[Federal Register Volume 69, Number 35 (Monday, February 23, 2004)]
[Notices]
[Pages 8248-8249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3781]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49240; File No. SR-Amex-2003-21]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change and Amendment Nos. 1, 2, 3, and 4 Thereto by the American Stock 
Exchange LLC Relating to At-the-Close Orders and Auxiliary Opening 
Procedures

February 12, 2004.
    On March 27, 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 (1) to adopt Amex Rule 131A to set forth 
Exchange rules and procedures regarding at-the-close orders; (2) to 
amend Amex Rules 131 and 156 relating to at-the-close orders; (3) to 
implement additional procedures, relating to daily at-the-close 
procedures and expiration day auxiliary opening procedures; and (4) to 
adopt Amex Rule 118(m) to reflect procedures applicable to at-the-close 
orders in Nasdaq securities traded on the Exchange pursuant to unlisted 
trading privileges. On September 10, 2003, the Amex amended the 
proposed rule change.\3\ On October 20, 2003, the

[[Page 8249]]

Amex amended the proposed rule change.\4\ On November 14, 2003, the 
Amex amended the proposed rule change.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Claire P. McGrath, Senior Vice President and 
Deputy General Counsel, Amex, to Nancy Sanow, Assistant Director, 
Division of Market Regulation (``Division''), Commission, dated 
September 9, 2003 (``Amendment No. 1'').
    \4\ See letter from Claire P. McGrath, Senior Vice President and 
Deputy General Counsel, Amex, to Nancy Sanow, Assistant Director, 
Division, Commission, dated October 17, 2003 (``Amendment No. 2'').
    \5\ See letter from Claire P. McGrath, Senior Vice President and 
Deputy General Counsel, Amex, to Nancy Sanow, Assistant Director, 
Division, Commission, dated November 13, 2003 (``Amendment No. 3'').
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    The proposed rule change and Amendment Nos. 1, 2, and 3 were 
published for comment in the Federal Register on November 28, 2003.\6\ 
The Commission received no comments on the proposal. On January 9, 
2004, the Amex filed Amendment No. 4 to the proposed rule change.\7\ 
This order approves the proposed rule change.
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    \6\ See Securities Exchange Act Release No. 48813 (November 20, 
2003), 68 FR 66898.
    \7\ See letter from Claire P. McGrath, Senior Vice President and 
Deputy General Counsel, Amex, to Nancy Sanow, Assistant Director, 
Division, Commission, dated January 8, 2004 (``Amendment No. 4''). 
In Amendment No. 4, the Amex revised the text of the proposed rule 
change to correct a number of typographical errors. This was a 
technical amendment and is not subject to notice and comment.
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    In the filing, the Amex states that the proposed rule change 
consolidates current Exchange procedures regarding MOC and LOC orders 
in Rule 131A. In addition, paragraph (m) of Rule 118 establishes MOC 
and LOC procedures for Nasdaq securities that are substantially similar 
to the procedures proposed in Rule 131A. Amex is implementing an MOC 
Imbalance Calculation Policy and amending its MOC Imbalance Publication 
Policy so that it more closely resembles the New York Stock Exchange's 
(``NYSE'') policy as set out in NYSE Rule 123C(5). The Amex states that 
the most salient feature of the revised policies is the additional 
dissemination of an imbalance at 3:50 p.m.
    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.\8\ The 
Commission 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 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. Specifically, the Commission 
believes that the Amex's proposal to amend its rules governing at-the-
close orders and auxiliary opening procedures on the Exchange may 
provide useful information to market participants and may minimize 
price volatility on the close. In addition, the Commission believes 
that the proposed rule change may result in the public dissemination of 
information that more accurately reflects the trading in a particular 
security on the Exchange at the close.
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    \8\ 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).
    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    For the foregoing reasons, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and rules 
and regulations thereunder.
    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\11\, that the proposed rule change (SR-Amex-2003-21) is approved.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-3781 Filed 2-20-04; 8:45 am]
BILLING CODE 8010-01-P