Document ID: SEC-2007-0016-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-01-05T05:00Z

[Federal Register: January 5, 2007 (Volume 72, Number 3)]
[Notices]               
[Page 599]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05ja07-67]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55006; File No. SR-Amex-2006-57]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change Relating To Stop Orders for Exchange 
Traded Funds and Trust Issued Receipts

December 22, 2006.
    On August 18, 2006, the American Stock Exchange LLC (``Amex'') 
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 proposed rule change to 
amend the rules applicable to stop orders for exchange traded funds and 
trust issued receipts. The proposed rule change was published for 
comment in the Federal Register on October 17, 2006.\3\ The Commission 
received no comments regarding the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54584 (October 6, 
2006), 71 FR 61111.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\4\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\5\ which requires, among 
other things, that the rules of a national securities exchange be 
designed to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market, 
and, in general, to protect investors and the public interest. The 
Commission believes that the rule change, to amend Commentary .04(b) to 
Amex Rule 154 to provide that a specialist who elects a stop order on 
his book by selling stock to the existing bid or buying stock at the 
existing offer for his own account is not required to obtain floor 
official approval if the transaction is 0.10 point or less away from 
the prior transaction,\6\ will benefit investors by facilitating a more 
efficient and orderly marketplace. The Commission notes that Amex will 
continue to conduct its existing surveillances to monitor specialists' 
compliance with the specific requirements of Commentary .04 to Amex 
Rule 154 (i.e., obtaining floor official approval when required and 
executing the stop order at the same price as the electing trade) as 
well as their agency obligations to the impacted stop orders.
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    \4\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ This exception would only apply to transactions in Exchange-
Traded Fund Shares and Trust Issued Receipts.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Amex-2006-57) is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-22594 Filed 1-4-07; 8:45 am]

BILLING CODE 8011-01-P