Document ID: SEC-2007-1186-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-08-24T04:00Z

[Federal Register: August 24, 2007 (Volume 72, Number 164)]
[Notices]               
[Page 48707-48708]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au07-127]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56278; File No. SR-Amex-2007-72]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Elimination of the Short Sale ``tick'' and Price Tests

 August 17, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934, as amended (the ``Act''),\1\ notice is hereby given that on July 
6, 2007, the American Stock Exchange LLC (the ``Amex'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or the ``Commission'') the proposed rule change as described 
in Items I and II below, which Items have been substantially prepared 
by the Exchange. The Exchange has designated the proposed rule change 
as constituting a ``non-controversial'' rule change under paragraph 
(f)(6) of Rule 19b-4 under the Act,\2\ which renders the proposal 
effective upon receipt of this filing by the Commission. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend various Amex rules to conform to 
recent Commission amendments to Rule 10a-1 under the Act and Regulation 
SHO, that will eliminate Commission and self-regulatory organization 
(``SRO'') short sale ``tick'' and price tests.
    The text of the proposed rule change is available at Amex, 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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On June 13, 2007, the Commission voted to adopt amendments to Rule 
10a-1 under the Act and Regulation SHO to remove the ``tick'' test of 
Rule 10a-1 and any short sale price test of any SRO. As a result of the 
Commission's action, the Exchange is seeking to conform its rules 
accordingly by rescinding Amex Rule 7, which contains a ``tick'' test 
applicable to short sales effected on the Exchange, as well as to make 
conforming and ``housekeeping'' changes to certain other rules.
    Amex Rule 30A requires members and member organizations to submit 
periodic reports with respect to short positions in Amex listed 
securities. However, the rule excludes certain short positions pursuant 
to exemptions that are specified in Rule 200 of Regulation SHO and Rule 
10a-1(e) (1), (6), (7), (8) and (10) under the Act, which are 
incorporated by reference. Because the Commission's recent rule-making 
will change the rule references incorporating these exemptions, the 
Exchange is proposing to amend Rule 30A to conform to these changes.
    In addition, the Exchange proposes to make certain other conforming 
and ``housekeeping'' changes necessary to conform to the Commission's 
rulemaking.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \3\ in general and furthers the objectives of 
Section 6(b)(5) of the Act \4\ 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 regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, 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; and is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers, or to regulate by virtue of any authority conferred by the Act 
matters not related to the purpose of the Act or the administration of 
the Exchange.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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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

    The foregoing rule change has become immediately effective pursuant 
to Section 19(b)(3)(A) \5\ of the Act and Rule 19b-4(f)(6) \6\ 
thereunder because it does not: (i) Significantly affect the protection 
of investors or the public interest; (ii) impose any significant burden 
on competition; and (iii) become operative for thirty (30) days after 
the date of the filing, or such shorter time as the Commission may 
designate.
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    \5\ 15 U.S.C. Section 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes such waiver is consistent with the 
protection of investors and the public interest because it would allow 
the proposed rule change to be effective on July 6, 2007, the 
compliance date for the amendments to Rule 10a-1 and Regulation SHO.\7\ 
For this reason, the Commission designates the proposal to be operative 
upon filing with the Commission.
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    \7\ For purposes only of waiving the 30-day pre-operative 
period, the Commission has considered the proposed rule change's 
impact on efficiency, competition and capital formation. 15 U.S.C. 
78c(f).
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    At any time within sixty (60) days of the filing of the 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,

[[Page 48708]]

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 rule-comments@sec.gov. Please include 

File Number SR-Amex-2007-72 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-2007-72. 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 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-2007-72 and should be 
submitted on or before September 14, 2007.

    For the Commission by the Division of Market Regulation, 
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. E7-16757 Filed 8-23-07; 8:45 am]

BILLING CODE 8010-01-P