Document ID: SEC-2008-0198-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-02-06T05:00Z

[Federal Register: February 6, 2008 (Volume 73, Number 25)]
[Notices]               
[Page 7016]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06fe08-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57248; File No. SR-Amex-2007-25]

 
Self-Regulatory Organizations; American Stock Exchange, LLC; 
Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, 
to Allow Register Options Traders to Submit Electronic Quotations and 
Orders From Off the Amex's Trading Floor on a Limited Basis

January 31, 2008.

I. Introduction

    On February 27, 2007, 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 
proposal to amend its rules to allow registered options traders to 
submit electronic quotations and orders from off the Amex's trading 
floor on a limited basis. The Amex filed Amendment No. 1 to the 
proposal on December 13, 2007.\3\ The proposed rule change, as modified 
by Amendment No. 1, was published for comment in the Federal Register 
on December 28, 2007.\4\ The Commission received no comments regarding 
the proposed rule change, as amended. This order approves the proposed 
rule change, as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 supersedes and replaces the original filing 
in its entirety.
    \4\ See Securities Exchange Act Release No. 57011 (December 20, 
2007), 72 FR 73910.
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II. Description of the Proposal

    The Amex proposes to amend Amex Rule 958-ANTE, ``Options 
Transactions of Registered Options Traders and Supplemental Registered 
Options Traders and Remote Registered Options Traders,'' to allow 
registered options traders to submit electronic quotations and orders 
from off the Amex's trading floor on a temporary basis for a maximum of 
20 days during a calendar year.\5\ According to the Amex, the proposal 
is designed to accommodate registered options traders when they are 
temporarily unable to be present on the Amex's physical trading floor. 
For purposes of the ``in-person'' requirements set forth in Amex Rule 
958-ANTE, a registered options trader's transactions through this 
limited remote quoting program will be deemed to occur on the floor.
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    \5\ See Amex Rule 958-ANTE, Commentary .01(c). Under the 
proposal, quoting and submitting orders from off the trading floor 
for less than an entire day would qualify as one day.
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    A registered options trader must notify the Amex's Division of 
Regulation and Compliance immediately following the day or days during 
which he or she submits quotes from off the floor.\6\ The Amex notes 
that it has an independent means to monitor when a register options 
trader is off the floor because all members must scan in.
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    \6\ See Amex Rule 958-ANTE, Commentary .01(c).
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    The Amex states that it will use its existing surveillance 
procedures to monitor registered options traders' temporary off-floor 
trading. In addition, the Amex represents that it will be able to 
monitor for compliance with the Amex's trading rules and the federal 
securities laws and the rules and regulations thereunder.

III. Discussion

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\7\ 
In particular, the Commission finds that the proposal is consistent 
with section 6(b)(5) of the Act,\8\ which requires, among other things, 
that the rules of a national securities exchange be 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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    \7\ In approving the 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).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the proposal is designed to provide 
registered options traders with the flexibility to trade from off the 
Amex's floor on a limited basis when they are temporarily unable to be 
present on the floor. The Commission notes that the Amex has stated 
that it will use its existing surveillance procedures to monitor the 
off-floor trading permitted under the proposal, and that the Amex has 
represented that it will be able to monitor for compliance with the 
Amex's trading rules and the federal securities laws and the rules and 
regulations thereunder.

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2007-25), as modified by 
Amendment No. 1, is approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2139 Filed 2-5-08; 8:45 am]

BILLING CODE 8011-01-P