[Federal Register Volume 68, Number 206 (Friday, October 24, 2003)]
[Notices]
[Pages 61025-61026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26818]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48657; File No. SR-Amex-2003-87]


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 Basis

October 17, 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 October 3, 2003 the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Commission waived the five-day pre-filing notice 
requirement. See Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii). 
The Amex also asked the Commission to waive the 30-day operative 
delay.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks a six-month extension of its allocations and 
performance evaluation procedures for securities admitted to dealings 
on an unlisted trading privileges (``UTP'') basis to permit these 
programs to remain in effect while the Commission considers permanent 
approval of these procedures.

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 Exchange included statements 
concerning the purpose of, and basis for, its proposal and discussed 
any comments it received regarding the proposal. 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

[[Page 61026]]

allocation and performance evaluation procedures with respect to 
securities admitted to trading pursuant to UTP (``Pilots'').\6\ 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.\7\
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    \6\ See Securities Exchange Act Release Nos. 45698 (April 5, 
2002), 67 FR 18051 (April 12, 2002) (File No. SR-Amex 2001-107); and 
46750 (October 30, 2002), 67 FR 67880 (November 7, 2002) (File No. 
SR-Amex 2002-19).
    \7\ Telephone conference between Bill Floyd-Jones, Associate 
General Counsel, Amex, and Marisol Rubecindo, Law Clerk, Division of 
Market Regulation, Commission (October 7, 2003).
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    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.\8\ This filing extends the effective 
dates of both Amex Rule 28 and Amex Rule 29 until April 5, 2004.
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    \8\ Telephone conference between Bill Floyd-Jones, Associate 
General Counsel, Amex, Marc F. McKayle, Special Counsel, and Marisol 
Rubecindo, Law Clerk, Division of Market Regulation, Commission 
(October 15, 2003). See also note 6, supra.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \9\ in general, and furthers the 
objectives of Section 6(b)(5)\10\ in particular in that the Exchange's 
proposed rules are designed to promote just and equitable principles of 
trade, to remove impediments to and perfect the mechanism of free and 
open market and a national market system and, in general, to protect 
investors and the public interest. More specifically, the Exchange 
believes that trading securities on an unlisted 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition. The Exchange believes that in fact, 
the proposed rule change 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

    The Exchange did not solicit nor did it receive any written 
comments on the proposed rule change.

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

    Because the foregoing proposed rule change does not:
    (i) significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and 
Rule 19b-4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    Although Rule 19b-4(f)(6) requires that an Exchange submit a notice 
of its intent to file at least five business days prior to the filing 
date, the Commission waived this requirement at the Amex's request in 
view of the fact that the proposed rule change seeks to continue 
existing pilot programs. At any time within 60 days of the filing of 
the 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.
    The Amex has requested that the Commission waive the 30-day 
operative delay. The Commission believes waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Acceleration of the operative date will allow the Exchange's 
allocation and performance evaluation procedures to continue on an 
uninterrupted basis. For these reasons, the Commission designates the 
proposal to be effective and operative upon filing with the 
Commission.\13\
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    \13\ For 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 proposal 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 Amex. All 
submissions should refer to file number SR-Amex-2003-87 and should be 
submitted by November 14, 2003. 

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-26818 Filed 10-23-03; 8:45 am]
BILLING CODE 8010-01-P