[Federal Register Volume 69, Number 33 (Thursday, February 19, 2004)]
[Notices]
[Page 7829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3579]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49214; File No. SR-Amex-2003-101]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval of Proposed Rule Change Relating to Amex Membership's 
Duty To Report Fraudulent or Manipulative Conduct

February 9, 2004.
    On November 21, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ to amend Rule 3 of the Amex's General and Floor Rules to 
require Amex members or member organizations to report to the Exchange 
fraudulent or manipulative conduct in connection with the trading of 
securities on the Floor.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The proposed rule change also changes the title of Rule 3 
from ``Excessive Dealings'' to ``General Prohibitions and Duty to 
Report.''
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    The proposed rule change was published for comment in the Federal 
Register on January 6, 2004.\4\ The Commission received no comments on 
the proposal. This order approves the proposed rule change.
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    \4\ See Securities Exchange Act Release No. 48998 (December 29, 
2003), 69 FR 708.
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    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 \5\ 
and, in particular, the requirements of section 6 of the Act \6\ and 
the rules and regulations thereunder. Specifically, the Commission 
believes that the proposal is consistent with section 6(b)(5) of the 
Act \7\ which requires, among other things, that the Exchange's rules 
be designed to promote just and equitable principles of trade, to 
prevent fraudulent and manipulative acts, and, in general, to protect 
investors and the public interest. In addition, the Commission believes 
that the proposal is consistent with section 6(b)(1) of the Act,\8\ 
which requires that the Exchange have the capacity to enforce its 
members' compliance with the Act, the rules and regulations thereunder, 
and the rules of the Exchange. The Commission believes that by 
requiring Amex members or member organizations to immediately report 
fraudulent or manipulative conduct in connection with the trading of 
securities on the Exchange floor to the Exchange, the proposal should 
enhance the Exchange's ability to prevent and sanction fraud and 
manipulation and to enforce its members' compliance with the Federal 
securities laws and with the Exchange's rules.
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    \5\ In approving this proposed rule change, the Commission notes 
that it 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).
    \8\ 15 U.S.C. 78f(b)(1).
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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-2003-101) 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. 04-3579 Filed 2-18-04; 8:45 am]
BILLING CODE 8010-01-P