Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Revising the AEMI Rules To Eliminate the Post-Opening Pair-Off of Marketable Orders Held in a Message Queue, 65993-65994 [E7-22891]

Download as PDF Federal Register / Vol. 72, No. 226 / Monday, November 26, 2007 / Notices Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters may also be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(5), (7), (9)(B), and (10) and 17 CFR 200.402(a)(5), (7), 9(ii) and (10), permit consideration of the scheduled matters at the Closed Meeting. Commissioner Casey, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matters of the Open Meeting scheduled for Wednesday, November 28, 2007 will be: 1. The Commission will consider whether to adopt amendments to Rule 14a–8(i)(8) under the Securities Exchange Act of 1934, to clarify its longstanding interpretation of that rule. 2. The Commission will consider whether to adopt amendments to the proxy rules under the Securities Exchange Act of 1934 to facilitate the use of electronic shareholder forums. The subject matter of the Closed Meeting scheduled for Thursday, November 29, 2007 will be: Formal orders of investigation; Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; Adjudicatory matters; and Other matters related to enforcement actions. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. mstockstill on PROD1PC66 with NOTICES November 20, 2007. Nancy M. Morris, Secretary. [FR Doc. E7–22999 Filed 11–23–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56811; File No. SR–Amex– 2007–118] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Revising the AEMI Rules To Eliminate the PostOpening Pair-Off of Marketable Orders Held in a Message Queue November 19, 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 November 13, 2007, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared substantially by the Amex. The Amex has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b– 4(f)(5) thereunder 4 as one that effects a change in an existing order-entry or trading system, which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to adopt changes to the rules governing the Exchange’s new hybrid market trading platform for equity products and exchange-traded funds, designated as AEMISM (‘‘AEMI’’), to eliminate the existing postopening pair-off of marketable orders that are held in a Message Queue 5 during the main pair-off at an opening or reopening. The proposed rule change is available at the Amex’s principal office, the Commission’s Public Reference Room, and the Amex’s Web site at http:// 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 Amex included statements concerning 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(5). 5 See Rule 1A–AEMI for a description of a Message Queue. 2 17 VerDate Aug<31>2005 22:03 Nov 23, 2007 Jkt 214001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 65993 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 Amex has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Amex recently adopted new Commentary .06 to Rule 126–AEMI, ‘‘Precedence of Bids and Offers,’’ which provides that AEMI will function at all times in a manner that assures compliance with the Exchange’s priority and parity rules.6 The Amex adopted Commentary .06 to comply with an undertaking in Section III.F.1 of the settlement order in a recent administrative proceeding.7 In the September Proposal, the Exchange noted that there were two exceptions to its compliance with the requirements of Commentary .06 that the Exchange had recently become aware of and was working to correct in the near future.8 The Exchange has subsequently changed its trading system to eliminate the first exception mentioned above. The purpose of this proposal is to resolve the second exception to Rule 126–AEMI, Commentary .06 mentioned above by amending Amex Rules 108– AEMI, ‘‘Priority and Parity at Openings and Reopenings,’’ and 128A–AEMI, ‘‘Automatic Execution,’’ to eliminate the existing post-opening pair-off of marketable orders that are briefly held in a Message Queue during the main pair-off at an opening or reopening. System issues associated with this postopening pair-off, which takes place at the time the Message Queue is terminated, can, under certain circumstances, result in the violation of the Exchange’s priority and parity rules. The Amex is filing this proposal simultaneously with the 6 See Securities Exchange Act Release No. 56495 (September 21, 2007), 72 FR 55262 (September 28, 2007) (notice of filing and immediate effectiveness of File No. SR–Amex–2007–105) (‘‘September Proposal’’). 7 See In the Matter of American Stock Exchange LLC, Order Instituting Administrative and Ceaseand-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions, a Censure, and a Cease-and-Desist Order Pursuant to Sections 19(h)(1) and 21C of the Securities Exchange Act of 1934, Securities Exchange Act Release No. 55507 (March 22, 2007) (Administrative Proceeding File No. 3–12594). 8 See September Proposal, supra note 6, at note 7. E:\FR\FM\26NON1.SGM 26NON1 65994 Federal Register / Vol. 72, No. 226 / Monday, November 26, 2007 / Notices implementation of the related changes to the AEMI system eliminating the post-opening pair-off. As provided in the proposed rule language, the orders from the Message Queue following the opening pair-off will be treated in the same manner as incoming orders during the regular session, including the generation of intermarket sweep orders as required, and they will enter the AEMI Book in the same time sequence in which they entered the Message Queue.9 The Exchange asserts that the proposal to effect the foregoing changes to the AEMI trading system does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and does not have the effect of limiting the access to or availability of the system. The Exchange believes that the proposed rule changes are non-controversial and that the related changes to the AEMI system will benefit investors by eliminating an existing system function that could potentially result in a violation of the Exchange’s rules. The Amex believes that the changes also should have the additional benefit of simplifying the Amex’s market structure and making its pricing more transparent. 2. Statutory Basis The proposed rule change is designed to be consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Section 6(b)(5) of the Act,11 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition mstockstill on PROD1PC66 with NOTICES The proposed rule change will impose no burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 9 The Exchange also proposes to make a conforming change to the definition of ‘‘Message Queue’’ in Rule 1A–AEMI to clarify that queued messages that enter the AEMI Book do so in the aforementioned time sequence under the current functioning of the AEMI system. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 22:03 Nov 23, 2007 Jkt 214001 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the Amex has designated the proposed rule change as effecting a change in an existing order-entry or trading system of the Amex that does not: (1) Significantly affect the protection of investors or the public interest; (2) impose any significant burden on competition; and (3) have the effect of limiting the access to or availability of the system, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 12 and Rule 19b–4(f)(5) thereunder.13 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in the furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form at http://www.sec.gov/ rules/sro.shtml; or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–Amex 2007–118 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 2007–118. 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 at 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 also will be available for inspection and copying at the principal office of the Exchange. 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 No. SR–Amex 2007–118 and should be submitted on or before December 17, 2007. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–22891 Filed 11–21–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56802; File No. SR–Amex– 2007–53] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of a Proposed Rule Change, and Amendment Nos. 1 and 2 Thereto, Relating to the Listing and Trading of the GreenHaven Continuous Commodity Index Fund November 16, 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 May 29, 2007, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been 14 17 12 15 U.S.C. 78s(b)(3)(A)(iii). 13 17 CFR 240.19b–4(f)(5). PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\26NON1.SGM 26NON1

Agencies

[Federal Register Volume 72, Number 226 (Monday, November 26, 2007)]
[Notices]
[Pages 65993-65994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22891]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56811; File No. SR-Amex-2007-118]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Revising the AEMI Rules To Eliminate the Post-Opening Pair-Off of 
Marketable Orders Held in a Message Queue

November 19, 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 November 13, 2007, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared substantially by the 
Amex. The Amex has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(5) thereunder \4\ as one 
that effects a change in an existing order-entry or trading system, 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(5).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to adopt changes to the rules governing the 
Exchange's new hybrid market trading platform for equity products and 
exchange-traded funds, designated as AEMISM (``AEMI''), to eliminate 
the existing post-opening pair-off of marketable orders that are held 
in a Message Queue \5\ during the main pair-off at an opening or 
reopening.
---------------------------------------------------------------------------

    \5\ See Rule 1A-AEMI for a description of a Message Queue.
---------------------------------------------------------------------------

    The proposed rule change is available at the Amex's principal 
office, the Commission's Public Reference Room, and the Amex's Web site 
at http://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 Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Amex has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Amex recently adopted new Commentary .06 to Rule 126-AEMI, 
``Precedence of Bids and Offers,'' which provides that AEMI will 
function at all times in a manner that assures compliance with the 
Exchange's priority and parity rules.\6\ The Amex adopted Commentary 
.06 to comply with an undertaking in Section III.F.1 of the settlement 
order in a recent administrative proceeding.\7\ In the September 
Proposal, the Exchange noted that there were two exceptions to its 
compliance with the requirements of Commentary .06 that the Exchange 
had recently become aware of and was working to correct in the near 
future.\8\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 56495 (September 21, 
2007), 72 FR 55262 (September 28, 2007) (notice of filing and 
immediate effectiveness of File No. SR-Amex-2007-105) (``September 
Proposal'').
    \7\ See In the Matter of American Stock Exchange LLC, Order 
Instituting Administrative and Cease-and-Desist Proceedings, Making 
Findings, and Imposing Remedial Sanctions, a Censure, and a Cease-
and-Desist Order Pursuant to Sections 19(h)(1) and 21C of the 
Securities Exchange Act of 1934, Securities Exchange Act Release No. 
55507 (March 22, 2007) (Administrative Proceeding File No. 3-12594).
    \8\ See September Proposal, supra note 6, at note 7.
---------------------------------------------------------------------------

    The Exchange has subsequently changed its trading system to 
eliminate the first exception mentioned above. The purpose of this 
proposal is to resolve the second exception to Rule 126-AEMI, 
Commentary .06 mentioned above by amending Amex Rules 108-AEMI, 
``Priority and Parity at Openings and Reopenings,'' and 128A-AEMI, 
``Automatic Execution,'' to eliminate the existing post-opening pair-
off of marketable orders that are briefly held in a Message Queue 
during the main pair-off at an opening or reopening. System issues 
associated with this post-opening pair-off, which takes place at the 
time the Message Queue is terminated, can, under certain circumstances, 
result in the violation of the Exchange's priority and parity rules.
    The Amex is filing this proposal simultaneously with the

[[Page 65994]]

implementation of the related changes to the AEMI system eliminating 
the post-opening pair-off. As provided in the proposed rule language, 
the orders from the Message Queue following the opening pair-off will 
be treated in the same manner as incoming orders during the regular 
session, including the generation of intermarket sweep orders as 
required, and they will enter the AEMI Book in the same time sequence 
in which they entered the Message Queue.\9\
---------------------------------------------------------------------------

    \9\ The Exchange also proposes to make a conforming change to 
the definition of ``Message Queue'' in Rule 1A-AEMI to clarify that 
queued messages that enter the AEMI Book do so in the aforementioned 
time sequence under the current functioning of the AEMI system.
---------------------------------------------------------------------------

    The Exchange asserts that the proposal to effect the foregoing 
changes to the AEMI trading system does not significantly affect the 
protection of investors or the public interest, does not impose any 
significant burden on competition, and does not have the effect of 
limiting the access to or availability of the system. The Exchange 
believes that the proposed rule changes are non-controversial and that 
the related changes to the AEMI system will benefit investors by 
eliminating an existing system function that could potentially result 
in a violation of the Exchange's rules. The Amex believes that the 
changes also should have the additional benefit of simplifying the 
Amex's market structure and making its pricing more transparent.
2. Statutory Basis
    The proposed rule change is designed to be consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no burden on competition that 
is not necessary or appropriate in furtherance of the purposes of the 
Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the Amex has designated the proposed rule change as 
effecting a change in an existing order-entry or trading system of the 
Amex that does not: (1) Significantly affect the protection of 
investors or the public interest; (2) impose any significant burden on 
competition; and (3) have the effect of limiting the access to or 
availability of the system, the foregoing rule change has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and Rule 
19b-4(f)(5) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in the furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form at http://
www.sec.gov/rules/sro.shtml; or
     Send an e-mail to rulecomments@sec.gov. Please include 
File No. SR-Amex 2007-118 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 2007-118. 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 at 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 also will be available for 
inspection and copying at the principal office of the Exchange. 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 No. SR-Amex 2007-118 and should be 
submitted on or before December 17, 2007.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22891 Filed 11-21-07; 8:45 am]
BILLING CODE 8011-01-P