[Federal Register Volume 59, Number 232 (Monday, December 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29787]
[[Page Unknown]]
[Federal Register: December 5, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35016; File No. SR-Amex-94-46]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by American Stock Exchange, Inc. Revising Qualification
Examinations Administered by the Exchange.
November 29, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on
October 25, 1994, the American Stock Exchange, Inc. (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The American Stock Exchange, Inc. is filing this proposed rule
change pursuant to a Commission request that all qualification
examinations administered by the Exchange be filed with the Commission.
The text of the proposed rule change is available at the Office of
the Secretary, Amex, and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
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 self-regulatory organization
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
The Commission takes the position that self-regulatory
organizations must file for Commission review all actions imposing
qualification standards.\1\ The Exchange has gone through an extensive
process to update and revise its examinations to conform them to new
rules and procedures. Accordingly, the Amex is submitting the contents
of its qualification examinations and related materials as a proposed
rule change.
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\1\See Securities Exchange Act Release No. 17258 (October 30,
1980), 45 FR 73906. See also letter from Brandon Becker, SEC, to
Gordon L. Nash, Amex, dated March 5, 1991.
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The Amex administers six qualification examinations: the
Qualification Examination for Regular Members, the Qualification
Examination for Options Principal Members (``OPMs''), the Put and Call
Stock Option Examination, the Put and Call Option Questionnaire for
Listed Personnel, the Specialist Examination and the Registered Equity
Trader and Registered Equity Market Maker Examination.
Pursuant to Exchange Rule 50(a) very applicant for regular and
options principal membership shall pass a qualifying examination prior
to undertaking any active duties on the Floor. As a result, regular
members who may trade stocks and options take both the Qualifying
Examination for Regular Floor Members and the Put and Call Stock Option
Examination. OPMs, who are prohibited from trading equities, take the
Qualifying Examination for OPMs and the Put and Call Stock Option
Examination. Limited Trading Permit Holders take the Qualifying
Examination for OPMs and the Put and Call Stock Option Examination.
Commentary .01 to Exchange Rule 50(a) requires that a regular
member who applies to register as a specialist and a regular or OPM
member who applies to register as a registered floor trader must also
pass an examination. Specialists take the Specialist Examination.
Registered floor traders take the Registered Equity Trader and
Registered Equity Trader and Registered Equity Market Maker
Examination.
Any member who was registered and approved by the Exchange prior to
1977, the date when the Series 7 exam began to cover standardized
options, must successfully complete an examination before being
registered to do public options business.\2\ These individuals must
take the Listed Put and Call Options Questionnaire for Registered
Personnel.
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\2\See Amex Rule 920.
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The Qualification Examinations for Regular Members and OPMS, and
the Put and Call Examination are administered by the Director of
Membership Services.
The Specialist and Registered Traders Examinations are administered
by the Assistant Director of Trading Analysis.
The Put and Call Options Questionnaire for Registered Personnel is
administered by the broker-dealer firms who certify to the Exchange
that the applicant has satisfactorily completed the examination.
All six examinations are specifically designed for Amex membership
applicants in order to test the applicant's knowledge in a variety of
areas, including general trading principles and procedures as well as
specific Amex rules and policies.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act in general and furthers the objectives of
Section 6(b)(5), and 6(c)(3)(A) in particular in that the rule change
is designed to examine the training, experience and competence of
applicants for Amex membership and verify such applicant qualifications
for Exchange membership. In addition, the proposed rule change serves
to protect investors and the public interest by helping to assure
member competence.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the publication of this notice in the Federal
Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the Amex. All
submissions should refer to File No. SR-Amex-94-46 and should be
submitted by December 27, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-29787 Filed 12-2-94; 8:45 am]
BILLING CODE 8010-01-M
