[Federal Register Volume 60, Number 49 (Tuesday, March 14, 1995)]
[Notices]
[Pages 13742-13743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6164]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35451; File No. SR-Amex-95-10]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the American Stock Exchange, Inc. Relating to Amendments
Updating Various Exchange Rules
March 7, 1995.
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 February
22, 1995, 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 Exchange proposes to amend several of its rules to reflect
current practices and to update various rules that have become
obsolete. The text of the proposed rule change is as follows [new text
is italicized; deleted text is bracketed]:
Over-the-Counter Execution of Equity Securities Transactions
Rule 5.
(d)
[viii any acquisition of a security by a member organization as
principal in anticipation of making an immediate special offering or
exchange distribution on the Exchange under Rule 560 or Rule 570;]
[ix] viii
[x] ix
[xi] x
Precedence Accorded to Orders Entrusted to Specialists
Rule 155.
Commentary .01 [When a broker inquiries of a specialist as to the
price at which a block of stock may be sold, the specialist may not
specify the amount that would be purchased by the book and the amount
he would take as dealer.]
If [the] a block is to be sold at a ``clean up'' price the
specialist should execute at the ``clean-up'' price all of the
executable buy orders on his book. The report of the block transaction
on the tape is to be accompanied by a reprint of the last prior
transaction in the regular-way market in the security.
However, if the block is sold at different price limits and the
specialist buys part of the block for his own account he should to the
extent practicable, buy round lots for his own account at each price
limit at which buy orders on the book are executed, and in doing so, he
should divide the stock purchased for his own account into round lots
of approximately equal size among the price limits at which he
participates.
The same principles apply in the case of a purchase of a block of
stock.
Cancellations Must Be Written
Rule 181. A cancellation of an order given to a specialist on the
Floor of the Exchange personally by a Regular member or member
representative shall not be deemed effective unless in writing [and
signed].
Specialist Registration Fee
Rule 183. Each regular specialist registered with the Exchange
shall pay to the Exchange each year a registration fee [of $400.000 per
year] as imposed by the Exchange, [which fee shall be] payable [in
equal quarterly installments in each year] as directed by the Exchange
during [which] the year such specialist remains so registered.
Specialist Clerks
Rule 184. (a) A specialist or specialist unit may regularly employ,
subject to such rules and regulations as the Board of Governors may
adopt, one or more clerks, to aid such specialist or specialist unit on
the floor of the Exchange, provided each such clerk receives the
approval of the Exchange. A yearly fee [of $180.00 per year,] as
imposed by the Exchange and payable as directed by the Exchange [in
equal quarterly installments,] shall be charged the specialist or
specialist unit for each clerk. No rebate shall be given with respect
to the [quarterly] fee in the event that a specialist or specialist
unit discontinues the services of such a clerk during any [quarterly]
period.
Normal Buy-Ins
Rule 783.
(d) The Buy-in Desk will deliver a copy of the Floor report to the
booth of the member or member organization which initiated the order.
The executing broker will have the responsibility of notifying promptly
as to the details of the execution, the member or member organization
listed on the order as being in default. [The member executing the
order shall be entitled to receive a Floor brokerage 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 Exchange proposes a rule change that would conform its rule to
a comparable New York Stock Exchange (``NYSE'') rule, which recently
has been amended. The Exchange proposes to amend Commentary .01 to Rule
155 (Precedence Accorded to Orders Entrusted to Specialists) to delete
the prohibition that a specialist may not disclose the amount of stock
that the specialist and the book would be buying or selling in cleaning
up the block. This proposed rule change is similar to the NYSE
amendment to its Rule 104.10(7), which has been approved by the
Commission.\1\
\1\See Exchange Act Release No. 34231 (June 17, 1994), 59 FR
32722 (approving File No. SR-NYSE-90-10).
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The Exchange is also updating other rules to eliminate obsolete
references and reflect accurately current Exchange practices. The
references in Rule [[Page 13743]] 5(d)(viii) (Over-the-Counter
Execution of Equity Securities Transactions) to Rules 560 and 570 are
being deleted because Rules 560 and 570 have been rescinded. The
Exchange is also deleting the signature requirement in Rule 181
(Cancellations Must Be Written) to reflect the current practice. The
signature requirement, going back to the N.Y. Curb Exchange circa 1939,
has not been deemed necessary on the Trading Floor in the era of the
printed ticket.
The Exchange is also amending Rules 183 (Specialist Registration
Fee) and 184 (Specialist Clerks) to eliminate out-of-date charges and
timing of payments. The Exchange proposes to use general language in
the rules to alleviate the need for repeated amendments to the Exchange
Rules each time these fees are changed. The Exchange will make the
necessary rule filings with the Commission before any fee changes
become effective. The Exchange is also amendment Rule 783(d) (Normal
Buy-Ins) to delete the reference to a member's entitlement to a Floor
brokerage commission because the commissions are negotiated.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act in that it is designed to prevent fraudulent and manipulative acts
and practices and to perfect the mechanism of a free and open market.
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.
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 other 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
that 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-95-10 and should be
submitted by April 4, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6164 Filed 3-13-95; 8:45 am]
BILLING CODE 8010-01-M
