55186 Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option 

linkage proposed by the Amex, the Chicago Board 

Options Exchange, Incorporated, and the 

International Securities Exchange, Inc. See 

Securities Exchange Act Release No. 43086 (July 28, 

2000), 65 FR 48023 (August 4, 2000) (‘‘Linkage 

Plan’’). Subsequently, upon separate requests by the 

Philadelphia Stock Exchange, Inc., the Pacific 

Exchange, Inc., and the Boston Stock Exchange, 

Inc., the Commission issued orders to permit these 

exchanges to participate in the Linkage Plan. See 

Securities Exchange Act Release Nos. 43573 

(November 16, 2000), 65 FR 70851 (November 28, 

2000); 43574 (November 16, 2000), 65 FR 70850 

(November 28, 2000); and 49198 (February 5, 2004), 

69 FR 7029 (February 12, 2004). 

4 In Amendment No. 1, the Amex revised the rule 

text to use terms consistent with Amex’s current 

rules and made clarifying changes in the purpose, 

statutory basis, and burdens sections. 

5See Securities Exchange Act Release No. 52172 

(July 29, 2005), 70 FR 45449. 

6See Amex Rule 940(b)(10). 

7 15 U.S.C. 78f. 

8 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange made 

clarifying changes to the proposed rule text relating 

to the availability of Participant exchanges’

automatic execution system. 

4See Securities Exchange Act Release No. 34–

52401 (September 9, 2005) (File No. 4–429) 

(‘‘Amendment No. 16’’). 

5On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option market 

linkage proposed by the Amex, Chicago Board 

Options Exchange, Incorporated, and International 

Securities Exchange, Inc. See Securities Exchange 

Act Release No. 43086 (July 28, 2000), 65 FR 48023 

(August 4, 2000). Subsequently, upon separate 

requests by the Philadelphia Stock Exchange, Inc., 

Pacific Exchange, Inc. and Boston Stock Exchange, 

Inc. the Commission issued orders to permit these 

exchanges to participate in the Linkage Plan. See 

Securities Exchange Act Release Nos. 43573 

(November 16, 2000), 65 FR 70850 (November 28, 

2000), 43574 (November 16, 2000), 65 FR 70851 

(November 28, 2000) and 49198 (February 5, 2004), 

69 FR 7029 (February 12, 2004). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52414; File No. SR–Amex–

2005–046] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Approving a Proposed Rule Change 

and Amendment No. 1 Thereto To 

Amend the Exchange’s Trade-Through 

and Locked Markets Rules 

September 13, 2005. 

On April 28, 2005, the American 

Stock Exchange LLC (‘‘Amex’’), filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 to implement 

Amendment No. 15 to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage 3 by 

amending Amex Rules 940 and 943 to 

add a ‘‘trade and ship’’ exception to the 

definition of ‘‘Trade-Through’’ and add 

a ‘‘book and ship’’ exception to the 

provision relating to locked markets, 

respectively. On July 6, 2005, the Amex 

filed Amendment No. 1 to the proposed 

rule change.4 The proposed rule change, 

as amended, was published for 

comment in the Federal Register on 

August 5, 2005.5 The Commission 

received no comments on the proposal. 

This order approves the proposed rule 

change, as amended. 

Under the proposed rule change, an 

Amex member could trade an order at 

a price that is one minimum quoting 

increment inferior to the national best 

bid or offer (‘‘NBBO’’) if a Linkage 

Order 6 is sent contemporaneously to 

the market(s) disseminating the NBBO 

to satisfy all interest at the NBBO price. 

The proposed rule change also would 

provide that an Amex member may 

book an order that would otherwise lock 

another market if a Linkage Order is 

sent contemporaneously to such other 

market to satisfy all interest at the lock 

price and only the remaining portion of 

the order is booked. The Amex proposes 

that, under trade and ship, any 

execution received from the market 

disseminating the NBBO must (pursuant 

to agency obligations) be reassigned to 

the customer order that is underlying 

the Linkage Order that was sent to trade 

with the market disseminating the 

NBBO. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 6 of the Act 7

and the rules and regulations 

thereunder applicable to a national 

securities exchange.8 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,9 which requires, 

among other things, that the rules of an 

exchange be designed 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 

believes that the proposed rule change 

should help to implement the Linkage 

Plan by facilitating the ability of Amex’s 

members to execute their customer 

orders in a timely manner and 

potentially could decrease the incidence 

of Trade-Throughs and locked markets. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR-Amex-2005–

046) as amended, is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18617 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52428; File No. SR–Amex–

2005–047] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing of Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

the Definition of Firm Customer Quote 

Size and the Removal of Certain 

Restrictions on Sending Principal 

Acting as Agent (P/A) Orders Through 

the Linkage 

September 14, 2005. 

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 28, 

2005, 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 

prepared by the Amex. On September 

12, 2005, the Exchange submitted 

Amendment No. 1 to the proposed rule 

change.3 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 its 

rules governing the operation of the 

intermarket option linkage to conform 

with a proposed amendment 4 to the 

Plan for the Purpose of Creating and 

Operating an Intermarket Linkage 

(‘‘Linkage Plan’’).5 Accordingly, the 

Exchange is proposing to amend Amex 

Rules 940 and 941 to modify the