[Federal Register Volume 68, Number 138 (Friday, July 18, 2003)]
[Notices]
[Pages 42792-42793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18259]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48172; File No. SR-Amex-2003-34]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the American Stock Exchange LLC, Relating to 
Indications, Openings and Re-Openings

July 14, 2003.
    On April 23, 2003, 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 codify and revise the Exchange's policies 
regarding tape indications and re-openings in stocks that are subject 
to a trading halt (other than ``circuit

[[Page 42793]]

breaker'' or ``equipment changeover'' halts). Notice of the proposed 
rule change was published for comment in the Federal Register on May 
12, 2003.\3\ No comments were received 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 Release No. 34-47796 (May 5, 2003), 68 FR 25400.
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    In 1997, the Commission approved the Exchange's policies regarding 
indications, openings and re-openings.\4\ To make them more accessible 
to members and member organizations, the Exchange has proposed to 
codify these policies as new Rule 119. The Exchange would also update 
its rules on re-opening trading in a stock after a post-opening trading 
halt to conform them to those of the New York Stock Exchange 
(``NYSE''). The Exchange's current policy on re-openings requires a 
minimum of 10 minutes to elapse between the first price indication and 
the re-opening, and a minimum of five minutes to elapse after the last 
indication, provided in all cases that the minimum 10 minutes has 
elapsed since the first indication. The Exchange proposes to shorten 
these minimum time periods to five minutes after the first indication, 
and three minutes after the last indication, provided that a minimum of 
five minutes has elapsed since the first price indication.
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    \4\ See Release No. 34-38549 (April 28, 1997), 62 FR 24519 
(1997).
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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 finds that the proposal is consistent with 
section 6(b)(5) of the Act,\6\ which requires, among other things, that 
the rules of an exchange be designed 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 
to protect investors and the public interest. The Commission notes that 
Amex's codification of the previously approved policies will result in 
greater transparency of Exchange procedures. Further, the Commission 
notes that Amex's proposal to shorten the minimum time periods that 
must elapse between indications and re-openings would conform Amex's 
procedures to those in effect at the NYSE,\7\ which the Commission 
believes strike a reasonable balance between preserving the price 
discovery process and providing timely opportunities for investors to 
participate in the market.
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    \5\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78(c)(f).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ See NYSE Rule 123D(1); Release No. 34-47104 (December 30, 
2002), 68 FR 597 (January 6, 2003).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-Amex-2003-34) be, 
and it hereby 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 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. 03-18259 Filed 7-17-03; 8:45 am]
BILLING CODE 8010-01-P