Document ID: SEC-2006-0535-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2006-04-24T04:00Z

[Federal Register: April 24, 2006 (Volume 71, Number 78)]
[Notices]               
[Page 21053-21055]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ap06-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53657; File No. SR-Amex-2006-32]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Commentary .10 to Amex Rule 958 and Commentary .09 to Amex 
Rule 958-ANTE

April 14, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 21054]]

(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 11, 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 self-regulatory 
organization. Amex filed this proposal pursuant to section 19(b)(3)(A) 
of the Act \3\ and Rule 19b-4(f)(6) thereunder \4\ as non-
controversial, and therefore the proposed rule change is effective 
immediately upon filing. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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

    The Exchange proposes to revise Commentary .10 of Amex Rule 958 and 
Commentary .09 to Amex Rule 958-ANTE. The text of the proposed rule 
change is available on the Amex's Web site at http://www.amex.com, the 

Office of the Secretary, the Amex, 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, 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposal is to provide that transactions on the 
Exchange floor in Partnership Units (``Units'') pursuant to Amex Rule 
1500 et seq. are subject to Commentary .10 of Amex Rule 958 and 
Commentary .09 to Amex Rule 958-ANTE (``Commentaries''). Currently, the 
Commentaries provide that transactions in index warrants, currency 
warrants, securities listed pursuant to section 107 of the Amex Guide, 
trust issued receipts listed pursuant to Amex Rules 1200 et seq. 
(``Trust Issued Receipts''), and derivative products are subject to 
Amex Rules 958 and 958-ANTE. A ``derivative product'' is defined in 
Article I, section 3(d) of the Amex Constitution to include, in 
addition to standardized options, securities which are issued by the 
Options Clearing Corporation or another limited purpose entity or 
trust, and which are based solely on the performance of an index or 
portfolio of other publicly traded securities. A derivative product 
does not include warrants of any type or closed-end management 
investment companies. Portfolio Depository Receipts or Index Fund 
Shares are derivative products consistent with Article I, section 3(d) 
of the Amex Constitution.
    The Commentaries further provide that these transactions may only 
be effected by registered traders (``Registered Traders'') who are 
regular members of the Exchange. A Registered Trader who is logged onto 
Auto-Ex may only sign onto Auto-Ex for Portfolio Depository Receipts, 
Index Fund Shares, and Trust Issued Receipts (collectively ``ETFs'') 
traded on the same or contiguous panels, i.e., ETFs traded by two 
adjoining Specialists or ETFs traded by the same Specialist for a 
maximum of three panels. Amex also proposes to include Units as an ETF 
for the purposes of this contiguous panel requirement. The Exchange 
solely seeks to provide clarity akin to the trading of ETFs. As a 
result, the Exchange proposes that Registered Traders may participate 
in the trading of Units consistent with the Commentaries.
2. Statutory Basis
    The proposed rule change is consistent with section 6(b) of the 
Act,\5\ in general, and furthers the objectives of section 6(b)(5) of 
the Act,\6\ in particular, in that it is designed to prevent fraudulent 
and manipulative acts and practices, promote just and equitable 
principles of trade, remove impediments to and perfect the mechanisms 
of a free and open market and a national market system, and, in 
general, protect investors and the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 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

    The foregoing rule change has become immediately effective pursuant 
to section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) \8\ 
thereunder because: (i) It does not significantly affect the protection 
of investors or the public interest; (ii) it does not impose any 
significant burden on competition; and (iii) by its terms, it does not 
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; provided that the 
Exchange has given the Commission 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    Amex has requested that the Commission waive the 5-day pre-filing 
notice requirement and the 30-day operative delay of the proposal. The 
Commission believes that the waiver of the 5-day pre-filing requirement 
and the 30-day operative delay is consistent with the protection of 
investors and the public interest, because the waiver would allow Amex 
to immediately implement trading rules governing Units listed pursuant 
to Amex Rule 1500 et seq. that are identical to the trading rules for 
other ETFs traded on the Exchange. For this reason, the Commission 
designates the proposal effective and operative upon filing with the 
Commission.\9\
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    \9\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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.

[[Page 21055]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 an e-mail to rule-comments@sec.gov. Please include 

File Number SR-Amex-2006-32 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 No. SR-Amex-2006-32. 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 changes 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 will also 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 No. SR-
Amex-2006-32 and should be submitted on or before May 15, 2006.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Nancy M. Morris,
Secretary.
[FR Doc. E6-6039 Filed 4-21-06; 8:45 am]

BILLING CODE 8010-01-P