Document ID: SEC-2007-0547-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-04-13T04:00Z

[Federal Register: April 13, 2007 (Volume 72, Number 71)]
[Notices]               
[Page 18698-18700]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ap07-86]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55602; File No. SR-Amex-2007-33]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Extension of the Allocation and Performance Evaluation 
Procedures for Securities Admitted to Dealings on an Unlisted Basis

April 9, 2007.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on April 3, 2007, the American Stock Exchange LLC (the 
``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 substantially prepared by 
Exchange. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A)(iii) of the Act \4\ and Rule 
19b-4(f)(6) thereunder,\5\ which renders the proposed rule change 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit

[[Page 18699]]

comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 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

    Amex seeks a one year extension of its allocations and performance 
evaluation procedures for securities admitted to dealings on an 
unlisted trading privileges (``UTP'') basis to permit these programs to 
remain in effect while the Commission considers permanent approval of 
these procedures.
    The text of the proposed rule change is available on the Amex's Web 
site at http://www.amex.com, the Exchange's Office of the Secretary, 

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 Exchange included statements 
concerning the purpose of and basis for the proposed rule changes and 
discussed any comments it received regarding 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

1. Purpose
    The Exchange is proposing to extend its allocations and performance 
evaluation procedures for securities admitted to dealings on an 
unlisted trading privileges basis (the ``Pilot Program'') from April 6, 
2007 through and including April 6, 2008. The text of the rules shall 
remain unchanged. The Commission previously approved, on a pilot basis, 
the Exchange's allocation and performance evaluation procedures for 
securities admitted to dealings on an unlisted trading privileges basis 
through two independent approval orders.\6\ In 2003, the Pilot Program 
was extended through October 5, 2003 \7\ and April 5, 2004.\8\ In 2004, 
the Pilot Program was extended through April 6, 2005.\9\ In 2005, the 
Pilot Program was extended through April 6, 2006.\10\ In 2006, the 
Pilot Program was extended through April 6, 2007.\11\ The instant 
proposed rule change makes no substantive change to the Pilot Program 
other than to extend it through and including April 6, 2008.
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    \6\ See Securities Exchange Act Release No. 45698 (April 5, 
2002); 67 FR 18051 (April 12, 2002) (SR-Amex-2001-107) and 46750 
(October 30, 2002), 67 FR 67880 (November 7, 2002) (SR-Amex-2002-
19).
    \7\ See Securities Exchange Act Release No. 47779 (May 1, 2003), 
68 FR 24777 (May 8, 2003).
    \8\ See Securities Exchange Act Release No. 48657 (October 17, 
2003), 68 FR 61025 (October 24, 2003).
    \9\ See Securities Exchange Act Release No. 49613 (April 26, 
2004); 69 FR 24204 (May 3, 2004).
    \10\ See Securities Exchange Act Release No. 52004 (July 8, 
2005); 70 FR 41061 (July 15, 2005) (retroactively reinstating the 
Pilot Program to April 6, 2005, and extending it through and 
including April 6, 2006).
    \11\ See Securities Exchange Act Release No. 53649 (April 13, 
2006); 71 FR 20425 (April 20, 2006).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act \12\ in general and furthers the objectives 
of Section 6(b)(5) \13\ in particular in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no 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

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (1) Significantly affect 
the protection of investors or the public interest; (2) impose any 
significant burden on competition; and (3) become operative for 30 days 
after the date of the filing, 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 \14\ and Rule 19b-4(f)(6) 
thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 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.
    A proposed rule change normally may not become operative prior to 
30 days after the date of filing.\16\ However, Rule 19b-4(f)(6)(iii) 
\17\ permits the Commission to designate a shorter time if such action 
is consistent with the protection of investors and the public interest. 
The Exchange has requested that the Commission waive the 30-day 
operative delay. The Commission believes that waiver of the 30 day 
operative delay is consistent with the protection of investors and the 
public interest because the proposed rule change would merely permit 
the continuation of the Pilot Program in its current form on an 
uninterrupted basis through and including April 6, 2008.\18\
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    \16\ 17 CFR 240.19b-4(f)(6)(iii). Rule 19b-4(f)(6)(iii) requires 
that a self-regulatory organization submit to the Commission written 
notice of its intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. On 
March 26, 2007, the Exchange provided such notice to the Commission 
in the form of a draft version of the proposed rule change. Despite 
providing such notice to the Commission, the Exchange subsequently 
requested that the Commission waive the five-day prefiling 
requirement. The Exchange's request to waive the five-day prefiling 
requirement is moot given that the Exchange has satisfied it by 
submitting the draft version of the proposed rule change.
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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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 e-mail to rule-comments@sec.gov. Please include File 

Number SR-Amex-2007-33 on the subject line.

[[Page 18700]]

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Amex-2007-33. 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-2007-33 and should be submitted by May 4, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-7054 Filed 4-12-07; 8:45 am]

BILLING CODE 8010-01-P