[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Notices]
[Pages 24130-24131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2210]



[[Page 24130]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51642; File No. SR-Amex-2005-041)]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Revisions to the 
Implementation Date of the ANTE System

May 2, 2005.
    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 18, 2005, 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 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to amend: (i) Rule 900--ANTE to provide a revised 
date for the implementation of the ANTE System to the three hundred 
most actively traded option classes; and (ii) Rule 935--ANTE, 
Commentary .01 to establish a revised date for increased floor broker 
functionality in the ANTE System. The text of the proposed rule change 
is available on the Amex's Web site (http://www.amex.com), at the 
Amex's Office of the Secretary, and at the Commission's Public 
Reference Room.

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 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
    Revised Implementation Date--Rule 900--ANTE. On May 20, 2004, the 
Commission approved the Amex's proposal to implement a new options 
trading platform known as the Amex New Trading Environment (``ANTE''). 
On May 25, 2004, the Amex began rolling out the ANTE System on its 
trading floor on a specialist's post-by-specialist's post basis. At 
that time it was anticipated that the three hundred most actively 
traded option classes would be trading on the ANTE System by January 
31, 2005. On January 28, 2005, the Amex submitted a proposal to revise 
its implementation schedule and amend Rule 900--ANTE to provide that 
the 300 most active option classes will be on the ANTE System by March 
31, 2005.\3\ The Amex is now proposing to further revise its 
implementation schedule to provide that the remaining 10 of the 300 
most active classes will be on the ANTE System by April 30, 2005. Due 
to various issues the Amex decided to slow the ANTE implementation 
schedule down for the more active option classes while it assess the 
impact of recent systems enhancements.
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    \3\ Securities Exchange Act Release No. 51306 (March 3, 2005), 
70 FR 12250 (March 11, 2005) (SR-Amex-2005-013).
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    Thus, it is now anticipated that all of the three hundred most 
active option classes (that is, the remaining 10 classes) will be on 
the ANTE System by April 30, 2005. Maintaining two systems for the 
trading of options--the legacy system (XTOPS, AODB and Auto-Ex) and 
ANTE is costly. As a result, the Exchange is working diligently to have 
all option classes on the ANTE System by May 30, 2005 so that it can 
retire its legacy systems before its original estimated date of 
completion, which is the end of the second quarter.
    Increased Floor Broker Functionality--Rule 935--ANTE. Rule 935--
ANTE (b) provides for the post trade allocation of contracts executed 
as the result of the submission of orders to trade with orders in the 
ANTE Central Book. If more than one ANTE Participant \4\ and/or a floor 
broker representing a customer order submits an order to trade with an 
order in the ANTE Central book within a period not to exceed five 
seconds after the initial ANTE Participant has submitted its order, all 
those ANTE Participants and the floor broker's customer will be 
entitled to participate in the allocation of any executed contracts. 
The ANTE System is currently unable to provide the functionality 
necessary for floor brokers representing customer orders in the trading 
crowd the ability to directly participate in the post trade allocation 
of orders taken off the Central Book. Commentary .01 to Rule 935--ANTE 
provides a temporary methodology for the specialist to disengage the 
post trade allocation system in a specific series, which allows the 
floor broker to alert the specialist within the five second timeframe 
whenever his customer wants to participate in post trade allocation, 
and allows the specialist to provide for the customer's participation 
in post trade allocation when appropriate. The Commission approved the 
procedures set forth in Commentary .01 as a ``reasonable, temporary 
solution.'' \5\ Commentary .01 to Rule 935--ANTE also provides that the 
ANTE System will give floor brokers greater functionality accessing the 
Central Book on March 31, 2005 or such other date as established by the 
Exchange and submitted to the Commission pursuant to Section 19(b) of 
the Act. The Exchange is now proposing to amend Commentary .01 to 
establish June 30, 2005, as the date the increased functionality will 
be available in the ANTE System.
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    \4\ Rule 900--ANTE (b)(45) defines ANTE Participant as the 
specialist and/or registered options trader(s) assigned to trade a 
specific options class on the ANTE System.
    \5\ Securities Exchange Act Release No. 49747 (May 20, 2004) 69 
FR 30344 (May 27, 2004).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\6\ in general and furthers the objectives of Section 6(b)(5) of the 
Act \7\ in particular in that it is designed to prevent fraudulent and 
manipulative acts and practices and 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; and is designed to prohibit 
unfair discrimination between customers, issuers, brokers and dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).

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[[Page 24131]]

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.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 
thereunder \9\ because it does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; or (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate; and the Exchange has given the Commission 
written notice of its intention to file the proposed rule change at 
least five business days prior to filing. At any time within 60 days of 
the filing of such 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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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 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 Number SR-Amex-2005-041 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-2005-041. 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. 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-2005-041 and should be submitted on or before May 27, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 7 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-2210 Filed 5-5-05; 8:45 am]
BILLING CODE 8010-01-P