Self-Regulatory Organizations; American Stock Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 918-ANTE, 10317-10319 [E8-3559]
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Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Notices
pursuant to this proposal are consistent
with the Act. The Exchange states that
the Shares would be subject to Amex’s
AEMI rules. The Commission also
believes that the Exchange’s trading halt
rules under Amex Rule 1002A(b) are
reasonably designed to prevent trading
in the Shares when transparency is
impaired.
In support of this proposal, the
Exchange has made the following
representations:
1. The Exchange will rely on its
existing surveillance procedures
governing Index Fund Shares and has a
general policy prohibiting the
distribution of material, non-public
information by its employees. The
Exchange represents that its
surveillance procedures are adequate to
properly monitor the trading of the
Shares.
2. Prior to the commencement of
trading, the Exchange will inform its
members and member organizations in
an Information Circular of the
characteristics and risks associated with
an investment in the Shares, the
procedures for creating and redeeming
the Shares, the timing and frequency of
the dissemination of the IIV, the
application of Commentary .03 to Amex
Rule 1000A–AEMI and Amex Rule
1002A to the Fund Shares, Prospectus
and/or Product Description delivery
requirements, any exemptive relief
under the 1940 Act, the Securities Act
of 1933, or the Act granted by the
Commission, and the suitability
requirements of Amex Rule 411.25
3. The Exchange represents that the
Trust is required to comply with Rule
10A–3 under the Act 26 for the initial
and continued listing of the Shares.
This approval order is based on the
Exchange’s representations.
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,27 for approving the proposed rule
change prior to the 30th day after the
date of publication of notice in the
Federal Register. The Commission notes
that the Shares are similar in structure,
operation, and function to the shares of
other exchange-traded funds based on
an underlying index composed of fixed
income securities, the shares of which
are currently listed and trading in the
marketplace.28 As mentioned above, the
25 See
supra note 15.
CFR 240.10A–3.
27 15 U.S.C. 78s(b)(2).
28 See, e.g., Securities Exchange Act Release Nos.
48881 (December 4, 2003), 68 FR 69739 (December
15, 2003) (SR–NYSE–2003–39) (approving the
listing and trading of shares of the iShares Lehman
U.S. Aggregate Bond Fund and iShares Lehman
TIPS Bond Fund); and 48534 (September 24, 2003),
68 FR 56353 (September 30, 2003) (SR–Amex–
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26 17
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Commission has previously approved
the listing and trading of other
derivative securities products based on
indices that narrowly missed a
quantitative generic listing criterion but
satisfied all the others.29 Given that the
Shares comply with all of Amex’s initial
generic listing standards for Index Fund
Shares (except for the one requirement
of Commentary .03(a)(5) to Amex Rule
1000A–AEMI) and would be subject to
Amex’s continued listing requirements
for Index Fund Shares under Amex Rule
1002A, the listing and trading of the
Shares does not appear to present any
novel or significant regulatory issues.
Therefore, the Commission believes that
accelerating approval of this proposal
should benefit investors by creating,
without undue delay, additional
competition in the market for such
products. Accordingly, the Commission
finds that there is good cause, consistent
with Section 6(b)(5) of the Act,30 to
approve the proposed rule change, as
modified by Amendment Nos. 1 and 2
thereto, on an accelerated basis.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) under the Act,31 that
the proposed rule change (SR–Amex–
2007–115), as modified by Amendment
Nos. 1 and 2 thereto, be, and it hereby
is, approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3554 Filed 2–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57354; File No. SR–Amex–
2008–10]
Self-Regulatory Organizations;
American Stock Exchange, LLC;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Rule 918–ANTE
February 19, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
2003–75) (approving the listing and trading of Index
Fund Shares based on indexes of fixed income
securities selected to correspond generally to the
performance of various U.S. bond indexes).
29 See supra note 21.
30 15 U.S.C. 78f(b)(5).
31 15 U.S.C. 78s(b)(2).
32 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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10317
notice is hereby given that on February
14, 2008, the American Stock Exchange,
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. The Amex filed this proposal
pursuant to Section 19(b)(3)(A) of the
Act,3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange seeks to conform Amex
Rule 918—ANTE to non-ANTE Rule 918
in connection with a recent approval to
permit the sending of Principal Acting
as Agent Orders (‘‘P/A Orders’’) through
the Options Intermarket Linkage (the
‘‘Linkage’’) prior to the opening of
trading.5
The text of the proposed rule change
is available at the Amex, at the
Commission’s Public Reference Room,
and at 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 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
The Commission recently approved
the Exchange’s proposal to adopt
Commentary .06 to Amex Rule 918 to
implement Amendment No. 23 to
Section 7(a)(i) of the Plan for the
Purpose of Creating and Operating an
Intermarket Options Linkage (the
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 56850
(November 27, 2007), 72 FR 68225 (December 4,
2007) (SR–Amex–2007–123) (‘‘Original Approval’’).
4 17
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26FEN1
mstockstill on PROD1PC66 with NOTICES
10318
Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Notices
‘‘Linkage Plan’’ or ‘‘Plan’’).6
Amendment No. 23, coupled with the
related Exchange rule filing recently
approved by the Commission, will
permit the use of the Linkage prior to
the opening of trading.
The Exchange proposes to conform
Amex Rule 918—ANTE to the recently
approved Amex Rule 918 permitting the
use of the Linkage prior to the opening
of trading. The purpose of this proposal
is to correct Amex Rule 918—ANTE
which the Exchange inadvertently failed
to revise in its prior filing to implement
Amendment No. 23. In addition,
because Amex Rule 918—ANTE (rather
than Rule 918) applies to all options
trading, the Exchange seeks to eliminate
Commentary .06 to Amex Rule 918.
As set forth in the Original Approval,
the Linkage Plan, prior to Amendment
No. 23, did not contemplate the use of
the Linkage before a Plan participant (a
‘‘Participant’’) opened for trading and
disseminated a quotation in an options
series. There, accordingly, was no tradethrough protection for opening trades.
As a result, if there was a better market
away at the time a Participant opened
its market, the Amex specialist,
responsible both for the opening and for
protecting customer orders, could not
access that market for a customer. The
customer, accordingly, could receive a
price inferior to the national best bid
and offer.
This proposal to conform Amex Rule
918—ANTE to the recently approved
Amex Rule 918 will permit the sending
of P/A Orders prior to the opening,
allowing the Amex specialist to access
better markets on behalf of customers
prior to the Exchange’s opening in
connection with the ANTE system. In
implementing this proposed rule
change, the Exchange will ensure that
customers receive the best price for their
orders. Under the Plan, a Participant
receiving market has three (3) seconds
to respond to a P/A Order, and the
Participant receiving market can then
reject a response it receives more than
three (3) seconds after sending the
order. In the unlikely event that the
Amex opens its market during this three
(3) second period, it is possible that the
opening price could differ from the
price of an executed P/A Order. In that
case, the Amex will ensure that the
specialist provides the customer with
the most advantageous price. Therefore,
the proposal will only benefit customers
by providing them with potential price
improvement at the opening.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 7
in general and furthers the objectives of
Section 6(b)(5) of the Act 8 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.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6) under
the Act 10 because: (i) It does not
significantly affect the protection of
investors or the public interest; (ii) it
does not impose any significant burden
on competition; and (iii) by its terms, it
does not become operative for 30 days
after the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest; provided that the Exchange has
given 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. At
any time within 60 days of the filing of
the 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 furtherance of the
purposes of the Act.
The Amex has requested that the
Commission waive the 30-day operative
7 15
6 Id. See also Securities Exchange Act Release No.
56780 (November 13, 2007), 72 FR 65113
(November 19, 2007) (File No. 4–429).
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 15 U.S.C. Section 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
8 15
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delay for the proposal. The Commission
grants Amex’s request.11 The proposed
rule change would allow Amex to send
P/A Orders through the Linkage prior to
the opening of trading, which should
facilitate access to superior prices that
may be available at other options
exchanges at the opening. Therefore,
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, because it may result in
better-priced executions for investors.
For this reason, the Commission
designates the proposal effective and
operative upon filing with the
Commission.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2008–10 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–2008–10. 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
11 For purposes only of waiving the operative
delay of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
E:\FR\FM\26FEN1.SGM
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Federal Register / Vol. 73, No. 38 / Tuesday, February 26, 2008 / Notices
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
Number SR–Amex–2008–10 and should
be submitted on or before March 18,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3559 Filed 2–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57355; File No. SR–CBOE–
2007–03]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of a Proposed Rule Change as
Modified by Amendment No. 1 Thereto
Amending its Obvious Error Rule for
Options on Indices, ETFs, and
HOLDRS
mstockstill on PROD1PC66 with NOTICES
February 20, 2008.
I. Introduction
On February 21, 2007, the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’ 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
amend CBOE Rule 24.16, which is the
Exchange’s rule applicable to the
nullification and adjustment of
transactions in index options, options
on exchange-traded funds (‘‘ETFs’’), and
options on HOLding Company
Depository ReceiptS (‘‘HOLDRS’’), to: (i)
Modify the nullification and adjustment
provisions for erroneous prints and
erroneous quotes in the underlying; (ii)
eliminate the nullification and
adjustment provision for trades below
intrinsic value; and (iii) modify the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:29 Feb 25, 2008
Jkt 214001
nullification provision for ‘‘no bid
series.’’ On December 20, 2007, the
CBOE submitted Amendment No. 1 to
the proposed rule change. The proposed
rule change, as amended, was published
for comment in the Federal Register on
December 28, 2007.3 The Commission
received no comment letters on the
proposal. This order approves the
proposed rule change, as amended.
II. Description of the Proposed Rule
Change
The Exchange proposes to modify
CBOE Rule 24.16 with respect to
erroneous prints and erroneous quotes
in the underlying. Under the revised
rule, the appropriate Exchange
committee would identify particular
underlying or related instrument(s) that
would be used to determine an
erroneous print or quote and also would
identify the relevant market(s) trading
the underlying or related instrument to
which the Exchange would look for
purposes of applying the obvious error
analysis. The underlying or related
instrument(s) may include the
underlying or related ETF(s),
HOLDRS(s), and/or index value(s),4
and/or related futures product(s).5 The
relevant underlying market(s) may
include one or more markets. The
underlying or related instrument(s) and
relevant market(s) would be designated
by the appropriate Exchange committee
and announced to the membership via
Regulatory Circular. For a particular
ETF, HOLDRS, index value, and/or
futures product to qualify for
consideration as a ‘‘related instrument,’’
the revised rule requires that: (i) The
option class and related instrument
must be derived from or designed to
track the same underlying index; or (ii)
in the case of S&P 100-related options,
the options class and related instrument
must be derived from or designed to
track the S&P 100 Index or the S&P 500
Index.
In addition, the proposal would
eliminate the nullification and
adjustment provision for trades below
intrinsic value. CBOE Rule 24.16(a)(5)
currently states that an obvious pricing
error will be deemed to have occurred
3 Securities Exchange Act Release No. 57012
(December 20, 2007), 72 FR 73921.
4 An ‘‘index value’’ is the value of an index as
calculated and reported by the index’s reporting
authority. Use of an index value would be
applicable only for purposes of identifying an
erroneous print in the underlying (and not an
erroneous quote). See proposed changes to CBOE
Rule 24.16(a)(3).
5 This proposed rule change does not seek to
designate any of the individual underlying stocks
(or related options or futures on any of the
individual underlying stocks) that comprise a
particular ETF, HOLDR, or index.
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10319
when the transaction price of an option
series is more than $0.10 below the
intrinsic value of the same option. The
purpose of deleting this provision is to
account for circumstances under which
options are correctly priced $0.10 or
more below the intrinsic value. For
example, this situation might occur in
options with underlying securities that
are hard-to-borrow, extremely volatile
issues where one market participant
seeks to transfer the risk of selling or
buying a security to other market
participants by trading options, and
options having European-style exercise,
thus preventing exercise prior to
expiration. According to the Exchange,
the elimination of this provision is
consistent with the Exchange’s current
rule for equity options, which does not
have an obvious error review for trades
below intrinsic value.6
Finally, the proposal would modify
the nullification provision for no bid
series. Currently, the rule provides that
electronic transactions in series that are
quoted no bid on the Exchange are
subject to nullification, provided that at
least one strike price below (for calls) or
above (for puts) in the same options
class was quoted no bid at the time of
execution. Under the revised rule,
additional criteria and clarifying
language would be added. Specifically,
an electronic transaction in a series
quoted no bid on the Exchange would
be subject to nullification provided that:
(i) The bid in that series immediately
preceding the execution was, and for
five seconds prior to the execution
remained, zero; and (ii) at least one
strike price below (for calls) or above
(for puts) in the same options class was
quoted no bid and offered at the same
price or lower as that series at the time
of execution. The revised no bid
provision would provide that, when
determining the Exchange’s quotes in
the relevant series, bids and offers of the
parties to the subject trade that are in
any of the series in the same options
class shall not be considered. The
revised rule also would provide that
when an option series in a class has a
non-standard deliverable (e.g., 150
contract delivery requirement), it will be
considered separately for purposes of
the no bid provision from series in such
class that do not have a non-standard
deliverable. The revised rule would
clarify that the no bid provision is
intended to apply to series quoted no
bid on the Exchange (as opposed to
series for which the national best bid is
quoted no bid).
6 See
E:\FR\FM\26FEN1.SGM
CBOE Rule 6.25.
26FEN1
]]>Agencies
[Federal Register Volume 73, Number 38 (Tuesday, February 26, 2008)]
[Notices]
[Pages 10317-10319]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3559]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57354; File No. SR-Amex-2008-10]
Self-Regulatory Organizations; American Stock Exchange, LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Rule 918-ANTE
February 19, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 14, 2008, the American Stock Exchange, LLC (``Amex''
or ``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been substantially prepared by the Exchange.
The Amex filed this proposal pursuant to Section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed
rule change 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)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange seeks to conform Amex Rule 918--ANTE to non-ANTE Rule
918 in connection with a recent approval to permit the sending of
Principal Acting as Agent Orders (``P/A Orders'') through the Options
Intermarket Linkage (the ``Linkage'') prior to the opening of
trading.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56850 (November 27,
2007), 72 FR 68225 (December 4, 2007) (SR-Amex-2007-123) (``Original
Approval'').
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The text of the proposed rule change is available at the Amex, at
the Commission's Public Reference Room, and at 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 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
The Commission recently approved the Exchange's proposal to adopt
Commentary .06 to Amex Rule 918 to implement Amendment No. 23 to
Section 7(a)(i) of the Plan for the Purpose of Creating and Operating
an Intermarket Options Linkage (the
[[Page 10318]]
``Linkage Plan'' or ``Plan'').\6\ Amendment No. 23, coupled with the
related Exchange rule filing recently approved by the Commission, will
permit the use of the Linkage prior to the opening of trading.
---------------------------------------------------------------------------
\6\ Id. See also Securities Exchange Act Release No. 56780
(November 13, 2007), 72 FR 65113 (November 19, 2007) (File No. 4-
429).
---------------------------------------------------------------------------
The Exchange proposes to conform Amex Rule 918--ANTE to the
recently approved Amex Rule 918 permitting the use of the Linkage prior
to the opening of trading. The purpose of this proposal is to correct
Amex Rule 918--ANTE which the Exchange inadvertently failed to revise
in its prior filing to implement Amendment No. 23. In addition, because
Amex Rule 918--ANTE (rather than Rule 918) applies to all options
trading, the Exchange seeks to eliminate Commentary .06 to Amex Rule
918.
As set forth in the Original Approval, the Linkage Plan, prior to
Amendment No. 23, did not contemplate the use of the Linkage before a
Plan participant (a ``Participant'') opened for trading and
disseminated a quotation in an options series. There, accordingly, was
no trade-through protection for opening trades. As a result, if there
was a better market away at the time a Participant opened its market,
the Amex specialist, responsible both for the opening and for
protecting customer orders, could not access that market for a
customer. The customer, accordingly, could receive a price inferior to
the national best bid and offer.
This proposal to conform Amex Rule 918--ANTE to the recently
approved Amex Rule 918 will permit the sending of P/A Orders prior to
the opening, allowing the Amex specialist to access better markets on
behalf of customers prior to the Exchange's opening in connection with
the ANTE system. In implementing this proposed rule change, the
Exchange will ensure that customers receive the best price for their
orders. Under the Plan, a Participant receiving market has three (3)
seconds to respond to a P/A Order, and the Participant receiving market
can then reject a response it receives more than three (3) seconds
after sending the order. In the unlikely event that the Amex opens its
market during this three (3) second period, it is possible that the
opening price could differ from the price of an executed P/A Order. In
that case, the Amex will ensure that the specialist provides the
customer with the most advantageous price. Therefore, the proposal will
only benefit customers by providing them with potential price
improvement at the opening.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\7\ in general and furthers the objectives of Section 6(b)(5) of the
Act \8\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) under the Act \10\
because: (i) It does not significantly affect the protection of
investors or the public interest; (ii) it does not impose any
significant burden on competition; and (iii) by its terms, it does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest; provided that the
Exchange has given 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. At any time within 60 days of
the filing of the 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 furtherance of the purposes of
the Act.
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\9\ 15 U.S.C. Section 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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The Amex has requested that the Commission waive the 30-day
operative delay for the proposal. The Commission grants Amex's
request.\11\ The proposed rule change would allow Amex to send P/A
Orders through the Linkage prior to the opening of trading, which
should facilitate access to superior prices that may be available at
other options exchanges at the opening. Therefore, Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, because it may result
in better-priced executions for investors. For this reason, the
Commission designates the proposal effective and operative upon filing
with the Commission.
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\11\ For purposes only of waiving the operative delay of this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2008-10 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-2008-10. 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
[[Page 10319]]
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 Number SR-Amex-2008-10 and should be submitted on or before March
18, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3559 Filed 2-25-08; 8:45 am]
BILLING CODE 8011-01-P
