

[Federal Register: January 11, 2007 (Volume 72, Number 7)]
[Notices]               
[Page 1348-1350]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11ja07-69]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55040; File No. SR-Amex-2007-01]

 
Self-Regulatory Organizations; American Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Extension of the Pilot Period Applicable to the Listing 
and Trading of Options on the iShares MSCI Emerging Markets Index

 January 3, 2007.
    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 January 3, 2007, 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 and 
II below, which Items have been prepared by the Exchange. The Amex has 
filed the proposed rule change, pursuant to Section 19(b)(3)(A)(iii) of 
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the 
proposal effective upon filing with the Commission.\5\ The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange requested the Commission to waive the five-day 
pre-filing notice requirement and the 30-day operative delay, as 
specified in Rule 19b(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the pilot period applicable to the 
listing and trading of options on the iShares MSCI Emerging Markets 
Index Fund (``Fund

[[Page 1349]]

Options''). The Amex is not proposing any changes to the rule text.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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
    On May 17, 2006, the Commission approved the Amex proposal \6\ to 
list and trade the Fund Options for a sixty-day pilot period that 
expired July 2, 2006 (the ``Pilot'').\7\ On June 30, 2006 the 
Commission approved a 90-day extension to the Pilot that was due to 
expire October 1, 2006 \8\ and on September 29, 2006 the Commission 
approved a 90-day extension to the Pilot that expired on January 2, 
2007.\9\ The Fund Options will continue to meet substantially all of 
the listing and maintenance standards in Commentary .06 to Amex Rule 
915 and Commentary .07 to Amex Rule 916. For the requirements that are 
not satisfied, the Exchange continues to represent that sufficient 
mechanisms exist that would provide the Exchange with adequate 
surveillance and regulatory information with respect to the Fund 
Options. Continuation of the Pilot would permit the Exchange to 
continue to work with the Bolsa Mexicana de Valores (``Bolsa'') to 
develop a surveillance sharing agreement.
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    \6\ See SR-Amex-2006-43.
    \7\ See Securities Exchange Act Release No. 53824 (May 17, 
2006), 71 FR 30003 (May 24, 2006).
    \8\ See Securities Exchange Act Release No. 54081 (June 30, 
2006), 70 FR 131 (July 10, 2006).
    \9\ See Securities Exchange Act Release No. 54553 (September 29, 
2006), 71 FR 59561 (October 10, 2006). The Commission notes that the 
Amex inadvertently stated in its filing that the Pilot was to expire 
on December 31, 2006. Rather, the Pilot was to expire on January 2, 
2007. Telephone conference between Jeffrey Burns, Vice President and 
Associate General Counsel, Amex and Geoffrey Pemble, Special 
Counsel, Commission, on January 3, 2007.
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    Accordingly, the Exchange proposes to extend the Pilot for an 
additional 180-days, until June 30, 2007.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\10\ in general, and furthers the objectives of Section 6(b)(5) of the 
Act,\11\ in particular, in that it is 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 regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest; and is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers, or to regulate by virtue of any authority conferred by the Act 
matters not related to the purpose of the Act or the administration of 
the Exchange.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 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 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) \13\ thereunder 
because the proposed rule change: (i) Does not significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) does not become 
operative for 30 days from the date of the filing, or such shorter time 
as the Commission may designate if consistent with the protection of 
investors and the public interest pursuant to Section 19(b)(3)(A)(iii) 
of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
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    Amex has requested that the Commission waive both the five-day pre-
filing requirement and the 30-day delayed operative delay.\16\ The 
Commission is exercising its authority to waive the five-day pre-filing 
notice requirement and believes that the waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Waiver of the five-day pre-filing and 30-day operative 
periods will extend the Pilot, which expired on January 2, 2007, and 
allow the Amex to continue in its efforts to obtain a surveillance 
agreement with Bolsa. The Commission notes that another self-regulatory 
organization recently adopted a substantially similar rule change that 
was effective upon filing.\17\ Accordingly, the Commission designates 
the proposal to be effective and operative upon filing with the 
Commission.\18\
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    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ See Securities Exchange Act Release No. 54876 (December 5, 
2006), 71 FR 74968 (December 13, 2006) (order approving File No. SR-
CBOE 2006-103).
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within sixty (60) days of the filing of the proposed 
rule change, the Commission may summarily abrogate such rule change if 
it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors or 
otherwise in furtherance of the purposes of the Act.\19\
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    \19\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change 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 rule-comments@sec.gov. Please include 

File Number SR-Amex-2007-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Amex-2007-01. This file 
number should be included on the subject line if e-mail is used. To 
help the

[[Page 1350]]

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 Section, 100 F Street, NE., Washington, 
DC 20549. 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-2007-01 and should be submitted on 
or before February 1, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-233 Filed 1-10-07; 8:45 am]

BILLING CODE 8011-01-P
