[Federal Register Volume 66, Number 158 (Wednesday, August 15, 2001)]
[Notices]
[Pages 42907-42908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20501]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44663; File No. SR-Amex-2001-49]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Amendments to Amex Rule 236(a)(6)

August 8, 2001.
    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 July 25, 2001, 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 
Exchange filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission.\5\ The Commission is

[[Page 42908]]

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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange provided written notice to the Commission on 
June 29, 2001 of its intention to file this proposal. See Rule 19b-
4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to amend Amex Rule 236(a)(6) to delete reference 
to ITS/CAES securities. The text of the proposed rule language is 
below. Additions are in italics. Deletions are in brackets.

Trade Through Rule

Rule 236.(a) Definitions

    ``ITS/CAES Market Maker'', as that term is used in this Rule, 
means a NASD member that is registered as a market maker with the 
NASD for the purpose of the Applications with respect to one or more 
specified System securities [``ITS/CAES securities'' as more fully 
described in the ITS Plan].
* * * * *

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 its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The 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 
Statutoy Basis for, the Proposed Rule Change

1. Purpose
    The Amex proposes to amend the definition of ``ITS/CAES Market 
Maker'' in Amex Rule 236(a)(6) to eliminate reference to ``ITS/CAES 
securities''. Since 1982, the National Association of Securities 
Dealers' participation in the Intermarket Trading System Plan (``ITS 
Plan'') had been limited to securities subject to SEC Rule 19c-3 \6\ 
(``ITS/CAES securities''). On December 9, 1999, the Commission adopted 
amendments to the ITS Plan to expand the ITS/CAES linkage to all 
``eligible'' listed securities.\7\ This renders the term ``ITS/CAES 
securities'' unnecessary in Amex Rule 236(a)(6). The term has also been 
eliminated from the ITS Plan.
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    \6\ 17 CFR 240.19c-3.
    \7\ See Securities Exchange Act Release No. 42212 (December 9, 
1999), 64 FR 70297 (December 16, 1999).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act \8\ in general, and furthers the objectives of section 
6(b)(5) \9\ 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; and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers and dealers. In addition, the amendment is consistent with 
section 11A(a)(1)(D) of the Act \10\ which calls for the linkage of all 
markets for qualified securities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ 15 U.S.C. 78k-1(a)(1)(D).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Amex believes the proposed rule change will impose no burden on 
competition.

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

    Because of the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)A) of the Act \11\ and 
Rule 19b-4(f)(6) thereunder.\12\ 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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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 proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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. Copies of such filing will also be available for 
inspection and copying at the principal office of the Amex. All 
submissions should refer to file number SR-Amex-2001-49 and should be 
submitted by September 5, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-20501 Filed 8-14-01; 8:45 am]
BILLING CODE 8010-01-M