[Federal Register: May 14, 2007 (Volume 72, Number 92)]
[Notices]
[Page 27155-27156]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my07-65]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55719; File No. SR-Amex-2006-17]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Amendment Nos. 3 and 4 Relating to Procedures for
At-Risk Cross Transactions
May 7, 2007.
On February 17, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to adopt a new crossing procedure, the ``at-risk
cross,'' as an alternative to the Exchange's existing facilitation
cross procedure. On November 9, 2006, the Exchange filed Amendment No.
1 to the proposed rule change, and on December 1, 2006, the Exchange
filed Amendment No. 2 to the proposed rule change. The proposed rule
change, as modified by Amendment Nos. 1 and 2, was published for
comment in the Federal Register on January 17, 2007.\3\ On March 28,
2007, the Exchange filed Amendment No. 3 to the proposed rule change,
and on May 3, 2007, the Exchange filed Amendment No. 4 to the proposed
rule change. Amendment Nos. 3 and 4 are described in Item II below. The
Commission is publishing this notice to solicit comments on the
proposed rule change, as amended by Amendment Nos. 3 and 4, from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 55068 (January 9,
2007), 72 FR 2044 (``Notice'').
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Amex proposes to revise the procedures applicable to cross
transactions in equity options to provide procedures for at-risk cross
transactions. The text of the proposed rule change is available at the
Amex, on the Amex's Web site at http://amex.com, 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 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to provide an alternative crossing procedure
to supplement the existing facilitation cross procedure in Commentary
.02 to Amex Rule 950-ANTE(d). In this manner, the Amex would permit
``at-risk'' cross transactions by member firms. A complete description
and statement of purpose of the proposed rule change, as modified by
Amendment Nos. 1 and 2, may be found in the notice of filing previously
published for comment in the Federal Register.\4\
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\4\ See Notice, supra note 3.
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In Amendment No. 3, the Exchange made technical and clarifying
changes to the proposal \5\ and stated that the proposed at-risk cross
procedure would not apply to options classes that are part of the
Exchange's options penny pilot
[[Page 27156]]
program.\6\ In Amendment No. 4, the Exchange proposes to allow the
proposed at-risk crossing procedure to apply to options classes that
are part of the options penny pilot program.\7\
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\5\ Specifically, the Exchange made a clarifying change to the
language of Commentary .03(vii) to Amex Rule 950-ANTE(d). The
Exchange also confirmed that if a public customer order either on
the book or represented in the trading crowd has priority over the
at-risk cross, the member firm would be permitted to participate
only in those contracts remaining after the public customer's order
has been filled. Further, the Exchange represented that if there is
a public customer order on the book or represented in the trading
crowd on the same side of the market as, and priced at or better
than, the public customer order that is part of the at-risk cross,
the public customer order on the book or represented in the trading
crowd would have priority.
\6\ See Securities Exchange Act Release No. 55162 (January 24,
2007), 72 FR 4738 (February 1, 2007) (SR-Amex-2006-106).
\7\ In addition, Amendment No. 4 makes non-substantive rule text
changes and shows the text of the final proposal as marked against
the current text of Amex Rule 950-ANTE(d).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act \8\ in general and furthers the objectives of
Section 6(b)(5) \9\ in particular in that it is designed to perfect the
mechanisms of a free and open market and the national market system,
protect investors and the public interest, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and promote just and equitable principles of trade.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change will impose no burden on competition that
is not necessary or appropriate in furtherance of the purposes of the
Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received by the Exchange on
this proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2006-17 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-2006-17. 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 (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of the 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-2006-17 and should be submitted on or before May 29, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-9176 Filed 5-11-07; 8:45 am]
BILLING CODE 8010-01-P