[Federal Register Volume 67, Number 232 (Tuesday, December 3, 2002)]
[Notices]
[Pages 72006-72007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30535]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46857; File No. SR-Amex-2001-06]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving a Proposed Rule Change and Amendment Nos. 1, 2 and 3 Thereto 
Relating to Relief and Temporary Specialists

November 21, 2002.
    On February 14, 2001, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to require specialists units consisting of fewer 
than three members to arrange for the registration of one or more 
relief specialists,\3\ and to revise the Exchange's rules regarding the 
appointment of temporary specialists. The Exchange also proposed 
allowing specialist units with less than three persons six months (or 
such longer time as the Chief Executive Officer of the Exchange may 
determine is appropriate) from the date of approval of the proposed 
rule change to obtain Exchange approval of their relief specialist 
arrangements. The Exchange

[[Page 72007]]

submitted Amendment Nos. 1,\4\ 2,\5\ and 3\6\ to the proposed rule 
change, respectively. The proposed rule change, as amended, was 
published in the Federal Register on October 22, 2002.\7\ The 
Commission received no comments on the proposed rule change. This order 
approves the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Exchange identified that specialists units with more 
than three persons may also arrange for relief specialists pursuant 
to this proposed rule. Telephone conversation among William Floyd-
Jones, Assistant General Counsel, Amex, Terri Evans, Assistant 
Director, and Lisa N. Jones, Attorney, Division, Commission, dated 
May 30, 2002.
    \4\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated August 17, 2001 
(``Amendment No. 1'') (replacing the original filing in its 
entirety).
    \5\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division, 
Commission, dated September 30, 2002 (``Amendment No. 2'') 
(replacing the original filing in its entirety).
    \6\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division, 
Commission, dated October 7, 2002 (``Amendment No. 3'') (replacing 
the original filing in its entirety).
    \7\ See Securities Exchange Act Release No. 46655 (October 11, 
2002), 67 FR 64940.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\8\ 
In particular, the Commission finds that the proposal, as amended, is 
consistent with Section 6(b)(5) of the Act,\9\ which requires, among 
other things, that the Exchange's rules be designed to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest.
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    \8\ In approving this proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Commission believes requiring specialists units 
consisting of fewer than three members to arrange for the registration 
of one or more relief specialists, approved by the Exchange's Committee 
on Floor Members Performance, helps to ensure that there is no 
interruption of service when the Exchange is open for business. 
Similarly, the Commission believes that it is appropriate for a 
temporary specialist to be appointed by the Exchange in the event of an 
emergency or other unusual situations in which the regular or relief 
specialist would be unable to adequately manage the volume or business 
in a particular stock or stocks to ensure adequate staffing on the 
Exchange floor. The Commission notes that relief specialists and 
temporary specialists, to the extent that no regular or relief 
specialist is present, will be subject to the same responsibilities for 
the maintenance and stabilization of the market as regular registered 
specialists. Further, the Commission notes that these arrangements are 
similar to arrangements already allowed by the New York Stock Exchange, 
Inc.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-AMEX-2001-06), as amended, 
is approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    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. 02-30535 Filed 12-2-02; 8:45 am]
BILLING CODE 8010-01-P