[Federal Register Volume 67, Number 196 (Wednesday, October 9, 2002)]
[Notices]
[Pages 62997-62999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25671]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46588; File No. SR-Amex-2002-77]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC To Amend the Account Type Codes Under Exchange Rule 719

October 2, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 62998]]

(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on September 20, 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 
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.
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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 719. The text of the proposed rule change appears below. 
New text is in italics.

Comparison of Exchange Transactions

Rule 719
    (a) through (d) No change.
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).
    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.
    3--Transactions cleared for a Nasdaq market maker that is 
affiliated with the clearing member that resulted from telephone access 
to the specialist.
    4--Transactions cleared for a member's Nasdaq market maker that is 
not affiliated with the clearing member that resulted from telephone 
access to the specialist.
    5--Transactions cleared for a non-member Nasdaq market maker that 
is not affiliated with the clearing member that resulted from telephone 
access to the specialist.
    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

[[Page 62999]]

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 three modifications to the account type 
codes. Going forward, the number ``3'' would be used to identify 
transactions that resulted from telephone access to the Amex specialist 
effected for a Nasdaq market maker that is affiliated with the clearing 
member. The number ``4'' would be used to identify transactions that 
resulted from telephone access to the specialist effected for a Nasdaq 
market maker that is an Amex member but is not affiliated with the 
member clearing the trade. Finally, the number ``5'' would be used to 
identify transactions that resulted from telephone access to the 
specialist effected for a Nasdaq market maker that is not an Amex 
member and is not affiliated with the clearing member. The Exchange is 
making these changes to identify the trades that result from telephone 
access to the specialist so that these trades will not be charged a 
transaction fee.\3\ No other change would be made to Rule 719.
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    \3\ The Exchange states that Section IX of the Nasdaq Unlisted 
Trading Privileges Plan (``Plan'') provides in part that no Plan 
Participant can impose any fee or charge with respect to 
transactions in Nasdaq securities effected with Nasdaq market makers 
which are communicated to the floor by telephone pursuant to the 
Plan. See Joint Self-Regulatory Organization Plan Governing the 
Collection, Consolidation and Dissemination of Quotation and 
Transaction Information for Nasdaq-Listed Securities Traded on 
Exchanges on an Unlisted Trading Privileges Basis.
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(2) Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \4\ in general and furthers the objectives 
of section 6(b)(5),\5\ 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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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 \6\ and paragraph (f)(1) and (3) of Rule 19b-4 
\7\ 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(1) and (3).
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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. 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-2002-77 and 
should be submitted by October 30, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-25671 Filed 10-8-02; 8:45 am]
BILLING CODE 8010-01-P