

[Federal Register: December 7, 2006 (Volume 71, Number 235)]
[Notices]               
[Page 71000]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de06-97]                         


[[Page 71000]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54844; File No. SR-Amex-2006-88]

 
Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change To Extend the Term of Index-Linked 
Securities

 November 30, 2006.
    On September 20, 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 Section 107D(b) of the Amex Company Guide 
\3\ to extend the maximum duration of index-linked securities (``Index-
Linked Securities'') from ten (10) years to thirty (30) years. The 
proposed rule change was published for comment in the Federal Register 
on October 27, 2006.\4\ The Commission received no comment letters on 
the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Section 107D provides for the listing and trading of Index-
Linked Securities pursuant to Rule 19b-4(e) under the Act (the 
``generic listing standards'').
    \4\ See Securities Exchange Act Release No. 54629 (October 19, 
2006), 71 FR 63056.
---------------------------------------------------------------------------

    Section 107D of the Amex Company Guide currently sets forth eleven 
criteria that the issue and the issuer must meet in order to list and 
trade Index-Linked Securities pursuant to the generic listing 
standards.\5\ One of the criteria the Exchange considers for the 
listing and trading of Index-Linked Securities pursuant to 107D is that 
the term of the issue must be a minimum term of one year but not 
greater than ten years. Proposed Section 107D(b) would extend the 
duration of the term of the issue from ten years to thirty years.
---------------------------------------------------------------------------

    \5\ The Exchange may submit a rule filing pursuant to Section 
19(b)(2) of the Act to permit the listing and trading of index 
linked securities that do not otherwise meet the generic listing 
criteria set forth in Section 107D.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\6\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\7\ which requires, among 
other things, that Exchange 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. Amending Section 107D should 
provide the Exchange with more flexibility in responding to the 
increased demand from issuers to list and trade Index-Linked Securities 
that are greater than ten years in duration. The Commission notes that 
corporate bonds and other fixed-income products historically have been 
issued with terms of up to, or greater than, thirty years.\8\ In 
addition, the Commission has approved amendments to the generic listing 
standards for equity-linked notes that removed the maximum term limits 
for those securities.\9\
---------------------------------------------------------------------------

    \6\ In approving the proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See also Section 104 of the Amex Company Guide setting forth 
the standards for listing debt securities.
    \9\ See Securities Exchange Act Release No. 42110 (November 5, 
1999), 64 FR 61677 (November 12, 1999) (SR-Amex-9-33); 41992 
(October 7, 1999), 64 FR 56007 (October 15, 1999) (SR-NYSE-99-22); 
42313 (January 4, 2000), 65 FR 2205 (January 13, 2000) (SR-CHX-99-
19).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-Amex-2006-88) be, and hereby 
is, approved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(5).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E6-20762 Filed 12-6-06; 8:45 am]

BILLING CODE 8011-01-P
