[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Pages 49335-49336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4581]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52270; File No. SR-Amex-2005-066]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto 
Relating to the Calculation of the National Best Bid or Offer When 
Another Exchange is Disconnected From the Intermarket Option Linkage

August 16, 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 June 17, 2005, the American Stock Exchange LLC (``Amex'') 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 August 4, 2005, the Amex filed 
Amendment No. 1 to the proposed rule change.\3\ 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 Form 19b-4 dated August 4, 2005 (``Amendment No. 1''). 
Amendment No. 1 supersedes and replaces the original filing in its 
entirety.
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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 Amex Rules 933(g) and 933(g)--ANTE 
regarding the calculation of the national best bid or offer (``NBBO'') 
when another participant in the Plan for the Purpose of Creating and 
Operating an Intermarket Option Linkage (``Linkage Plan'') is 
disconnected from the Intermarket Option Linkage (``Linkage''). 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
    The purpose of this proposed rule change is to set forth the Amex's 
policy in connection with declaring quotes from other options exchanges 
unreliable when such other exchange is disconnected from the Linkage. 
The Amex currently relies on Amex Rules 933(g) and 933(g)--ANTE to 
determine whether quotes from another options exchange(s) are 
unreliable.
    Amex Rules 933(g) and 933(g)--ANTE provide that a Floor Governor or 
Exchange Official may determine that certain quotes from another 
options exchange(s) are not reliable. The existing Amex rules provide 
that a Floor Governor or Exchange Official may make such determination 
in the following circumstances: (i) when another options exchange 
declares its quotes non-firm and directly communicates or disseminates 
a message through OPRA; and (ii) when another options exchange 
communicates to the Amex that such options exchange is experiencing 
systems or other problems affecting the reliability of its disseminated 
quotes.
    The Amex believes that an additional circumstance whereby a Floor 
Governor or Exchange Official may determine the quotes from another 
options exchange to be unreliable should be added to Amex Rules 933(g) 
and 933(g)--ANTE. This additional circumstance would arise when another 
Participant Exchange \4\ is disconnected from the Linkage and is not 
accepting Linkage orders. The Amex believes that this additional 
circumstance for determining quotes from away options markets 
unreliable is necessary because there are times when because of system 
malfunctions, a Participant Exchange is disconnected from the Linkage 
but has not declared its quotes to be ``non-firm'' and has not informed 
the other options exchanges that such Participant Exchange may have 
quote problems. As a result, access to the Participant Exchange is 
limited, and the Amex believes such Participant Exchange's quotes 
should be excluded from the Amex's calculation of the NBBO.
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    \4\ A ``Participant Exchange'' is a registered national 
securities exchange that is a party to the Linkage Plan. See Amex 
Rule 940 (b)(14).
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2. Statutory Basis
    The proposed rule change is consistent with section 6(b) of the Act 
\5\ in general and furthers the objectives of section 6(b)(5) of the 
Act \6\ in particular, in that the proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices, promote just 
and equitable principles of trade, remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
and, in general, protect investors and the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex believes that the proposed rule change does not impose any 
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 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 Amex consents, the Commission will:
    (A) By order approve such proposed rule change, 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, 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

[[Page 49336]]

     Send an e-mail to [email protected]. Please include 
File Number SR-Amex-2005-066 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-2005-066. 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 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 tomake available publicly. All submissions should refer to 
File Number SR-Amex-2005-066 and should be submitted on or before 
September 13, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4581 Filed 8-22-05; 8:45 am]
BILLING CODE 8010-01-P