The following is a summary of key rules applicable to RROTs but is not a complete description of all applicable rules and requirements. Please review the attached document which describes all the approved rule changes and additions that implement the RROT program.

An RROT is a type of ROT, and as such, must be qualified as a ROT. In addition, the rules include provisions that concern earning and transferring remote quoting rights, quoting obligations, affiliation limitations, use of seats and other matters. In general, the rules for RROTs are similar to the rules for ROTs, but there are some key differences related to the fact that RROTs are not physically present in the trading crowd.

Remote Quoting Rights
Specialists and ROTs earn remote quoting rights ("rights") based on the options volume they execute on the Amex floor. Volume executed via remote quoting would not count toward earning additional rights. The number of rights granted for a particular quarter does not carry over into the next quarter; they must be earned anew for each subsequent quarter. Members have already been advised by the Exchange as to the number of rights they have earned for the quarter beginning May 1, 2006. If you have questions about the number of rights you have earned, please contact Keith Landsberg at 212-306-1995.

Rule 994-ANTE(b)(x) permits members and member organizations to transfer rights. The Amex should be notified in advance of any such transfers. Members who wish to transfer or acquire rights should contact John Cunningham, in Membership, at 212-306-1419. In addition, if a transfer of rights involves an arrangement whereby the transferor retains any rights to share in the profits or losses, either directly or indirectly, then this arrangement would constitute the establishment of a joint-account, and as such, must comply with Amex joint-account rules (Rules 360 through 363). For example, Rule 360 prohibits the establishment of a joint-account between or among members or member organizations without first having the arrangement approved by the Exchange. Rules 361, 362 and 363 describe reporting requirements related to joint-accounts.

Quoting Obligations
RROTs are required to provide continuous two-sided quotations in at least 60% of the series of their assigned classes. In addition, an RROT may be called upon by a Floor Official to submit a single quote, or to maintain continuous quotes, in one or more series of an options class to which the RROT is assigned. All quotes entered by an RROT must be for at least 10 contracts on the bid and 10 contracts on the offer.

When calculating and submitting quotes in their assigned classes, RROTs must use an authorized or proprietary automated quote calculation system. RROTs may not participate in the "join quote" feature in the ANTE system.

Pursuant to Amex Rule 943, any RROT who locks or crosses an away market must either (1) unlock or uncross that market or (2) send a Principal Order through the Linkage to trade against the bid or offer that the RROT locked or crossed. After ANTE 1.2.2 is in place in each product, RROTs will be able to access the Linkage system directly and send their own orders. Until then, however, RROTs must have the specialist send any Linkage orders on the RROT's behalf.

No RROT may disseminate quotations and/or execute an option transaction if the RROT is located in the Designated Stock Area where the underlying security is traded, other than pursuant to Rule 175(c).

RROTs may not enter quotations electronically from outside the trading crowd in options classes in which they are not assigned as an RROT.

Affiliation Limitations
No RROT shall be assigned to an option class where the RROT has a direct or indirect affiliate which is a specialist, ROT, SROT (Supplemental Registered Options Trader) or RROT in such option class.

RROTs shall maintain information barriers that are reasonably designed to prevent the misuse of material, non-public information with any affiliates that may conduct a brokerage business in option classes assigned to an RROT or that may act as a specialist or market maker in any security underlying options assigned to an RROT. In general, RROTs must comply with Rule 193 regarding the misuse of material non-public information.

Use of Seats
RROTs may quote in up to five option classes per seat owned or leased, but are required to purchase or lease one additional seat for every 40 classes remotely quoted in excess of the five classes. It is important to note that simply owning or leasing a seat, and being a ROT, does not automatically confer on the ROT five remote quoting rights. Rather, if a ROT has earned five rights, then the ROT may use the seat already owned or leased.

Seats that are used to satisfy membership requirements for remote quoting by an RROT must be dedicated for this purpose, and may not be used for any other purpose while being used in an RROT capacity. For example, a ROT that has earned 20 rights may use up to five on the current seat, but must buy or lease another seat to quote in the other 15 option classes. The seat that is used for the purpose of remote quoting in the 15 classes may not also be used for trading on the Floor.

RROTs must have at least one active Floor member acting as a ROT, or a specialist acting as an RROT. That is, an RROT may not consist of one or more individuals quoting remotely without also having a member on the Floor acting as a ROT, or a specialist acting as an RROT. This requirement is subject to the affiliation limitations summarized above, and articulated in Rule 994-ANTE(d).

Signing On
When signing on to ANTE, RROTs must join ANTE remotely. This is a new message that the system will recognize. Further, when joining remotely, members may not participate in Quick Trade.

Interaction with RROT Bids and Offers
Unlike a trader in the crowd, RROT interest is represented exclusively in ANTE; there is no facility for RROTs to participate in open outcry transactions. Brokers entering the crowd with an order must therefore enter any interest electronically in order to trade with an RROT. Brokers can accomplish this either by entering a Broker Interest Quote ("BIQ") from the handheld or through BARS from the booth. Specialists do not act as agent for RROT interest quoted via the system.

It is important to remember that RROTs have a firm quote obligation, and must honor their bids and offers to the extent of their quotation size.

Registration as an RROT
A member or member organization that wishes to be approved and trade as an RROT must file both a written application and the RROT Option Selection Form with the Exchange, which can both be found online at this link: http://www.amex.com/amextrader/membership/becomingAMember/membership_becomingAMember.html. Requests to change class assignments must also be submitted to the Exchange in advance.

Please direct questions about this Notice to Rick Farber at 212-306-5310. For questions about the application to act as an RROT, please contact Elizabeth Delgado at 212-306-1840 or Brenda Huggins at 212-306-1870.