Document ID: SEC-2006-1105-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-08-29T04:00Z

[Federal Register: August 29, 2006 (Volume 71, Number 167)]
[Notices]               
[Page 51243-51245]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29au06-93]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54354; File No. SR-Amex-2006-73]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Clarify the Applicability of Certain Rules to Securities Also Listed on 
the Nasdaq Capital Market and the Nasdaq Global Market

August 23, 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 August 9, 2006, 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 by the Amex. The Exchange 
filed the proposal as a ``non-controversial'' proposed rule change 
pursuant to 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.\5\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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).
    \5\ The Amex asked the Commission to waive the five-day pre-
filing notice requirement and the 30-day operative delay. See Rule 
19b 4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes minor, technical changes to Rules 7 (Commentary 
.02), 24, 109 (Commentary .02), 115

[[Page 51244]]

(Commentary .01), 118, 131 (Commentary .02), 131A, 156 (Commentary 
.01), 170 (Commentary .11), 190 (Commentary .06) and 1301 and Section 
142 of the Company Guide to clarify the applicability of such rules to 
securities that are also listed on the Nasdaq Capital Market (``NCM'') 
and the Nasdaq Global Market (formerly referred to as the Nasdaq 
National Market,\6\ ``NGM'') (NCM and NGM are collectively referred to 
as ``Nasdaq.'') The text of the proposed rule change is available at 
the Amex, at the Commission's Public Reference Room, and at 
http://www.amex.com.

---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 54071 (June 29, 
2006), 71 (June 29, 2006,) 71 FR 38922 (July 10, 2006)(SR-NASD-2006-
068).
---------------------------------------------------------------------------

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 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.

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

1. Purpose
    On May 9, 2006, the Commission approved a proposed rule change by 
the Exchange that reduced the initial and annual listing fees for 
companies listed on another securities market that dual list on the 
Amex and made appropriate rule changes to accommodate the listing and 
trading of Nasdaq securities on the Amex.\7\ Specifically, the Exchange 
expanded the scope of Rule 118 to include the trading of (i) NCM 
securities, in addition to NGM securities, pursuant to unlisted trading 
privileges (``UTP'') and (ii) Nasdaq securities that are listed on the 
Amex. As a result, the following provisions which were previously only 
applicable to NGM securities traded on a UTP basis on the Amex now 
cover NCM securities traded on a UTP basis on the Amex and Nasdaq 
securities with dual listings on the Amex: Rule 1 (Commentary .05); 
Rule 3; Rule 7 (Commentary .02); Rule 24; Rule 109 (Commentary .02); 
Rule 115 (Commentary .01); Rule 118; Rule 126 (Commentary .06); Rule 
128A; Rule 131 (Commentaries .02 and .03); Rule 131A; Rule 135A; Rule 
156 (Commentary .01); Rule 170 (Commentary .11); Rule 175; Rule 190 
(Commentary .06); Rule 205 (Commentary .05); Rule 1301; and Section 142 
of the Company Guide.
---------------------------------------------------------------------------

    \7\ Securities Exchange Act Release No. 53778 (May 9, 2006), 71 
FR 28057 (May 15, 2006) (SR-Amex-2005-125).
---------------------------------------------------------------------------

    The purpose of this filing is to make minor changes to certain of 
the above provisions to make explicit their applicability to both 
Nasdaq securities traded on the Amex on a UTP basis and Nasdaq 
securities with dual listings on the Amex. Specifically, the Exchange 
proposes deleting the phrase ``pursuant to unlisted trading 
privileges'' following the defined term ``Nasdaq securities'' and, 
where appropriate, to add a reference to Rule 118. Furthermore, the 
Exchange proposes augmenting the references in Commentary .01 to Rule 
118 to include all of the rules applicable to trading in Nasdaq 
securities. The Exchange believes that the proposed rule change will 
clearly identify the Amex rules that should be consulted by members and 
member organizations trading Nasdaq securities on the Amex.
2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\8\ in general, and furthers the objectives of 
Sections 6(b)(5) of the Act,\9\ 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; 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers, or to regulate by virtue of any authority 
conferred by the Act matters not related to the purpose of the Act or 
the administration of the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    Amex believes 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

    Because the foregoing 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 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 
\10 \and Rule 19b-4(f)(6) thereunder.\11 \
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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.
    The Amex has requested that the Commission waive the five-day pre-
filing notice requirement and the 30-day operative delay contained in 
Rule 19b-4(f)(6)(iii) under the Act.\12\ Because the proposed rule 
change raises no novel issues, and serves to clarify the applicability 
of certain rules to securities that are also listed on the Nasdaq 
Capital Market and the Nasdaq Global Market, the Commission believes 
such waiver is consistent with the protection of investors and the 
public interest. Accordingly, the Commission designates the proposal to 
be effective and operative upon filing with the Commission.\13 \
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b 4(f)(6)(iii).
    \13\ 13 For purposes only of waiving the 30-day operative delay 
of this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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:

[[Page 51245]]

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-2006-73 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.

All submissions should refer to File Number SR-Amex-2006-73. 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. 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 Number SR-Amex-2006-73 and should be submitted on or before 
September 19, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14 \
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-14301 Filed 8-28-06; 8:45 am]

BILLING CODE 8010-01-P