Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Position and Exercise Limits for Options on the DIAMONDS Trust, 31162-31164 [E8-12032]
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Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices
investment activities of the Partnership
during that fiscal year.
6. If a Partnership makes purchases or
sales from or to an entity affiliated with
the Partnership by reason of an officer,
director or employee of an AIG entity (a)
serving as an officer, director, general
partner or investment adviser of the
entity, or (b) having a 5% or more
investment in the entity, such
individual will not participate in the
Partnership’s determination of whether
or not to effect the purchase or sale.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Nancy M. Morris,
Secretary.
[FR Doc. E8–12014 Filed 5–29–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on June 3, 2008 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may 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)(3) (5), (6), (7), (9)(B), and
(10) and 17 CFR 200.402(a)(3), (5), (6),
(7), 9(ii) and (10), permit consideration
of the scheduled matters at the Closed
Meeting.
Commissioner Atkins, as duty officer,
voted to consider the items listed for the
Closed Meeting in closed session.
The subject matter of the Closed
Meeting scheduled for June 3, 2008 will
be:
Formal orders of investigation;
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings of an
enforcement nature;
Resolution of litigation claims;
Collection matters; and other matters
related to enforcement proceedings.
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:
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The Office of the Secretary at (202)
551–5400.
Dated: May 27, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–12068 Filed 5–29–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of: Affinity Networks, Inc.;
Order of Suspension of Trading
May 28, 2008.
It appears to the Securities and
Exchange Commission that the public
interest and the protection of investors
require a suspension of trading in the
securities of Affinity Networks, Inc.
(‘‘Affinity’’) because there is a lack of
current and accurate information
concerning its securities. Affinity is
quoted on the Pink Sheets under the
ticker symbol AFFN.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EDT May 28, 2008
through 11:59 p.m. EDT, on June 10,
2008.
By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. 08–1312 Filed 5–28–08; 11:35 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57852; File No. SR–Amex–
2008–41]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Regarding
Position and Exercise Limits for
Options on the DIAMONDS Trust
May 22, 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 May 16,
2008, the American Stock Exchange LLC
(‘‘Exchange’’ or ‘‘Amex’’) filed with the
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00111
Fmt 4703
Sfmt 4703
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 Exchange proposes to amend its
rules to increase the position and
exercise limits applicable to options on
the DIAMONDS Trust, Series 1 (‘‘DIA’’).
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.amex.com), at the offices of
the Exchange, 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
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 is proposing to amend
its rules pertaining to position and
exercise limits for options on DIA. The
Exchange proposes to increase position
and exercise limits for options on DIA
to 300,000 contracts on the same side of
the market. The Commission previously
approved a similar proposal by the
Chicago Board Options Exchange, Inc.
(‘‘CBOE’’).5
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 47346
(February 11, 2003), 68 FR 8316 (February 20, 2003)
(SR–CBOE–2002–26) (approving an increase in the
position limits and exercise limits to 300,000 for
DIA options). The Commission stated that ‘‘given
the surveillance capabilities of the [CBOE] and the
4 17
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The Exchange also recently made
permanent its increased position and
exercise limits for certain equity options
on the Amex which were in effect on a
pilot basis.6 The Exchange stipulated, as
part of its proposal for such permanent
approval, that ‘‘its surveillance
procedures and options reporting
procedures, in conjunction with the
financial requirements and risk
management review procedures
generally in place at the clearing firms
and the Options Clearing Corporation,
will serve to adequately address any
concerns the Commission may have
with respect to account(s) engaging in
any manipulative schemes or assuming
too high a level of risk exposure.’’ 7
These representations also apply to the
current proposal to increase the position
and exercise limits for options on DIA.
The Exchange now seeks to increase the
position and exercise limits for options
on DIA on the Amex to the level that
such limits are in effect on the CBOE
and other options exchanges (300,000
contracts on the same side of the
market).
The Exchange asserts that the
justifications behind the Commission’s
approval of the CBOE proposal should
support the same increased position and
exercise limits on options on DIA on the
Amex. Specifically, the Exchange
believes that the ‘‘structure of the DIA
options and the considerable liquidity
of both the underlying cash and options
market for DIA options lessen the
opportunity for manipulation of this
product and disruption in the
underlying market that a lower position
limit may protect against.’’ 8
The Exchange believes that the
reporting requirements imposed under
the Exchange’s rules will help protect
against potential manipulation.9
Additionally, the Exchange believes that
such an increase in position and
exercise limits on options on DIA on the
Amex is required for competitive
purposes as well as for purposes of
depth and liquidity in both the DIA options and the
underlying cash market in DIAs, the Commission
believes it is permissible to significantly raise
position and exercise limits for DIA options without
risk of disruption to the options or underlying cash
markets.’’ The Commission also stated that
‘‘financial and reporting requirements * * * should
allow [CBOE] to detect and deter trading abuses
arising from the increased position and exercise
limits, and will also allow [CBOE] to monitor large
positions in order to identify instances of potential
risk and to assess additional margin and/or capital
charges, if deemed necessary.’’
6 See Securities Exchange Act Release No. 57415
(March 3, 2008), 73 FR 12479 (March 7, 2008) (SR–
Amex–2008–16).
7 Id.
8 See Securities Exchange Act Release No. 47346,
supra note 5.
9 See Amex Rule 906.
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consistency and uniformity among the
competing options exchanges. This,
taken in conjunction with the
permanent establishment of other
increased position and exercise limits
for certain equity options on Amex,
supports the Exchange’s proposal to
increase the position and exercise limits
applicable to DIA.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the
Act 10 in general, and Section 6(b)(5) of
the Act 11 in particular, in that it is
designed 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. Specifically, the
Exchange believes that the structure of
the DIA options and the considerable
liquidity of the market for DIA options
diminishes the opportunity for
manipulation of this product and
disruption in the underlying market that
a lower position limit may protect
against.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that 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 by the Exchange on this
proposal.
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 12 and
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A).
11 15
PO 00000
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31163
subparagraph (f)(6) of Rule 19b–4
thereunder.13
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 Exchange
states that waiving the operative delay
will allow the Exchange to match the
position and exercise limits for the
options on DIA that currently exist at
other options exchanges. Because of the
competitive nature of this proposal, the
Exchange believes good cause exists to
waive the 30-day operative delay. The
Exchange notes that the Commission
recently granted a waiver of the
operative delay to a similar proposal by
the ISE.14
The Commission believes that
waiving the 30-day operative delay of
the Exchange’s proposal is consistent
with the protection of investors and the
public interest.15 Therefore, the
Commission designates the proposal to
be 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:
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–2008–41 on the subject
line.
13 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.
14 See Securities Exchange Act Release No. 57736
(April 29, 2008), 73 FR 25070 (May 6, 2008) (SR–
ISE–2008–35).
15 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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Federal Register / Vol. 73, No. 105 / Friday, May 30, 2008 / Notices
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–2008–41. 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 No.
SR–Amex–2008–41 and should be
submitted on or before June 20, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8–12032 Filed 5–29–08; 8:45 am]
sroberts on PROD1PC70 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57856; File No. SR–Amex–
2008–38]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Fixed Return Option Transaction Fees
May 23, 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 May 7,
2008, American Stock Exchange LLC
(‘‘Amex’’ or the ‘‘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
Amex. The Exchange has designated
this proposal as one establishing or
changing a member due, fee, or other
charge imposed by Amex under section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 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
Amex is proposing to amend its
options fee schedule (the ‘‘Options Fee
Schedule’’) to adopt transaction fees in
connection with Fixed Return Options
(‘‘FROs’’). The text of the proposed rule
change is available at https://
www.amex.com, the principal offices of
the Exchange, and 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 IV below. Amex has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
16 17
CFR 200.30–3(a)(12).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In August 2007, the Commission
approved an Exchange proposal to list
and trade FROs based on individual
stocks and exchange-traded funds
(‘‘ETFs’’).5 In connection with the
ability to trade FROs, the Options
Clearing Corporation (‘‘OCC’’) also filed
proposed rule changes as well as a
revision to the Options Disclosure
Document (‘‘ODD’’). The Commission
recently approved the ODD revisions so
that FROs may commence trading on
the Exchange.6 The Exchange expects to
launch FROs on May 8, 2008.
Amex proposes to adopt transaction
fees in connection with FROs of (i)
$0.20 per contract side for orders of the
account of specialists and registered
options traders (‘‘ROTs’’), (ii) $0.23 per
contract side for orders of the account
of supplemental registered options
traders (‘‘SROTs’’), (iii) $0.30 per
contract side for orders of the account
of non-member market makers and (iv)
$0.26 per contract side for order of the
account of non-member broker-dealers
and member broker-dealers.7 Orders for
the account of customers would not be
subject to a transaction charge in FROs.
In all cases, the fees are charged only to
Exchange members through whom the
orders are placed. These transaction
charges are identical to the existing
transaction charges for equity options.
In addition, FROs would not be subject
to the options marketing fee.
FROs would also be subject to the
identical BD Auto-Ex Fee that currently
exists for equity options, exchange5 See Securities Exchange Act Release No. 56251
(August 14, 2007), 72 FR 46523 (August 20, 2007)
(SR–Amex–2004–27).
6 See Securities Exchange Act Release No. 57744
(April 30, 2008) (SR–ODD–2008–01). The
Commission previously approved proposed OCC
rule changes in November 2007. See Securities
Exchange Act Release No. 56875 (November 30,
2007), 72 FR 69274 (December 7, 2007) (SR–OCC–
2007–08).
7 The transaction charges for specialists and ROTs
each would consist of an options transaction fee of
$0.10 per contract side, an options comparison fee
of $0.05 per contract side and an options floor
brokerage fee of $0.05 per contract side. With
respect to SROTs and non-member market makers,
transaction charges would consist of an options
transaction fee of either $0.13 per contract side or
$0.20 per contract side, respectively, and an options
comparison fee of $0.05 per contract side and an
options floor brokerage fee of $0.05 per contract
side. The transaction charges for non-member
broker-dealers (broker-dealers) and member brokerdealers (firms) each would consist of an options
transaction fee of $0.19 per contract side, an options
comparison fee of $0.04 per contract side and an
options floor brokerage fee of $0.03 per contract
side.
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]]>Agencies
[Federal Register Volume 73, Number 105 (Friday, May 30, 2008)]
[Notices]
[Pages 31162-31164]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12032]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57852; File No. SR-Amex-2008-41]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Position and Exercise Limits for Options on the DIAMONDS
Trust
May 22, 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 May 16, 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.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to increase the position
and exercise limits applicable to options on the DIAMONDS Trust, Series
1 (``DIA''). The text of the proposed rule change is available on the
Exchange's Web site (https://www.amex.com), at the offices of the
Exchange, 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
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 is proposing to amend its rules pertaining to position
and exercise limits for options on DIA. The Exchange proposes to
increase position and exercise limits for options on DIA to 300,000
contracts on the same side of the market. The Commission previously
approved a similar proposal by the Chicago Board Options Exchange, Inc.
(``CBOE'').\5\
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\5\ See Securities Exchange Act Release No. 47346 (February 11,
2003), 68 FR 8316 (February 20, 2003) (SR-CBOE-2002-26) (approving
an increase in the position limits and exercise limits to 300,000
for DIA options). The Commission stated that ``given the
surveillance capabilities of the [CBOE] and the depth and liquidity
in both the DIA options and the underlying cash market in DIAs, the
Commission believes it is permissible to significantly raise
position and exercise limits for DIA options without risk of
disruption to the options or underlying cash markets.'' The
Commission also stated that ``financial and reporting requirements *
* * should allow [CBOE] to detect and deter trading abuses arising
from the increased position and exercise limits, and will also allow
[CBOE] to monitor large positions in order to identify instances of
potential risk and to assess additional margin and/or capital
charges, if deemed necessary.''
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[[Page 31163]]
The Exchange also recently made permanent its increased position
and exercise limits for certain equity options on the Amex which were
in effect on a pilot basis.\6\ The Exchange stipulated, as part of its
proposal for such permanent approval, that ``its surveillance
procedures and options reporting procedures, in conjunction with the
financial requirements and risk management review procedures generally
in place at the clearing firms and the Options Clearing Corporation,
will serve to adequately address any concerns the Commission may have
with respect to account(s) engaging in any manipulative schemes or
assuming too high a level of risk exposure.'' \7\ These representations
also apply to the current proposal to increase the position and
exercise limits for options on DIA. The Exchange now seeks to increase
the position and exercise limits for options on DIA on the Amex to the
level that such limits are in effect on the CBOE and other options
exchanges (300,000 contracts on the same side of the market).
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 57415 (March 3,
2008), 73 FR 12479 (March 7, 2008) (SR-Amex-2008-16).
\7\ Id.
---------------------------------------------------------------------------
The Exchange asserts that the justifications behind the
Commission's approval of the CBOE proposal should support the same
increased position and exercise limits on options on DIA on the Amex.
Specifically, the Exchange believes that the ``structure of the DIA
options and the considerable liquidity of both the underlying cash and
options market for DIA options lessen the opportunity for manipulation
of this product and disruption in the underlying market that a lower
position limit may protect against.'' \8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 47346, supra note 5.
---------------------------------------------------------------------------
The Exchange believes that the reporting requirements imposed under
the Exchange's rules will help protect against potential
manipulation.\9\ Additionally, the Exchange believes that such an
increase in position and exercise limits on options on DIA on the Amex
is required for competitive purposes as well as for purposes of
consistency and uniformity among the competing options exchanges. This,
taken in conjunction with the permanent establishment of other
increased position and exercise limits for certain equity options on
Amex, supports the Exchange's proposal to increase the position and
exercise limits applicable to DIA.
---------------------------------------------------------------------------
\9\ See Amex Rule 906.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act \10\ in general, and Section
6(b)(5) of the Act \11\ in particular, in that it is designed 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. Specifically, the Exchange believes that the structure of the
DIA options and the considerable liquidity of the market for DIA
options diminishes the opportunity for manipulation of this product and
disruption in the underlying market that a lower position limit may
protect against.
---------------------------------------------------------------------------
\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 Exchange believes that 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 by the Exchange on
this proposal.
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 \12\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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 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 Exchange states that waiving the operative
delay will allow the Exchange to match the position and exercise limits
for the options on DIA that currently exist at other options exchanges.
Because of the competitive nature of this proposal, the Exchange
believes good cause exists to waive the 30-day operative delay. The
Exchange notes that the Commission recently granted a waiver of the
operative delay to a similar proposal by the ISE.\14\
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\14\ See Securities Exchange Act Release No. 57736 (April 29,
2008), 73 FR 25070 (May 6, 2008) (SR-ISE-2008-35).
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The Commission believes that waiving the 30-day operative delay of
the Exchange's proposal is consistent with the protection of investors
and the public interest.\15\ Therefore, the Commission designates the
proposal to be operative upon filing.
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\15\ 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-2008-41 on the subject line.
[[Page 31164]]
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-2008-41. 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 No. SR-Amex-2008-41 and should be
submitted on or before June 20, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E8-12032 Filed 5-29-08; 8:45 am]
BILLING CODE 8010-01-P
