Document ID: SEC-2007-1663-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-12-07T05:00Z

[Federal Register: December 7, 2007 (Volume 72, Number 235)]
[Notices]               
[Page 69261-69262]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de07-89]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56882; File No. SR-Amex-2007-56]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change Relating To Resolving Uncompared 
Transactions

December 3, 2007.

I. Introduction

    On June 4, 2007, the American Stock Exchange LLC (``Amex'') filed 
and on September 18, 2007, amended, a proposed rule change 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\ to amend Rule 724 (``Agents to Resolve DKs'') and 
the corresponding Commentary. As proposed, the amendments would require 
each member to designate a representative that is away from the Amex's 
trading floor and that is authorized to resolve uncompared transactions 
(``DKs'') on the member's behalf. The proposed rule change was 
published for comment in the Federal Register on October 16, 2007.\3\ 
No comment letters were received on the

[[Page 69262]]

proposal. This order approves the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 56635 (Oct. 10, 2007), 
72 FR 58693.
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II. Description of the Proposal

    Amex is revising Rule 724 to require each member that executes 
transactions on Amex's trading floor (``Floor'') to designate another 
member firm, allied member, registered representative, or any other 
person required to be registered as a broker-dealer under the Act that 
is physically located away from the Floor to act in a DK resolution 
capacity by means of telephone, e-mail, or fax submission. Each member 
will retain the option to also designate a Floor member to act on its 
behalf regarding DK notices.

III. Discussion

    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 registered securities exchange. In 
particular, the Commission believes the proposal is consistent with 
Section 6(b)(5) of the Act,\4\ which requires, among other things, that 
the rules of a national securities exchange be designed to foster 
cooperation and coordination among persons engaged in facilitating 
transactions in securities. The new requirements that each Amex member 
must designate an off-Floor representative that is equipped with 
electronic communication capabilities to act on its behalf to resolve 
DK notices in its absence will clarify the protocol for and reduce the 
delays associated with resolving such uncompared transactions, thereby 
facilitating a more prompt and reliable processing of securities 
transactions among Amex members.
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    \4\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 6 of the Act \5\ and the 
rules and regulations thereunder.
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    \5\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-Amex-2007-56) be, 
and hereby is, approved.\7\
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    \6\ 15 U.S.C. 78s(b)(2).
    \7\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-23788 Filed 12-6-07; 8:45 am]

BILLING CODE 8011-01-P