[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Notices]
[Pages 16517-16518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7842]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35524; International Series Release No. 795 File No.
SR-Amex-95-04]
Self-Regulatory Organizations; Notice of Filing of Amendment No.
1 to Proposed Rule Change by the American Stock Exchange, Inc. Relating
to Margin Levels for Currency Warrants Based on the Value of the U.S.
Dollar in Relation to the Mexican Peso
March 22, 1995.
Pursuant to Section 19(b)(1) of the Securities and Exchange Act of
1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 16, 1995, the American Stock Exchange, Inc. (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') Amendment No. 1 to the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the Exchange. The Exchange filed the original proposal with the
Commission on February 8, 1995. Notice of the proposed rule change
appeared in the Federal Register on February 17, 1995.\3\ The
Commission is publishing this notice to solicit comments on Amendment
No. 1 to the proposed rule change from interested persons.
\1\15 U.S.C. 78s(b)(1) (1988).
\2\17 CFR 240.19b-4 (1991).
\3\See Securities Exchange Act Release No. 35363 (February 13,
1995), 60 FR 9416.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Amex proposes to amend its pending proposal to list warrants on
the Exchange based upon the value of the U.S. dollar in relation to the
Mexican peso (``Mexican Peso Warrants'') in order to specify applicable
margin requirements. The text of Amendment No. 1 to 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 Exchange included statements
concerning the purpose of and basis for Amendment No. 1 to the proposed
rule change and discussed any comments it received on the amendment.
The text of these statements may be examined at the places specified in
Item IV below. The Amex 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
In the Exchange's proposal to list and trade Mexican Peso Warrants
pursuant to Section 106 of the Amex Company Guide, the Amex represented
that ``the Exchange will require that customer positions in Mexican
Peso Warrants be subject to the margin requirements applicable to
foreign currency options.''\4\ The Exchange is now amending that
proposal to specify objective margin levels that will be applicable to
Mexican Peso Warrants trading on the Exchange. Specifically, the
Exchange proposes that for Mexican Peso Warrants held ``short'' in a
customer's account, the margin will be 100% of the current market value
of each such warrant plus 12% of the product of the units of underlying
currency per warrant and the spot price for such currency. This
requirement would apply to both initial and maintenance margin. The
minimum ``add-on'' for out-of-the-money Mexican Peso Warrants would be
8% of the product of the units of underlying currency per warrants and
the spot price for such currency.
\4\Id.
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The Exchange believes that Amendment No. 1 to the proposed rule
change is consistent with Section 6 of the Act, in general, and
furthers the objectives of Section 6(b)(5) of the Act,\5\ in
particular, in that the proposal will promote just and equitable
principles of trade and will contribute to the protection of investors
and the public interest.
\5\15 U.S.C. 78f(b)(5) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that Amendment No. 1 to 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
Written comments on Amendment No. 1 to the proposed rule change
were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of 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 Exchange consents, the Commission will:
(a) By order approve such proposed rule change, as amended, or
(b) Institute proceedings to determine whether the proposed rule
change, as amended, should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning Amendment No. 1 to the proposed rule change.
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, as amended, that are filed with the Commission, and all written
[[Page 16518]] communications relating to the proposed rule change, as
amended, 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 in the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC. 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-95-04 and should
be submitted by April 20, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-7842 Filed 3-29-95; 8:45 am]
BILLING CODE 8010-01-M
