Document ID: SEC-2007-1356-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-10-01T04:00Z

[Federal Register: October 1, 2007 (Volume 72, Number 189)]
[Notices]               
[Page 55845-55847]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc07-105]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56506; File No. SR-Amex-2007-99]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Deletion of Certain Rules That the Amex has Determined 
Are Obsolete, Outdated, or Unnecessary

September 24, 2007.
    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 September 14, 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 and 
II below, which Items have been prepared substantially by the Amex. The 
Amex has submitted the proposed rule change under Section 19(b)(3)(A) 
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the 
proposal effective upon filing with 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 Amex proposes to delete certain rules that it has determined 
are obsolete, outdated, and/or unnecessary.
    The text of the proposed rule change is available at http://www.amex.com
, the principal offices of the Amex, and 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 Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any

[[Page 55846]]

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 Amex 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to delete certain rules 
that the Exchange has determined to be obsolete, outdated, and/or 
unnecessary. Specifically, the Exchange proposes to delete the 
following rules:
    Rule 3(e)--AEMI. This rule provides that no member or member 
organization shall quote a nominal market for a security dealt in on 
the Exchange. A nominal market is quoted for the purpose of 
establishing a valuation and not as an invitation to trade. Because the 
firm quote rule \5\ provides that no broker-dealer may place an order 
to buy or sell unless he is willing to purchase or sell at the stated 
price and conditions, the Exchange no longer permits quoting a nominal 
market. Therefore, this rule is obsolete and superseded by the firm 
quote rule and Amex Rule 958A, both of which relate to the obligation 
to maintain firm quotes.
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    \5\ 17 CFR 242.602.
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    Amex Rule 8. This rule provides that no member or member 
organization may bear for his own account or relieve his principal from 
stamp taxes. Stamp taxes are no longer imposed and, therefore, the Amex 
believes that the rule is no longer necessary or applicable.
    Amex Rule 102. This rule prohibits members and member organizations 
from bidding for, offering for sale, purchasing, or selling on the 
Exchange privileges to receive or deliver securities or dividends. No 
member or member organization on the Exchange deals in privileges 
because it is an illegal, out-of-date practice; therefore, the Amex 
believes that the rule is no longer necessary or applicable.
    Amex Rule 116. This rule provides for an Opening Automated Report 
Service (``OARS''), which is a system designed to facilitate the 
efficient and accurate processing of eligible orders received by the 
Exchange prior to the opening or reopening of trading in designated 
securities. The rule describes the function the service will perform 
for each designated security. The rule also provides the order, 
execution, reporting, and recordkeeping aspects of the system. The rule 
is obsolete because OARS is no longer in use due to the automation of 
equity opening procedures.
    Amex Rule 322. This rule provides that a member or member 
organization maintaining customer offices must display a certificate of 
membership in the Exchange, which is prepared by the Exchange and 
remains the property of the Exchange. The Amex no longer issues 
certificates of membership, so the rule is obsolete.
    Emerging Company Marketplace. The Exchange also proposes to delete 
from the Amex Company Guide the standards relating to the Emerging 
Company Marketplace (``ECM''). In May 1995, the Exchange determined to 
discontinue the listing of new companies on the ECM. Companies listed 
on the ECM at that time were permitted to continue to be listed there, 
subject to all the rules that applied to ECM issues. There are no 
longer any companies listed pursuant to the ECM rules, and, therefore, 
the Exchange believes it is appropriate at this time to remove the ECM 
rules from the Amex Company Guide.
2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\6\ in general, and with Section 6(b)(5) of the 
Act,\7\ in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex believes that 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 Amex has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\9\ Because the Amex has designated the foregoing proposed 
rule change as one that: (1) Does not significantly affect the 
protection of investors or the public interest; (2) does not impose any 
significant burden on competition; and (3) does not become operative 
for 30 days from the date of filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\10\ The proposal shall become operative 30 days from the 
date of filing.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ Rule 19b-4(f)(6)(iii) also requires a self-regulatory 
organization to provide the Commission with written notice of its 
intention to file the proposed rule change at least five business 
days prior to filing the proposal with the Commission or such 
shorter period as designated by the Commission. The Exchange 
requested the Commission to waive the five-day pre-filing 
requirement. The Commission hereby grants that request.
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    At any time within 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, 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-2007-99 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

[[Page 55847]]

All submissions should refer to File Number SR-Amex-2007-99. 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 publicly available. All 
submissions should refer to File Number SR-Amex-2007-99 and should be 
submitted on or before October 22, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-19272 Filed 9-28-07; 8:45 am]

BILLING CODE 8011-01-P