[Federal Register Volume 61, Number 35 (Wednesday, February 21, 1996)]
[Notices]
[Pages 6665-6666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3841]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36834; File No. SR-Amex-96-04]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the American Stock Exchange, Inc. Relating to Changes to Its
Membership Admission Procedures
February 13, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on January
30, 1996, the American Stock Exchange, Inc. (``Amex'' or ``Exchange'')
file 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 Exchange proposes to amend its membership admission procedures
to make several clarifying and ``housekeeping'' changes, including
changes with respect to: (i) the designation of nominees, and (ii) the
requirements applicable to pension plans seeking to own memberships.
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 Exchange is proposing to make several clarifying and
``housekeeping'' changes to its membership procedures. Specifically,
the requirements applicable to the designation of nominees are being
updated.\1\ Furthermore, the provisions relative to membership
ownership by pension plans are being revised to more accurately and
completely represent the procedures to be followed in this regard, and
to clarify that: (i) the sponsors and trustees of such pension plans
are responsible for evaluating the inherent risks of owning a
membership and must determine the advisability of such without relying
on advice from the Amex or any of its officers or employees, and (ii)
the Amex will have on liability to either the participants in such
pension plans or their beneficiaries in the event the purchase,
operation or disposition of the membership results in loss to the
pension plan and related trust. Moreover, the proposed rule change
requires the plan sponsor and trustee to indemnify and hold the
Exchange harmless from all claims, losses, expenses (including all
attorney's fees) and taxes arising out of the purchase, operation and
disposition of the membership.
\1\ The Amex is changing references to ``individual member or
member organization'' in this section to ``owner of a regular or
options principal membership.'' In addition, the Amex is amending
this section to clarify an owner's responsibility for his or her
nominee's obligations to the Exchange and other members or member
organizations.
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In addition, outdated references in the Admissions of Members
section to the Membership Admissions Department are being changed to
refer to Membership Services, and corrections are being made with
respect to certain typographical errors. \2\
\2\ The proposed rule change also requires that all applicants
for Amex membership must pass a physical examination prescribed by
the Exchange's physician. The current rule limits this requirement
to those applicants who elect to become Participants in the
Exchange's Gratuity Fund.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act \3\ in that it is designed to prevent fraudulent and manipulative
acts and practices and, in general, to protect investors and the public
interest.
\3\ 15 U.S.C. 78s(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received with respect
to 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, N.W., Washington, D.C. 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
what may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submissions should refer to File No. SR-Amex-96-04 and should be
submitted by March 13, 1996.
[[Page 6666]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-3841 Filed 2-20-96; 8:45 am]
BILLING CODE 8010-01-M
