[Federal Register Volume 69, Number 85 (Monday, May 3, 2004)]
[Notices]
[Pages 24204-24205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9980]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-49613; File No. SR-Amex-2004-22]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange
LLC Relating to Allocation and Performance Evaluation Procedures for
Securities Admitted to Dealings on an Unlisted Basis
April 26, 2004.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 7, 2004, 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 prepared by the Exchange. The
proposed rule change has been filed by the Amex as a ``non-
controversial'' rule change pursuant to Rule 19b-4(f)(6) under the
Act.\3\ 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)(1).
\2\ 17 CFR 240.19b-4.
\3\ 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 at
Amex and at the Commission.
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 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. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts 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 extend its specialist allocation and
performance evaluation rules for securities admitted to dealings on a
UTP basis while the Commission considers permanent approval of these
rules. The Commission approved on a pilot basis, through two
independent approval orders, the Exchange's specialist allocation
procedures and performance evaluation procedures with respect to
securities admitted to trading pursuant to UTP (``Pilots'').\4\ These
procedures are set forth in Amex Rule 28, ``Allocation of Securities
Admitted to Dealings on an Unlisted Trading Privileges (``UTP'')
Basis,'' which details the Exchange's specialist allocation rules for
UTP trading and Amex Rule 29, ``Market Quality Committee,'' which
details the Exchange's specialist performance evaluation rules for UTP
trading. The proposed rule change does not alter the operation of
either of the Pilots in any way.\5\
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\4\ See Securities Exchange Act Release Nos. 45698 (April 5,
2002), 67 FR 18051 (April 12, 2002) (File No. SR-Amex 2001-107); and
46750 (October 30, 2002), 67 FR 67880 (November 7, 2002) (File No.
SR-Amex 2002-19). On October 3, 2003, Amex filed a proposed rule
change for immediate effectiveness that extended both Pilots until
April 5, 2004. See Securities Exchange Act Release No. 48657
(October 17, 2003), 68 FR 61025 (October 24, 2003).
\5\ The instant proposal's description of the frequency by which
the Exchange may ``routinely evaluate'' UTP specialist performance
relative to both market quality and market share criteria, however,
varies from the original proposal. Telephone conversation between
Bill Floyd-Jones, Associate General Counsel, Amex, and Frank N.
Genco, Special Counsel, Division of Market Regulation, Commission
(April 22, 2004).
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The proposed rule change contains a detailed description of the
Pilots. That description has not been included in this notice because
it is duplicative of the descriptions contained in the original
approval orders for the Pilots.\6\ This filing extends the effective
dates of both Amex Rule 28 and Amex Rule 29 for one year until April 6,
2004.
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\6\ Id.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\7\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\8\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the
[[Page 24205]]
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. More
specifically, the Exchange believes that trading securities on an
unlisted basis will provide investors with increased flexibility in
satisfying their investment needs by providing additional choice and
increased competition in markets to effect transactions in the
securities subject to UTP.
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\7\ 15 U.S.C. 78f(b).
\8\ 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. The Exchange believes that
the proposed rule change will tend to enhance competition by providing
investors with additional choice and increased competition in markets
to effect transactions in securities.
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 with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because, the foregoing proposed rule change (1) does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms, does not become operative until 30 days from the
date on which it was filed, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, and the exchange provided the Commission with written notice
of its intent to file the proposed rule change at least five business
days prior to the date of filing of the proposed rule change,\9\ it has
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and
Rule 19b-4(f)(6) thereunder.\11\
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\9\ See letter from Willam Floyd Jones, Associate General
Counsel, Amex, to Nancy Sanow, Assistant Director, Division,
Commission, dated April 6, 2004.
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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Although Rule 19b-4(f)(6) under the Act \12\ requires that an
Exchange submit a notice of its intent to file at least five business
days prior to the filing date, the Commission waived this requirement
at the Amex's request in view of the fact that the proposed rule change
seeks to continue existing pilot programs. At any time within 60 days
of the filing of this 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.
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\12\ Id.
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The Amex has requested that the Commission waive the 30-day
operative delay. The Commission believes waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. Acceleration of the operative date will allow the Exchange's
allocation and performance evaluation procedures to continue without
any interruption in service to investors. For these reasons, the
Commission designates the proposal to be effective and operative upon
filing with the Commission.\13\
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\13\ For purposes only of accelerating the operative date of
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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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 an E-mail to [email protected]. Please
include File Number SR-Amex-2004-22 on the subject line.
Paper comments:
Send paper comments in triplicate to Jonathan G.
Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW., Washington, DC 20549-0609. All submissions should refer to File
Number SR-Amex-2004-22. 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 Section, 450 Fifth Street, NW., Washington, DC 20549. 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-2004-22 and should be submitted on or before May 24, 2004.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-9980 Filed 4-30-04; 8:45 am]
BILLING CODE 8010-01-P