[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Page 36671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3276]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51873; File No. SR-Amex-2005-033]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change and Amendment No. 1 Thereto To Amend 
Rule 918--ANTE(a)(4) Regarding Closing Rotations

June 17, 2005.
    On March 17, 2005, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ to amend Amex Rule 918--ANTE(a)(4) to eliminate the 
requirement that a closing rotation be held in every option series at 
the end of every trading day. The Amex submitted an amendment to the 
proposal on April 14, 2005.\3\ The proposed rule change, as amended, 
was published for comment in the Federal Register on May 13, 2005.\4\ 
The Commission received no comments on the proposal, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Form 19b-4 dated April 14, 2005 (Amendment No. 1), 
replacing the original filing in its entirety.
    \4\ See Securities Exchange Act Release No. 51671 (May 9, 2005), 
70 FR 25629.
---------------------------------------------------------------------------

    After careful review, the Commission finds that the proposal, as 
amended, is consistent with the requirements of the Act and the rules 
and regulations thereunder applicable to a national securities 
exchange.\5\ In particular, the Commission finds that the proposed rule 
change, as amended, is consistent with Section 6(b)(5) of the Act,\6\ 
because 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.
---------------------------------------------------------------------------

    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Commission believes that the proposal to 
eliminate the requirement that a closing rotation be held in every 
option series at the end of every trading day is reasonable given the 
Exchange's representations that use of the ANTE System during the last 
eleven months has shown closing rotation to be unnecessary when no 
market-on-close or limit-on-close orders have been submitted. 
Accordingly, the Commission believes it is appropriate for the Exchange 
to revise Amex Rule 918--ANTE(a)(4) to provide that closing rotations 
shall only occur in those options series in which market-on-close and 
limit-on-close orders have been submitted.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change, as amended, (SR-Amex-2005-033) 
be, and it hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3276 Filed 6-23-05; 8:45 am]
BILLING CODE 8010-01-P