[Federal Register Volume 68, Number 89 (Thursday, May 8, 2003)]
[Notices]
[Pages 24777-24778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11443]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47779; File No. SR-Amex-2003-23]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Allocation and Performance Evaluation Procedures for 
Securities Admitted to Dealings on an Unlisted Trading Privileges Basis

May 1, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 2, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the Amex. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend for six-months its pilot specialist 
allocation and performance evaluation rules for securities admitted to 
dealings on an unlisted trading privileges (``UTP'') basis to permit 
these rules to remain in effect while the Commission considers 
permanent approval. The texts of the pilot rules are available at the 
Office of the Secretary, the principal office of the Amex, and at the 
Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Amex included statements 
concerning the purpose of, and the basis for, the proposed rule change 
and discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Amex has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to extend its specialist allocation and 
performance evaluation rules for securities admitted to dealings on a 
UTP basis to permit the Commission to consider the permanent approval 
of these rules. The Commission approved on a pilot basis, through two 
independent approval orders, the Exchange's specialist allocation and 
performance evaluation procedures with respect to securities admitted 
to trading pursuant to UTP (``Pilots'').\3\ Amex Rule 28, ``Allocation 
of Securities Admitted to Dealings on an Unlisted Trading Privileges 
(``UTP'') Basis,'' details the Exchange's specialist allocation rules 
for UTP trading and Amex Rule 29, ``Market Quality Committee'' details 
the Exchange's specialist performance evaluation rules for UTP trading. 
The proposed rule change does not alter the operation of either of the 
Pilots in any way.\4\ This filing extends the effective dates of both 
Amex Rule 28 and Amex Rule 29 until October 5, 2003.
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    \3\ For a description of the Pilots, see Securities Exchange Act 
Release Nos. 45698 (April 5, 2002), 67 FR 18051 (April 12, 2002), 
and 46750 (October 30, 2002), 67 FR 67880 (November 7, 2002).
    \4\ Telephone conference between Bill Floyd-Jones, Associate 
General Counsel, Amex, and Christopher B. Stone, Special Counsel, 
Division of Market Regulation, Commission (April 23, 2003). The 
Exchange's filing contained a detailed description of the Pilots. 
That description has not been included in this notice because it is 
duplicative of the descriptions contained in the original approval 
orders for the Pilots.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\5\ in general, and the provisions of 
section 6(b)(5) of the Act,\6\ in particular, which requires, among 
other things, that the rules of an exchange be designed to promote just 
and equitable principles of trade, 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. The 
Exchange also believes that the continued trading of securities on a 
UTP basis will provide investors with increased flexibility in 
satisfying their investment needs by providing additional choice and 
increased competition in markets to effect transactions in the 
securities subject to unlisted trading.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no burden on competition. The 
proposed rule change, in fact, will tend to enhance competition by 
providing investors with additional choice and increased competition in 
markets to effect transactions in securities.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6)\8\ thereunder because 
the proposal: (1) Does not significantly affect the protection of 
investors or the public interest; (2) does not impose any significant 
burden on competition; and (3) does not become operative for 30 days 
from the date of filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest; provided that the Exchange has given the Commission notice of 
its intent to file the proposed rule change at least five business days 
prior to the filing date of the proposed rule change or the Commission 
waives such prior notice. At any time within 60 days of the filing of 
such proposed rule change, the Commission may summarily abrogate such 
rule change if it appears to the Commission that such action is 
necessary or appropriate, in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ See section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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    The Amex has requested that the Commission waive the five-day pre-
filing notice and the 30-day operative delay. The Commission believes 
waiving the five-day pre-filing notice and the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Waiving the pre-filing notice and accelerating the operative date will 
permit the continuous operation of Amex's specialist allocation and 
performance evaluation rules with respect to the trading of securities 
pursuant to UTP. Moreover, during the

[[Page 24778]]

initial operation period of the Pilots, the Commission did not receive 
any comments, and, the Commission expects the Exchange to request 
permanent approval of these rules during the Pilot extension period. 
For these reasons, the Commission designates the proposal to be 
effective and operative upon filing with the Commission.\10\ The pilot 
will be effective for six months from April 5, 2003 until October 5, 
2003.
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    \10\ For the purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-Amex-2003-23 and 
should be submitted by May 29, 2003.

    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. 03-11443 Filed 5-7-03; 8:45 am]
BILLING CODE 8010-01-P