95-10044. Self-Regulatory Organizations; American Stock Exchange, Inc.; Order Granting Approval to Proposed Rule Change Relating to Amendments Updating Various Exchange Rules  

  • [Federal Register Volume 60, Number 78 (Monday, April 24, 1995)]
    [Notices]
    [Pages 20130-20131]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-10044]
    
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    [Release No. 34-35620; File No. SR-Amex-95-10]
    
    
    Self-Regulatory Organizations; American Stock Exchange, Inc.; 
    Order Granting Approval to Proposed Rule Change Relating to Amendments 
    Updating Various Exchange Rules
    
    April 18, 1995.
        On February 22, 1995, 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 amend several of its rules to 
    reflect current practices and to update various rules that have become 
    obsolete.
    
        \1\15 U.S.C. 78s(b)(1) (1988).
        \2\17 CFR 240.19b-4 (1994).
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        The proposed rule change was published for comment in Securities 
    Exchange Act Release No. 35451 (Mar. 7, 1995), 60 FR 13742 (Mar. 14, 
    1995). No comments were received on the proposal.
        As described more fully below, the Exchange has proposed amendments 
    to several of its rules to conform an Amex rule to recent changes to a 
    comparable New York Stock Exchange (``NYSE'') rule, to update certain 
    rules that contain provisions that are no longer applicable, and to 
    reflect current practices.
        The Commission has reviewed carefully the Amex's proposed rule 
    changes and concludes that the proposed changes are consistent with the 
    requirements of the Act and the rules and regulations thereunder 
    applicable to a national securities exchange and, in particular, with 
    Sections 6(b)(5), 6(b)(8), and 11A(a)(1) of the Act.\3\ The Commission 
    supports the Amex's efforts to continue to review the form and 
    substance of its market trading regulations in response to changes in 
    market structure and eliminate requirements that no longer serve a 
    meaningful regulatory purpose. The Commission believes that it is 
    important to market quality that the Exchange have a regulatory program 
    that is tailored to the current market structure. The Commission 
    believes that the proposed rule changes will be helpful in updating the 
    Amex market structure and trading rules and will further the purposes 
    of the Act.
    
        \3\15 U.S.C. 78f(b)(5), 78f(b)(8), and 78k-1(a)(1) (1988 & Supp. 
    V 1993).
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        Specifically, the Exchange proposes a rule change that would 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. The Commission agrees that 
    the proposed amendment to Rule 155 is substantially similar to recent 
    revisions to NYSE Rule 104.10(7)\4\ and, therefore, should be approved. 
    In the Commission's order approving the NYSE's amendment to Rule 
    104.10(7), the Commission stated that the changes to the rule increase 
    fairness in execution of block orders in accordance with Section 
    6(b)(5) of the Act, which requires that the rules of an exchange be 
    designed to promote just and equitable principles of trade. The 
    Commission also stated that the rule change would help to assure that 
    investors' orders are executed at the best possible market in 
    accordance with section 11A(a)(1)(c)(iv) of the Act, which provides 
    that it is in the public interest and appropriate for the protection of 
    investors and the maintenance of fair and orderly markets to assure the 
    practicability of brokers executing investors' orders in the best 
    market. The Commission believes that the Exchange's proposed rule 
    change similarly would further the purposes of the Act.
    
        \4\See Securities Exchange Act Release No. 34231 (June 17, 
    1994), 59 FR 32722 (approving File No. SR-NYSE-90-10).
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        Moreover, the Exchange is updating other rules to eliminate 
    obsolete references and reflect current Exchange practices. The 
    Exchange proposes to [[Page 20131]] delete reference in Rule 5(d)(viii) 
    (Over-the-Counter Execution of Equity Securities Transactions) to Rules 
    560 and 570 because these rules have been rescinded. Because Rules 560 
    and 570 no longer exist, the Commission agrees that these references 
    should be deleted. The Exchange is also proposing to delete the 
    signature requirement in Rule 181 (Cancellations Must Be Written) to 
    reflect its current practice. The Exchange believes that the signature 
    requirement is no longer necessary on the Trading Floor because of the 
    use of printed tickets, which include the name and clearing number of 
    the broker or brokerage firm. The Commission agrees that this change to 
    remove the signature requirement is appropriate in light of 
    technological developments in the market.
        The Exchange is also proposing to amend Rules 183 (Specialist 
    Registration Fee) and 184 (Specialist Clerks) to eliminate references 
    to out-of-date charges and schedule of payments. The Commission agrees 
    that the rules should be revised to delete references to the outdated 
    fees and payment schedules. Rather than make repeated amendments in the 
    Rules whenever the fees are changed, the Exchange proposes to use 
    general language in these rules to refer to the fees that are imposed 
    by the Exchange each year. The Exchange is also amending Rule 783 (d) 
    (Normal Buy-Ins) to delete the reference to a member's entitlement to a 
    Floor brokerag commission because such commissions are now negotiated. 
    The Commission believes that these changes will help to remove 
    impediments to and perfect the mechanism of a free and open market in 
    accordance with Section 6(b)(5) of the Act.
        It is therefore ordered, pursuant to Section 19(b)(2) of the 
    Act,\5\ that the proposed rule change (SR-Amex-95-10) is approved.
    
        \5\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.\6\
    
        \6\17 CFR 200.30-3(a)(12) (1994).
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    [FR Doc. 95-10044 Filed 4-21-95; 8:45 am]
    BILLING CODE 8010-01-M
    
    

Document Information

Published:
04/24/1995
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
95-10044
Pages:
20130-20131 (2 pages)
Docket Numbers:
Release No. 34-35620, File No. SR-Amex-95-10
PDF File:
95-10044.pdf