[Federal Register Volume 60, Number 54 (Tuesday, March 21, 1995)]
[Notices]
[Pages 14986-14987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6843]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35488; File No. SR-Amex-94-46]
Self-Regulatory Organizations; American Stock Exchange, Inc.;
Order Granting Approval to Proposed Rule Change Relating to
Qualification Examinations Administered by the Exchange and Notice of
Filing and Order Granting Accelerated Approval of Amendment No. 1
March 14, 1995.
On October 25, 1994, the American Stock Exchange, Inc. (``Amex'' 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 update and revise its
examinations to conform them to new rules and procedures.\3\ On March
10, 1995, the Amex submitted Amendment No. 1 to the above referenced
rule filing.\4\ The proposed rule change includes the contents of the
qualification examinations and related materials.
\1\15 U.S.C. 78s(b)(1) (1988).
\2\17 CFR 240.19b-4 (1994).
\3\The proposed rule change was filed pursuant to the SEC's
position that all qualification examinations administered by the
Exchange be filed with the Commission. 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.
\4\See letter from Janice Stroughter, Director of Hearings and
Special Counsel Legal & Regulatory Policy, Amex, to Amy Bilbija,
Attorney, Commission, dated March 9, 1995. In Amendment No. 1 the
Amex made several clarifications and corrections to three of the six
exams filed with the Commission.
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The proposed rule change was published for comment in Securities
Exchange Act Release No. 35016 (November 29, 1994), 59 FR 62428
(December 5, 1994). No comments were received on the proposal.
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. 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.
Pursuant to Amex Rule 50(a) every applicant for regular and options
[[Page 14987]] principal membership must 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\5\ take the
Qualifying Examination for OPMs and the Put and Call Stock Option
Examination.
\5\This type of member may execute on the Floor transactions in
options and other derivative products initiated by him for his own
account and may give orders for such securities for his own account
to regular members for execution provided, however, that this type
of member may not trade in individual stock options listed on the
Exchange. See Amex Constitution, Article IV Sec. 1(j)(3).
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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 Market Maker Examination.
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, with the requirements of Sections 6(b)(5) and
6(c)(3)(B).\6\ Section 6(b)(5) requires, among other things, that the
rules of an exchange be designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and national market system, and, in general,
to protect investors and the public interest. Section 6(c)(3)(B)
provides that a national securities exchange may examine and verify the
qualifications of an applicant to become a person associated with a
member in accordance with procedures established by the rules of the
exchange, and may require any person associated with a member, or any
class of such persons, to be registered with the exchange in accordance
with procedures so established.
\6\15 U.S.C. 78f(b)(5) & (c)(3)(B) (1988).
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The Commission also believes that the proposed rule change is
consistent with Section 15(b)(7) of the Act\7\ which stipulates that
prior to effecting any transaction in, or inducing the purchase or sale
of any security, a registered broker or dealer must meet certain
standards of operational capability, and that such broker or dealer
must meet certain standards of training, experience, competence, and
such other qualifications as the Commission finds necessary or
appropriate in the public interest or for the protection of investors.
\7\15 U.S.C. 78o(b)(7) (1988).
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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. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
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 April 11, 1995.
Finally, the Commission finds good cause for approving Amendment
No. 1 prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. The Commission
believes that accelerated approval of the proposal is appropriate in
order to allow the Amex to begin utilizing the exams, as corrected.
Further, the use of the six qualification exams has been noticed
previously in the Federal Register for the full statutory period and
the Commission did not receive any comments on it.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-Amex-94-46) is approved.
\8\15 U.S.C. 78s(b)(2) (1988).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
\9\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-6843 Filed 3-20-95; 8:45 am]
BILLING CODE 8010-01-M
