Document ID: SEC-2006-0647-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-05-19T04:00Z

[Federal Register: May 19, 2006 (Volume 71, Number 97)]
[Notices]               
[Page 29192]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my06-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53797; File No. SR-Amex-2005-112]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval to Proposed Rule Change and Amendment No. 1 Relating 
to the Prohibition of Trade Shredding by Members

 May 12, 2006.

I. Introduction

    On November 1, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed 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\ a 
proposed rule change relating to the prohibition of trade shredding. On 
March 27, 2006, the Exchange filed Amendment No. 1 to the proposed rule 
change. The proposed rule change, as amended, was published for comment 
in the Federal Register on April 12, 2006.\3\ The Commission received 
no comments on the proposal. This order approves the proposed rule 
change, as amended.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240. 19b-4.
    \3\ See Securities Exchange Act Release No. 53597 (April 4, 
2006), 71 FR 18789.
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II. Description of the Proposal

    The Exchange proposed to amend Amex Rule 3 (``General Prohibitions 
and Duty to Report'') by adding a new paragraph (i) to prohibit a 
member or member organization from splitting trading interest into 
multiple orders for any purpose other than seeking the best execution 
of the entire order.

III. Discussion and Commission Findings

    The Commission has reviewed carefully the proposed rule change, as 
amended, and finds that it is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to a national 
securities exchange,\4\ particularly Section 6(b)(5) of the Act which, 
among other things, requires that the rules of a national securities 
exchange be designed to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating securities transactions, to remove impediments to and to 
perfect the mechanism of a free and open market and a national market 
system and, in general, to protect investors and the public 
interest.\5\ The Commission believes that the proposed rule change, as 
amended, should help eliminate the distortive practice of trade 
shredding, and, therefore, promote just and equitable principles of 
trade.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change, as amended, (File No. SR-Amex-
2005-112), be and hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-7640 Filed 5-18-06; 8:45 am]

BILLING CODE 8010-01-P