Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46097 

77 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

persons or entities that trade on the 

Exchange or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which Amex consents, the 

Commission will: 

(A) By order approve such proposed 

rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The Exchange is targeting a closing 

date of August 29, 2008 for the Mergers. 

In the event that it is necessary in order 

to facilitate that timetable, the Exchange 

requests that the Commission accelerate 

effectiveness of the filing pursuant to 

Section 19(b)(2) to a date no later than 

August 29, 2008. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–2008–62 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–Amex–2008–62. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

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 

Number SR–Amex–2008–62 and should 

be submitted on or before August 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.77

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18145 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58286; File No. SR–Amex–

2008–64] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing of Proposed Rule Change To 

Adopt New Rule 478T To Set Forth the 

Temporary Procedures That Will Apply 

to Disciplinary Proceedings Pending 

as of the Closing Date of the 

Acquisition of the Exchange by NYSE 

Euronext 

August 1, 2008. 

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 July 28, 

2008, American Stock Exchange LLC, a 

Delaware limited liability company 

(‘‘Amex’’ or ‘‘Exchange’’), filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by the Exchange. 

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 

In connection with its pending 

acquisition by NYSE Euronext, the 

parent company of the New York Stock 

Exchange LLC (‘‘NYSE’’) and NYSE 

Arca, Inc. (‘‘NYSE Arca’’), Amex is 

seeking to revise its procedural rules 

governing disciplinary proceedings to 

more closely align such rules with the 

NYSE’s disciplinary procedural rules. 

The rule changes that would implement 

this change are proposed in SR–Amex–

2008–62. However, in order to avoid 

any potential confusion to respondents 

in pending disciplinary matters that 

have been commenced prior to the date 

of closing of the transaction, the 

Exchange believes it is advisable to 

apply its current procedural rules 

governing disciplinary proceedings to 

such matters. Accordingly, the 

Exchange proposes to adopt new Rule 

478T to set forth the temporary 

procedures that will apply to those 

pending disciplinary proceedings, and 

which rule will only become operative 

as of the closing of the acquisition. 

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. 

The text of Exhibit 5 is available on the 

Commission’s Web site (http:// 

www.sec.gov/rules/sro.shtml). 

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Pursuant to an agreement dated 

January 17, 2008, the Amex is being 

acquired by NYSE Euronext—the parent 

company of the NYSE and NYSE Arca—

through a series of mergers as described 

in SR–Amex–2008–62 (the 

‘‘Transaction’’). Following completion 

of the Transaction, Amex will be 


sroberts on PROD1PC70 with NOTICES
46098 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

3NYSE Regulation is an indirect wholly-owned 

subsidiary of NYSE Euronext, which performs the 

regulatory functions of the NYSE and NYSE Arca. 

NYSE Regulation will fulfill the same functions for 

the Exchange pursuant to a regulatory services 

agreement. The Exchange will retain ultimate legal 

responsibility for, and control of, its self-regulatory 

responsibilities. 

4 It is further intended that this rule change 

proposal take effect at the same time as SR–Amex–

2008–62. 

5Additionally, various sections of the Legacy 

Disciplinary Procedural Rules have been modified 

from the original to convert references from 

‘‘Disciplinary Hearing Panel’’ to ‘‘Hearing Panel’’; 

‘‘Board of Governors’’ to ‘‘Board of Directors’’; and 

miscellaneous corrections to internal crossreferences in the rules have been made to the extent 

necessary. 

6Additionally, a reference in Rule 2(a) of the 

Legacy Rules of Disciplinary Procedure to the 

chairmen of individual hearing panels being 

selected by the Chief Executive Officer of the 

Exchange on a rotating basis from a roster of 

‘‘Exchange Officials’’ eligible to serve on hearing 

panels has been corrected to refer to ‘‘hearing 

officers’’ instead. This more properly reflects the 

current appointment practice at the Exchange 

where hearing panel chairman appointments are 

made on a rotating basis among personnel supplied 

to the Exchange pursuant to a Regulatory Services 

Agreement and designated as Exchange ‘‘hearing 

officers.’’

7See proposed NYSE Alternext Rules 475(c) and 

(j) and 476(e)–(g). Further, Section 3(f) of Legacy 

Article V of the Amex Constitution and Section 5(a) 

of Legacy Article IV of the Amex Constitution hold 

open the possibility that the NYSE Regulation 

Committee may also be charged with the 

responsibility to hear: (i) Appeals from suspensions 

of members and member organizations in view of 

their financial and/or operating condition and (ii) 

applications for reinstatement following such 

suspensions. 

8 15 U.S.C. 78f(b)(6), 15 U.S.C. 78f(b)(7), 15 U.S.C. 

78f(d). 

renamed NYSE Alternext U.S. LLC 

(‘‘NYSE Alternext U.S.’’) and will 

contract with NYSE Regulation, Inc. 

(‘‘NYSE Regulation’’) for the 

performance of the Exchange’s 

regulatory functions.3 In order to enable 

a consistent approach to disciplinary 

matters, the Exchange has determined to 

revise the Exchange procedural rules 

governing disciplinary matters to align 

such rules with those of the NYSE. To 

this end, in SR–Amex–2008–62, the 

Exchange is proposing to adopt new 

Rules 475, 476 and 477, which are 

substantially similar to NYSE Rules 475, 

476 and 477. However, in order to avoid 

any potential confusion to respondents 

in disciplinary matters that have been 

commenced and are still pending as of 

the date of closing of the Transaction 

(each a ‘‘Legacy Disciplinary 

Proceeding’’), the Exchange believes it is 

advisable to continue to apply to such 

Legacy Disciplinary Proceedings the 

current procedural rules governing 

Exchange disciplinary proceedings 

(with some modifications discussed 

below). Accordingly, the Exchange 

proposes to adopt new Rule 478T to set 

forth the temporary procedures that will 

apply to such Legacy Disciplinary 

Proceedings at NYSE Alternext U.S. 

with such rule to become operative only 

as of the closing of the Transaction.4

Currently, the procedural rules 

governing Amex disciplinary 

proceedings are set forth in portions of 

the Amex Constitution, Amex Rule 345, 

and the Rules of Procedure in 

Disciplinary Matters (collectively, the 

‘‘Legacy Disciplinary Procedural 

Rules’’). Proposed Rule 478T would 

effectively ‘‘grandfather’’ the substance 

of these Legacy Disciplinary Procedural 

Rules for any Legacy Disciplinary 

Proceedings at NYSE Alternext U.S. 

insofar as the provisions thereof apply 

to resolution of disciplinary matters by 

means of a settlement (i.e., stipulation 

and consent) or hearing. The Legacy 

Disciplinary Procedural Rules, as 

incorporated in proposed Rule 478T(c), 

however, have been modified in certain 

respects from their current form to 

account for certain changes in the 

disciplinary structures and processes at 

NYSE Alternext U.S. expected as a 

consequence of the Transaction. The 

two most substantial of these changes 

are as follows: 5

First, the Amex roster of appointed 

hearing officers and hearing board 

members (from which the chairmen and 

members of individually constituted 

disciplinary hearing panels are 

currently selected) will cease to exist. 

Instead, individual hearing panels will 

be selected from a new roster of hearing 

officers and hearing board members to 

be appointed by the Chairman of the 

NYSE Alternext U.S. Board of Directors 

pursuant to proposed NYSE Alternext 

U.S. Rule 476(b). Therefore, all 

references to legacy Amex rules or 

procedures dealing with the 

appointment of the roster of hearing 

officers and the hearing board in the 

Legacy Disciplinary Procedural Rules 

have been eliminated and/or replaced, 

as necessary, with references to 

proposed NYSE Alternext U.S. Rule 

476(b). Notwithstanding the change in 

the manner in which the roster of 

hearing officers and hearing board 

members is assembled, the process of 

selection of hearing officers and hearing 

board members from that roster to serve 

on an individual hearing panel will not 

change.6

Second, appeals from disciplinary 

determinations will be governed solely 

by the new NYSE Alternext U.S. Rules 

pertaining to appeals. Specifically, the 

Amex Adjudicatory Council (a body 

which heard appeals from 

determinations of Amex disciplinary 

panels, and whose decisions, in turn, 

could be further appealed to the 

Exchange Board of Governors) will 

cease to exist. Its functions will be 

performed by an official standing 

committee of NYSE Regulation (the 

‘‘NYSE Regulation Committee’’) charged 

with the responsibility to review 

determinations in Legacy Disciplinary 

Proceedings and render advisory 

opinions on same to the Exchange Board 

of Directors, which will have the 

ultimate responsibility to rule on such 

appeals. Accordingly, all references to 

the Amex Adjudicatory Council and the 

appeals process in the Legacy 

Disciplinary Procedural Rules have been 

eliminated and/or replaced, as 

necessary, with references to the NYSE 

Regulation Committee and the new 

NYSE Alternext U.S. rules pertaining to 

appeals from disciplinary 

determinations.7

After all Legacy Disciplinary 

Proceedings have been concluded, Rule 

478T will cease to have any 

applicability, as all disciplinary 

proceedings commenced on or after the 

date of closing of the Transaction will 

be governed by the new NYSE Alternext 

U.S. disciplinary procedural rules. The 

scope and applicability of proposed 

Rule 478T is as follows: 

Paragraph (a) limits the application of 

the rule to ‘‘Legacy Disciplinary 

Proceedings’’ which are defined to 

include the following types of matters, 

if commenced by the Exchange and still 

pending as of the closing date of the 

Transaction: Disciplinary charges; 

executed (but not yet approved) 

stipulations and consents; suspensions; 

summary proceedings; and summary 

fine notices for minor rule violations. 

Paragraph (b) provides that Legacy 

Disciplinary Proceedings will be 

governed by the Legacy Disciplinary 

Procedural Rules set forth in paragraph 

(c), except that review of Exchange 

disciplinary determinations, sanctions 

guidelines, and procedures for the 

Exchange’s retention of jurisdiction over 

former members, member organizations 

and employees thereof will be governed 

by the new NYSE Alternext U.S. 

disciplinary procedural rules. 

Subsection (c) is where the Legacy 

Disciplinary Procedural Rules are 

incorporated, with necessary 

modifications to the original text of the 

legacy Amex Constitution, Rule 345, 

and Rules of Procedure in Disciplinary 

Matters as described above. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Sections 6(b)(6), 6(b)(7) and 6(d) 8 of the 

Act in that it is designed to ensure that 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46099 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

members and persons associated with 

its members of the Exchange shall be 

appropriately disciplined for violation 

of the securities laws, the rules or 

regulations thereunder, or the rules of 

the Exchange; provide a fair procedure 

for imposition of such discipline; and 

ensure that a record is kept of such 

proceedings. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The Exchange is targeting August 29, 

2008 for the closing date of the 

Transaction, and has requested that the 

Commission accelerate effectiveness of 

SR–Amex–2008–62 pursuant to Section 

19(b)(2) to a date no later than August 

29, 2008, if necessary in order to 

facilitate that timetable. To the extent 

the Commission determines to grant 

such request, the Exchange further 

requests that the instant filing be given 

similar accelerated treatment, to insure 

that proposed Rule 478T becomes 

operative and effective simultaneously 

with the other new disciplinary rules for 

the Exchange proposed in SR–Amex–

2008–62. 

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–2008–64 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–Amex–2008–64. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

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 

Number SR–Amex–2008–64 and should 

be submitted on or before August 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18147 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58272; File No. SR–Amex–

2008–61] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to 

the Listing and Trading of BroadBased Index Binary Options 

July 31, 2008. 

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 July 29, 

2008, the American Stock Exchange LLC 

(the ‘‘Amex’’ or the ‘‘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 substantially by the 

Exchange. 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 list and 

trade binary options based on certain 

broad-based indexes. 

The text of the proposed rule change 

is available at the Amex’s principal 

office, the Commission’s Public 

Reference Room, and http:// 

www.amex.com. 

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 

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 purpose of this proposed rule 

change is to enable the listing and 

trading on the Exchange of binary 

options on certain broad-based 


sroberts on PROD1PC70 with NOTICES