[Federal Register Volume 67, Number 173 (Friday, September 6, 2002)]
[Notices]
[Pages 57044-57046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22656]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46434; File No. SR-Amex-2002-65]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the American Stock Exchange LLC To Amend the Account Type Codes Under 
Exchange Rule

August 29, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b- 4\2\ thereunder, notice is hereby given 
that on July 30, 2002, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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 Amendment No. 1 with the Commission on August 21, 
2002.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On August 21, 2002, the Exchange filed a Form 19b-4, which 
replaced the original filing in its entirety (``Amendment No. 1''). 
In Amendment No. 1, the Exchange added a description of the proposed 
amendment to account type code ``G'' to the purpose 
sectiocalculating the 60-day abrogation date, the Commission 
considers the 60-day period to have commenced on August 21, 2002, 
the date the Exchange filed Amendment No. 1.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the account type codes under 
Exchange Rule . The text of the proposed rule change appears below. New 
text is in italics. Deleted text is in brackets.

Comparison of Exchange Transactions

Rule 719.

    (a) through (d) No change.

[[Page 57045]]

* * *Commentary
    .01 No change.
    .02 Regardless of whether or not a registered clearing agency is 
being used for comparison and/or settlement, each clearing member 
organization shall submit the following trade data and audit trail 
information with respect to contracts for securities entered into on 
the Exchange to a registered clearing agency in such form and within 
such time periods as may be described by the registered clearing agency 
or the Exchange:
    (1) Name or identifying symbol of the security,
    (2) The clearing firm's number or alpha symbol as may be used from 
time to time, in regard to its side of the contract,
    (3) The executing broker's badge number or alpha symbol as may be 
used from time to time, in regard to its side of the contract,
    (4) Trade date,
    (5) The time the trade was executed,
    (6) Number of shares or quantity of security,
    (7) Transaction price,
    (8) The clearing firm's number or alpha symbol as may be used from 
time to time, in regard to the contra side of the contract,
    (9) The executing broker badge number or alpha symbol as may be 
used from time to time, in regard to the contra side of the contract,
    (10) The terms of settlement,
    (11) Specialist, registered trader, and market maker acronyms in 
regards to options transactions,
    (12) Account type code ``equities only. The current account type 
codes for equity transactions are as follows. Members should use the 
most restrictive account type code available. Thus, for example, 
members only should use the ``A'' account type code for an agency 
transaction when no other account type code accurately describes the 
trade. These codes may be changed from time to time as the Exchange may 
determine:

S--Specialist principal transaction in a specialty security (regardless 
of the account or clearing member)
G--Registered Equity Trader, Registered Equity Market Maker and 
Registered Option Trader market maker transactions in the equities and 
ETFs in which they are registered as a market maker regardless of the 
clearing member, and Registered Option Trader and option specialist 
transactions in an underlying Paired Security if the underlying Paired 
Security is an equity other than an ETF (e.g., SPY, DIA, QQQ, HOLDRS, 
Sector SPDRs).
[V]P--Amex Option Specialist or Market Maker transaction in the 
underlying of an Amex ``paired security'' if the underlying of the 
Paired Security is an ETF (e.g., SPY, DIA, QQQ, HOLDRS, Sector SPDRs) 
(regardless of the clearing member)
O--Proprietary transactions cleared for a competing market maker that 
is affiliated with the clearing member
T--Transactions cleared for the account of an unaffiliated member's 
competing market maker
R--Transactions cleared for the account of a non-member competing 
market maker
I--Transactions cleared for the account of an individual investor
E--Short exempt transactions cleared for the proprietary account of a 
clearing member organization or affiliated member/member organization
F--Short exempt transactions cleared for the proprietary account of an 
unaffiliated member/member organization
H--Short exempt transactions cleared for an individual customer account
B--Short exempt transactions cleared for all agency customer accounts
L--Short exempt transaction cleared for a competing market maker that 
is affiliated with the clearing member
X--Short exempt transaction cleared for the account of an unaffiliated 
member competing market maker
Z--Short exempt transaction cleared for the account of a non-member 
competing market maker
W--Proprietary transactions not specified above and cleared for the 
account of an unaffiliated member/member organization
A--Transactions cleared for all agency customer accounts
P--Transactions not specified above and cleared for the proprietary 
account of a clearing member organization or affiliated member/member 
organization
V--Proprietary transactions cleared for the account of a non-member 
broker dealer that is not a competing market maker

    New York Stock Exchange program trade audit trail account type 
codes as used from time to time also are acceptable.
    (13) Account type code--options only. The current account type 
codes for option transactions are as follows. Members should use the 
most restrictive account type code available. These codes may be 
changed from time to time as the Exchange may determine:

S--Specialist principal transaction in a specialty security (regardless 
of the account or clearing member)
C--Transactions cleared for the account of an individual investor
F--Transactions cleared for the account of a broker-dealer that is not 
a registered market maker in the security
P--Registered trader market maker transaction regardless of the 
clearing member
N--Transactions cleared for the account of a non-member market maker

    (14) Such other information as the Exchange may from time to time 
require. Clearing members may not ``summarize'' multiple trades in the 
same security, executed at the same price with the same contra clearing 
firm as this results in degradation of the audit trail.
* * * * *

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 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's rules require clearing members to submit to 
comparison different types of information for each transaction that 
they clear. These requirements are set forth in Exchange Rule 719. 
Among the different data that clearing firms must submit for each trade 
is an account type code. These codes identify the type of account for 
which the trade was effected (e.g., a customer, market maker or 
specialist). The Exchange uses these codes for purposes of market 
oversight and transaction fee billing.
    The Exchange is proposing to amend the account type codes under 
Exchange Rule 719. Specifically, the Exchange proposes that the letter 
``P'' would be used to identify an Amex option specialist or option 
market maker trading a ``paired security'' \4\ other than

[[Page 57046]]

an Exchange Traded Funds (``ETFs''). In addition, the letter ``V'' 
would be used to identify proprietary transactions for non-member 
broker dealers that are not acting as a competing market maker. 
Finally, the letter ``G'' would be used to identify Registered Equity 
Trader, Registered Equity Market Maker and Registered Option Trader 
market maker transactions in the equities and ETFs in which they are 
registered as a market maker regardless of the clearing member, and 
Registered Option Trader and option specialist transactions in an 
underlying Paired Security if the underlying Paired Security is an 
equity other than an ETF. The Exchange proposes these changes to 
facilitate the billing of transaction fees. No other change would be 
made to Rule 719.
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    \4\ A ``paired security'' is an Amex traded equity security that 
is also subject to options trading on the Amex. See Amex Rule 
900(b)(38).
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(2) Statutory Basis
    The Exchange believes that 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),\6\ 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.
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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 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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \7\ and paragraph (f)(1) and (3) of Rule 19b-4 
\8\ thereunder because it constitutes a states policy, practice or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule and is concerned solely with the 
administration of the self-regulatory organization. At any time within 
60 days of the filing of such 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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(1) and (3).
    \9\ For purposes of calculating the 60-day abrogation date, the 
Commission considers the 60-day period to have commenced on August 
21, 2002, the date the Exchange filed Amendment No. 1.
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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, as amended, 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-2002-65 and should be submitted by September 27, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-22656 Filed 9-5-02; 8:45 am]
BILLING CODE 8010-01-P