Document ID: SEC-2007-0621-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC
Posted Date: 2007-05-02T04:00Z

[Federal Register: May 2, 2007 (Volume 72, Number 84)]
[Notices]               
[Page 24347]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my07-109]                         

[[Page 24347]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55671; File No. SR-Amex-2007-22]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change, as Modified by Amendment No. 1 Thereto, 
To Amend Its Minor Rule Violation Fine Systems

April 26, 2007.
    On February 21, 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 
proposed rule change to incorporate violations of Amex Rule 131A--AEMI 
and Commentary .03 to Amex Rule 958--ANTE into Part 1 of its Minor Rule 
Violation Fine Systems (``Plan'').\3\ On March 20, 2007, the Exchange 
filed Amendment No. 1 to the proposed rule change. The proposed rule 
change, as amended, was published for comment in the Federal Register 
on March 27, 2007.\4\ The Commission received no comments regarding the 
proposal. The Commission is approving the proposed rule change, as 
modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Amex Rule 590.
    \4\ See Securities Exchange Act Release No. 55500 (March 21, 
2007), 72 FR 14314.
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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.\5\ In 
particular, the Commission believes that the proposal is consistent 
with Section 6(b)(5) of the Act,\6\ because a rule that is reasonably 
designed to encourage members to comply with Exchange rules should help 
the Exchange carry out its supervisory responsibilities and thereby 
help protect investors and the public interest.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission further believes that the proposal is consistent 
with Sections 6(b)(1) and 6(b)(6) of the Act,\7\ which require that the 
rules of an exchange enforce compliance with, and provide appropriate 
discipline for, violations of Commission and Exchange rules. In 
addition, because the Plan provides procedural rights to a person fined 
for any violation of an Exchange rule that is determined to be minor in 
nature to contest the fine and permits disciplinary proceedings on the 
matter, the Commission believes that the Plan, as amended by this 
proposal, provides a fair procedure for the disciplining of members and 
persons associated with members, consistent with Sections 6(b)(7) and 
6(d)(1) of the Act.\8\
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    \7\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
    \8\ 15 U.S.C. 78f(b)(7) and 78f(d)(1).
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    Finally, the Commission finds that the proposal is consistent with 
the public interest, the protection of investors, or otherwise in 
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2) 
under the Act,\9\ which governs minor rule violation plans. The 
Commission believes that the proposed change to the Plan will 
strengthen the Exchange's ability to carry out its oversight and 
enforcement responsibilities as a self-regulatory organization in cases 
where full disciplinary proceedings are unsuitable in view of the minor 
nature of the particular violation.
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    \9\ 17 CFR 240.19d-1(c)(2).
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    In approving this proposed rule change, the Commission in no way 
minimizes the importance of compliance with Amex rules and all other 
rules subject to the imposition of fines under the Exchange's Plan. The 
Commission believes that the violation of any self-regulatory 
organization's rules, as well as Commission rules, is a serious matter. 
However, the Plan provides a reasonable means of addressing rule 
violations that do not rise to the level of requiring formal 
disciplinary proceedings, while providing greater flexibility in 
handling certain violations. The Commission expects that Amex will 
continue to conduct surveillance with due diligence and make a 
determination based on its findings, on a case-by-case basis, whether a 
fine of more or less than the recommended amount is appropriate for a 
violation under the Plan or whether a violation requires formal 
disciplinary action.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\10\ and Rule 19d-1(c)(2) under the Act,\11\ that the proposed rule 
change (SR-Amex-2007-22), as modified by Amendment No. 1, be, and 
hereby is, approved and declared effective.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 17 CFR 240.19d-1(c)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ See 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-8312 Filed 5-1-07; 8:45 am]

BILLING CODE 8010-01-P