The American Stock Exchange (Amex) today announced that the rules for its new market structure were published by the Securities and Exchange Commission.
Amex's Auction and Electronic Market Integration (AEMI) platform is scheduled to launch in fourth quarter 2006, subject to SEC approval.
"This is a milestone for the Amex and we appreciate the SEC's feedback and hard work on our rules for AEMI," said Neal Wolkoff, Chairman and CEO. "We are pleased to work with the SEC towards the next stage of the process to obtain approval for our new hybrid market structure. The AEMI platform is state-of-the-art technology and will unite the best qualities of electronic and auction markets."
The AEMI trading platform has been in development since April 2004. The system will contain functionality for both pre- and post-Regulation NMS compliance that will allow AEMI to be rolled out, subject to SEC approval, in the fourth quarter and insure a smooth migration of Reg NMS functionality by February 2007, the timetable released by the SEC for SRO implementation of Reg NMS.
Amex's proposed market structure will offer market participants a greatly expanded range of automated transaction services across equities and exchange traded funds and will combine the dedicated liquidity provision of an auction market for times of order imbalances, complex trades, or when natural liquidity cannot be found. The Exchange believes that the fusion of automated execution and the auction market will meet the future needs of Amex customers - the investing public, institutional traders, liquidity providers and the Exchange's listed companies - and will enhance the Amex's competitiveness in a post-Reg NMS environment.