[Federal Register Volume 68, Number 34 (Thursday, February 20, 2003)]
[Notices]
[Page 8316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4045]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47345; File No. SR-Amex-2002-89]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the American Stock Exchange LLC Relating to 
Crossing Procedures for Clean Agency Crosses

February 11, 2003.
    On November 5, 2002, 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 126(g), Commentary .02 to 
provide that orders of 5,000 shares or more for the account of a non-
member organization may be crossed at a price at or within the bid or 
offer without being broken up by a specialist or Registered Trader 
acting as principal. The Amex filed an amendment to the proposed rule 
change on December 23, 2002.\3\ The proposed rule change, as amended, 
was published for notice and comment in the Federal Register on January 
7, 2003.\4\ The Commission received no comments on the proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Michael Cavalier, Associate General Counsel, 
Amex, to Nancy Sanow, Assistant Director, Division of Market 
Regulation, SEC, dated December 20, 2002, and enclosures 
(``Amendment No. 1''). Amendment No. 1 corrected a typographical 
error in the text of the proposed amendment.
    \4\ Securities Exchange Act Release No. 47113 (December 31, 
2002), 68 FR 818.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \5\ and, in 
particular, the requirements of section 6 of the Act \6\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with Section 6(b)(5) of the Act \7\ 
in that the Rule 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; 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers. The Commission believes that the proposed 
rule change, while eliminating the opportunity for specialists and 
Registered Traders to effect a proprietary transaction to provide price 
improvement to one side of a clean cross or the other, preserves 
auction market principles by providing the possibility of price 
improvement (because members must follow Amex Rule 151 crossing 
procedures), and by requiring that members trade with other market 
interest having time priority at that price before trading with any 
part of the cross transaction. In addition, the Commission believes 
that the proposal will enhance competition among markets in the 
execution of agency crosses.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\8\, that the proposed rule change, as amended (SR-AMEX-2002-89), be, 
and hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2). proposed rule change, as amended (SR-
Amex-2002-89), be, and hereby is, approved.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-4045 Filed 2-19-03; 8:45 am]
BILLING CODE 8010-01-P