Document ID: SEC-2008-0632-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-05-01T04:00Z

[Federal Register: May 1, 2008 (Volume 73, Number 85)]
[Notices]               
[Page 24098-24100]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01my08-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57707; File No. SR-Amex-2008-14]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change, and Amendment No. 1 Thereto, 
To Amend Rule 903C to Permit the Listing and Trading of Additional 
Index Options Series

April 24, 2008.
    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 February 20, 2008, 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, II, 
and III below, which Items have been substantially prepared by Amex. On 
April 24, 2008, Amex submitted Amendment No. 1 to the proposed rule 
change. The Commission is publishing this notice to solicit comments on 
the proposed rule change, as amended, 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

    Amex proposes to amend Rule 903C to permit the listing and trading 
of additional index options series that do not meet current 
requirements, if such options series are listed and traded on at least 
one other national securities exchange. For each additional options 
series listed by the Exchange pursuant to the amended rule, the 
Exchange would submit a proposed rule change with the Commission that 
is effective upon filing within the meaning of Section 19(b)(3)(A) 
under the Act. The text of the proposed rule change is available at 
Amex, the Commission's Public Reference Room, and http://www.amex.com.

[[Page 24099]]

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

    In its filing with the Commission, 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. Amex 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
    The Exchange proposes to add new Commentary .06 to Rule 903C to 
permit the listing and trading of additional index options series that 
do not meet current Rule 903C requirements, if such options series are 
listed on at least one other national securities exchange in accordance 
with the applicable rules of such exchange for the listing and trading 
of index options. For each additional options series listed by the 
Exchange pursuant to proposed Commentary .06, the Exchange would submit 
a proposed rule change with the Commission that is effective upon 
filing within the meaning of Section 19(b)(3)(A) under the Act.
    Rule 903C provides the mechanism for the Exchange to list or open 
options expiration month series on particular index options classes 
approved for listing and trading on the Exchange. In general, up to a 
six expiration month series may be listed at any one time. Amex Rule 
903C(a) permits the Exchange to open options expiration month series on 
approved index options classes as follows: (i) Consecutive Month 
Series; (ii) Cycle Month Series; (iii) Long-Term Options Series; (iv) 
Short-Term (1 week) Options Series; and (v) Quarterly Options Series. 
This proposal seeks to permit the Exchange to list additional index 
options expiration month series if another options exchange does so, 
regardless of whether the additional series listing complies with the 
requirements of Rule 903C.

Consecutive Month Series

    Under Rule 903C(a)(i), Consecutive Month Series options are a 
series of options, within a particular class of stock index options, 
having up to four consecutive expiration months which can be opened for 
simultaneous trading. The shortest-term series permissible are series 
initially having no more than two months to expiration.

Cycle Month Series

    Under Rule 903C(a)(ii), the Exchange may designate one expiration 
cycle for each class of stock index options, consisting of four 
calendar months occurring at three-month intervals. With respect to any 
particular class of stock index options, Cycle Month Series options 
expiring in three of the four cycle months designated by the Exchange 
for that class may be traded simultaneously with the shortest-term 
series initially having approximately three months to expiration.

Long-Term Option Series

    Under Rule 903C(a)(iii), the Exchange may list series of options 
having up to sixty (60) months to expiration for any particular class 
of stock index options. These Long-term Options Series may be traded 
simultaneously with Consecutive Month Series options as well as Cycle 
Month Series options.

Quarterly Options Series

    Under Rule 903C(a)(iv), the Exchange may list and trade options 
series that expire at the close of business on the last business day of 
a calendar quarter. Quarterly Options Series for up to five currently 
listed stock index options classes or options classes for options on 
ETFs may be listed. The Exchange may also list Quarterly Options Series 
on any options classes that are selected by other options exchanges.

Short Term (1 Week) Option Series

    Under Rule 903C(a)(v), the Exchange may open for trading, on any 
business Friday, series of options that expire at the close of business 
on the following Friday. The Exchange may select up to five currently 
listed option classes on which Short Term Option Series may be opened. 
Additionally, the Exchange may list Short Term Option Series on any 
option classes that are selected by other options exchanges.
    Consistent with this proposal, the index options class must either 
be specifically reviewed and approved by the Commission under section 
19(b)(2) of the 1934 Act and rules thereunder, or comply with 
Commentary .02 or .03 to Rule 901C, for the Exchange to be able to list 
the additional series. Amex believes the ability to list and trade 
additional series of an index options class that may not meet the 
requirements of Rule 903C if another options exchange lists such 
expiration month series is appropriate and necessary in order to remain 
competitive and provide customers with the full offering of index 
option products. Although the proposal may result in an incremental 
increase in message and quote traffic for systems of the Exchange and 
the Options Price Reporting Authority (OPRA), the Exchange expects the 
operational impact of such increase in quote traffic to be minimal.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\3\ in general, and furthers the objectives of Section 6(b)(5),\4\ 
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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
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

    Written comments were neither solicited nor received.

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 self-regulatory organization consents, the Commission will:
    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, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

[[Page 24100]]

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-2008-14 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-2008-14. 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, on official business 
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also 
will be available for inspection and copying at the principal office of 
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-2008-14 and should be submitted on or before May 22, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-9523 Filed 4-30-08; 8:45 am]

BILLING CODE 8010-01-P