[Federal Register Volume 68, Number 110 (Monday, June 9, 2003)]
[Notices]
[Pages 34440-34441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14371]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47960; File No. SR-Amex-2003-17]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto 
Relating to ``Market at 4 p.m.'' Orders for ETFs

June 2, 2003.
    On March 17, 2003, the American Stock Exchange LLC (``Amex'' or

[[Page 34441]]

``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 institute ``Market at 4 p.m.'' (``MCC'') Orders 
for Exchange Traded Funds (``ETFs''). On April 17, 2003 the Amex 
amended the proposal.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Geraldine Brindisi, Vice-President and 
Corporate Secretary, Amex, to Nancy Sanow, Assistant Director, 
Division of Market Regulation, Commission, dated April 16, 2003 
(``Amendment No. 1''). In Amendment No. 1, the Amex replaced in its 
entirety the original proposed rule change.
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    The proposed rule change, as amended, was published for comment in 
the Federal Register on May 1, 2003.\4\ The Commission received no 
comments on the proposal.
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    \4\ See Securities Exchange Act Release No. 47725 (April 23, 
2003), 68 FR 23337.
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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 \5\ 
and, in particular, the requirements of section 6 of the Act \6\ and 
the rules and regulations thereunder. The Commission finds that the 
proposed rule change is consistent with section 6(b)(5) of the Act \7\ 
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 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, 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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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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    Specifically, the Commission believes that the procedures proposed 
for executing MCC Orders are similar to those currently existing for 
``Market at the Close'' (``MOC'') Orders for all Amex-listed stocks. 
The Commission also notes that the MOC Order procedures for Amex-listed 
stocks have been approved on a permanent basis since 1992.\8\ The 
Commission also believes that the procedures for executing MCC Orders 
may potentially provide customers with additional flexibility in order 
execution by permitting transactions in ETFs near the close of the day 
at a price that is closely related to the closing price of the 
underlying components for those ETFs.
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    \8\ See Securities Exchange Act Release No. 31610 (December 16, 
1992), 57 FR 61131 (December 23, 1992) (SR-Amex-92-34) (permanently 
approving procedures to execute MOC orders on every trading day).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2003-17) be, and it 
hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-14371 Filed 6-6-03; 8:45 am]
BILLING CODE 8010-01-P