[Federal Register Volume 70, Number 117 (Monday, June 20, 2005)]
[Notices]
[Pages 35466-35468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3178]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51834; File No. SR-Amex-2005-026]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 
thereto Relating to Quotes in Nasdaq UTP Stocks To Be Disseminated by 
Amex Specialists Before 9:30 a.m.

June 13, 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 February 24, 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 Amex. On

[[Page 35467]]

April 14, 2005, the Amex amended the proposed rule change (``Amendment 
No. 1''). On May 26, 2005, the Amex amended the proposed rule change 
(``Amendment No. 2''). 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex seeks to amend Rule 1, Commentary .05 to allow indicative 
quotes in Nasdaq stocks traded pursuant to unlisted trading privileges 
(``UTP'') to be disseminated by Amex specialists before 9:30 a.m. The 
text of the proposed rule change, as amended, is set forth below. 
Proposed new language is in italics.
* * * * *
General Rules
Hours of Business
Rule 1 No change
Commentary
    .01-.04 No change.
    .05 The hours of business for a security traded on the Exchange 
pursuant to unlisted trading privileges shall be the same as the hours 
during which the security is traded in the primary market for such 
security, provided, however, that Exchange specialists in Nasdaq 
securities may send quotations to the SIP between 9:25 and 9:30 a.m., 
and such quotations shall be for test purposes only. Notwithstanding 
the foregoing, in accordance with Rules 1000 and 1000A, Portfolio 
Depositary Receipts and Index Fund Shares trading on the Exchange 
pursuant to unlisted trading privileges may trade until 4:00 p.m. or 
4:15 p.m. as specified by the Exchange.
* * * * *

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, as 
amended, 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
    Amex Rule 1 provides that the Exchange is not open for the 
transaction of business before 9:30 a.m. except as otherwise determined 
by the Board of Governors. Exceptions to this general rule include the 
transmission of required pre-opening notifications to Intermarket 
Trading System participants and the publication of ``indications'' of 
the anticipated opening price range in a given security. The proposed 
rule change would codify this existing practice of the Exchange.
    Quotations by Amex specialists in Nasdaq UTP securities are 
transmitted to the Nasdaq Securities Information Processor (``SIP'') 
through the UTP Quotation Data Feed (``UQDF''). The SIP will not accept 
pre-opening indications. It will only accept standard quotations (i.e., 
a bid and offer composed of both price and size). These quotations are 
collected, consolidated and disseminated by the SIP to quotation 
vendors through UQDF. While the hours of operation of the UTP Plan are 
8 a.m. to 6:30 p.m., the SIP opens at 7:30 a.m. to handle pre-opening 
quotes from UTP participants as necessary. Amex believes that its 
specialists should be able to send Nasdaq UTP quotations to the SIP 
before 9:30 a.m. in order to ensure that their quotations are being 
accurately received by SIP and that they are, in turn, receiving 
quotations from the other market centers.\3\ Bids and offers in these 
Amex quotations sent to the SIP before 9:30 a.m. (or, in the case of a 
delayed opening, when a given Nasdaq security opens on the Amex) are 
not eligible to be hit or taken, but rather, are for test purposes 
only. Accordingly, Amex believes that it should amend its rules to 
codify its existing practice of allowing indicative quotes in Nasdaq 
UTP stocks to be disseminated by specialists between 9:25 and 9:30 a.m. 
for testing purposes and that that any such pre-opening quotations 
should not be available to create a binding contract.
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    \3\ The proposed amendment to Rule 1, Commentary .05 would 
codify this current practice of the Exchange.
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2. Statutory Basis
    The Amex believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\4\ in general, and furthers the objectives of 
Section 6(b)(5),\5\ in particular in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change, as amended, 
will impose no burden on competition not necessary or appropriate in 
furtherance of the purposes of the 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, as amended.

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, as amended, 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, as amended, 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-2005-026 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-Amex-2005-026. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your

[[Page 35468]]

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-2005-026 and should be 
submitted on or before July 11, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3178 Filed 6-17-05; 8:45 am]
BILLING CODE 8010-01-P