[Federal Register Volume 68, Number 51 (Monday, March 17, 2003)]
[Notices]
[Pages 12723-12724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6246]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47472; File No. SR-Amex-2002-48]


Self-Regulatory Organizations; Order Approving a Proposed Rule 
Change and Amendment No. 1 Thereto by the American Stock Exchange LLC 
Relating to its Marketing Performance Standards for Exchange 
Specialists

March 7, 2003.
    On May 30, 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 adopt marketing performance standards for 
Exchange specialists. On January 27, 2003, the Exchange filed Amendment 
No. 1 to the proposed rule change.\3\ The proposed rule change, as 
amended, was published for public comment in the Federal Register on 
February 5, 2003.\4\ The Commission received no comments on the 
proposal. 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\ See letter from William Floyd-Jones, Assistant General 
Counsel, Amex, to Katherine England, Assistant Director, Division of 
Market Regulation, Commission, dated January 14, 2003 (``Amendment 
No. 1''). Amendment No. 1 clarified in the proposed rule text that 
contacts by exchange specialists to issuers or representatives of 
member organizations will be conducted either off the Exchange floor 
or, if on the Exchange floor, outside of normal auction market 
business hours.
    \4\ Securities Exchange Act Release No. 47281 (January 29, 
2003), 68 FR 5941.
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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\ 
Specifically, the Commission believes that the proposal is consistent 
with section 6(b)(5) of the Act,\6\ which requires, among other things, 
that the Exchange's procedures be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest.
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    \5\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the Exchange's marketing performance 
standards should help promote a better understanding of the needs of 
listed companies and certain member organizations of the Exchange, as 
well as an understanding of the specialist's function, the operations 
of the Exchange market, and the markets that are maintained in the 
issuers' stocks. In addition, the standards will help specialists to 
perform their functions better by receiving input on performance by 
issuers and member firms.\7\
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    \7\ The Performance Committee would be responsible for taking 
appropriate remedial action in the event that a specialist fails to 
meet the objective marketing standards.
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    The Commission further notes that, to ensure that specialist 
contacts can occur without the distractions of a normal business day 
and that such communications will fall within the scope of permissible 
disclosures as provided by Exchange rules, specialists will be required 
to either make contacts

[[Page 12724]]

off the Exchange Floor, or, if on the Exchange Floor, outside of 
regular auction market business hours. Finally, specialists will be 
required to maintain records of these contacts, which will be reviewed 
by Amex staff.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-2002-48) is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to the 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. 03-6246 Filed 3-14-03; 8:45 am]
BILLING CODE 8010-01-P