Document ID: SEC-2005-0353-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange, LLC
Posted Date: 2005-12-12T05:00Z

[Federal Register: December 12, 2005 (Volume 70, Number 237)]
[Notices]               
[Page 73489-73490]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12de05-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52881; File No. SR-Amex-2005-119]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Make Certain Changes Pertaining to the Enforcement of Decorum Policies

December 2, 2005.
    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 November 18, 2005, 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 
Amex. The Exchange has filed the proposed rule change pursuant to 
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(b) 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 amend Amex Rule 22 to authorize two Floor 
Officials, in consultation with a designated senior executive officer 
of the Exchange, to summarily exclude a member or person associated 
with a member or member organization from the Exchange premises for not 
longer than the remainder of the trading day for specified violations 
of the Exchange's decorum policies.
    The text of the proposed rule change is available on the Amex's Web 
site at http://www.amex.com, the Office of the Secretary, the Amex, 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 Amex included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposal. 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 Purpose

1. Purpose
    In 2002, the Commission approved a Chicago Board Options Exchange, 
Inc. (``CBOE'') rule change allowing two CBOE Floor Officials, in 
consultation with a designated senior executive officer of that 
exchange, to summarily exclude from the CBOE's premises a member or 
person associated with a member for the following serious violations of 
floor decorum: physical violence, unbusinesslike conduct, harassment, 
failure to abide by a Floor Official's ruling, property damage, 
enabling or assisting a suspended member or associated person to gain 
improper access to the floor, and failure to supervise a visitor.\5\
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    \5\ See Securities Exchange Act Release No. 46823 (November 13, 
2002), 67 FR 70275 (November 21, 2002).
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    The Exchange believes that it should have similar explicit 
authority to summarily exclude for short periods of time members and 
associated persons that commit serious breaches of floor decorum. In 
this regard, the Amex proposes to adopt a summary exclusion rule 
similar CBOE Rule 6.20.
    The proposed Amex rule, like CBOE's Rule 6.20, would permit the 
summary suspension of a member or person associated with a member or 
member organization for the balance of a trading day by two Floor 
Officials, acting in consultation with a designated senior executive 
officer of the Exchange. Summary suspension from the Amex floor would 
be permitted in situations involving the following serious violation of 
floor decorum: physical violence, unbusinesslike conduct,\6\ harassment 
(as set forth in Amex Rule 16), failure to abide by a Floor Official's 
ruling, property damage, enabling or assisting a suspended member or 
associated person to gain improper access to the floor, and failure to 
supervise a visitor. The proposed Amex rule also would permit an 
excluded person to request reinstatement to the trading floor from two 
Floor Officials after a sufficient cooling-off period has elapsed so 
that the excluded person no longer poses an immediate threat to the 
safety of persons or property or to the orderly conduct of business. 
The proposed rule requires that at least one of the Floor Officials who 
considers a request for reinstatement must have participated in the 
initial suspension decision to ensure that the persons considering 
reinstatement are adequately apprised of the circumstances of the 
suspension.
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    \6\ In general, ``unbusinesslike conduct'' is conduct, other 
than harassment, that disrupts trading.
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    The Amex believes that having the authority to temporarily exclude 
disruptive or potentially dangerous persons from the Exchange's 
premises would assist the Exchange in defusing volatile situations, 
safeguarding trading floor personnel and facilities. The Amex further 
believes that the proposal also may benefit investors by minimizing 
disruptions to the maintenance of a fair and orderly market. The 
procedures for

[[Page 73490]]

readmission would permit an excluded person to return to the Floor once 
he or she no longer poses a threat to persons or property or no longer 
threatens the maintenance of a fair and orderly market.
2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
section 6(b) of the Act,\7\ in general, and furthers the objectives of 
section 6(b)(5),\8\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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

    Because the proposed rule change 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 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, it has become effective pursuant to section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 10 17 CFR 240.19b-4(f)(6).
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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-2005-119 on the subject line.

Paper Comments:

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-Amex-2005-119. 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 Section. 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 No. SR-Amex-2005-119 and 
should be submitted on or before January 3, 2006.

    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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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7194 Filed 12-9-05; 8:45 am]

BILLING CODE 8010-01-P