[Federal Register Volume 73, Number 16 (Thursday, January 24, 2008)]
[Notices]
[Pages 4292-4293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1177]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57160; File No. SR-Amex-2007-20]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change as Modified by Amendment No. 1 Related 
to Amending Complex Orders Procedures

January 16, 2008.

I. Introduction

    On February 15, 2007, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend complex orders procedures to allow the 
adjustment of the options leg of the order if market conditions prevent 
the execution of the non-option leg at the price agreed upon. On 
November 28, 2007, Amex filed Amendment No. 1 to the proposed rule 
change. The proposed rule change was published for comment in the 
Federal Register on December 12, 2007.\3\ The Commission received no 
comment letters regarding the proposal. This order approves the 
proposed rule change, as modified by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56901 (December 5, 
2007), 72 FR 70625.
---------------------------------------------------------------------------

II. Description

    The Exchange proposes to amend Rule 953-ANTE (b)(ii) to provide 
that if the stock leg or security futures leg of the order cannot be 
executed at the price agreed upon due to market conditions, the price 
of a trade representing the execution of the options leg of the 
transaction may be adjusted to be consistent with the net debit or 
credit price of the original order, if market conditions in any of the 
non-Exchange markets prevent the execution of the non-option leg at the 
price agreed upon.
    In addition, the Commission notes that Amex has represented that 
the re-pricing of the options leg must be consistent with Amex's 
priority and parity rules. If the transaction does not satisfy the 
Exchange's priority and parity rules by the end of the trading day, 
then the transaction would be cancelled.

III. Discussion

    The Commission has carefully reviewed the proposed rule change and 
the Commission finds that the proposed rule change is consistent with 
the requirements of Section 6 of the Act \4\ and the rules and 
regulations thereunder applicable to a national securities exchange.\5\ 
In particular, the Commission finds that the proposal is consistent 
with Section 6(b)(5) of the Act,\6\ because it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the

[[Page 4293]]

mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f.
    \5\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal to amend its 
complex order procedures as described above may facilitate the 
execution of such complex orders.

IV. Conclusion

    For the foregoing reasons, the Commission finds that the proposed 
rule change is consistent with the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and, in 
particular, with Section 6(b)(5) of the Act.\7\
---------------------------------------------------------------------------

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

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-2007-20), as modified by 
Amendment No. 1, is approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E8-1177 Filed 1-23-08; 8:45 am]
BILLING CODE 8011-01-P