[Federal Register Volume 69, Number 37 (Wednesday, February 25, 2004)]
[Notices]
[Pages 8709-8710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4063]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49268; File No. SR-Amex-2003-97]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval of Proposed Rule Change Relating to the Amendment of 
Exchange Rule 590

February 18, 2004.
    On November 13, 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 add three existing reports (ITS FEA Forms 1 and 
2, responses to FRD Deficiency Letters, and annual audited financial 
statements) to the list of reports submitted to the Financial 
Regulation Department that may be subject to a fine under Amex's Minor 
Rule Violation Fine Plan (``Plan''). In addition, the Exchange proposed 
other amendments to clarify other obligations under the Plan.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on January 15, 2004.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 49041 (January 8, 
2004), 69 FR 2369.
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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

[[Page 8710]]

exchange \4\ and, in particular, the requirements of Section 6 of the 
Act \5\ and the rules and regulations thereunder. In particular, the 
Commission believes that the proposed rule change is consistent with 
Section 6(b)(6)\6\ of the Act because it should enhance the ability of 
the Exchange to enforce compliance by its members and persons 
associated with its members with the provisions of the Act, the rules 
and regulations thereunder, and the rules of the Exchange. In addition, 
the Commission believes that the proposal is consistent with Rule 19d-
1(c)(2) under the Act,\7\ which governs minor rule violation plans.
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    \4\ 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).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(6).
    \7\ 17 CFR 240.19d-1(c)(2).
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    In approving this proposed rule change, the Commission in no way 
minimizes the importance of compliance with these rules, and all other 
rules subject to the imposition of fines under the Exchange's minor 
rule violation plan. The Commission believes that the violation of any 
self-regulatory organization's rules, as well as Commission rules, is a 
serious matter. However, in an effort to provide the Exchange with 
greater flexibility in addressing certain violations, the Exchange's 
minor rule violation plan provides a reasonable means to address rule 
violations that do not rise to the level of requiring formal 
disciplinary proceedings. The Commission expects that the Amex will 
continue to conduct surveillance with due diligence, and make a 
determination based on its findings whether fines of more or less than 
the recommended amount are appropriate for violations of rules under 
the Exchange's minor rule violation plan, on a case by case basis, or 
if a violation requires formal disciplinary action.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-2003-97) 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. 04-4063 Filed 2-24-04; 8:45 am]
BILLING CODE 8010-01-P