Document ID: SEC-2008-0388-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-03-13T04:00Z

[Federal Register: March 13, 2008 (Volume 73, Number 50)]
[Notices]               
[Page 13591-13595]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13mr08-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57451; File No. SR-Amex-2007-131]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto 
Relating to Generic Listing Standards for Index Multiple Fund Shares 
and Index Inverse Fund Shares

March 7, 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 December 20, 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 the 
Exchange. On February 29, 2008, 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

    Amex proposes to revise Rule 1000A-AEMI and add new Commentary .01 
to Rule 1002A to include generic listing standards for series of Index 
Multiple Exchange Traded Fund Shares (``Multiple Fund Shares'') and 
Index Inverse Exchange Traded Fund Shares (``Inverse Fund Shares'') 
(collectively, the ``Fund Shares'').
    The text of the rule proposal 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.

[[Page 13592]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the definition of ``Index Fund 
Share'' set forth in Amex Rule 1000A-AEMI(b)(2) for the purpose of 
properly reflecting the fact that domestic equity, international or 
global equity, or fixed income securities indexes or a combination 
thereof may be used as the underlying performance benchmark for 
Multiple Fund Shares and Inverse Fund Shares. In addition, the Exchange 
proposes to revise Commentaries .02, .03 and .04 to Amex Rule 1000A-
AEMI and add new Commentary .01 to Amex Rule 1002A to permit the 
listing and trading of Multiple Fund Shares and certain Inverse Fund 
Shares pursuant to the Exchange's generic listing standards for Index 
Fund Shares (``IFSs'').\3\ Specifically, the investment objective 
associated with the Fund Shares must be expected to achieve investment 
results, before fees and expenses, by a specified multiple (Multiple 
Fund Shares) or inversely up to -200% (Inverse Fund Shares) of the 
underlying performance benchmark domestic equity, international or 
global equity and/or fixed income indexes, as applicable.
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    \3\ Accordingly, this proposal will enable the Exchange to list 
and trade Multiple Fund Shares and Inverse Fund Shares pursuant to 
Rule 19b-4(e) of the Act, 17 CFR 240.19b-4(e), if each of the 
conditions set forth in Commentaries .02, .03, .04 and .05 to Amex 
Rule 1000A-AEMI, as applicable, are satisfied. See Commentaries 
.02(a)(A) to Amex Rule 1000A-AEMI (Domestic Equity); .02(a)(B) to 
Amex Rule 1000A-AEMI (International Equity); .02(a)(C) to Amex Rule 
1000A-AEMI (Prior Approved Indexes); .03 to Amex Rule 1000A-AEMI 
(Fixed Income); and .04 to Amex Rule 1000A-AEMI (Combination Indexes 
of Domestic Equity, International Equity and/or Fixed Income).
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Background
    Multiple Fund Shares seek to provide investment results, before 
fees and expenses, that correspond to a specified multiple of the 
percentage performance on a given day of a particular foreign, domestic 
or fixed income securities index. Inverse Fund Shares seek to provide 
investment results, before fees and expenses, that correspond to the 
inverse (opposite) of the percentage performance on a given day of a 
particular foreign, domestic or fixed income securities index by a 
specified multiple. Multiple Fund Shares and Index Fund Shares differ 
from traditional exchange-traded fund (``ETF'') shares in that they do 
not merely correspond to the performance of a given securities index, 
but rather attempt to match a multiple or inverse of such underlying 
index performance. Current Multiple Fund Shares trading on the Exchange 
include the ProShares Ultra Funds and Rydex Leveraged Funds while the 
Inverse Fund Shares include the ProShares Short Funds, ProShares 
UltraShort Funds, Rydex Inverse Funds and Rydex Leveraged Inverse 
Funds.\4\
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    \4\ See Securities Exchange Act Release Nos. 56713 (October 29, 
2007), 72 FR 61915 (November 1, 2007) (SR-Amex-2007-74) (approving 
the listing and trading of Rydex Leveraged Funds, Inverse Funds and 
Leveraged Inverse Funds); 52553 (October 3, 2005), 70 FR 59100 
(October 11, 2005) (SR-Amex-2004-62) (approving the listing and 
trading of the ProShares Ultra Funds and Short Funds); 54040 (June 
23, 2006), 71 FR 37629 (June 30, 2006) (SR-Amex-2006-41) (approving 
the listing and trading of the ProShares UltraShort Funds); 55117 
(January 17, 2007), 72 FR 3442 (January 25, 2007) (SR-Amex-2006-101) 
(approving the listing and trading of Ultra, Short and UltraShort 
Funds based on various indexes); 56592 (October 1, 2007), 72 FR 
57364 (October 9, 2007) (SR-Amex-2007-60) (approving the listing and 
trading of ProShares Ultra, Short and UltraShort Funds based on 
various international indexes); and 56998 (December 19, 2007), 72 FR 
73404 (December 27, 2007) (SR-Amex-2007-104) (approving the listing 
and trading of ProShares Ultra, Short and UltraShort Funds based on 
several fixed income indexes, among others). The ProShares Ultra 
Funds and Rydex Leveraged Funds are expected to gain, on a 
percentage basis, approximately twice (200%) as much as the 
underlying benchmark index and should lose approximately twice 
(200%) as much as the underlying benchmark index when such prices 
decline. The ProShares Short Funds and Rydex Inverse Funds are 
expected to achieve investment results, before fees and expenses, 
that correspond to the inverse or opposite of the daily performance 
(-100%) of an underlying benchmark index. Lastly, the ProShares 
UltraShort Funds and Rydex Leveraged Inverse Funds are expected to 
achieve investment results, before fees and expenses that correspond 
to twice the inverse or opposite of the daily performance (-200%) of 
the underlying benchmark index.
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    In order to achieve investment results that provide either a 
positive multiple or inverse of the benchmark index, Multiple Fund 
Shares or Inverse Fund Shares may hold a combination of financial 
instruments, including, but not limited to: stock index futures 
contracts; options on futures; options on securities and indices; 
equity caps, collars and floors; swap agreements; forward contracts; 
repurchase agreements; and reverse repurchase agreements (the 
``Financial Instruments''). Normally, 100% of the value of the 
underlying portfolios for the Inverse Fund Shares will be devoted to 
Financial Instruments and money market instruments, including U.S. 
government securities and repurchase agreements (the ``Money Market 
Instruments''). The underlying portfolios for Multiple Fund Shares may 
consist of a combination of securities, Financial Instruments and Money 
Market Instruments.
Generic Listing Standards
    Amex Rules 1000A-AEMI and Rules 1001A through 1005A provide 
standards for listing IFSs which are securities issued by an open-end 
management investment company (open-end mutual fund) based on a 
portfolio of securities that seeks to provide investment results that 
correspond generally to the price and yield performance or total return 
performance of a specified foreign or domestic securities index or 
fixed income index. Pursuant to Amex Rule 1000A-AEMI and Amex Rules 
1001A through 1005A, IFSs must be issued in a specified aggregate 
minimum number in return for a deposit of specified securities and/or a 
cash amount, with a value equal to the next determined net asset value 
(``NAV''). When aggregated in the same specified minimum number, IFSs 
must be redeemed by the issuer for the securities and/or cash, with a 
value equal to the next determined NAV. Consistent with Amex Rule 
1002A, the NAV is calculated once a day after the close of the regular 
trading day.
    Recent amendments adopting Amex Rule 1000A-AEMI(b)(2) contemplate 
the listing and trading of Multiple Fund Shares and Inverse Fund 
Shares, subject to Commission approval.\5\ The proposed revisions to 
Commentaries .02, .03 and .04 to Amex Rule 1000A-AEMI would allow the 
listing and trading of Multiple Fund Shares and Inverse Fund Shares 
that sought to provide investment results, before fees and expenses, in 
an amount not exceeding -200% of the underlying benchmark index 
pursuant to Rule 19b-4(e) under the Act,\6\ where the other applicable 
generic listing standards for IFSs are satisfied. In connection with 
Inverse Funds that seek to provide investment results, before fees and 
expenses, in an amount that exceeds -200% of the underlying benchmark 
index, the Exchange's proposal would continue to require specific 
Commission approval pursuant to Section 19(b)(2) of the Act.\7\ In 
particular, Amex Rule 1000A-AEMI(b)(2)(iii) would expressly prohibit 
Inverse Funds that seek to provide investment results, before fees and 
expenses, in an amount that exceeds -200% of the underlying benchmark 
index, from being approved by the Exchange for listing and trading

[[Page 13593]]

pursuant to Rule 19b-4(e) under the Act.\8\
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    \5\ Commentaries .02, .03 and .04 to Amex Rule 1000A-AEMI, as 
applicable, specifically require the Exchange to obtain Commission 
approval to list and trade Multiple Funds and Inverse Funds based on 
domestic equity, international or global equity and fixed income 
securities indexes.
    \6\ 17 CFR 240.19b-4(e).
    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 240.19b-4(e).
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    Current Amex Rule 1000A-AEMI(b)(2)(i), in pertinent part, defines 
the term ``Index Fund Share'' as based on a specified foreign or 
domestic stock index. In conjunction with the current proposal, the 
Exchange proposes to amend this definition to include domestic equity, 
international or global equity, or fixed income securities indexes and 
combinations thereof as permissible underlying performance benchmarks. 
The Exchange states that the proposed revision is consistent with 
Commentary .04 to Amex Rule 1000A-AEMI reflecting the fact that 
domestic equity, international or global equity, or fixed income 
securities indexes or a combination thereof may be used as the 
underlying performance benchmark for IFSs, including Multiple Fund 
Shares and Inverse Fund Shares.
    The Exchange believes that adopting generic listing and trading 
standards for Multiple Fund Shares and Inverse Fund Shares based on 
domestic equity, international or global equity and/or fixed income 
securities indexes and applying Rule 19b-4(e) should fulfill the 
intended objective of that Rule by allowing those IFSs that satisfy the 
proposed standards to commence trading, without the need for 
individualized Commission approval. The proposed rules have the 
potential to reduce the time frame for bringing Multiple Fund Shares 
and Inverse Fund Shares to market, thereby reducing the burdens on 
issuers and other market participants.\9\
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    \9\ The Exchange submits that the failure of a particular 
Multiple Fund Share or Inverse Fund Share portfolio to comply with 
the proposed generic listing and trading standards under Rule 19b-
4(e) would not, however, preclude the Exchange from submitting a 
separate filing pursuant to Section 19(b)(2) requesting Commission 
approval to list and trade a particular Multiple Fund Share or 
Inverse Fund Share.
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    The Commission has approved generic standards providing for the 
listing and trading of derivative products pursuant to Rule 19b-4(e) 
based on indexes previously approved by the Commission under Section 
19(b)(2) of the Act.\10\ The Exchange notes that the generic listing 
standards in Commentaries .02, .03 and .04 to Amex Rule 1000A-AEMI, 
provide for indexes that have been approved by the Commission in 
connection with the listing of options, Portfolio Depository Receipts, 
Index Fund Shares, Index-Linked Exchangeable Notes or Index-Linked 
Securities. The Exchange believes that the application of that standard 
to Multiple Fund Shares and Inverse Fund Shares is appropriate because 
the underlying securities index will have been subject to detailed and 
specific Commission review in the context of the approval of listing of 
other derivatives.\11\
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    \10\ 15 U.S.C. 78s(b)(2). See Securities Exchange Act Release 
Nos. 51563 (April 15, 2005), 70 FR 21257 (April 25, 2005) (SR-Amex-
2005-001) (Index-Linked Securities) and 55794 (May 22, 2007), 72 FR 
29558 (May 29, 2007) (SR-Amex-2007-45) (Commodity-Linked and 
Currency-Linked Securities).
    \11\ See Securities Exchange Act Release Nos. 54739 (November 9, 
2006), 71 FR 66993 (November 17, 2006) (SR-Amex-2006-78) 
(International Generic Listing Standards); 42787 (May 15, 2000), 65 
FR 33598 (May 24, 2000) (SR-Amex-2000-14) (US Generic Listing 
Standards) and 55437 (March 9, 2007), 72 FR 12233 (March 15, 2007) 
(SR-Amex-2006-118) (Fixed Income Generic Listing Standards).
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    The Exchange notes that existing Amex Rule 1002A provides continued 
listing standards for all IFSs. For example, where the value of the 
underlying index or portfolio of securities on which the IFS is based 
is no longer calculated or available, or in the event that the IFS 
chooses to substitute a new index or portfolio for the existing index 
or portfolio, the Exchange would commence delisting proceedings if the 
new index or portfolio does not meet the requirements of and listing 
standards set forth in Rule 1000A-AEMI. If an IFS chose to substitute 
an index that did not meet any of the generic listing standards for 
listing of IFSs pursuant to Rule 19b-4(e) of the Act,\12\ then for 
continued listing and trading, approval by the Commission of a separate 
filing pursuant to Section 19(b)(2) of the Act \13\ to list and trade 
that IFS is required. In addition, the Exchange further notes that 
existing Amex Rule 1002A(a)(ii) provides that, prior to approving an 
IFS for listing, the Exchange will obtain a representation from the 
issuer that the NAV per share will be calculated daily and made 
available to all market participants at the same time.
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    \12\ 17 CFR 240.19b-4(e).
    \13\ 15 U.S.C. 78s(b)(2).
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    The Exchange proposes to add new Commentary .01 to Amex Rule 1002A 
to provide for the halt of trading for Multiple Fund Shares and Inverse 
Fund Shares if the Exchange becomes aware that the open-end investment 
company fails to properly disseminate the appropriate NAV to market 
participants at the same time. In addition, the proposed Commentary 
would also require a halt to trading if the open-end investment company 
issuing the Fund Shares failed to provide daily public Web site 
disclosure of its portfolio holdings. In particular, proposed 
Commentary .01 to Amex Rule 1002A provides that the Exchange will halt 
trading in a series of Multiple Fund Shares and/or Inverse Fund Shares 
if the Exchange becomes aware that the open-end investment company 
issuing the Fund Shares fails to disseminate the appropriate NAV to all 
market participants at the same time and/or fails to provide daily 
public Web site disclosure of its portfolio holdings.
Limitation on Leverage
    Proposed Commentary .01 to Amex Rule 1002A provides that Multiple 
Fund Shares and Inverse Fund Shares may be listed pursuant to the 
generic listing standards set forth in Amex Rule 1000A-AEMI and the 
related Commentaries with the limitation that for Inverse Fund Shares, 
the underlying registered management investment company or fund must 
seek to provide investment results, before fees and expenses, that 
correspond inversely up to -200% of the percentage performance on given 
day of a particular domestic equity, international equity or global or 
fixed income securities indexes or a combination thereof. In connection 
with Multiple Fund Shares, proposed Commentary .01 to Amex Rule 1002A 
does not provide a similar limitation on leverage. Instead, the 
proposal would permit the underlying registered management investment 
company or fund to seek to provide investment results, before fees and 
expenses, that correspond to any multiple, without limitation, of the 
percentage performance on given day of a particular domestic equity, 
international or global equity, or fixed income securities indexes or a 
combination thereof.
Availability of Information about Fund Shares and Underlying Indexes
    Proposed new Commentary .01 to Amex Rule 1002A provides that the 
portfolio composition of a Fund will be disclosed on a public Web site. 
Web site disclosure of portfolio holdings that will form the basis for 
the calculation of the net asset value by the issuer of a series of 
Multiple Fund Shares or Inverse Fund Shares will be made daily and will 
include, as applicable, the identity and number of shares held of each 
specific equity security, the identity and amount held of each fixed 
income security, the specific types of Financial Instruments and 
characteristics of such instruments, cash equivalents and amount of 
cash held in the portfolio of a Fund. This public Web site disclosure 
of the portfolio composition of a Fund, that will form the basis for 
the calculation of the net asset value, will coincide with the 
disclosure of the ``IIV

[[Page 13594]]

File'' \14\ and the ``PCF File.'' \15\ Therefore, the same portfolio 
information (including accrued expenses and dividends) will be provided 
on the public Web site as well as in the IIV File and PCF File provided 
to ``Authorized Participants.'' \16\ The format of the public Web site 
disclosure and the IIV File and PCF File may differ because the public 
Web site will list all portfolio holdings that will form the basis for 
the calculation of the net asset value while the IIV File and PCF File 
will similarly provide the portfolio holdings but in a format 
appropriate for Authorized Participants, i.e., the exact components of 
a Creation Unit. Accordingly, investors will have access to the current 
portfolio composition of a Fund through the Fund's Web site and/or at 
the Exchange's Web site at http://www.amex.com.
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    \14\ Because the NSCC's system for the receipt and dissemination 
to its participants of the portfolio composition file ``PCF'' is not 
currently capable of processing information with respect to 
Financial Instruments, an ``IIV File'' has been developed which is 
used to disclose a Funds' holdings of Financial Instruments. The IIV 
File is posted to a password-protected Web site before the opening 
of business on each business day, and all NSCC participants and the 
Exchange have access to a password and the Web site containing the 
IIV File.
    \15\ The portfolio composition file or ``PCF'' for a Fund 
includes the list of names and the required number of shares of each 
deposit security as well as any cash information to be included in 
the next trading day's Creation Unit. The information in the PCF 
will be available to all participants in the NSCC system.
    \16\ Authorized Participants are the only persons that may place 
orders to create and redeem Creation Units. Authorized Participants 
must be registered broker-dealers or other securities market 
participants, such as banks and other financial institutions that 
are exempt from registration as broker-dealers to engage in 
securities transactions, who are participants in DTC.
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Trading Halts
    Existing trading halt requirements for IFSs will apply to Multiple 
Fund Shares and Inverse Fund Shares. In particular, Amex Rule 
1002A(b)(ii) provides if the Intraday Indicative Value or the index 
value applicable to that series of IFSs is not being disseminated as 
required, the Exchange may halt trading during the day in which the 
interruption to the dissemination of the Intraday Indicative Value or 
the index value occurs. If the interruption to the dissemination of the 
Intraday Indicative Value or the index value persists past the trading 
day in which it occurred, the Exchange will halt trading no later than 
the beginning of the trading day following the interruption.\17\
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    \17\ If an IFS is traded on the Exchange pursuant to unlisted 
trading privileges, the Exchange will halt trading if the primary 
listing market halts trading in such IFS because the Intraday 
Indicative Value and/or the index value is not being disseminated. 
See Securities Exchange Act Release No. 55018 (December 28, 2006), 
72 FR 1040 (January 9, 2007) (SR-Amex-2006-109).
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    As set forth above, the Exchange is also proposing to adopt 
Commentary .01 to Amex Rule 1002A to provide additional circumstances 
for a halt in trading of the Fund Shares. Proposed Commentary .01 to 
Amex Rule 1002A would require the Exchange to halt trading in a series 
of Multiple Fund Shares and/or Inverse Fund Shares if the Exchange 
becomes aware that the open-end investment company issuing the Fund 
Shares fails to disseminate the NAV to all market participants at the 
same time. Similarly, the proposed Commentary also provides for the 
halt of trading in the Fund Shares if the Exchange becomes aware that 
daily public Web site disclosure of portfolio holdings by the open-end 
investment company issuing the Fund Shares does not occur. Pursuant to 
the proposed Commentary, the Exchange may resume trading in the Fund 
Shares only when the NAV is disseminated to all market participants at 
the same time or daily public Web site disclosure of portfolio holding 
is properly resumed, as appropriate.
    In addition to other factors that may be relevant, the Exchange may 
consider factors such as those set forth in Amex Rule 918C(b) in 
exercising its discretion to halt or suspend trading in Multiple and/or 
Inverse Fund Shares. These factors would include, but are not limited 
to, (1) the extent to which trading is not occurring in securities 
comprising an Underlying Index and/or the Financial Instruments of a 
Multiple or Inverse Fund, or (2) whether other unusual conditions or 
circumstances detrimental to the maintenance of a fair and orderly 
market are present. In the case of the Financial Instruments held by a 
Multiple or Inverse Fund, the Exchange represents that a notification 
procedure will be implemented so that timely notice from the investment 
adviser of such Multiple or Inverse Fund is received by the Exchange 
when a particular Financial Instrument is in default or shortly to be 
in default. Notification from the investment adviser will be made by 
phone, facsimile or e-mail. The Exchange would then determine on a 
case-by-case basis whether a default of a particular Financial 
Instrument justifies a trading halt of the Multiple and/or Inverse Fund 
Shares. Trading in Multiple and/or Inverse Fund Shares will also be 
halted if the circuit breaker parameters under Amex Rule 117 have been 
reached.
Suitability
    Prior to commencement of trading, the Exchange will issue an 
Information Circular to its members and member organizations providing 
guidance with regard to member firm compliance responsibilities 
(including suitability obligations) when effecting transactions in the 
Fund Shares and highlighting the special risks and characteristics of 
Multiple and Inverse Funds Shares as well as applicable Exchange rules.
    This Information Circular will set forth the requirements relating 
to Commentary .05 to Amex Rule 411 (Duty to Know and Approve 
Customers). Specifically, the Information Circular will remind members 
of their obligations in recommending transactions in the Shares so that 
members have a reasonable basis to believe that (1) the recommendation 
is suitable for a customer given reasonable inquiry concerning the 
customer's investment objectives, financial situation, needs, and any 
other information known by such member, and (2) the customer can 
evaluate the special characteristics, and is able to bear the financial 
risks, of such investment. In connection with the suitability 
obligation, the Information Circular will also provide that members 
make reasonable efforts to obtain the following information: (1) The 
customer's financial status; (2) the customer's tax status; (3) the 
customer's investment objectives; and (4) such other information used 
or considered to be reasonable by such member or registered 
representative in making recommendations to the customer.
2. Statutory Basis
    The Exchange believes the rule proposal is consistent with the Act 
and the rules and regulations thereunder applicable to a national 
securities exchange and, in particular, the requirements of Section 
6(b) of the Act.\18\ Specifically, the Exchange believes that the 
proposed rule change is consistent with the requirements under Section 
6(b)(5) of the Act \19\ that the rules of an exchange be 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 transaction in 
securities, and, in general to protect investors and the public 
interest. The Exchange believes that the ability to list and trade 
Multiple and Inverse Fund

[[Page 13595]]

Shares pursuant to the existing generic listing standards applicable to 
IFSs that do not have a multiple or inverse component would promote and 
facilitate transactions in these securities, while at the same time 
protecting investors and the public interest. In addition, the Exchange 
submits that the proposal further seeks to facilitate transactions in 
securities by easing unnecessary administrative and regulatory burdens 
that do not exist for ETFs based on the same underlying indexes or 
portfolios.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition 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

    The Exchange neither solicited nor received comments on the 
proposal.

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.

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 rule-comments@sec.gov. Please include 
File Number SR-Amex-2007-131 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-2007-131. 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 the 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-2007-131 and should be 
submitted on or before April 3, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4983 Filed 3-12-08; 8:45 am]

BILLING CODE 8011-01-P