[Federal Register Volume 70, Number 172 (Wednesday, September 7, 2005)]
[Notices]
[Pages 53260-53262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4854]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52360; File No. SR-Amex-2004-76]


Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 
Relating to Contingency Trading Procedures

August 30, 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 September 10, 2004, 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. On 
August 26, 2005, the Exchange submitted Amendment No. 1 to the

[[Page 53261]]

proposal.\3\ On August 29, 2005, the Exchange submitted Amendment No. 2 
to the proposal.\4\ 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\ In Amendment No. 1, the Exchange substantially revised the 
proposed rule text and corresponding description of the proposal in 
its Form 19b-4. Amendment No. 1 replaced Amex's original filing in 
its entirety.
    \4\ In Amendment No. 2, the Exchange made minor corrections to 
the rule text.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt Amex Rule 119A regarding contingency 
trading procedures.
    The text of the proposed rule change, as amended, is set forth 
below. Proposed new language is in italics.
* * * * *

Contingency Trading Procedures--Alternative Trading Facility

    Rule 119A. (a) Definitions:
    The term ``Alternative Trading Facility'' (``ATF'') for purposes of 
this Rule, shall mean the remote facility established by the Exchange 
for trading securities admitted to dealings in the event that the 
Exchange's primary trading facility at 86 Trinity Place is wholly or 
partially unusable.
    (b) Except to the extent that the provisions of Rule 119A govern, 
or unless the context otherwise requires, the provisions of the 
Constitution and Rules of the Exchange are applicable to trading 
conducted on the ATF.
    (c) The Executive Vice President for Market Operations and Trading 
Floor Systems or his or her designee(s) shall have authority to 
designate the individuals who will be allowed to conduct a securities 
business on the ATF from among those members, member organizations and 
persons associated with members and member organization who are 
entitled to trade and support trading at the Exchange's facility at 86 
Trinity Place. One or more individuals from each broker and specialist 
unit shall be allowed to conduct business on the ATF. Registered Option 
Traders will be allowed to conduct business on the ATF to the extent 
that there is space in the ATF to accommodate them based upon their 
volume of trading.
    (d) If a Registered Option Trader is not allowed to trade on the 
ATF, the Registered Option Trader may initiate opening trades for his 
or her market maker account from off the ATF without reference to in-
person requirements or the requirement that off-floor orders be 
effected only for hedging, reducing risk, rebalancing or liquidating 
positions. (See Commentary .01 to Rules 958 and 958-ANTE)
    (e) A member may use a personal cellular telephone to conduct 
business in the ATF subject to the following conditions:
    (i) The member must maintain his or her cellular telephone records, 
including logs of calls placed, for a period of not less than one year. 
The Exchange reserves the right to inspect and/or examine such 
telephone records.
    (ii) If a Floor broker receives an incoming call on a cellular 
telephone, and the caller wishes to give the broker an order for a 
security traded at the post where the broker is standing, the broker 
must step-out of the crowd prior to accepting the order. In contrast, 
if a broker receives an incoming call on a cellular telephone, and the 
caller wishes to give the broker an order for a security traded at some 
other location on the Floor, the broker does not have to leave the 
crowd where he or she is standing in order to receive the order. A 
Floor broker also may initiate an outgoing call on a cellular telephone 
and (1) accept an order for a security traded at the post where the 
broker is standing without leaving the trading crowd, or (2) accept an 
order for a security traded at some other location on the Floor.
    (iii) Except as provided in this Rule 119A, all other requirements 
applicable to the use of an Exchange provided telephone by a member 
shall apply to the use by a member of a personal cellular telephone. 
(See Rule 220)
    (f) In the event that a Floor Official's ruling is appealed to a 
three Senior Floor Official panel and there is an insufficient number 
of Senior Floor Officials to serve on the Panel, qualified Exchange 
Officials may serve on the Panel without reference to their order of 
seniority.
* * * * *

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 Exchange 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 Exchange 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
    Proposed Amex Rule 119A sets forth the Exchange's contingency 
trading with respect to the use of the Exchange's ``Alternative Trading 
Facility'' (``ATF''), which is a remote facility established by the 
Exchange for trading securities admitted to dealings in the event that 
the Exchange's primary trading facility at 86 Trinity Place is wholly 
or partially unusable.
    Under proposed Amex Rule 119A(b) the provisions of the Constitution 
and Rules of the Exchange are applicable to trading conducted on the 
ATF, except to the extent that the provisions of Amex Rule 119A govern, 
or unless the context otherwise requires. Paragraph (c) of proposed 
Amex Rule 119A provides that the Exchange's Executive Vice President 
for Market Operations and Trading Floor Systems or his or her 
designee(s) shall have authority to designate the individuals who will 
be allowed to conduct a securities business on the ATF from among those 
members, member organizations, and persons associated with those 
members and member organizations who are entitled to trade and support 
trading at the Exchange's facility at 86 Trinity Place. Not all persons 
who generally conduct business at the Exchange's regular facility will 
be able to use the ATF due to occupancy restrictions at the facility. 
One or more individuals from each broker and specialist unit will be 
allowed to conduct business on the ATF. Registered Option Traders 
(``ROTs'') will be allowed to conduct business on the ATF to the extent 
that there is space in the ATF to accommodate them based upon their 
volume of trading. Paragraph (d) to proposed Amex Rule 119A provides 
that if a ROT is not allowed to trade on the ATF, the ROT may initiate 
opening trades for his or her market maker account from off the ATF 
without reference to in-person requirements or the requirement that 
off-floor orders be effected only for hedging, reducing risk, 
rebalancing or liquidating positions.
    Although the Exchange has installed tethered telephones at the ATF, 
it has not replicated its wireless telephone system at this facility. 
As a result, the Exchange is proposing to allow members to use personal 
cellular telephones to conduct business on the ATF subject to the same 
conditions that were applicable to the use of personal cellular 
telephones on the Amex following September 11, 2001. The

[[Page 53262]]

conditions applicable to the use of personal cellular telephones on the 
ATF are set forth in paragraph (e) to the proposed rule. Paragraph (f) 
provides that Exchange Officials may substitute for Senior Floor 
Officials without reference to their seniority in the event that a 
Floor Official's ruling is appealed to a three Senior Floor Official 
panel and there is an insufficient number of available Senior Floor 
Officials to consider the appeal.\5\
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    \5\ The Exchange has a proposal pending with the Commission that 
would modify Amex Rule 22 to establish a three-level review process 
in which Floor Official decisions, as needed, may be appealed to a 
three Senior Floor Official Panel. See Securities Exchange Act 
Release No. 52325 (August 23, 2005), 70 FR 51392 (August 30, 2005) 
(SR-AMEX-2005-052).
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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) \7\ in 
particular in that it is designed to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling and 
processing information with respect to, and facilitating transactions 
in securities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change 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 by the Exchange on 
this proposal.

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, 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
     Send an e-mail to [email protected]. Please include 
File Number SR-Amex-2004-76 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-2004-76. 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 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-2004-76 and should be submitted on or before 
September 28, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-4854 Filed 9-6-05; 8:45 am]
BILLING CODE 8010-01-P