[Federal Register Volume 70, Number 135 (Friday, July 15, 2005)]
[Notices]
[Pages 41061-41062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3771]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52004; File No. SR-Amex-2005-043]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change and Amendment No. 1 Thereto to Extend Pilots Relating to 
Allocation and Performance Evaluation Procedures for Securities 
Admitted to Dealings on an Unlisted Trading Privileges Basis

July 8, 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 22, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
On June 14, 2005, the Exchange filed Amendment No. 1 to the proposed 
rule change. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons and simultaneously approving the filing.
---------------------------------------------------------------------------

    \1\ 15 U.S.C 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to retroactively extend from April 6, 2005, 
through April 6, 2006, the pilot programs comprising its allocations 
and performance evaluation procedures for securities admitted to 
dealings on an unlisted trading privileges (``UTP'') basis to permit 
these programs to remain in effect while the Commission considers 
permanent approval of these procedures. The text of the proposed rule 
change is available on the Amex's Web site at http://www.amex.com, at 
the Amex and at the Commission.

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 III 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to reestablish and extend its allocations 
and performance evaluation procedures for securities admitted to 
dealings on a UTP basis for one year. The Commission previously 
approved the Exchange's allocation and performance evaluation 
procedures on a pilot basis through two independent approval orders 
(``Pilots'').\3\ In 2003, the Pilots were extended until October 5, 
2003,\4\ and April 5, 2004.\5\ In 2004, the Pilots were extended 
through April 6, 2005.\6\ The instant proposed rule change makes no 
substantive change to the Pilots other than to retroactively reinstate 
their operation from April 5, 2005, so that the Pilots may continue 
without having lapsed, and extend them until April 6, 2006.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 45698 (April 5, 
2002), 67 FR 18051 (April 12, 2002) (SR-AMEX-2001-107); and 46750 
(October 30, 2002), 67 FR 67880 (November 7, 2002) (SR-AMEX-2002-19) 
(``Pilot Approval Orders'').
    \4\ See Securities Exchange Act Release No. 47779 (May 1, 2003), 
68 FR 24777 (May 8, 2003) (SR-Amex-2003-23).
    \5\ See Securities Exchange Act Release No. 48657 (October 17, 
2003), 68 FR 61025 (October 24, 2003) (SR-Amex-2003-87).
    \6\ See Securities Exchange Act Release No. 49613 (April 26, 
2004); 69 FR 24204 (May 3, 2004) (``2004 Notice'').
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6 of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(5),\8\ in particular, in that the Exchange's 
proposed rule change is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the 
mechanisms of a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 that is 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 by the Exchange on 
the proposed rule change, as amended.

III. 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-2005-043 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 20549-9309.

All submissions should refer to File Number SR-Amex-2005-043. 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

[[Page 41062]]

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 the 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-2005-043 and should be submitted on or before August 5, 2005.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change, as amended, is consistent with the requirements of the Act 
and the rules and regulations thereunder, applicable to a national 
securities exchange.\9\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act\10\ 
and will promote just and equitable principles of trade, foster 
cooperation and coordination with persons engaged in clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, and, in general, protect investors and the 
public interest.
---------------------------------------------------------------------------

    \9\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that the Pilots, which establish securities 
allocation and performance evaluation procedures for specialists 
trading UTP securities, were approved by the Commission in April and 
October of 2002, respectively,\11\ and were most recently extended 
through April 6, 2005.\12\
---------------------------------------------------------------------------

    \11\ See Pilot Approval Orders, supra note 3.
    \12\ See 2004 Notice, supra note 6.
---------------------------------------------------------------------------

    The Commission finds that it is consistent with the Act to permit 
retroactive application of the Pilots from the expiration date of the 
current Pilots and to extend the Pilots through April 6, 2006, to allow 
market participants to continue to use the securities allocation and 
performance evaluation procedures set forth therein.
    The Commission finds good cause, pursuant to Section 19(b)(2) of 
the Act,\13\ to approve the proposed rule change prior to the thirtieth 
day after the date of publication of notice in the Federal Register. 
Specifically, the Commission notes that the accelerated approval of the 
proposal will allow the Pilots to continue without interruption. 
Accordingly, the Commission finds that there is good cause, consistent 
with Section 6(b)(5) of the Act,\14\ to approve the proposal on an 
accelerated basis.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2).
    \14\ 15 U.S.C. 78s(b)(5).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\15\ that the proposed rule change (SR-Amex-2005-043), as amended, 
is hereby approved on an accelerated basis.
---------------------------------------------------------------------------

    \15\ Id.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
Jill M. Peterson,
Assistant Secretary.
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E5-3771 Filed 7-14-05; 8:45 am]
BILLING CODE 8010-01-P