19988 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

8 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78k–1(a)(1)(C)(iii). 

12See 17 CFR 240.10A–3. 

13 15 U.S.C. 78s(b)(2). 

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). 

5 17 CFR 240.19b–4(f)(6)(iii). 

or futures contracts would not be 

subject to Exchange jurisdiction, but the 

Exchange could obtain information 

regarding the activities of such 

subsidiary or affiliate through 

surveillance sharing agreements with 

regulatory organizations of which such 

subsidiary or affiliate is a member. 

III. Discussion and Commission 

Findings 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 8 and, in 

particular, the requirements of Section 6 

of the Act.9 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,10 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, 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. 

The Commission further believes that 

the proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Act,11 which sets 

forth Congress’ finding that it is in the 

public interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transaction in securities. Amex 

represented that quotation for and lastsale information regarding the futures 

contracts held by USNG, including the 

future contracts underlying the 

Benchmark Index are widely 

disseminated through a variety of 

market data vendors worldwide, 

including Bloomberg and Reuters. In 

addition, the Exchange further 

represented that real-time futures data is 

available by subscription from Reuters 

and Bloomberg. The NAV of the Units 

is available at the Web site of the 

Exchange. The Commission believes 

that Amex’s proposal is reasonable 

designed to promote transparency in the 

pricing of the Units, and to prevent 

trading when a reasonable degree of 

transparency cannot be assured. The 

proposal also appears reasonably 

designed to prevent the misuse of 

information by specialists. 

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) The Exchange represented that it 

currently has in place an Information 

Sharing Agreement with the NYMEX 

and ICE Futures for the purpose of 

providing information in connection 

with trading in or related to futures 

contracts traded on the NYMEX and ICE 

Futures, respectively. To the extent that 

USNG invests in Natural Gas Interests 

traded on other exchanges, the Amex 

represented that it will seek to enter into 

Information Sharing arrangements with 

those particular exchanges. 

(2) Amex would distribute an 

information circular to Exchange 

members and member organizations, 

prior to the commencement of trading 

providing guidance with regard to 

member firm compliance 

responsibilities (including suitability 

recommendations) when handling 

transaction in the Units. In addition, 

investors purchasing Units directly from 

USNG (by delivery of the Deposit 

Amount) would receive a prospectus 

from USNG. Amex members purchasing 

Units from USNG for resale to investors 

would deliver a prospectus to such 

investors. 

(3) Amex submits that its surveillance 

procedures are adequate to deter and 

detect violations of Exchange rules 

relating to the trading of the Units. The 

surveillance procedures for the Units 

will be similar to those used for units of 

the United States Oil Fund, LP as well 

as other commodity-based trusts, trust 

issued receipts and exchange-traded 

funds. In addition, the surveillance 

procedures will incorporate and rely 

upon existing Amex surveillance 

procedures governing options and 

equities. 

(4) Amex represents that it prohibits 

the initial and/or continued listing of 

any security that is not in compliance 

with Rule 10A–3 under the Act.12

This order is conditioned on Amex’s 

adherence to these representations. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–Amex–2006–

112), as modified by Amendment No. 1, 

be, and is hereby approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7486 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55636; File No. SR–Amex–

2007–32] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Shorten 

the Minimum Required Time Periods 

Required Between Tape Indications 

and Openings or Reopenings 

April 16, 2007. 

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 30, 

2007, 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 prepared 

by the Amex. The Exchange has filed 

the proposal pursuant to Section 

19(b)(3)(A) of the Act,3 and Rule 19b–

4(f)(6) 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 

The Exchange proposes to amend the 

Amex Rules regarding openings and 

halts in trading to shorten the minimum 

time periods required between tape 

indications and openings or reopenings. 

The Exchange has designated this 

proposal as non-controversial and has 

requested that the Commission waive 

the 30-day pre-operative waiting period 

contained in Rule 19b–4(f)(6)(iii) under 

the Act.5

The text of the proposed rule change 

is available on the Amex’s Web site at 

http://www.amex.com, the Office of the 

Secretary, the Amex and at the 

Commission’s Public Reference Room. 


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Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 19989 

6Equity-traded securities include stocks (both 

listed and those trading on an Unlisted Trading 

Privileges Basis), Exchange Traded Funds, and 

other securities that trade like equities. See Amex 

Rule 1A–AEMI(c). 

7A ‘‘significant order imbalance’’ is one which 

would result in a reopening at a price change 

constituting the greater of 1% or two points away 

from the last previous sale in a stock selling at $20 

or more, one point or more away from the last 

previous sale in a stock selling at $10 or more (but 

less than $20), and one/half point or more away 

from the last previous sale in a stock selling at less 

than $10. See Amex Rule 119–AEMI(3)(a). 

8The Commission approved an amendment to 

Amex Rule 21 which provides that: ‘‘An Exchange 

Official who has been appointed as a Senior Floor 

Official has the same authority and responsibilities 

as a Floor Governor with respect to matters that 

arise on the Floor and require review or action by 

a Floor Governor or Senior Floor Official.’’ See 

Securities Exchange Act Release 51503 (April 7, 

2005), 70 FR 19534 (April 13, 2005) (SR–Amex–

2004–65). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 

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 

Specialists in equity-traded 

securities 6 are responsible for ensuring 

that their specialty securities open for 

trading as close to the opening bell as 

possible, and reopen for trading after a 

trading halt as soon as possible. After a 

trading halt, the specialist must strive to 

open or reopen a security in a manner 

that is not only timely, but is also fair 

and orderly. 

Ordinarily, before the opening bell, 

the specialist will assess existing market 

conditions and consider the balance of 

supply and demand for a security as 

reflected by orders represented in the 

market. Under certain conditions, he or 

she may provide this information to the 

market in the form of price indications 

that are published on the consolidated 

tape. In the event of a delayed opening, 

or the reopening of trading in a security 

after a trading halt, the specialist may be 

required to assess market conditions 

prior to the delayed opening or 

reopening, and publish a price 

indication to the market accordingly, 

while providing market participants 

with sufficient time to react and 

participate as they deem appropriate. 

Current rules require minimum time 

periods as long as ten minutes between 

a specialist’s dissemination of a price 

indication and the delayed opening or 

reopening of trading. Technological 

developments have increased the speed 

of communication since these rules 

were introduced, and market conditions 

may change substantially within the 

time periods now required between the 

indication and the opening or 

resumption of trading. Accordingly, the 

Exchange is proposing an amendment to 

the rules to provide flexibility to react 

quickly, when appropriate, by reducing 

the minimum amount of time required 

between indications and delayed 

openings or reopenings after a trading 

halt. 

Amex Rule 119–AEMI (governing 

indications, openings and reopenings) 

currently provides that the specialist 

may not open or reopen a stock that has 

been the subject of a halt or delayed 

opening until ten minutes have elapsed 

following the first indication. Where 

there is more than one indication, a 

minimum of five minutes must elapse 

from the last indication, provided that at 

least ten minutes has elapsed since the 

first indication. The Exchange proposes 

that these minimum time periods be 

shortened from ten minutes to three 

minutes after the first indication, and 

from three minutes to one minute after 

the last indication, provided that a 

minimum of three minutes have elapsed 

since the first indication. 

For a stock that is halted during the 

trading day, current rules require a 

minimum of five minutes between the 

first indication and the stock’s 

reopening. Where there is more than 

one indication, a minimum of three 

minutes must elapse from the last 

indication, provided that at least five 

minutes have elapsed after the first 

indication. The Exchange proposes that 

these time periods be shortened from 

five minutes to three minutes after the 

first indication, and from three minutes 

to one minute after the last indication, 

provided that a minimum of three 

minutes has elapsed after the 

dissemination of the first indication. 

If a stock is halted during the trading 

day due to an ‘‘equipment changeover,’’

a minimum of five minutes must elapse 

following the halt before trading 

resumes. Should a significant order 

imbalance develop 7 or a regulatory 

condition occur (i.e., news pending or 

news dissemination), current rules 

require a ten minute minimum halt 

period following the first indication 

before reopening for trading. The 

Exchange now proposes that the 

standard five minute period after an 

‘‘equipment changeover’’ be shortened 

to one minute and the ten minute period 

be shortened to three minutes after an 

‘‘equipment changeover’’ during which 

a significant order imbalance or 

regulatory condition develops. 

The Exchange further proposes 

amendments to Exchange Rule 118–

AEMI, Trading in Nasdaq Securities, to 

conform the minimum time periods 

required for openings and reopenings in 

securities traded on the Amex on an 

unlisted trading privileges basis to those 

proposed for listed securities. 

Additionally, the Exchange proposes a 

housekeeping change where references 

to a ‘‘Floor Governor’’ in Rule 119–

AEMI would be changed to ‘‘Senior 

Floor Official’’ reflecting that the 

authority granted to a Floor Governor 

can be exercised by a Senior Floor 

Official.8

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 9 of the Act 

in general and furthers the objectives of 

Section 6(b)(5) 10 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change will impose 

no burden on competition. 

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 proposed rule change is 

subject to Section 19(b)(3)(A)(iii) of the 

Act 11 and Rule 19b–4(f)(6) thereunder 12

because the proposal: (i) Does not 

significantly affect the protection of 


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19990 Federal Register / Vol. 72, No. 76 / Friday, April 20, 2007 / Notices 

13 17 CFR 240.19b–4(f)(6)(iii). 

14 Id. 

15The Commission recently approved a 

substantially similar proposal from the NYSE that 

included identical changes to the required 

minimum time periods between tape indications 

and openings and reopenings. See Securities 

Exchange Act Release No. 54530 (September 28, 

2006), 71 FR 58645 (October 3, 2006) (SR–NYSE–

2006–49). 

16For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 17 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not become 

operative prior to 30 days after the date 

of filing or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest; provided that the 

Exchange has given the Commission 

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. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),13 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay.14 The Commission 

believes that such waiver is consistent 

with the protection of investors and the 

public interest because the proposed 

changes to the required minimum time 

periods between tape indications and 

openings and reopenings are 

substantially similar to a recently 

approved proposal submitted by the 

New York Stock Exchange LLC 

(‘‘NYSE’’).15 For this reason, the 

Commission designates the proposed 

rule change to be operative on April 2, 

2007, as the Exchange proposed.16

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. 

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 rulecomments@sec.gov. Please include File 

Number SR–Amex–2007–32 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–2007–32. 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 (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 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–2007–32 and should 

be submitted on or before May 11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Nancy M. Morris, 

Secretary. 

[FR Doc. E7–7553 Filed 4–19–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55639; File No. SR–BSE–

2007–15] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Existing BeX Fee Schedule 

April 16, 2007. 

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 2, 

2007, the Boston Stock Exchange, Inc. 

(‘‘BSE’’ or ‘‘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 

substantially prepared by the Exchange. 

The BSE has designated this proposal as 

one changing a due, fee, or other charge 

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 

The BSE proposes to amend the 

Boston Equities Exchange (‘‘BeX’’) fee 

schedule to provide for a credit in the 

amount of $0.0027 to which Liquidity 

Providers would be entitled. The text of 

the proposed rule change is available at 

http://www.bostonstock.com, at the 

BSE, 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. 


sroberts on PROD1PC70 with NOTICES