to an undertaking agreed to in connection with the
recent settlement of a Commission administrative proceeding (the
``Order''), Amex agreed to enhance its existing regulatory training
programs for floor members and certain staff members that addresses
compliance with the federal securities laws and Exchange rules to
help prevent and deter unlawful trading by floor members. See
Exchange Act Release No. 55507; Administrative Proceeding File No.
3-12594 (March 22, 2007).
---------------------------------------------------------------------------
The Exchange's proposal would require all floor members to
participate in a mandatory annual regulatory training program, which
would include participation in any Exchange testing programs in
connection with the mandatory training program. The Exchange
anticipates that the mandatory training program would be organized and
grouped by floor member function and therefore foresees holding
separate sessions for specialists, floor brokers, and registered
traders.
The Exchange also proposes to enhance the new member qualification
program. The new member qualification program currently in place
requires all prospective new members to participate in a comprehensive
training program and successfully complete a corresponding examination
at the conclusion of the training. Members seeking to qualify as
specialists must successfully complete a separate examination as well.
The new program would retain the new member training program and
examination as they currently exist, but would replace the specialist
examination with an in-depth training program. The Exchange represents
that it has found that new specialist applicants, in preparing for the
specialist examination, focus primarily on the requirements necessary
to pass the examination. The Exchange believes that a more effective
method of training prospective specialists would involve training
specifically related to specialists' particular activities and
requirements. To this end, the Exchange proposes to eliminate the
specialist
[[Page 54487]]
examination and instead institute an in-depth qualifying training
program for specialist applicants.
The specialist training sessions would be structured in a manner
similar to the new member training program, which covers the federal
securities laws and Amex rules applicable to the prospective members'
proposed functions. Likewise, the specialist training sessions would be
held in small group settings to foster interaction, and to ensure that
all participants actively engage in the training to help the
participants become fully cognizant of the rules governing their floor
activities.\5\
---------------------------------------------------------------------------
\5\ The Exchange would offer the training programs on a periodic
basis sufficiently frequent to reasonably accommodate demand and to
ensure that all floor members receive training as required by the
Order and in accordance with Amex rules.
---------------------------------------------------------------------------
Lastly, in connection with floor clerk training, the Exchange
proposes to eliminate the initial test requirements for new floor
clerks but would maintain the annual training requirement for all floor
clerks (post, booth and DK) active in the business on the Exchange
trading floor (other than those performing strictly ministerial
functions).
Accordingly, the Exchange proposes changes to the following rules:
Rule 50
Exchange Rule 50, Commentary .01, currently governs examination
requirements for regular members seeking to register as specialists and
regular or options principal members seeking to register as registered
traders. The Exchange notes that in recent years, the examination
requirement for registered traders has been subsumed into the new
member examination. As stated above, the Exchange is proposing to amend
Rule 50 to replace the specialist qualifying examination with a
mandatory qualifying training program, which would include
participation in any Exchange testing in connection with these
mandatory training programs. The requirement for registered trader
applicants to pass an examination has been removed in this proposal,
since such examination has been subsumed into the new member
examination.
Proposed Commentary .03 to Rule 50 describes the requirement that
all floor members participate in a mandatory annual regulatory training
program, which would include participation in any Exchange testing
programs in connection with this mandatory training program. This
proposed Commentary would subject members who fail to satisfactorily
complete the program to a fine and, if warranted, preclusion from the
trading floor until the requirement is met.
Proposed Commentary .04 is similar to proposed Commentary .03,
except that it describes the mandatory regulatory training program for
clerks. This program is comparable to the mandatory continuing
education program implemented through current Exchange Rule 359A. The
Exchange proposes to incorporate this requirement into Rule 50, and to
eliminate Rule 359A, since both govern training requirements. The
Exchange believes that having only one rule would help to simplify and
clarify these requirements. In this proposal, the proposed rule text
clarifies that clerks who perform strictly ministerial functions would
be exempted. Sanctions for noncompliance, which are similar to those
applicable to members, are also described.
Finally, the Exchange proposes to add new Commentary .05 to Rule 50
to state that the Exchange will submit a rule filing with the
Commission, pursuant to Section 19(b) of the Act, proposing any new, or
deleting any current, testing requirements outlining the content of
such exam. The Exchange also committed to issue a formal notice to its
membership notifying it of any changes in the current testing
requirements. In addition, the Exchange moved the reference to study
guides as noted in Commentary .03 to proposed Commentary. 05.
Rule 110 and Rule 110-AEMI
Exchange Rule 110 and Rule 110-AEMI govern requirements for
Registered Traders. Members applying to register as Registered Traders
are required to pass a Registered Trader Examination as prescribed by
the Exchange. In recent years, the examination requirement for
Registered Traders has been subsumed into the New Member Examination.
The Exchange therefore proposes to amend both Rule 110 and Rule 110-
AEMI to eliminate this obsolete reference. Pursuant to proposed Rule
50, Registered Traders would be required to participate in an Exchange-
sponsored mandatory training program, which would include participation
in any Exchange testing in connection with this mandatory training
program.
Rule 353
Exchange Rule 353 governs regular and options principal membership
and limited trading permit requirements and references relevant
examination requirements. If a candidate is going to be active on the
Floor, he or she must pass an examination before being permitted to
execute orders on the Floor. Specialist candidates must pass an
additional examination after a period of training. The Exchange
proposes to eliminate the additional examination required of specialist
candidates after a period of training as referenced in Rule 353. This
proposed rule would instead reference the new mandatory qualifying
training program for specialist applicants. The Exchange believes that
the new mandatory qualifying training program for specialists will be
more effective in training new specialist applicants on the
requirements applicable to their respective member functions.
Rule 359A
Exchange Rule 359A governs mandatory continuing education for all
floor members and mandatory continuing education and initial test
requirements for floor clerks of members and member firms. Rule 359A
presently requires all floor members and floor clerks of members (post,
booth and DK) to participate in the Exchange-sponsored mandatory
continuing education program, which is conducted online. Rule 359A
would be eliminated under this proposal. The rules governing mandatory
continuing education and regulatory training would be incorporated into
Rule 50, and the initial test requirements for new floor clerks would
be eliminated.
Finally, the Exchange notes that, pursuant to the Order, all floor
members, as well as members of Amex's regulatory staff who are
responsible for the surveillance, investigation, examination and
discipline of floor members, would be required to participate in
mandatory annual regulatory training.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \6\ of the
Act in general and furthers the objectives of Section 6(b)(5) \7\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, promote just and equitable principles
of trade, remove impediments to and perfect the mechanisms of a free
and open market and a national market system, and, in general, protect
investors and the public interest. Furthermore, the proposed rule
change is consistent with the objectives of Section 6(b)(6) \8\ in that
it is designed to appropriately discipline or sanction members for
violation of the provisions
[[Page 54488]]
of this title, the rules or regulations thereunder, or the rules of the
Exchange.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ 15 U.S.C. 78f(b)(6).
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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. 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-2007-54 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-2007-54. 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-2007-54 and should be
submitted on or before October 16, 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.\9\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\10\ 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 institutes a mandatory annual training program for Amex
floor members. The Commission believes that this proposal should allow
the Exchange to more effectively train its members to ensure compliance
by its members with Exchange rules and the federal securities laws.
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\9\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(5).
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In addition, the Commission believes the proposed rule change is
consistent with the objectives of Section 6(b)(6) \11\ of the Act
because it is designed to allow Amex to discipline or sanction members
under its Minor Rule Violation Fine System for violation of the
provisions of the rules of the Exchange.
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\11\ 15 U.S.C. 78f(b)(6).
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The Commission finds good cause, consistent with Section 19(b)(2)
of the Act,\12\ to grant accelerated approval to the proposed rule
change before the thirtieth day after the publication of notice thereof
in the Federal Register. As noted above, the proposed rule change is in
response to a Commission Order requiring Amex to enhance its training
program to help ensure compliance by its members with Exchange rules
and federal securities laws. The Commission believes that mandatory
training of Amex floor members should be implemented as soon as
possible so that floor members are made aware of their duties and
obligations under the federal securities laws as well as the rules of
the Amex.
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\12\ 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,\13\ that the proposed rule change (SR-Amex-2007-54), as modified
by Amendment No. 1, be, and it hereby is, approved on an accelerated
basis.
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\13\ Id.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-18822 Filed 9-24-07; 8:45 am]
BILLING CODE 8010-01-P
