Document ID: SEC-2008-0067-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2008-01-14T05:00Z

[Federal Register: January 14, 2008 (Volume 73, Number 9)]
[Notices]               
[Page 2291-2292]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja08-110]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57106; File No. SR-Amex-2007-36]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment No. 1 To 
Eliminate a Volume Add-on to Amex Options Specialist Financial 
Requirements

January 4, 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 April 10, 2007, 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 substantially prepared by Amex. On 
December 12, 2007, the Exchange filed Amendment No. 1 to the proposed 
rule change. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 the Amex options specialist 
financial requirements to eliminate the add-on of $25,000 for each 
option class in excess of the initial twenty-five issues in which the 
specialist is registered. The text of the proposed rule change is 
available on the Amex's Web site at http://www.amex.com and at the 

Commission's Public Reference Room.

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
    The Amex is proposing to amend Rule 950-ANTE(h). Rule 950-ANTE(h) 
currently requires an option specialist to maintain minimum tentative 
net capital in the amount of $1,000,000 plus $25,000 for each option 
issue (option class) in excess of the initial twenty-five issues in 
which the specialist is registered. The amendment would eliminate the 
$25,000 add-on for each option class in excess of the initial twenty-
five option classes.
    Amex member firms are subject to both the Amex and the Commission's 
net capital rule.\3\ The multiple listing of options across markets, as 
well as quoting obligations of registered options traders, remote 
registered options traders, and supplemental registered options traders 
now provides multiple sources of liquidity in each options class, which 
diminishes the role and need to highly capitalize any one liquidity 
provider. Therefore, the benefits of requiring Amex options specialists 
to maintain net capital beyond the Commission's net capital rule have 
been greatly reduced. Reducing the amount of capital required to be 
held under the Amex net capital rule also would allow options 
specialists to use funds previously maintained to meet Amex net capital 
requirements for other purposes, lowering their cost of business and 
helping to ensure that they can continue to function as options 
specialists on the Exchange.
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    \3\ Rule 15c3-1 under the Act (17 CFR 240.15c3-1).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 2292]]

Section 6(b) of the Act \4\ in general and furthers the objectives of 
Section 6(b)(5) \5\ 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 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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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

    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.

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 No. SR-Amex-2007-36 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 No. SR-Amex-2007-36. 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 No. SR-Amex-2007-36 and should be 
submitted on or before February 4, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-349 Filed 1-11-08; 8:45 am]

BILLING CODE 8011-01-P