23866 Federal Register / Vol. 72, No. 83 / Tuesday, May 1, 2007 / Notices 

26 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)(5). 

5 17 CFR 242.611(b). 

6 17 CFR 242.611(d). 

7 17 CFR 242.611(b). 

8 See Securities Exchange Act Release No. 54389 

(August 31, 2006), 71 FR 52829 (September 7, 

2006). 

9 See Securities Exchange Act Release No. 54678 

(October 31, 2006), 71 FR 65018 (November 6, 

2006). 

10 17 CFR 242.611(b). 

11 17 CFR 242.611(b)(9). 

12 Although Rule 109—AEMI prohibits granting 

or accepting a stop with respect to a security traded 

in AEMI, this exemption may still be applicable in 

certain situations such as error corrections. 

13 See Securities Exchange Act Release No. 54389 

(August 31, 2006), 71 FR 52829 (September 7, 

2006). 

14 See Securities Exchange Act Release No. 54678 

(October 31, 2006), 71 FR 65018 (November 6, 

2006). 

All submissions should refer to File 

Number SR–Amex–2007–29. 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–2007–29 and should 

be submitted on or before May 16, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.26

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8224 Filed 4–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55663; File No. SR–Amex– 

2007–39] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Add 

Additional Exceptions to Rule 126A– 

AEMI Relating to the Generation of 

Intermarket Sweep Orders 

April 24, 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 20, 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, II, and 

III below, which Items have been 

substantially prepared by the Exchange. 

Amex has filed this proposal pursuant 

to Section 19(b)(3)(A) of the Act 3 and 

Rule 19b–4(f)(5) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Amex proposes to adopt changes to 

Rule 126A—AEMI in order to fully 

conform the list of circumstances 

described therein with additional 

exceptions (a) Listed in Rule 611(b) of 

Regulation NMS 5 or (b) separately 

granted by the Commission pursuant to 

exemptive orders issued pursuant to 

Rule 611(d) of Regulation NMS.6 The 

following resultant changes to Rule 

126A—AEMI are proposed: (i) Addition 

of the ‘‘stopped order’’ exception 

specified under Rule 611(b)(9) of 

Regulation NMS; 7 (ii) addition of an 

exception for ‘‘qualified contingent 

trades’’; 8 and (iii) addition of an 

exception for certain ‘‘sub-penny tradethroughs.’’ 9

The text of the proposed rule change 

is available on Amex’s Web site at 

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

Exchange’s principal office, 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. Amex 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is currently operating, 

and has adopted rules in connection 

with the operation of, its new hybrid 

market trading platform for equity 

products and exchange traded funds, 

designated as AEMISM (the Auction and 

Electronic Market Integration platform). 

Rule 126A—AEMI is the Exchange’s 

effectuation of Rule 611 of Regulation 

NMS (‘‘Order Protection Rule’’), 

whereby trading centers are required to 

‘‘establish, maintain, and enforce 

written policies and procedures that are 

reasonably designed to prevent tradethroughs on that trading center of 

protected quotations in NMS stocks,’’ 

subject to certain exceptions. Rule 

126A—AEMI, in relevant part, currently 

requires AEMI to generate an 

intermarket sweep order to any away 

market displaying a protected quotation 

simultaneously with the execution of a 

transaction on the Amex that would 

constitute a trade-through, except when 

one or more of eight circumstances—all 

contemplated in Rule 611 of Regulation 

NMS 10—exist. 

The current proposed changes are 

intended to expand the list of 

exceptional circumstances in Rule 

126A—AEMI to include: (i) An 

additional exception from Rule 

611(b)(9) of Regulation NMS 11

pertaining to certain ‘‘stopped orders’’ 

for which the Amex had, at the time of 

receipt of the order, guaranteed an 

execution at no worse than a specified 

price; 12 (ii) an additional exception for 

‘‘qualified contingent trades’’; 13 and 

(iii) an additional exception for certain 

‘‘sub-penny trade-throughs.’’14

The Exchange asserts that the 

proposal to effect the foregoing changes 

to the AEMI trading system does not 

significantly affect the protection of 

investors or the public interest, does not 

impose any significant burden on 

competition, and does not have the 

effect of limiting the access to or 

availability of the system. 


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Federal Register / Vol. 72, No. 83 / Tuesday, May 1, 2007 / Notices 23867 

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

16 15 U.S.C. 78f(b)(5). 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(5). 19 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)(i). 

4 17 CFR 240.19b–4(f)(1). 

2. Statutory Basis 

The proposed rule change is designed 

to be consistent with Regulation NMS, 

as well as consistent with Section 6(b) 

of the Act,15 in general, and furthers the 

objectives of Section 6(b)(5) 

thereunder,16 in particular, in that it is 

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 national market system 

and, in general, to protect investors and 

the public interest. 

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 with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) have the 

effect of limiting the access to or 

availability of an existing order entry or 

trading system of the Exchange, the 

foregoing rule change has become 

effective immediately pursuant to 

Section 19(b)(3)(A)(iii) of the Act 17 and 

Rule 19b–4(f)(5) thereunder.18 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 the 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 

<bullet≤ Use the Commission’s 

Internet comment form at http:// 

www.sec.gov/rules/sro.shtml; or 

<bullet≤ Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–Amex–2007–39 on the subject 

line. 

Paper Comments 

<bullet≤ 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 No. 

SR–Amex–2007–39. 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 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–2007–39 and should be 

submitted on or before May 22, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8225 Filed 4–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55664; File No. SR–CBOE– 

2007–36] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Increase the Class 

Quoting Limit in Ten Option Classes 

April 24, 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 14, 

2007, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ 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 CBOE. 

The Exchange has designated this 

proposal as one constituting a stated 

policy, practice, or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule under 

Section 19(b)(3)(A)(i) of the Act,3 and 

Rule 19b–4(f)(1) 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 

CBOE proposes to increase the class 

quoting limit in ten option classes. The 

text of the proposed rule change is 

available on CBOE’s Web site (http:// 

www.cboe.com), at the CBOE’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, 

CBOE 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 CBOE has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 


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