[Federal Register: December 30, 2002 (Volume 67, Number 250)]
[Notices]
[Page 79668-79669]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de02-123]
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SECURITIES AND EXHANGE COMMISSION
[Release No. 34-47078; File No. SR-Amex-2001-07]
Self-Regulatory Organizations; Order Granting Approval to
Proposed Rule Change and Amendment Nos. 1, 2 and 3 Thereto by the
American Stock Exchange LLC Relating to the Review of a Floor
Official's Market Decision
December 20, 2002.
On February 14, 2001, 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 amend Amex Rule 22 to change the procedure for
reviewing a Floor Official's market decision and to eliminate the right
of appealing a Floor Official's market decision or ruling to the Board
of Governors (``Board''). The Amex amended the proposed rule change on
August 27, 2001 \3\ and October 8, 2002.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See letter from William Floyd-Jones, Jr., Assistant General
Counsel, Amex, to Nancy Sanow, Assistant Director, Division of
Market Regulation (``Division''), Commission, dated August 24, 2001,
replacing Form 19b-4 in its entirety (``Amendment No. 1'').
\4\ See letter from William Floyd-Jones, Jr., Assistant General
Counsel, Amex, to Nancy Sanow, Assistant Director, Division,
Commission, dated October 7, 2002, replacing Form 19b-4 in its
entirety (``Amendment No. 2'').
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The proposed rule change and Amendment Nos. 1 and 2 thereto were
published for comment in the Federal Register on November 15, 2002.\5\
The
[[Page 79669]]
Commission received no comments on the proposal, as amended. On
December 19, 2002, the Amex filed Amendment No. 3 to the proposed rule
change.\6\ In Amendment No. 3, the Amex corrected a typographical error
in the proposed rule text by clarifying that there would be no change
to Amex Rule 22(a) through (c).
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\5\ See Securities Exchange Act Release No. 34-46779 (November
6, 2002), 67 FR 69271.
\6\ See letter from William Floyd-Jones, Jr., Assistant General
Counsel, Amex, to Nancy Sanow, Assistant Director, Division,
Commission, dated December 18, 2002 (``Amendment No. 3''). This was
a technical amendment and is not subject to notice and comment.
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The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange \7\
and, in particular, the requirements of Section 6 of the Act \8\ and
the rules and regulations thereunder. The Commission finds specifically
that the proposed rule change, as amended, is consistent with Section
6(b)(5) of the Act \9\ because 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, 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.
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\7\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
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Specifically, the Commission finds that the Amex's proposal, as
amended, is a reasonable effort to ensure prompt review of Floor
Officials' decisions. The Commission notes that the Amex provides for
several levels of appeal of a Floor Official's decision. Further,
decisions of a Floor Official made with the concurrence of a Senior
Floor Official may also be appealed to a panel of three governors. The
Commission believes that the process for review of Floor Officials'
decisions will help to ensure that Floor Officials' decisions are fair
and impartial, as well as prompt. In addition, the Commission notes
that the proposed rule change, as amended, would leave unchanged any
right that a member or its customer may have to submit a market dispute
to arbitration.
For the foregoing reasons, the Commission finds that the proposed
rule change, as amended, is consistent with the requirements of the Act
and rules and regulations thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\10\, that the proposed rule change (File No. SR-Amex-2001-07) and
Amendment Nos. 1, 2 and 3 are approved.
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\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-32920 Filed 12-27-02; 8:45 am]
BILLING CODE 8010-01-P