[Federal Register Volume 61, Number 84 (Tuesday, April 30, 1996)]
[Notices]
[Pages 19102-19106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10585]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37139; File No. SR-Amex-96-08]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change and Notice of Filing and Order Granting Accelerated Approval of
Amendment No. 1 to the Proposed Rule Change by the American Stock
Exchange, Inc., Relating to the Trading of Options on the Amex Gold
BUGS SM Index
April 23, 1996.
I. Introduction
On February 9, 1996, 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 provide for the listing and
trading of standardized options on the Amex Gold BUGS SM Index
(``Index'').
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\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\2\ 17 CFR 240.19b-4 (1995).
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Notice of the proposed rule change appeared in the Federal Register
on March 20, 1996.\3\ On April 15, 1996, the Amex amended its
proposal.\4\ No comment letters were received on the proposed rule
change. This order approves the Exchange's proposal, as amended.
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\3\ See Securities and Exchange Act Release No. 36953 (March 11,
1996), 61 FR 11448.
\4\ See Letter from Claire P. McGrath, Managing Director and
Special Counsel, Derivative Securities, Amex, to Michael Walinskas,
Branch Chief, Derivatives Regulation, Office of Self-Regulatory
Oversight, Division of Market Regulation, Commission, dated April
15, 1996 (``Amendment No. 1''). In Amendment No. 1, the Amex
replaced one of the Index's component stocks, Hemlo Gold Mines, with
Cambior Inc., because Hemlo Gold Mines is expected to merge with
Battle Mountain Gold Company in June 1996. The Amex also removed
Santa Fe Pacific Gold Corp. from the Index because it no longer
meets the Amex's requirement for the hedging of gold production. In
addition, the Amex represented that (1) the Exchange will promptly
notify the Commission if the Index fails to meet the maintenance
criteria provided in the proposal; and (2) the Index will be
maintained so that foreign country securities or American Depositary
Receipts (``ADRs'') thereon that are not subject to comprehensive
surveillance sharing agreements will not represent more than 20% of
the weight of the Index.
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II. Description of Proposal
A. General
The Amex proposes to trade options on the Index, a modified equal-
dollar weighted index developed by the Amex and comprised of 14 gold
mining company stocks (or ADRs thereon) which are traded on the Amex or
the New York Stock Exchange, Inc. (``NYSE''). In addition, the Amex
proposes to amend Commentary .01 to Amex Rule 901C, ``Designation of
Stock Index Options,'' to indicate that 90% of the Index's numerical
index value must be accounted for by stocks which meet the then current
criteria and guidelines provided in Amex Rule 915, ``Criteria for
Underlying Securities'' and to indicate that these criteria must also
be satisfied immediately following each quarterly rebalancing.
The Exchange believes that an index of gold mining stocks whose
values are affected strongly by the price of gold will be attractive to
many investors. According to the Amex, gold companies generally manage
the risks associated with fluctuating prices by hedging their future
production. The Amex notes that companies that hedge their gold
production for longer periods are less affected by the fluctuating
price of gold. In an effort to give investors an index with a
significant exposure to the near term movements in gold prices, the
Exchange has included in the Index those gold mining companies that do
not hedge their gold production for extensive periods into the future.
Specifically, the Amex states that only companies that have a hedging
ratio of less than 1\1/2\ years production will be considered for
inclusion in the Index.
B. Eligibility Standards for Index Components
The Amex states that the Index conforms with Exchange Rule 901C,
which specifies criteria for the inclusion of stocks in an index on
which standardized options will be traded. According to the Amex, the
Index also conforms to most of the criteria set forth in Amex Rule
901C, Commentary .02 (which provides for the commencement of trading of
options on an index 30 days after the date of filing), except that the
Index is calculated using a modified version of the equal-dollar
weighting method and four of the components of the Index do not meet
the six month minimum trading volume criteria.\5\
[[Page 19103]]
According to the Amex, all of the Index's component securities meet the
following standards: (1) all of the Index's component securities are
traded on the Amex or the NYSE; (2) the component stocks comprising the
top 90% of the Index by weight have a market capitalization \6\ of at
least $75 million, and those component stocks constituting the bottom
10% of the Index by weight have a market capitalization of at least $50
million; and (3) foreign country securities or ADRs thereon that are
not subject to comprehensive surveillance agreements do not in the
aggregate represent more than 20% of the weight of the Index.
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\5\ Under Amex Rule 901C, Commentary .02, the Amex may list
options on a stock industry index pursuant to Section 19b(3)(A)
under the Act provided that the index satisfies certain criteria.
Commentary .02 requires, among other things, that the index be
calculated based on either the capitalization weighting, price
weighting, or equal-dollar weighting methodology, and that the
trading volume for each component stock of the index in each of the
last six months be not less than 1,000,000 shares, except that for
each of the lowest weighted component securities in the index that
in the aggregate account for no more than 10% of the weight of the
index, the trading volume must be at least 500,000 shares in each of
the last six months.
\6\ In the case of ADRs, this represents market capitalization
as measured by total world-wide shares outstanding.
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C. Index Calculation
The Index is calculated using a modified equal-dollar weighting
methodology. Three of the Index's 14 component companies are given
higher weightings based upon their market value. The following is a
description of how this modified equal-dollar weighting calculation
method works. As of the market close on February 5, 1996, a portfolio
of gold mining company stocks was established representing an
investment of approximately (1) $16,000 in two components in the Index;
(2) $12,000 in one of the components; (3) $2,000 in two components; and
(4) $4,300 in the remaining 12 components (rounded to the nearest whole
share). The value of the Index equals the current market value (i.e.,
based on U.S. primary market prices) of the sum of the assigned number
of shares of each of the stocks in the Index portfolio divided by the
Index divisor. The Index divisor was initially determined to yield the
benchmark value of 200.00 at the close of trading on February 5, 1995.
Each quarter thereafter, following the close of trading on the Thursday
prior to the third Friday of March, June, September, and December, the
Index portfolio will be reviewed and adjusted if any one of the three
components initially representing higher weightings in the Index value
currently represents 25% or more of the Index value, or if any one of
the other components initially representing lower weightings in the
Index value currently represents 5% or more of the Index value. The
Index portfolio will be rebalanced, if necessary, by changing the
number of whole shares of each component stock so that the three
components initially given higher weights will again represent less
than 25% of the Index value and the remaining lower-weighted components
will each represent less than 5% of the Index value. In any event, the
five highest weighted components cannot represent more than 60% of the
Index value at each quarterly rebalancing.\7\
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\7\ See infra Section II.D.
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The Exchange has chosen to rebalance the Index following the close
of trading on the Thursday prior to the third Friday of March, June,
September and December, since it allows an option contract to be held
for up to three months without a change in the Index portfolio while,
at the same time, maintaining the equal-dollar weighting feature of the
Index. If necessary, a divisor adjustment will be made at the
rebalancing to ensure the continuity of the Index's value. The newly
adjusted portfolio becomes the basis for the Index's value on the first
trading day following the quarterly adjustment.
As noted above, the number of shares of each component stock in the
Index portfolio remains fixed between quarterly reviews except in the
event of certain types of corporate actions such as the payment of a
dividend other than an ordinary cash dividend, stock distribution,
stock split reverse stock split, rights offering, distribution,
reorganization, recapitalization, or similar event with respect to the
component stocks. In a merger or consolidation of an issuer of a
component stock, if the stock remains in the Index, the number of
shares of that security in the portfolio may be adjusted, to the
nearest whole share, to maintain the component's relative weight in the
Index at the level immediately prior to the Corporate Action. In the
event of a stock addition or replacement, the new component stock will
be added to the Index at a weight determined by the Exchange and the
Index will be rebalanced. In all cases, the divisor will be adjusted,
if necessary, to ensure Index continuity.
Similar to other stock index values published by the Exchange, the
value of the Index will be calculated continuously and disseminated
every 15 seconds over the Consolidated Tape Association's Network B.
D. Maintenance of the Index
The Exchange will maintain the Index so that upon quarterly
rebalancing: (1) the total number of component securities will not
increase or decrease by more than 33\1/3\% from the number of
components in the Index at the time of its initial listing and in no
event will the Index have fewer than nine components; (2) components
stocks constituting the top 90% of the Index by weight will have a
minimum market capitalization of $75 million and the component stocks
constituting the bottom 10% of the Index by weight will have a minimum
market capitalization of $50 million; (3) at least 90% of the Index's
numerical index value and at least 80% of the total number of component
securities individually will meet the then current criteria for
standardized option trading set forth in Amex Rule 915; (4) stocks
constituting 85% of the Index will have a monthly trading volume of at
least 500,000 shares for each of the last six months; (5) no single
component will represent more than 25% of the weight of the Index and
the highest weighted components will represent no more than 60% of the
Index at each quarterly rebalancing; and (6) in order to maintain the
character of the Index, companies whose gold production hedging
policies change to greater than 1\1/2\ times annual production will be
considered for removal from the Index. In addition, the Index will be
maintained so that foreign country securities or ADRs thereon that are
not subject to comprehensive surveillance sharing agreements will not
in the aggregate represent more than 20% of the weight of the Index.\8\
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\8\ See Amendment No. 1, supra note 4.
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The Amex will not open for trading any additional option series if
the Index fails to satisfy any of the maintenance criteria set forth
above unless the Exchange determines that such failure is not
significant and the Commission concurs in that determination or unless
the continued listing of options on the Index has been approved by the
commission pursuant to Section 19(b)(2) of the Act.
E. Expiration and Settlement
The options on the proposed Index will be European-style (i.e.,
exercises permitted only at expiration) and cash-settled. Standard
option trading hours (9:30 a.m. to 4:10 p.m. New York time) will apply.
Options on the Index will expire on the Saturday following the third
Friday of the expiration month (``Expiration Friday''). The last
trading day in an expiring option series normally will be the second to
last business day preceding the Saturday following the third Friday of
the expiration month (normally a Thursday). Trading in expiring options
will cease at the close of trading on the last trading day.
The Amex plans to list options series with expirations in the three
near-term calendar months and in the two
[[Page 19104]]
additional calendar months in the March cycle. In addition, the Amex
may list longer term option series having up to 36 months to
expiration. In lieu of such long-term options on a full value Index,
the Amex may instead list long-term, reduced value put and call options
based on one-tenth (1/10th) the Index's full value. In either event,
the interval between expiration months for either a full value or
reduced value long-term option will not be less than six months. The
trading of any long-term Index options will be subject to the same
rules which govern the trading of all of the Amex's index options,
including sales practice rules, margin requirements, and floor trading
procedures, and all Index options will have European-style exercise.
Position limits on reduced-value long term Index options will be
equivalent to the position limits for full value Index options and will
be aggregated with such options. For example, if the position limit for
the full value Index options is 9,000 contracts on the same side of the
market, then the position limit for the reduced value Index options
will be 90,000 contracts on the same side of the market.
The exercise settlement value for all of the Index's expiring
options will be calculated based upon the primary exchange's regular
way opening sale prices for the component stocks. In the case of
securities traded through the facilities of the National Association of
Securities Dealers Automated Quotation system (``NASDAQ''), the first
regular way sale price will be used. If any component stock does not
open for trading on its primary market on the last trading day before
expiration, then the prior day's last sale price will be used in the
calculation.
F. Exchange Rules Applicable to Stock Index Options
Amex Rules 900C, ``Applicability and Definitions,'' through 980C,
``Exercise of Stock Index Option Contracts,'' will apply to the trading
of option contracts based on the Index. These rules cover issues such
as surveillance, margin requirement, trading halts, exercise prices,
and position and exercise limits. The Index is deemed to be a stock
index option under Amex Rule 901C (a) and a stock index industry group
under Amex Rule 900C (b)(1).\9\ With respect to paragraph (b) of Amex
Rule 903C, ``Series of Stock Index Options,'' the Exchange proposes to
list near-the-money option series on the Index at 2\1/2\ point strike
(exercise) price intervals when the value of the Index is below 200
points. In addition, the Exchange expects that the review required by
paragraph (c) of Amex Rule 904C, ``Position Limits,'' will result in a
position limit of 9,000 contracts for options on the Index.\10\
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\9\ Under Amex Rule 900C(b)(1), a stock index industry group is
an index of stocks representing a particular industry or related
industries.
\10\ Amex Rule 904C(c) provides that the position limit for an
industry index option will be 9,000 contracts if the Amex determines
at the commencement of trading of the options that any single stock
in the underlying stock index industry group accounted, on average,
for 20% or more of the numerical index value or that any five stocks
in the group together accounted, on average, for more than 50% of
the numerical index value, but that no single stock in the group
accounted, on average, for 30% or more of the numerical index value,
during the 30-day period immediately preceding the review.
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G. Surveillance
Surveillance procedures currently used to monitor trading in each
of the Exchange's other index options will also be used to monitor
trading in options on the Index. Further, the Intermarket Surveillance
Group (``ISG'') Agreement, dated July 14, 1983, as amended on January
29, 1990, will be applicable to the trading of options on the
Index.\11\
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\11\ ISG was formed on July 14, 1983, to among other things,
coordinate more effectively surveillance and investigative
information sharing arrangements to the stock and options markets.
See Intermarket Surveillance Group Agreement, July 14, 1983. The
most recent amendment to the ISG Agreement, which incorporates the
original agreement and all amendments made thereafter, was signed by
ISG members on January 29, 1990. See Second Amendment to the
Intermarket Surveillance Group Agreement, January 29, 1990. The
members of the ISG are: the Amex; the Boston Stock Exchange, Inc.;
the Chicago Board Options Exchange, Inc.; the Chicago Stock
Exchange, Inc.; the National Association of Securities Dealers, Inc.
(``NASD''); the NYSE; the Pacific Stock Exchange, Inc.; and the
Philadelphia Stock Exchange, Inc. Because of potential opportunities
for trading abuses involving stock index futures, stock options, and
the underlying stock, and the need for greater sharing of
surveillance information for these potential intermarket trading
abuses, the major stock index futures exchanges (e.g., the Chicago
Mercantile Exchange and the Chicago Board of Trade) joined the ISG
as affiliate members in 1990.
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III. Findings and Conclusions
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, the requirements of Section 6(b)(5).\12\ Specifically, the
Commission finds that the trading of Index options, including full-
value and reduced-value long-term Index options, will serve to promote
the public interest and help to remove impediments to a free and open
securities market by providing investors with an additional means to
hedge exposure to market risk associated with stocks in the gold mining
industry.\13\ The Amex states that the Index is designed to provide
significant exposure to the near term movements in gold prices and,
accordingly, is comprised of gold mining companies that do not hedge
their gold production for extensive periods into the future.
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\12\ 13 U.S.C. 78f(b)(5) (1988).
\13\ Pursuant to Section 6(b)(5) of the Act, the Commission must
predicate approval of any new option proposal upon a finding that
the introduction of such new derivative instrument is in the public
interest. Such a finding would be difficult for a derivative
instrument that served no hedging or other economic function,
because any benefits that might be derived by market participants
likely would be outweighed by the potential for manipulation,
diminished public confidence in the integrity of the markets, and
other valid regulatory concerns. In this regard, the trading of
listed options on the Index will provide investors with a hedging
vehicle that should reflect the overall movement of the stocks
representing companies in the gold mining sector in the U.S. stock
markets.
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The trading of options on the Index and on a reduced-value Index,
however, raises several issues relating to index design, customer
protection, surveillance, and market impact. The Commission believes,
for the reasons discussed below, that the Amex has addressed these
issues adequately.
A. Index Design and Structure
The Commission believes it is appropriate for the Exchange to
designate the Index as a narrow-based index for purposes of index
options trading. The Index is comprised of 14 stocks intended to track
gold mining companies whose values are strongly affected by the price
of gold. The Commission also finds that the reduced-value Index is a
narrow-based index because it is composed of the same component
securities as the Index, and merely dividing the Index value by ten
will not alter its basic character. Accordingly, the Commission
believes that it is appropriate for the Amex to apply its rules
governing narrow-based index options to trading in the Index options
and long-term full-value and reduced-value Index options.\14\
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\14\ See supra Section II.F.
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The Commission also believes that the large capitalizations, liquid
markets, and relative weighings of the Index's component stocks
minimize the potential for manipulation of the Index. First, the stocks
that comprise the Index are actively traded, with a mean and median
average monthly trading volume for the six month period ending March
29, 1996, of 6,429,400 shares and 3,500,655 shares, respectively.
Second, the market capitalizations of the stocks in the Index are very
large, ranging from a high of $6.6 billion to a low of $145 million as
of March 29, 1996, with the
[[Page 19105]]
mean and median being $1.8 billion and $759 million, respectively.
Third, because the index is modified equal dollar-weighted, as
described above, no one particular stock or group of stocks dominates
the Index. Specifically, as of March 29, 1996, no one stock accounted
for more than 16.79% of the Index's total value and the percentage
weighting of the five highest weighted stocks in the Index accounted
for 59.19% of the Index's value.
The Amex's proposed inclusion of Class B common and the Class B and
Class C convertible preferred stock of Freeport McMoran Cooper & Gold
presents some concern since options trading is not currently allowed on
convertible preferred stock. However, given the de minimis
representation of these components in relation to the overall Index
(4.2% of the Index's weight) and the Index requirement that over 90% of
the weight of the Index must comply with the listing criteria for
standardized options trading set forth in Amex Rule 915, the Commission
believes it is appropriate to include these components in the
Index.\15\ The Commission notes that, currently, 91.29% of the weight
of the Index complies with the listing criteria for standardized
options trading set forth in Amex Rule 915.
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\15\ This conclusion is strengthened by the fact that the
Freeport McMoran Copper & Gold convertible preferred components,
when added along with the Freeport McMoran Copper & Gold common
stock component, result in a total weighting of only 16.59% of the
Index's total value. The Commission notes that it would be concerned
if the Freeport McMoran components, taken together, dominated the
Index. The Amex's maintenance criteria, along with the quarterly
rebalancings of the Index, should help to ensure that such
domination is not likely to occur.
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Fourth, the proposed maintenance criteria will serve to ensure
that: (1) The Index remains composed substantially of liquid highly
capitalized securities; and (2) the Index is not dominated by one or
several securities that do not satisfy the Exchange's options listing
criteria. Specifically, in considering changes to the composition of
the Index, 90% of the weight of the Index and 80% of the number of
components in the Index must at all times comply with the listing
criteria for standardized options trading set forth in Amex Rule 915.
The Amex will notify Commission staff promptly at any time the Amex
determines that the Index fails to satisfy any of the foregoing
maintenance criteria.\16\ Further, in such an event, the Exchange will
not open for trading any additional series of Index options or Index
long-term options unless the Exchange determines that such failure is
not significant, and Commission staff concurs in the determination.
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\16\ See Amendment No. 1, supra note 4.
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Finally, the Commission believes that the existing mechanisms to
monitor trading activity in the component stocks of the Index, or
options on those stocks, will help deter as well as detect any illegal
activity.
B. Customer Protection
The Commission believes that a regulatory system designed to
protect public customers must be in place before the trading of
sophisticated financial instruments, such as Index options (including
full-value and reduced-value long-term Index Options), can commence on
a national securities exchange. The Commission notes that the trading
of standardized exchange-traded options occurs in an environment that
is designed to ensure, among other things, that: (1) the special risks
of options are disclosed to public customers; (2) only investors
capable of evaluating and bearing the risks of options trading are
engaged in such trading; and (3) special compliance procedures are
applicable to options accounts. Accordingly, because the Index options
and Index long-term full-value and reduced-value options will be
subject to the same regulatory regime as the other standardized index
options currently traded on the Amex, the Commission believes that
adequate safeguards are in place to ensure the protection of investors
in Index options and full-value or reduced-value Index long-term
options.
C. Surveillance
The Commission believes that a surveillance sharing agreement
between an exchange proposing to list a stock index derivative product
and the exchange(s) trading the stocks underlying the derivative
product is an important measure for surveillance of the derivative and
underlying securities markets. Such agreements ensure the availability
of information necessary to detect and deter potential manipulations
and other trading abuses, thereby making the stock index product less
readily susceptible to manipulation.\17\ In this regard, the Commission
notes that the Amex and the NYSE are members of the ISG.\18\ The
Commission believes that this arrangement ensures the availability of
information necessary to detect and deter potential manipulations and
other trading abuses, thereby making the Index options and full-value
and reduced-value long-term Index options less readily susceptible to
manipulation.\19\
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\17\ See Securities Exchange Act Release No. 31243 (September
28, 1992), 57 FR 45849.
\18\ See supra note 10.
\19\ See, e.g., Securities Exchange Act Release No. 31243
(September 28, 1992), 57 FR 45849 (order approving the listing of
index options and index LEAPS on the Chicago Board Options Exchange
Biotech Index).
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The Commission notes that foreign country securities or ADRs
thereon that are not subject to comprehensive surveillance agreements
do not in the aggregate represent more than 20% of the weight of the
Index.\20\ Accordingly, because the Amex and the NYSE are members of
the ISG, at least 80% of the securities comprising the Index are
subject to an arrangement that ensures the availability of information
necessary to detect and deter potential trading abuses. As a result,
the Amex should be able to adequately investigate any potential
manipulations of Index options or their underlying securities. In
addition, the Commission believes that the limitation on the foreign
securities or ADRs may be included in the Index will help to ensure
that Index options are not used as surrogate instruments to trade
options on stocks and/or ADRs that otherwise are not eligible for
options trading.
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\20\ The Index will be maintained so that foreign country
securities or ADRs thereon that are not subject to a comprehensive
surveillance sharing agreement will not in the aggregate represent
more than 20% of the weight of the Index. See Amendment No. 1, supra
note 4.
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D. Market Impact
The Commission believes that the listing and trading of Index
options, including full-value and reduced-value Index LEAPS on the
Amex, will not adversely affect the underlying securities markets.
First, because of the ``modified equal dollar-weighting'' method that
will be used, as described above, no one security or group of
securities represented in the Index will dominate the weight of the
Index immediately following a quarterly rebalancing. Second, the Index
maintenance criteria ensure that the Index will be substantially
comprised of securities that satisfy the Exchange's listing standards
for standardized options trading, and that one or a few stocks do not
dominate the Index. Third, the currently applicable 9,000 contract
position and exercise limits will serve to minimize potential
manipulation and market impact concerns. Fourth, the risk to investors
of contra-party non-performance will be minimized because the Index
options and Index long-term options will be issued and guaranteed by
the Options Clearing Corporation just like any other
[[Page 19106]]
standardized option traded in the United States.
Lastly, the Commission believes that settling expiring Index
options (including full-value and reduced-value long-term Index
options) based on the opening prices of component securities is
reasonable and consistent with the Act. As has been noted previously,
valuing index options for exercise settlement on expiration based on
opening rather than closing prices of index component securities may
help to reduce adverse effects on markets for such securities.\21\
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\21\ See Securities Exchange Act Release No., 30944 (July 21,
1992), 57 FR 33376 (July 28, 1992).
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The Commission finds good cause for approving Amendment No. 1 to
the proposal prior to the thirtieth day after the date of publication
of the notice of filing thereof in the Federal Register. Specifically,
Amendment No. 1 strengthens the Exchange's proposal by eliminating from
the Index the stock of one company which is expected to merge with
another company and replacing one Index component which no longer meets
the Amex's requirement for the hedging of gold production. In addition,
Amendment No. 1 strengthens and clarifies the proposal by indicating
that the Exchange will promptly notify the Commission if the Index
fails to meet the maintenance criteria provided in the proposal and
representing that the Index will be maintained so that foreign country
securities or ADRs thereon that are not subject to comprehensive
surveillance sharing agreements will not represent more than 20% of the
weight of the Index. Accordingly, the Commission believes that it is
consistent with Sections 6(b)(5) and 19(b)(2) of the Act to approve
Amendment No. 1 to the proposal on an accelerated basis.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning Amendment No. 1. 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. Copies of such filing will also be available for
inspection and copying at the principal office of the above-mentioned
self-regulatory organization. All submissions should refer to the file
number in the caption above and should be submitted by May 21, 1996.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\22\ that the proposed rule change (SR-Amex-96-08), as amended, is
approved.
\22\ 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.\23\
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\23\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-10585 Filed 4-29-96; 8:45 am]
BILLING CODE 8010-01-M
