[Federal Register Volume 61, Number 15 (Tuesday, January 23, 1996)]
[Notices]
[Page 1808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-790]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36708; International Series Release No. 915; File No.
SR-NYSE-95-36]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Granting Approval to Proposed Rule Change Relating to the
Specifications and Content Outline for the Japan Module (Series 47) of
the General Securities Registered Representative Examination
January 11, 1996.
I. Introduction
On October 25, 1995, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``SEC'' or ``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 adopt the Japan module of the
General Securities Registered Representative Examination.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
The proposed rule change was published for comment in the Federal
Register on December 4, 1995.\3\ No comments were received on the
proposal. This order approves the proposal.
\3\ Securities Exchange Act Release No. 36514 (Nov. 27, 1995),
60 FR 62118.
---------------------------------------------------------------------------
II. Description of the Proposal
Presently, registered representatives who already are qualified to
conduct business in Japan and who wish to sell securities in the United
States must qualify as registered representatives in the U.S. by
successfully completing the General Securities Registered
Representative Examination (Series 7).\4\ In an effort to reduce
redundant qualification requirements, the Exchange has developed the
Japan module (Series 47) of the Series 7. As a subset of the Series 7,
this 160 question module is designed to test the Japanese registered
representatives' knowledge of U.S. securities laws, markets, investment
products, and sales practices.
\4\ Likewise, U.S. qualified registered representatives desiring
to conduct securities business in Japan must satisfy Japanese
requirements by passing the Securities Sales Representative
Qualification Examination or by meeting experiential requirements.
---------------------------------------------------------------------------
To become registered with the Exchange, qualified Japanese
registered representatives in good standing with the Japanese
securities authorities would be required to obtain a passing score on
the Series 47. Japanese representatives seeking to sell municipal
securities, however, would be required to pass either the standard
Series 7 or a combination of the Series 47 and the Series 52 (Municipal
Securities Representative Examination).
III. Discussion
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations there-under applicable to a national securities exchange.
In particular, the Commission believes the proposal is consistent with
the requirements of Section 6(b)(5) and Section 6(c)(3)(B).\5\
\5\ 15 U.S.C. 78f(b)(5) and 78f(c)(3)(B).
---------------------------------------------------------------------------
The Commission believes the proposal is consistent with Section
6(b)(5) \6\ because it is designed to help perfect the mechanism of a
free and open market. The Series 47 reduces duplicative qualification
requirements and, at the same time, allows the Exchange to ensure that
the Japanese representatives wishing to become registered with the
Exchange are fully qualified.
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes the proposal is consistent with Section
6(c)(3)(B) \7\ because it establishes standards of training,
experience, and competence for persons associated with Exchange members
and member organizations. The Japan module should provide comprehensive
coverage of the topics contained in the Series 7 that are not covered,
or are not covered in sufficient detail, in the Securities Sales
Representative Qualification Examination. Accordingly, the Series 47,
combined with the Securities Sales Representative Qualification
Examination, should measure the qualifications of Japanese
representatives adequately.
\7\ 15 U.S.C. 78f(c)(3)(B).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-NYSE-95-36) is approved.
\8\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-790 Filed 1-22-96; 8:45 am]
BILLING CODE 8010-01-M
