[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Notices]
[Page 65844-65845]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no06-139]
[[Page 65844]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54691; File No. SR-Amex-2006-103]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Eliminating the Post-Trade Allocation Feature in ANTE
November 2, 2006.
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 October 27, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') submitted to 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 Amex. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders it 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 eliminate the concept of post-trade
allocation codified in Amex Rule 935-ANTE(b). The text of the proposed
rule change is available on the Amex's Web site at http://amex.com, the
Amex's Office of the Secretary, 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 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 proposes to eliminate Amex Rule 935-ANTE (b),
governing ANTE post-trade allocation. Amex Rule 935-ANTE (b) currently
provides for the post-trade allocation of contracts executed as the
result of the submission of orders to trade with orders in the ANTE
Central Book. Amex Rule 935-ANTE (b)(2) provides that if more than one
ANTE Participant \5\ and/or a floor broker representing a customer
order submits an order to trade with an order in the ANTE Central book,
within a period not to exceed five seconds after the initial ANTE
Participant has submitted its order, all those ANTE Participants and
the floor broker's customer will be entitled to participate in the
allocation of any executed contracts. Amex Rule 935-ANTE (b)(2)
provides that the ANTE Participant to first submit the order to trade
would be allocated executed contracts up to a size established on a
class-by-class basis by the Options Trading Committee and referred to
as the ``Take Size.'' The initial ANTE Participant receives the lesser
of the number of executed contracts in his indicated order size or the
``Take Size.'' The Options Trading Committee considers the option's
liquidity and the size of the trading crowd in determining the
appropriate ``Take Size'' for each option class. They are responsible
for reviewing and in some cases revising the assigned ``Take Size'' on
a periodic basis, but do not change a ``Take Size'' during the course
of a trading day.
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\5\ Amex Rule 900-ANTE (b)(45) defines ANTE Participant as
either the specialist, registered options trader(s), Remote
Registered Options Trader or Supplemental Registered Options Trader,
assigned to trade a specific options class on the ANTE System.
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Other Exchanges have moved towards electronic trading, where the
notion of ``Take-Size'' does not exist.\6\ The Exchange believes that
eliminating the concept of ``Take-Size'' at the Amex will further
encourage competition with the liquidity providers on the Exchange's
Floor. Accordingly, the Exchange proposes that ANTE Participants will
no longer be limited by the post-trade allocation process.
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\6\ See ISE Rule 714 and NYSEArca Rule 6.76B.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act \7\ 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, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
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\7\ 15 U.S.C. 78f.
\8\ 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 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
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)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
\10\ thereunder because it does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate; and the Exchange has given the Commission
written notice of its intention to file the proposed rule change at
least five business days prior to filing. At any time within 60 days of
the filing of such proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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Under Rule 19b-4(f)(6) of the Act,\11\ the proposal does not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. Amex has requested that the
Commission waive the 30-day operative
[[Page 65845]]
delay so that it may implement the proposal as quickly as possible. The
Commission believes that the proposal raises no issues of regulatory
concern. Therefore, the Commission, consistent with the protection of
investors and the public interest, has determined to waive the 30-day
operative date so that the proposal may take effect upon filing.\12\
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\11\ Id.
\12\ For purposes only of waiving the operative delay for 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 (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Amex-2006-103 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2006-103. 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 such
filing also will be available for inspection and copying at the
principal office of the Amex. 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-2006-103 and should be submitted on or before
November 30, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-18952 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P