[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Notices]
[Pages 62308-62311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2819]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50552; File No. SR-Amex-2004-25]


Self-Regulatory Organizations; Notice of Filing of a Proposed 
Rule Change and Amendments No. 1 and No. 2 Thereto by the American 
Stock Exchange LLC Relating to Revisions to Amex Rule 111

October 15, 2004.
    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 April 28, 2004, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change described in Items 
I, II, and III below, which Items have been prepared by the Exchange. 
On May 10, 2004, the Exchange submitted Amendment No. 1 to the proposed 
rule change.\3\ On June 8, 2004, the Exchange submitted Amendment No. 2 
to the proposed rule change.\4\ The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Letter from Bill Floyd-Jones, Counsel, Exchange, to 
Nancy Sanow, Assistant Director, Division of Market Regulation 
(``Division''), Commission, dated May 7, 2004 (``Amendment No. 1''). 
In Amendment No. 1, the Exchange clarified the proposed rule 
language, and provided additional explanation in the purpose section 
of the proposed rule change.
    \4\ See Letter from Bill Floyd-Jones, Counsel, Exchange, to 
Nancy Sanow, Assistant Director, Division, Commission, dated June 7, 
2004 (``Amendment No. 2''). In Amendment No. 2, the Exchange added a 
definition of ``bona fide hedge'' to the text of the proposed rule 
change. In Amendment No. 2, the Exchange also reprinted pages 33-35 
of Securities Exchange Act Release No. 15533 (January 29, 1979) as 
proposed Commentary .13 to the text of the proposed rule change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Amex Rule 111. The text of the 
proposed rule change appears below. Proposed new language is in 
italics.
* * * * *

Restrictions on Registered Traders

    Rule 111. (a) Registered Traders who wish to initiate purchases or 
sales while on the Floor for accounts in which they have an interest 
shall not:
    (1) Congregate in a particular stock; or
    (2) Individually or as a group, intentionally or unintentionally, 
dominate the market in a particular stock; or
    (3) Effect such purchases or sales except in a reasonable and 
orderly manner; or
    (4) Be conspicuous in the general market or in the market in a 
particular stock.
    (b) No Registered Trader shall effect, on the Floor of the 
Exchange, for an account in which he has an interest, ``long'' 
purchases of stock above the previous day's closing price on ``plus'' 
or ``zero plus'' ticks, except for ``zero plus'' tick purchases on the 
bid.
    (c) No Registered Trader shall effect, on the Floor of the 
Exchange, a transaction for an account in which he has an interest and 
execute as broker an off-Floor order in the same stock during the same 
trading session.
    (d) No Registered Trader shall, in establishing or increasing a 
position for an account in which he has an interest, while on the Floor 
of the Exchange, retain priority over an off-Floor order.
    (e) Registered Traders shall meet the following stabilization 
tests, to be computed on a monthly basis:
    (1) 75 percent measured by the tick test on the acquisition side.
    (2) 75 percent measured by the tick test on the liquidation side 
except where the liquidating transaction is at a loss of not less than 
the minimum price variation calculated on a ``first in, first out'' 
(FIFO) basis. Transactions, which are non-stabilizing, effected at such 
a loss, will not be counted in computing the stabilizing percentage.
    (3) Under the tick test, purchases on ``minus'' and ``zero minus'' 
ticks and sales on ``plus'' and ``zero plus'' ticks are stabilizing.
    (f) The provisions of the foregoing paragraphs of this Rule and of 
Rule 110 shall not apply to:
    (1) Any transaction by a registered specialist in a security in 
which he is so registered; or
    (2) Any transaction for the account of an odd-lot dealer in a 
security in which he is so registered; or
    (3) Any stabilizing transaction effected in compliance with Rule 
10b-7 under the Securities Exchange Act of 1934 to facilitate a 
distribution of a security in which a member is participating; or
    (4) Any bona fide arbitrage transaction; or
    (5) Any transaction, other than a transaction for an account in 
which a Registered Trader has an interest, made with the prior approval 
of a Floor Official to permit a member to contribute to the maintenance 
of a fair and orderly market in a security, or any purchase or sale to 
reverse any such transaction; or
    (6) Any transaction to offset a transaction made in error.
    (g) Members may initiate transactions in bonds while on the Floor, 
and the provisions of Rule 110 and of paragraphs (a) through (e) of 
this Rule shall not apply to such transactions.
    (h) Specialists registered in rights may, while on the Floor, 
initiate transactions in a security which is the subject of the rights 
for the purpose of acquiring or liquidating a bona fide hedge position 
against the rights, and the provisions of Rule 110 and of paragraphs 
(a) through (e) of this Rule shall not apply to such transactions.
    (i) Subject to Rule 175, equity specialists may, while on the 
Floor, initiate transactions in any security overlying a security in 
which they are registered for the purpose of acquiring or liquidating a 
bona fide hedge position, and the provisions of Rules 110 and 111(a) 
through (e) (as made applicable to options by Rule 950(a) and (c)) and 
Rule 958 shall not apply to such transactions. Option specialists may, 
while on the Floor, initiate transactions in any security underlying a 
security in which they are registered for the purpose of acquiring or 
liquidating a bona fide hedge position, and the provisions of Rule 110 
and of paragraphs (a) through (e) of this Rule shall not apply to such 
transactions. Registered Options Traders may, while on the Floor, 
initiate transactions in any security underlying a security in which 
they are acting as a market maker pursuant to Rule 958 for the purpose 
of acquiring or liquidating a bona fide hedge position, and the 
provisions of Rule 110 and of paragraphs (a) through (e) of this Rule 
shall not apply to such transactions. The term ``bona fide hedge'' 
shall have the meaning ascribed to it in Securities Exchange Act Rule 
11a1-3(T) and pages 33-35 of Securities Exchange Act Release No. 15533 
(January 29, 1979). Pages 33-35 of Securities Exchange Act Release No. 
15533 are reprinted in Commentary .13 to this Rule.
* * * Commentary
    .01-.12--no change.
    .13 The following is a reprint of pages 33 through 35 of Securities 
Exchange Act Release No. 15533 (January 29, 1979):

[[Page 62309]]

    3. Hedge Transactions.
    Section 11(a)(1)(D) also provides an exemption for ``any bona fide 
hedge transaction involving a long or short position in an equity 
security and a long or short position in a security entitling the 
holder to acquire or sell such equity security * * *.'' The Act does 
not otherwise specify what type of transaction will result in a ``bona 
fide hedge.'' While the application of that term is largely a matter of 
custom and practice, the Commission believes that it implies that an 
appreciable offset of risk, for all or part of the position being 
hedged, must be involved.\58\
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    \58\ For example, while the risk of a short stock position might 
theoretically be reduced by a ``deep-out-of-the-money'' long call 
position, there generally would not be any realistic expectation 
that the call would offset any appreciable amount of the risk 
assumed in the short stock position. In such a case the two 
positions would not involve a bona fide hedge for purposes of 
Section 11(a)(1)(D). At the same time, a transaction establishing an 
``in-the-money'' or ``near-the-money'' long call position covering 
100 underlying shares of stock could be a hedge transaction for 
purposes of Section 11(a)(1)(D) for part of a preexisting short 
stock position of much greater size.
    The question whether particular combinations of stock positions 
and options positions result in risk reduction in each of the 
positions involves subjective judgments as to the volatility and 
risk characteristics of those positions. For example, ``ratio'' 
hedges are frequently used when the risk involved in a stock 
position is offset by the writing of options. In such ratio hedges, 
the number of underlying shares deliverable upon exercise of the 
options exceeds the number of shares in the stock position that is 
being hedged. The hedge ratio reflects a calculation of the relative 
degree of risk involved in each position. In establishing a suitable 
ratio, some industry participants use the ``delta factor'' derived 
from the Black-Scholes pricing formula; the delta factor predicts 
price movements in an option as a function of movements in the 
underlying stock. Other industry participants have developed their 
own models. The Commission recognizes that the calculation of 
volatility and risk can only be approximate, and believes that, for 
purposes of Section 11(a)(1)(D), the determination of what 
constitutes an offset may be made by the use of any responsible 
method of calculating the risk of stock and options positions.
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    A bona fide hedge may be established either by contemporaneous 
transactions in two securities where each position acquired reduces the 
risk of the other,\59\ or by a single transaction in which a position 
acquired in one security reduces the risk of a previously established 
position in another security.\60\ To the extent, however, that a 
position does more than offset the risk of the position or positions on 
the other side, the excess position is not part of a ``bona fide 
hedge'' for purposes of Section 11(a)(1)(D. [sic] Where a bona fide 
hedge has been established, the exemption under Section 11(a)(1)(D) 
also aplies [sic] to the transaction or transactions that liquidate the 
hedge.\61\
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    \59\ For example, a bona fide hedge may involve essentially 
contemporaneous transactions in a stock and in one or more options 
to buy or sell that stock where the stock and option positions so 
acquired reduce the risks of each other. Where a bona fide hedge 
position is established by contemporaneous transactions, each such 
transaction qualifies for the hedge exemption.
    In addition, the Commission recognizes that the ``legging in'' 
technique discussed above is used also in establishing hedges and 
that a similar ``legging out'' technique is used in liquidating some 
hedges. The Commission believes that, where either technique is 
used, the hedging exemption should apply on the same basis as is 
discussed above in connection with bona fide arbitrage. See text 
accompanying nn. 51-53, supra.
    \60\ A transaction to hedge a previously established position 
does not retroactively confer a hedge exemption on the transaction 
that established the original position. For example, a short stock 
position that had been established on February 1 could be hedged by 
a long call transaction on March 1. In that example, only the March 
1 long call transaction could qualify as a bona fide hedge 
transaction. The February 1 short stock transaction would not, even 
though it later became involved in a hedge; if the transaction 
establishing the February 1 position had violated Section 11(a), the 
violation would not be cured by the March 1 transaction.
    \61\ When a hedge is liquidated, the hedge exemption applies to 
the transaction or transactions that eliminate the hedge, regardless 
of whether the transaction that originally established the position 
being liquidated was an exempt bona fide hedge transaction. If a 
hedge is eliminated by liquidating all the positions at the same 
time, or by legging them out, each liquidating transaction qualifies 
for the hedge exemption. For example, where a short stock position 
established on February 1 was hedged contemporaneously by a long 
call position, or was hedged at a later time (e.g., on March 1) by 
such a position, both positions could be liquidated, or ``legged 
out,'' under the hedge exemptions. If, on the other hand, a hedge is 
eliminated by liquidating only one of the positions that constitute 
the hedge, only that liquidating transaction qualifies for the hedge 
exemption; transactions liquidating the remaining positions that had 
formerly been, but were no longer, part of an existing hedge would 
not qualify for the hedge exemption (unless a hedge had been 
reestablished involving those positions). For example, where the 
hedge referred to above was eliminated by the liquidation of only 
the February 1 short stock position, that transaction would qualify 
for the hedge exemption, but the later liquidation of the March 1 
long call position would not qualify under the hedge exemption 
(unless a hedge had been reestablished by acquiring a third 
position--e.g., another short stock position).
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* * * * *

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 Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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
    Congress gave the Commission authority to regulate ``floor 
trading'' \5\ in 1934.\6\ The Commission did not exercise this 
authority until 1964, when it adopted SEC Rule 11a-1--``Regulation of 
Floor Trading.'' \7\ Shortly after the adoption of SEC Rule 11a-1, the 
Commission published the Exchange's proposed floor trading plan 
(``Plan'') for public comment.\8\ The Plan proposed the adoption of 
Amex Rules 110, 111, and 112 which (1) created a registered equity 
trader program, and (2) exempted trading pursuant to the first six 
exceptions in SEC Rule 11a-1 from both the prohibitions in SEC Rule 
11a-1 and the Exchange's proposed Plan. On July 23, 1964, the 
Commission approved the Exchange's Plan \9\ together with revisions to 
the Plan that exempted from the prohibitions contained in SEC Rule 11a-
1 and the Plan: (1) Transactions in bonds, (2) hedging transactions by 
rights specialists in the underlying security, and (3) certain block 
transactions.\10\ In approving the proposed exemption for hedging 
transactions by rights specialists, the Commission stated:
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    \5\ The Commission has defined ``floor trading'' as trading by 
members of national securities exchanges for their own account while 
personally present on the trading floor of an exchange. See 
Securities Exchange Act Release No. 7290 (April 9, 1964), 29 FR 5168 
(April 15, 1964).
    \6\ As originally adopted, Section 11(a) of the Act provided:
    ``The Commission shall prescribe such rules and regulations as 
it deems necessary or appropriate in the public interest or for the 
protection of investors, (1) to regulate or prevent floor trading by 
members of national securities exchanges, directly or indirectly for 
their own account or for discretionary accounts, and (2) to prevent 
such excessive trading on the exchange but off the floor by members, 
directly or indirectly for their own account, as the Commission may 
deem detrimental to the maintenance of a fair and orderly market. It 
shall be unlawful for a member to effect any transaction in a 
security in contravention of such rules and regulations, but such 
rules and regulations may make such exemptions for arbitrage 
transactions, for transactions in exempted securities, and within 
the limitations of subsection (b) of this section, for transactions 
by odd-lot dealers and specialist, as the Commission may deem 
necessary or appropriate in the public interest or for the 
protection of investors.''
    \7\ See Securities Exchange Act Release No. 7330 (June 2, 1964), 
29 FR 7380 (June 6, 1964).
    \8\ Securities Exchange Act Release No. 7359 (June 30, 1964), 29 
FR 9344 (July 8, 1964).
    \9\ Securities Exchange Act Release No. 7374 (July 23, 1964), 29 
FR 10632 (July 30, 1964).
    \10\ Securities Exchange Act Release No. 7375 (July 23, 1964), 
29 FR 10632 (July 30, 1964).

The second proposed exemption is of a technical nature and involves 
transactions by specialists in rights. The scope of the

[[Page 62310]]

exemption is limited to a transaction in which a rights specialist 
having sold rights desires to effect a bona fide hedge of his 
position by purchasing the underlying security. This practice is 
analogous to arbitrage for which there is an existing exemption from 
Rule 11a-1. The transactions excepted by this amendment do not 
involve the problems of floor trading discussed in Release No. 
7290.\11\
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    \11\ Id.

    In 1975, Congress substantially amended Section 11(a) of the 
Act.\12\ Congress extended the general prohibition on member floor 
trading embodied in SEC Rule 11a-1\13\ to off-floor member trading.\14\ 
Congress also established various statutory exemptions to the general 
prohibition on member trading, including exemptions for bona fide 
arbitrage and bona fide hedge transactions on the grounds that these 
types of trading were beneficial to the market and thus, should not be 
prohibited. The Exchange is now proposing to amend Amex Rule 111 to 
conform it to the 1975 amendments to Section 11(a) of the Act by 
allowing members registered as options specialists and options traders 
to initiate while on the Floor bona fide hedging transactions for their 
accounts in Amex listed securities and to allow members registered as 
equity specialists to initiate while on the Floor bona fide hedging 
transactions for their accounts in options traded on Amex.
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    \12\ See 15 U.S.C. 78k(a).
    \13\ 17 CFR 240.11a-1.
    \14\ ``The advanced communication systems of today enable 
exchange members to trade from off the floor with many of the same 
advantages over individual public investors that were enjoyed by 
floor traders in times passed. In its 1967 Report on Trading on the 
New York Stock Exchange by Off-Floor Members, the SEC found that the 
off-floor trader has may informational and market proximity 
advantages similar to those of the floor trader. He is apparently 
more quickly aware of developing market trends since he has a direct 
wire to the floor to keep him posted. Once having made an investment 
decision, the off-floor trader is able to execute the decision 
faster than a public investor.'' Report on H.R. 5050, at 49-50. A 
similar analysis is presented in the Report of S. 470, at 16.
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    The Exchange believes that bona fide hedging transactions do not 
create the member trading issues that Section 11(a)(1) of the Act was 
intended to prevent. Congress and the Commission have both recognized 
that bona fide hedging transactions are beneficial to the market and 
are not of a kind that should be prohibited by Section 11(a)(1) of the 
Act. Congress specifically exempted bona fide hedging transactions from 
the prohibition of Section 11(a)(1) of the Act.\15\ The Commission also 
has issued extensive interpretive guidance as to the transactions that 
would qualify for the bona fide hedge exemption under Section 
11(a)(1)(D) of the Act \16\ and has defined bona fide hedge to include, 
among other things, options to options hedging.\17\
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    \15\ 15 U.S.C. 78k(a)(1)(D).
    \16\ See Securities Exchange Act Release No. 15533 (January 29, 
1979). In its interpretive guidance, the Commission defined ``bona 
fide hedge'' as follows:
    ``While the application of that term [bona fide hedge] is 
largely a matter of custom and practice, the Commission believes 
that it implies that an appreciable offset of risk, for all or part 
of the position being hedged, must be involved.''
    ``A bona fide hedge may be established either by contemporaneous 
transactions in two securities where each position acquired reduces 
the risk of the other, or by a single transaction in which a 
position acquired in one security reduces the risk of a previously 
established position in another security. To the extent, however, 
that a position does more than offset the risk of the position or 
positions on the other side, the excess position is not part of a 
`bona fide hedge' for purposes of Section 11(a)(1)(D). Where a bona 
fide hedge has been established, the exemption under Section 
11(a)(1)(D) also applies to the transaction or transactions that 
liquidate the hedge.'' (Footnotes omitted.) (Pages 33-34.)
    \17\ See 17 CFR 240.11a1-3(T).
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    Under the Exchange's proposed rule change, options specialists and 
registered options traders could give an order for their account 
directly to an Amex broker on the Floor for a security underlying an 
option in which they are registered for the purpose of acquiring or 
liquidating a bona fide hedge position through a trade on the 
Exchange.\18\ Similarly, Amex proposes to permit equity specialists 
(subject to Amex Rule 175 which regulates option transactions by equity 
specialists) to give an order for their account directly to an Amex 
broker on the Floor for a security overlying an equity in which they 
are registered for the purpose of acquiring or liquidating a bona fide 
hedge position through a trade on the Exchange.\19\ The proposed rule 
would exempt bona fide hedge transactions by option specialists and 
registered options traders from the requirements of Amex Rule 110, and 
paragraphs (a) through (e) of Amex Rule 111 because options specialists 
and registered option traders would not be acting as registered traders 
in the underlying security when they trade the security to acquire or 
liquidate a hedge position.\20\ Likewise, equity specialists would be 
exempted from the requirements of Amex Rule 958 (which regulates the 
transactions of registered options traders) when they acquire or 
liquidate hedge positions in the related options since they would not 
be acting as a registered option trader in effecting these trades.\21\ 
The Exchange also proposes under Amex Rule 111(i) to add a definition 
of ``bona fide hedge'' which shall have the meaning found in SEC Rule 
11a1-3(T) and in pages 33-35 of the Securities Exchange Act Release No. 
15533 (January 29, 1979). The Exchange further proposes to provide a 
reprint of pages 33-35 of the Securities Exchange Act Release No. 15533 
in proposed Commentary .13 of Amex Rule 111.\22\
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    \18\ See Amendment No. 1, supra note 2.
    \19\ Id.
    \20\ Id.
    \21\ Id.
    \22\ See Amendment No. 2, supra note 3.
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    Brokers who receive orders from options specialists, equity 
specialists or registered options traders would be required to prepare 
a record of any hedging order given to them,\23\ and specialists and 
registered options traders who give out hedging orders would have to 
prepare and submit to the Exchange a record of all hedging orders and 
transactions effected for an account in which they have an 
interest.\24\
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    \23\ See Amex Rule 153.
    \24\ See Amex Rules 957 and 175, Guidelines for Specialists' 
Specialty Option Transactions Pursuant to Rule 175, paragraph (j).
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    The Exchange believes that the proposed rule change may make the 
execution of hedging transactions in stocks underlying Amex listed 
options more efficient, particularly in the context of stock/option 
combination orders (e.g., a buy-write transaction), by eliminating the 
need for off-floor transmission of the stock order followed by the re-
transmission of the stock order to the Floor. Under the Exchange's 
proposed rule change, the stock component of the combination order 
could be sent directly to the location on the Floor where the stock 
trades without first transmitting it off the Floor. This will eliminate 
an intermediate step and may speed order execution to the benefit of 
investors. The Exchange, likewise, believes that the proposed rule 
change will facilitate the execution of hedging transactions by equity 
specialists in the overlying option by eliminating the need for off-
floor transmission of the option order.\25\
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    \25\ See Amendment No. 1, supra note 2.
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2. Statutory Basis
    As described above, the Exchange believes that the proposed rule 
change is consistent with Section 6(b) of the Act \26\ in general, and 
furthers the objectives of Section 6(b)(5) in particular,\27\ in that 
it is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in

[[Page 62311]]

general, to protect investors and the public interest.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 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 not necessary or appropriate in 
furtherance of the purposes of the Exchange Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, as amended, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml; or
     Send an e-mail to [email protected]. Please include 
File No. SR-Amex-2004-25 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-Amex-2004-25. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 also will be available for inspection and copying at the 
principal office of the Amex. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-Amex-2004-25 and should be submitted on or before 
November 15, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E4-2819 Filed 10-22-04; 8:45 am]
BILLING CODE 8010-01-P