Document ID: SEC-2006-0073-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-01-23T05:00Z

[Federal Register: January 23, 2006 (Volume 71, Number 14)]
[Notices]               
[Page 3567-3569]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja06-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53123; File No. SR-Amex-2005-110]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change Relating to Specialist Clerks

January 13, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 31, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by Amex. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes amendments to Amex Rule 184 to require 
specialists to employ an adequate number of clerks to enable the 
specialist unit to efficiently handle trading volume in the unit's 
registered securities and meet its regulatory responsibilities.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in [brackets].
* * * * *
Rule 184. Specialist Clerks
    (a) A specialist or specialist unit shall [may] regularly employ, 
subject to such

[[Page 3568]]

rules and regulations as the Board of Governors may adopt[,] an 
adequate number of [one or more] clerks[,] to aid such specialist or 
specialist unit on the floor of the Exchange and to enable the unit to 
efficiently handle actual and reasonably anticipated volume in the 
unit's registered securities, provided each such clerk receives the 
approval of the Exchange. A yearly fee, as imposed by the Exchange and 
payable as directed by the Exchange, shall be charged the specialist or 
specialist unit for each clerk. No rebate shall be given with respect 
to the fee in the event that a specialist or specialist unit 
discontinues the services of such a clerk during any period.
    (b) A specialist or specialist unit may, for the purpose of 
obtaining assistance on a temporary basis, utilize the services on the 
floor of the Exchange of a clerk regularly employed by another 
specialist or specialist unit, provided that: (1) Such use shall be 
subject to the approval of the Exchange and the consent of the 
specialist or specialist unit regularly employing the clerk and shall 
be subject to such conditions as the Exchange may impose; and (2) such 
clerk shall not disclose to one specialist or specialist unit any 
information with respect to orders entrusted to the other specialist or 
specialist unit.
    [Commentary
    .01 Each specialist unit will be allowed by the Exchange to employ 
a number of clerks which the Exchange approves as reasonable from time 
to time to enable the unit to efficiently handle actual and reasonably 
anticipated volume in the unit's registered securities.]
* * * * *

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 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Amex Rule 184 governs the employment of clerks on the trading floor 
by specialists, and provides that each specialist unit may regularly 
employ a number of clerks to aid the specialist unit on the trading 
floor provided that such clerk(s) receive Exchange approval. Commentary 
.01 to Amex Rule 184 further provides that each specialist unit will be 
allowed by the Exchange to employ a number of clerks which the Exchange 
approves as reasonable to enable the specialist unit to efficiently 
handle actual and reasonably anticipated volume in the unit's 
registered securities.
    A number of Amex Rules, most notably Amex Rule 170, require 
specialists to comply with a variety of affirmative and negative 
obligations. Additionally, specialists are subject to certain 
Commission order handling rules. In order to comply with SEC and Amex 
Rules applicable to specialist activities as well as the Exchange 
Guidelines, it is essential that each specialist unit employ an 
adequate number of clerks on the trading floor. To clarify this 
requirement, the Exchange is proposing that Amex Rule 184 be amended to 
specifically provide that specialists must maintain adequate staffing 
levels on the trading floor, as necessary to fulfill their regulatory 
obligations.
    The New York Stock Exchange, Inc. (``NYSE'') imposes substantially 
similar staffing obligations on its specialist units.\3\
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    \3\ See NYSE Rule 35, Supplementary Material .40.
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2. Statutory Basis
    Amex believes that the proposed rule change is consistent with 
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, 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 Exchange believes that the proposed rule change will impose no 
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

    No written comments were solicited or received in response 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 Exchange consents, the Commission shall:
    (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 No. SR-Amex-2005-110 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 20549-9303.

All submissions should refer to File Number SR-Amex-2005-110. 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 Commissions 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. Copies of such filing also will be 
available for inspection and copying at the principal office of Amex.

[[Page 3569]]

    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-2005-110 
and should be submitted on or before February 13, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-676 Filed 1-20-06; 8:45 am]

BILLING CODE 8010-01-P