Document ID: SEC-2008-0285-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC
Posted Date: 2008-02-22T05:00Z

[Federal Register: February 22, 2008 (Volume 73, Number 36)]
[Notices]               
[Page 9842]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22fe08-113]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57336; File No. SR-Amex-2007-36]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change, as modified by Amendment No. 1, to 
Eliminate a Volume Add-on to Amex Options Specialist Financial 
Requirements

I. Introduction

    On April 10, 2007, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') 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 
proposal to amend its rules to eliminate a volume add-on to Amex 
options specialist financial requirements. The Amex filed Amendment No. 
1 to the proposal on December 12, 2007. The proposed rule change, as 
modified by Amendment No. 1, was published for comment in the Federal 
Register on January 14, 2008.\3\ The Commission received no comments 
regarding the proposed rule change, as amended. This order approves the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act of 1934 Release No. 34-57106 
(January 4, 2008), 73 FR 2291.
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II. Description of the Proposal

    The Amex proposes to amend Rule 950-ANTE(h). Rule 950-ANTE(h) 
currently requires an option specialist to maintain minimum tentative 
net capital in the amount of $1,000,000 plus $25,000 for each option 
issue (option class) in excess of the initial twenty-five issues in 
which the specialist is registered. The amendment would eliminate the 
$25,000 add-on for each option class in excess of the initial twenty-
five option classes.

III. Discussion

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations under the Act applicable to a national securities 
exchange.\4\ In particular, the Commission finds that the proposal 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 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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    \4\ In approving this proposed rule change, the Commission has 
considered the impact on efficiency, competition, and capital 
formation of the proposed rule change. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    Amex member firms are subject to both the Amex and the Commission's 
net capital rule.\6\ The multiple listing of options across markets, as 
well as quoting obligations of registered options traders, remote 
registered options traders, and supplemental registered options traders 
now provides multiple sources of liquidity in each options class, which 
diminishes the role and need to highly capitalize any one liquidity 
provider. Therefore, the benefits of requiring Amex options specialists 
to maintain net capital beyond the Commission's net capital rule have 
been greatly reduced. Reducing the amount of capital required to be 
held under the Amex net capital rule also would allow options 
specialists to use funds previously maintained to meet Amex net capital 
requirements for other purposes, lowering their cost of business and 
helping to ensure that they can continue to function as options 
specialists on the Exchange.
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    \6\ Rule 15c3-1 under the Act (17 CFR 240.15c3-1).
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Amex-2007-36), as modified by 
Amendment No. 1, be, and hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3254 Filed 2-21-08; 8:45 am]

BILLING CODE 8011-01-P