[Federal Register Volume 68, Number 189 (Tuesday, September 30, 2003)]
[Notices]
[Page 56353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24752]



[[Page 56353]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48528; File No. SR-Amex-2003-10]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the American Stock Exchange LLC, Relating to 
Its After-Hours Trading Facility

September 24, 2003.
    On February 24, 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 relating to the operation of its After Hours 
Trading Facility (``AHTF''). Notice of the proposed rule change was 
published for comment in the Federal Register on August 20, 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. 34-48334 (August 13, 2003), 68 FR 50200.
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    Current Amex rules provide that only specialists registered in 
Portfolio Depositary Receipts, Index Fund Shares or unit investment 
trusts may participate in the AHTF for their dealer account in these 
securities. In brief, Amex now proposes to permit specialists in stocks 
or other equity-traded securities to do so in order to offset an 
imbalance of orders in the AHTF. In such a case, if any open agency 
orders to buy or sell on the specialist's book limited to the closing 
price remain unexecuted after the specialist buys or sells the security 
at its price in the AHTF, the specialist will be required to offer that 
execution to each such order in time priority until it is accepted or 
all such orders have rejected it.
    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 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, to 
protect investors and the public interest, and not designed to permit 
unfair discrimination between customers, issuers, brokers, or dealers. 
The Commission believes that the proposed rule change appears to be 
reasonably designed to reduce volatility on the close by allowing Amex 
specialists to offset order imbalances in the AHTF with orders for 
their dealer accounts.
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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. 78(c)(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-Amex-2003-10) 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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-24752 Filed 9-29-03; 8:45 am]
BILLING CODE 8010-01-P