Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Allocation of Executed Options Contracts, 20981-20983 [E8-8194]
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Federal Register / Vol. 73, No. 75 / Thursday, April 17, 2008 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[File No. SR–NYSEArca–2008–19]
In the Matter of: NYSE Arca, Inc.; Order
of Summary Abrogation
April 11, 2008.
Securities Exchange Act of 1934,
Release No. 57648.
Notice is hereby given that the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(3)(C) of the Securities Exchange
Act of 1934 (‘‘Act’’),1 is summarily
abrogating a certain proposed rule
change of NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’).
On February 13, 2008, NYSE Arca
filed SR–NYSEArca–2008–19. The
proposed rule change amended NYSE
Arca Equities Rule 7.31(x) to expand the
permissible order entry time and
eligibility of its ‘‘Primary Only’’ order
type (‘‘PO Order’’). The filing was
immediately effective upon filing with
the Commission pursuant to Section
19(b)(3)(A) of the Act.2
NYSE Arca’s PO Order is a market or
limit order that is routed to the primary,
listing market, without sweeping the
NYSE Arca book.3 The proposed rule
change modified the PO Order type to
permit PO Orders to be entered at any
time and to offer an order modifier for
Users to designate PO Orders that are
eligible for entry and execution
throughout the trading day.4 Previously,
NYSE Arca restricted PO Orders to
participation in the primary, listing
market opening. Specifically, the
amended rule permits NYSE Arca
Equities system Users to enter a PO
Order during any of the Exchange’s
trading sessions and be routed
immediately to the primary, listing
market for execution. If the order is not
immediate-or-cancel, it remains at the
primary, listing market until executed or
cancelled that day.
Pursuant to Section 19(b)(3)(C) of the
Act,5 at any time within 60 days of the
date of filing a proposed rule change
pursuant to Section 19(b)(1) of the Act,6
the Commission may summarily
abrogate the change in the rules of the
self-regulatory organization and require
that the proposed rule change be re-filed
in accordance with the provisions of
1 15
U.S.C. 78s(b)(3)(C).
U.S.C. 78s(b)(3)(A). See Securities Exchange
Act Release No. 57377 (February 25, 2008), 73 FR
11177 (February 29, 2008).
3 NYSE Arca Rule 7.31(x).
4 See NYSE Arca Rule 1.1(yy) for the definition
of ‘‘User.’’
5 15 U.S.C. 78s(b)(3)(C).
6 15 U.S.C. 78s(b)(1).
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2 15
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Section 19(b)(1) of the Act 7 and
reviewed in accordance with Section
19(b)(2) of the Act,8 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.
Archipelago Securities, Inc. (‘‘Arca
Securities’’) is a member of the NYSE
and an affiliate of the NYSE. The
Commission in the past has expressed
concern about the potential for unfair
competition and conflicts of interest
between an exchange’s self-regulatory
obligations and its commercial interests
that could exist if an exchange were
affiliated with one of its members, as
well as the potential for unfair
competitive advantage that the affiliated
member could have by virtue of
informational or operational advantages,
or the ability to receive preferential
treatment.9 The proposed rule change
raises this issue by expanding the
activities of Arca Securities in sending
orders to its affiliate, the NYSE. Thus,
the Commission believes that the
proposed rule change should be subject
to notice and comment and review
pursuant to Sections 19(b)(1) and
19(b)(2) of the Act.10 In addition, the
Commission believes that the issue of
whether the routing of PO Orders by
Arca Securities to the NYSE is
consistent with existing NYSE and
NYSE Arca rules should be subject to
this same notice and comment and
review process.11
Therefore, the Commission finds that
it is appropriate in the public interest,
for the protection of investors, and
otherwise in furtherance of the purposes
of the Act, to abrogate the proposed rule
change.
It is therefore ordered, pursuant to
Section 19(b)(3)(C) of the Act,12 that File
No. SR–NYSEArca–2008–19, be and
hereby is, summarily abrogated. If NYSE
Arca chooses to re-file the proposed rule
change, it must do so pursuant to
Sections 19(b)(1) 13 and 19(b)(2) of the
Act.14
7 15
U.S.C. 78s(b)(1).
U.S.C. 78s(b)(2).
9 See Securities Exchange Act Release No. 53382
(February 27, 2006), 71 FR 11251 FR (March 6,
2006) (order approving SR–NYSE–2005–77).
10 15 U.S.C. 78s(b)(1) and 78s(b)(2).
11 See NYSE Rule 2B; NYSE Arca Rule 3.10;
NYSE Arca Equities Rule 3.10; and Securities
Exchange Act Release Nos. 53382, supra note 9;
53383 (February 27, 2006), 71 FR 11271 (March 6,
2006) (order approving SR–PCX–2005–134); and
52497 (September 22, 2005), 70 FR 56949
(September 29, 2005) (order approving SR–PCX–
2005–90).
12 15 U.S.C. 78s(b)(3)(C).
13 15 U.S.C, 78s(b)(1).
14 15 U.S.C, 78s(b)(2).
8 15
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20981
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–8215 Filed 4–16–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57644; File No. SR–Amex–
2008–32]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Allocation of Executed Options
Contracts
April 10, 2008.
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 March 26,
2008, the American Stock Exchange LLC
(‘‘Exchange’’ or ‘‘Amex’’) 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.
The Exchange has designated this
proposal as non-controversial under
Section 19(b)(3)(A)(iii) 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 Amex proposes to modify the
allocation in Exchange Rule 935–ANTE
relating to electronically executed
option contracts. The text of the
proposed rule change is available on the
Amex’s Web site at https://
www.Amex.com, at the Office of the
Secretary, the Amex and at the
Commission’s Public Reference Room.
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
15 17
CFR 200.30–3(a)(58).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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20982
Federal Register / Vol. 73, No. 75 / Thursday, April 17, 2008 / Notices
contracts to non-broker-dealer
customers first and then to all other
market participants based upon the
following:
((Component A Percentage +
Component B Percentage)/2) *
Number of Executed Contracts)).
• Component A (Parity Component)—
the percentage used for Component A is
an equal percentage, derived by
dividing 100 by the number of market
A. Self-Regulatory Organization’s
participants quoting at the ABBO.
Statement of the Purpose of, and
• Component B (Size Pro Rata
Statutory Basis for, the Proposed Rule
Component)—the percentage to be used
Change
for Component B is the percentage that
1. Purpose
the size of each market participant’s
The Exchange seeks to revise the
quote or order at the ABBO represents
allocation formula set forth in Rule
relative to the total number of contracts
935—ANTE (‘‘Allocation of Executed
in the disseminated quote.
Final Weighting—A weighted average
Contracts’’) when a specialist is on
of the percentages derived for
parity for option orders of five (5)
Components A and B is calculated, and
contracts or less that are delivered and
then multiplied by the size of the
executed electronically in ANTE.
incoming order. Currently, the
Specifically, the proposal provides that
weighting of Components A and B is
if the specialist is quoting at the Amex
equal.
best bid or offer (the ‘‘ABBO’’), after
The proposed revision to Rule 935—
public customer market and marketable
ANTE permits the specialist to receive
limit orders have been executed, the
a 100% allocation after marketable nonspecialist will be entitled to receive the
broker-dealer customer orders are
entire allocation of orders for five (5)
executed for orders of five (5) contracts
contracts or less.5
Current Rule 935—ANTE provides
or less. A specialist will not receive any
that if the specialist is eligible for an
portion of an allocation unless it is
allocation, the specialist is entitled to
quoting at the ABBO at the time ANTE
receive an allocation (not to exceed the
receives the executable order. In
size of the specialist’s quote) equal to
addition, the size associated with the
the greater of either:
specialist’s quote must be sufficient to
(i) The number of executed contracts
fill the portion of the order that would
to be allocated to the specialist based
be allocated to it.
upon the percentages set forth below;
The proposal also specifies that, on a
quarterly basis, the Exchange will
Approximate
evaluate what percentage of the volume
number of
executed on the Exchange is comprised
Number of market
contracts alloof orders for five (5) contracts or less
participants* on parity
cated to the
executed by specialists, and will reduce
specialist
(percent)
the size of the orders included in this
provision if such percentage is over
1 ............................................
60
40%.6
2–4 ........................................
40
The Exchange believes that the
5–7 ........................................
30
8–15 ......................................
25 proposal will provide greater incentive
16 or more ............................
20 for specialists to competitively quote
based on both price and size and
* Not including non-broker-dealer customers.
therefore will benefit the marketplace.
or
2. Statutory Basis
(ii) The number of executed contracts
The proposed rule change is
the specialist would be otherwise
consistent with Section 6(b) 7 of the Act
entitled to pursuant to the allocation
algorithm (the ‘‘Allocation Algorithm’’). in general and furthers the objectives of
Section 6(b)(5) 8 in particular in that it
Allocation Algorithm
6 Supplementary Material .01(c) to International
The Allocation Algorithm provides
Securities Exchange, LLC (‘‘ISE’’) Rule 713
that when more than one market
excludes, for purposes of calculating the percentage
participant is quoting at the ABBO, the
of volume executed on the ISE consisting of orders
ANTE System allocates executed
of 5 contracts or less, the volume resulting from the
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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.
5 See
Securities Exchange Act Release Nos. 42808
(May 22, 2000), 65 FR 34515 (May 30, 2000)(ISE
Rule 713) and 50100 (July 27, 2004), 69 FR 46612
(August 3, 2004) (Phlx Rule 1014(g)).
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execution of orders in its Facilitation Mechanism.
Unlike ISE, the Exchange’s ANTE system does not
have a similar facilitation mechanism or platform.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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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 Exchange believes that the
proposed rule change does not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from the date of filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest. Therefore, the foregoing rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
The Exchange notes that the proposed
rule change is based on similar
proposals approved by the
Commission.11 The Exchange has asked
the Commission to waive the operative
delay to permit the proposed rule
change to become operative prior to the
30th day after filing.
The Commission has determined that
waiving the 30-day operative delay of
the Exchange’s proposal is consistent
with the protection of investors and the
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has fulfilled this requirement.
11 See supra note 5.
10 17
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Federal Register / Vol. 73, No. 75 / Thursday, April 17, 2008 / Notices
public interest. The Commission notes
that the proposed rule change is
substantially similar to provisions in the
rules of two other exchanges.12 The
Commission believes that, because the
proposed rule change raises no new
regulatory issues, it is consistent with
the protection of investors and the
public interest to permit Amex to
implement the proposal without
needless delay.13 Therefore, the
Commission designates the proposal as
operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the 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.
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:
sroberts on PROD1PC64 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2008–32 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–2008–32. 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
12 See
supra note 5.
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
13 For
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17:08 Apr 16, 2008
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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
Number SR–Amex–2008–32 and should
be submitted on or before May 8, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–8194 Filed 4–16–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57645; File No. SR–Amex–
2008–35]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Clarify
That Current Limitations on the Trade
Allocation Match for Registered
Traders in ETFs Also Apply to DARTs
April 10, 2008.
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 April 3,
2008, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
Amex filed the proposed rule change
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
14 17
CFR 200.30–3(a)(12).
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).
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20983
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
Amex proposes to amend
Commentary .01 to its Rule 157–AEMI
to clarify that certain limitations
currently applicable to its market
makers, who enter quotations in
exchange-traded funds (‘‘ETFs’’) into the
AEMI system from the floor of the
Exchange (known as ‘‘Registered
Traders’’), are also applicable to its
market makers in ETFs who enter
quotations into AEMI from an off-floor
location (known as ‘‘Designated Amex
Remote Traders’’ or ‘‘DARTs’’). These
limitations address whether ETF market
makers that have a relationship with the
same member organization may trade in
the same security at the same time. The
proposed rule change would provide
that, if such ETF market makers are
allowed to trade in the same security at
the same time, the current limit on the
trade allocation match that the related
market makers may receive would not
depend on whether their respective
quotes are entered from on or off the
floor of the Exchange (i.e., whether they
are Registered Traders or DARTs). The
purpose of these limitations is therefore
to ensure fairness in trading crowds.
The text of the proposed rule change
is available on Amex’s Web site at
https://www.amex.com, at the Amex’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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 III below. 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
Commentary .01 to the Exchange’s
Rule 157–AEMI currently prohibits
Registered Traders (i.e., market makers
in ETFs who enter quotations in the
form of Crowd Orders into the AEMI
system from the floor of the Exchange)
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]]>Agencies
[Federal Register Volume 73, Number 75 (Thursday, April 17, 2008)]
[Notices]
[Pages 20981-20983]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8194]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57644; File No. SR-Amex-2008-32]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Allocation of Executed Options Contracts
April 10, 2008.
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 March 26, 2008, the American Stock Exchange LLC (``Exchange'' or
``Amex'') 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.
The Exchange has designated this proposal as non-controversial under
Section 19(b)(3)(A)(iii) 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)(iii).
\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 Amex proposes to modify the allocation in Exchange Rule 935-
ANTE relating to electronically executed option contracts. The text of
the proposed rule change is available on the Amex's Web site at https://
www.Amex.com, at the Office of the Secretary, the Amex and at the
Commission's Public Reference Room.
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
[[Page 20982]]
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange seeks to revise the allocation formula set forth in
Rule 935--ANTE (``Allocation of Executed Contracts'') when a specialist
is on parity for option orders of five (5) contracts or less that are
delivered and executed electronically in ANTE. Specifically, the
proposal provides that if the specialist is quoting at the Amex best
bid or offer (the ``ABBO''), after public customer market and
marketable limit orders have been executed, the specialist will be
entitled to receive the entire allocation of orders for five (5)
contracts or less.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 42808 (May 22,
2000), 65 FR 34515 (May 30, 2000)(ISE Rule 713) and 50100 (July 27,
2004), 69 FR 46612 (August 3, 2004) (Phlx Rule 1014(g)).
---------------------------------------------------------------------------
Current Rule 935--ANTE provides that if the specialist is eligible
for an allocation, the specialist is entitled to receive an allocation
(not to exceed the size of the specialist's quote) equal to the greater
of either:
(i) The number of executed contracts to be allocated to the
specialist based upon the percentages set forth below;
------------------------------------------------------------------------
Approximate
number of
contracts
Number of market participants* on parity allocated to
the specialist
(percent)
------------------------------------------------------------------------
1....................................................... 60
2-4..................................................... 40
5-7..................................................... 30
8-15.................................................... 25
16 or more.............................................. 20
------------------------------------------------------------------------
* Not including non-broker-dealer customers.
or
(ii) The number of executed contracts the specialist would be
otherwise entitled to pursuant to the allocation algorithm (the
``Allocation Algorithm'').
Allocation Algorithm
The Allocation Algorithm provides that when more than one market
participant is quoting at the ABBO, the ANTE System allocates executed
contracts to non-broker-dealer customers first and then to all other
market participants based upon the following:
((Component A Percentage + Component B Percentage)/2) * Number of
Executed Contracts)).
Component A (Parity Component)--the percentage used for
Component A is an equal percentage, derived by dividing 100 by the
number of market participants quoting at the ABBO.
Component B (Size Pro Rata Component)--the percentage to
be used for Component B is the percentage that the size of each market
participant's quote or order at the ABBO represents relative to the
total number of contracts in the disseminated quote.
Final Weighting--A weighted average of the percentages derived for
Components A and B is calculated, and then multiplied by the size of
the incoming order. Currently, the weighting of Components A and B is
equal.
The proposed revision to Rule 935--ANTE permits the specialist to
receive a 100% allocation after marketable non-broker-dealer customer
orders are executed for orders of five (5) contracts or less. A
specialist will not receive any portion of an allocation unless it is
quoting at the ABBO at the time ANTE receives the executable order. In
addition, the size associated with the specialist's quote must be
sufficient to fill the portion of the order that would be allocated to
it.
The proposal also specifies that, on a quarterly basis, the
Exchange will evaluate what percentage of the volume executed on the
Exchange is comprised of orders for five (5) contracts or less executed
by specialists, and will reduce the size of the orders included in this
provision if such percentage is over 40%.\6\
---------------------------------------------------------------------------
\6\ Supplementary Material .01(c) to International Securities
Exchange, LLC (``ISE'') Rule 713 excludes, for purposes of
calculating the percentage of volume executed on the ISE consisting
of orders of 5 contracts or less, the volume resulting from the
execution of orders in its Facilitation Mechanism. Unlike ISE, the
Exchange's ANTE system does not have a similar facilitation
mechanism or platform.
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The Exchange believes that the proposal will provide greater
incentive for specialists to competitively quote based on both price
and size and therefore will benefit the marketplace.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act in general and furthers the objectives of Section 6(b)(5) \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.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
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The Exchange notes that the proposed rule change is based on
similar proposals approved by the Commission.\11\ The Exchange has
asked the Commission to waive the operative delay to permit the
proposed rule change to become operative prior to the 30th day after
filing.
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\11\ See supra note 5.
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The Commission has determined that waiving the 30-day operative
delay of the Exchange's proposal is consistent with the protection of
investors and the
[[Page 20983]]
public interest. The Commission notes that the proposed rule change is
substantially similar to provisions in the rules of two other
exchanges.\12\ The Commission believes that, because the proposed rule
change raises no new regulatory issues, it is consistent with the
protection of investors and the public interest to permit Amex to
implement the proposal without needless delay.\13\ Therefore, the
Commission designates the proposal as operative upon filing.
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\12\ See supra note 5.
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2008-32 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-2008-32. 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 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-2008-32 and should be
submitted on or before May 8, 2008.
For the Commission, by the Division of Trading and Markets,
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. E8-8194 Filed 4-16-08; 8:45 am]
BILLING CODE 8010-01-P
