The American Stock Exchange (Amex) has filed proposed rule changes with the Securities and Exchange Commission to eliminate its prohibition on the entry of certain limit orders on both sides of the market for exchange-traded fund (ETF) shares and other equity derivative products. Currently, Amex rules provide that members, whether acting as principal or agent, may not permit the entry of limit orders for ETF shares into Amex’s electronic order routing system if the orders are for the account or accounts of the same or related beneficial owners and, by entering the orders, the member or the beneficial owner effectively would be operating as a market maker. Amex is proposing to amend its rules to eliminate this prohibition for members operating as market makers; however, customer agency orders remain subject to the prohibition.

http://www.sec.gov/rules/sro/amex/2007/34-56255.pdf