[Federal Register Volume 67, Number 250 (Monday, December 30, 2002)]
[Notices]
[Pages 79668-79669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32920]


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SECURITIES AND EXHANGE COMMISSION

[Release No. 34-47078; File No. SR-Amex-2001-07]


Self-Regulatory Organizations; Order Granting Approval to 
Proposed Rule Change and Amendment Nos. 1, 2 and 3 Thereto by the 
American Stock Exchange LLC Relating to the Review of a Floor 
Official's Market Decision

December 20, 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 amend Amex Rule 22 to change the procedure for 
reviewing a Floor Official's market decision and to eliminate the right 
of appealing a Floor Official's market decision or ruling to the Board 
of Governors (``Board''). The Amex amended the proposed rule change on 
August 27, 2001 \3\ and October 8, 2002.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated August 24, 2001, 
replacing Form 19b-4 in its entirety (``Amendment No. 1'').
    \4\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division, 
Commission, dated October 7, 2002, replacing Form 19b-4 in its 
entirety (``Amendment No. 2'').
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    The proposed rule change and Amendment Nos. 1 and 2 thereto were 
published for comment in the Federal Register on November 15, 2002.\5\ 
The

[[Page 79669]]

Commission received no comments on the proposal, as amended. On 
December 19, 2002, the Amex filed Amendment No. 3 to the proposed rule 
change.\6\ In Amendment No. 3, the Amex corrected a typographical error 
in the proposed rule text by clarifying that there would be no change 
to Amex Rule 22(a) through (c).
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    \5\ See Securities Exchange Act Release No. 34-46779 (November 
6, 2002), 67 FR 69271.
    \6\ See letter from William Floyd-Jones, Jr., Assistant General 
Counsel, Amex, to Nancy Sanow, Assistant Director, Division, 
Commission, dated December 18, 2002 (``Amendment No. 3''). This was 
a technical amendment and is not subject to notice and comment.
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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 \7\ 
and, in particular, the requirements of Section 6 of the Act \8\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change, as amended, is consistent with Section 
6(b)(5) of the Act \9\ because it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, 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.
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    \7\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Commission finds that the Amex's proposal, as 
amended, is a reasonable effort to ensure prompt review of Floor 
Officials' decisions. The Commission notes that the Amex provides for 
several levels of appeal of a Floor Official's decision. Further, 
decisions of a Floor Official made with the concurrence of a Senior 
Floor Official may also be appealed to a panel of three governors. The 
Commission believes that the process for review of Floor Officials' 
decisions will help to ensure that Floor Officials' decisions are fair 
and impartial, as well as prompt. In addition, the Commission notes 
that the proposed rule change, as amended, would leave unchanged any 
right that a member or its customer may have to submit a market dispute 
to arbitration.
    For the foregoing reasons, the Commission finds that the proposed 
rule change, as amended, is consistent with the requirements of the Act 
and rules and regulations thereunder.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\10\, that the proposed rule change (File No. SR-Amex-2001-07) and 
Amendment Nos. 1, 2 and 3 are 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. 02-32920 Filed 12-27-02; 8:45 am]
BILLING CODE 8010-01-P