[Federal Register Volume 68, Number 81 (Monday, April 28, 2003)]
[Notices]
[Pages 22425-22426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10386]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47703; File No. SR-Amex-2002-104]


Self-Regulatory Organizations; Order Granting Approval to 
Proposed Rule Change by the American Stock Exchange LLC Relating to 
Amex Rules 26, 29, 171, and 950 To Revise Specialist Capital 
Requirements and the Method for Computing Specialist Capital 
Requirements and To Create an Early Warning Level With Respect to 
Specialist Capital

April 18, 2003.
    On December 10, 2002, the American Stock Exchange LLC (``Amex'') 
filed

[[Page 22426]]

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 
Rules 26, 29, 171, and 950 to revise specialist capital requirements 
and the method for computing specialist capital requirements, and to 
create an early warning level with respect to specialist capital. The 
proposed rule change was published for comment in the Federal Register 
on March 14, 2003.\3\ The Commission received no comments on the 
proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 47469 (March 7, 
2003), 68 FR 12393.
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    After careful review, 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.\4\ 
Specifically, the Commission finds that the proposal is consistent with 
section 6(b)(5) of the Act,\5\ which requires, among other things, that 
the Amex's rules be designed to prevent fraudulent and manipulative 
acts and practices, to foster cooperation and coordination with persons 
engaged in regulating, clearing, settling, processing information with 
respect to, and 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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    \4\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the Amex's proposal to modify the 
specialist capital requirements and the specialist capital computation 
method should provide an accurate measure of a specialist's financial 
strength. In addition, the Commission believes that creating an ``early 
warning level'' should allow the Amex to take appropriate action with 
respect to a specialist's financial condition before the specialist 
falls out of compliance with capital requirements.
    The Commission notes that the rule change will not take effect 
until one year after approval by the Commission in order to give 
specialist firms sufficient time to adjust to the new requirements.
    It is therefore Ordered, pursuant to section 19(b)(2) of the Act 
\6\, that the proposed rule change (File No. SR-Amex-2002-104) be, and 
it hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-10386 Filed 4-25-03; 8:45 am]
BILLING CODE 8010-01-P