[Federal Register Volume 66, Number 222 (Friday, November 16, 2001)]
[Notices]
[Pages 57760-57761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28719]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45036; File No. SR-Amex-2001-89]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Currency and Index Warrant Listing Standards

November 6, 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 October 23, 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 Amex. The proposed 
rule change has been filed by the Amex as a ``non-controversial'' rule 
change under 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

    The Amex proposes to amend section 106 of the Amex Company Guide to 
include alternate listing standards for currency and index warrants.\4\
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    \4\ Specifically, the proposed rule change would apply to 
currency warrants, currency index warrants, and stock index 
warrants. Telephone conversation between Jeffery P. Burns, Assistant 
General Counsel, Amex, and Ira Brandriss, Special Counsel, and Frank 
N. Genco, Attorney Advisor, Division of Market Regulation 
(``Division''), Commission, on November 2, 2001.
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    The text of the proposed rule change is available at the 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 Amex included statements 
concerning the purpose of and statutory 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 aspects 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 revise section 106 of the Amex Company 
Guide to include alternate minimum distribution and market value 
standards for currency and index warrants. Under the proposed 
alternative standards, the minimum number of public holders required 
will not be defined, but will be determined on a case by case basis. 
Other criteria will require a minimum of 2,000,000 warrants together 
with an aggregate market value of $12,000,000 and initial price of $6 
per warrant.
    Section 106 of the Amex Company Guide provides listing standards 
for currency and index warrants which includes, among other things, 
minimum distribution and market value standards. Currently, section 106 
requires a minimum public distribution of 1,000,000 warrants together 
with a minimum of 400 public warrant holders, and an aggregate market 
value of $4,000,000.
    From time to time, the Exchange receives requests from issuers to 
list currency and index warrants that may substantially exced the 
minimum number of required units and aggregate issuance price, but fail 
to satisfy the minimum number of public holders. As a result, the 
Exchange is precluded from listing such issues even though it believes 
listing such warrants may be appropriate given the number of units, 
aggregate issuance price, and relatively minor departure from the 
required minimum number of public holders. For example, currently the 
Exchange would be precluded from listing a warrant issuance that has 
3,000,000 units outstanding with an aggregate issuance price of 
$18,000,000, but has only 350 public holders.
    As a result, the Exchange proposes to add alternative standards to 
allow the Exchange to list warrant issues that it believes are 
appropriate for listing and increase its flexibility in reviewing such 
issues. Accordingly, under the proposed alternative listing standards, 
the minimum number of public holders required will not be defined, but 
will be determined on a case by case basis. Other criteria will require 
a minimum of 2,000,000 warrants together with an aggregate market value 
of $12,000,000 and minimum price of $6 per warrant. Because currency 
and index warrants are in many respects similar to currency and index 
options, which require no minimum number of holders upon issuance, the 
Exchange believes reviewing the number of public warrant holders on a 
case by case basis is appropriate.
    The Exchange believes the proposed alternative warrant listing 
standards will increase the Exchange's ability to review proposed 
warrant issues on a case by case basis in determining whether it is 
appropriate to list the particular warrant being proposed. Lastly, the 
Exchange believes that the approval of the alternative warrant listing 
standard will help foster competition between the Amex and options 
exchanges that have received approval of the alternative warrant 
listing standard.\5\
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    \5\ See Securities Exchange Act Release No. 43611 (November 22, 
2000), 65 FR 75326 (December 1, 2000).
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2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
section 6 of the Act,\6\ in general, and with section 6(b)(5) of the 
Act,\7\ specifically, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and

[[Page 57761]]

coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to an perfect the mechanism of a 
free and open market and a national market system.
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    \6\ 15 U.S.C. 78f.
    \7\ 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.

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 the foregoing proposed rule change: Does not significantly 
affect the protection of investors or the public interest; does not 
impose any significant burden on competition; and does not become 
operative for 30 days after the date of filing, or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest and because Amex provided the 
Commission with written 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,\8\ the proposed rule change has become effective pursuant 
to section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ 
thereunder.
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    \8\ See Letter from Jeffrey P. Burns, Assistant General Counsel, 
Amex, to Nancy Sanow, Assistant Director, Division, Commission, 
dated October 8, 2001.
    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of October 23, 2001, 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.

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. 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 No. SR-Amex-2001-89 and should 
be submitted by December 7, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-28719 Filed 11-15-01; 8:45 am]
BILLING CODE 8010-01-M