

[Federal Register: August 9, 2006 (Volume 71, Number 153)]
[Notices]               
[Page 45589-45590]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09au06-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54266; File No. SR-Amex-2006-58]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval of a Proposed Rule Change Relating to an Amendment to 
Amex Rule 27

August 2, 2006.
    On June 9, 2006, 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 Amex Rule 27 to revise the number and 
composition of the Allocation Committee (``Allocations

[[Page 45590]]

Committee'' or ``Committee''). The proposed rule change was published 
for comment in the Federal Register on June 30, 2006.\3\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54039 (June 23, 
2006), 71 FR 37627.
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    Currently, the Committee consists of six members. Specifically, the 
Chief Executive Officer (or his or her designee), a representative of 
an upstairs member firm and either: (i) Four brokers for equities and 
other securities admitted to trading on the Exchange except for 
Exchange Traded Funds and options; (ii) two brokers and two Registered 
Traders for Exchange Traded Funds; or (iii) two brokers and two 
Registered Options Traders for options.
    The Exchange proposes to change the number and composition of the 
Allocation Committee from six to eight members. The Exchange proposes 
to amend Amex Rule 27 to revise the number and composition of the 
Allocations Committee so that the Committee consists of the Chief 
Executive Officer of the Exchange (or his or her designee), a 
representative of an upstairs member firm and either: (i) Six brokers 
for equities and other securities admitted to trading on the Exchange 
except for Exchange Traded Funds and options; (ii) three brokers and 
three Registered Traders for Exchange Traded Funds; or (iii) three 
brokers and three Registered Options Traders for options. The minimum 
quorum requirement would remain at four persons.\4\ According to the 
Exchange, because a small number of members now comprise the 
Allocations Committee, the minimum quorum requirement of four persons 
to conduct business has become overly burdensome.\5\ The Exchange 
represents that the Allocations Committee often fails to meet the 
minimum quorum requirement to transact business.
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    \4\ The Commission notes that the Allocations Committee is 
chaired by the Chief Executive Officer (or his or her designee) who 
does not vote except to make or break a tie. See Amex Rule 27(a).
    \5\ In October 2005, the Commission approved an Exchange 
proposal to combine three separate Allocation Committees into a 
single Committee and reduce the composition of the Committee to six 
members. See Securities Exchange Act Release No. 52646 (October 20, 
2005), 70 FR 61854 (October 26, 2005).
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    The Commission finds that the proposed rule change is consistent 
with the requirements of Section 6 of the Act,\6\ and the rules and 
regulations thereunder applicable to a national securities exchange.\7\ 
In particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\8\ which requires, among 
other things, that the Exchange's rules be 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 facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Commission believes that 
increasing the number of members of the Committee, from six to eight 
members, will provide greater flexibility and efficiency to the 
Allocations Committee to better achieve the minimum four person quorum 
requirement to transact business.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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).
    \8\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2006-58) is approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-12893 Filed 8-8-06; 8:45 am]

BILLING CODE 8010-01-P
