[Federal Register Volume 60, Number 102 (Friday, May 26, 1995)]
[Notices]
[Pages 28005-28006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12983]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35744; File No. SR-CBOE-95-25]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Incorporated, Relating to the Examination Specifications for
the General Securities Registered Representative (Series 7) Examination
May 19, 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 May 12,
1995, the Chicago Board Options Exchange, Incorporated (``CBOE'' 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 CBOE proposes to use a revised version of the General
Securities Registered Representative (Series 7) Examination (``Series
7'') and corresponding specifications.
The text of the proposed rule change is available at the CBOE and
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 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 purpose of the proposed rule change is to revise, update, and
seek approval for the Series 7 examination and specifications. The
Series 7 examination was created in 1974 as an industry-wide
qualification examination for persons seeking registration as general
securities representatives. The Series 7 examination is generally
required under rules of the self-regulatory organizations (``SROs'')
for persons who are engaged in the solicitation, purchase, and/or sale
of securities for the accounts of customers. The purpose of the Series
7 examination is to ensure that registered representatives have the
basic knowledge necessary to perform their functions and
responsibilities. The Series 7 examination specifications detail the
areas covered by the examination and break down the number of
examination questions culled from each area.
Revision of the Series 7 examination and specifications was
initiated in April [[Page 28006]] 1993 by an industry committee of SROs
and broker-dealers representatives\1\ in order to update the
examination in view of changes in the securities industry, including
changes in relevant rules and regulations, the development of new
securities products, and changes in the job of registered
representatives as firms offer an increasingly wide range of financial
services. The examination specifications for the Series 7 examination
have not been revised since 1986.
\1\SROs on the committee include the New York Stock Exchange,
American Stock Exchange, Chicago Board Options Exchange, Municipal
Securities Rulemaking Board, National Association of Securities
Dealers, and Philadelphia Stock Exchange. Broker-dealer
representatives include branch office managers, compliance officers,
training personnel, and registered representatives.
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The industry committee updated the existing statements of the
critical functions of registered representatives to ensure current
relevance and appropriateness and drafted statements of tasks expected
to be performed by entry-level registered representatives. Under the
proposed rule change, the total number of questions in the Series 7
examination will remain at 250, and the revised examination will cover
all financial product areas covered on the present Series 7 examination
as well as several new products, including collateralized mortgage
obligations (``CMOs''), long term equity anticipation securities
(``LEAPS''), and CAPS, with reduced emphasis on direct participation
programs.
2. Statutory Basis
The statutory basis for the Series 7 examination lies in Section
6(c)(3)(B) of the Act. Under that Section, it is the Exchange's
responsibility to prescribe standards of training, experience, and
competence for persons associated with Exchange members and member
organizations. Pursuant to this statutory obligation, the Exchange has
developed examinations that are administered to establish that persons
associated with Exchange members and member organizations have attained
specified levels of competence and knowledge.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any 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 solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not become operative for 30 days from May 12, 1995, the
date on which it was filed, and the Exchange provided the Commission
with written notice of its intent to file the proposed rule change at
least five days prior to the filing date, it has become effective
pursuant to Section 19(b)(3)(A) of the Act and Rule 129b-(e)(6)
thereunder.\2\
\2\The proposed rule change is identical to the rule change
previously approved by the Commission for the New York Stock
Exchange, Inc. and the National Association of Securities Dealers.
See Securities Exchange Act Release No. 34853 (Oct. 18, 1994), 59 FR
53694 (Oct. 25, 1994) (File Nos. SR-NYSE-94-26; SR-NYSE-94-27);
Securities Exchange Act Release No. 35401 (Feb. 22, 1995), 60 FR
10886 (Feb. 28, 1995) (File No. SR-NASD-95-04).
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At any time written 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary of appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Socitiation 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 NW., 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, NW.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submiss9ions should refer to File No. SR-CBOE-95-25 and should be
submitted by June 16, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Kartz,
Secretary.
[FR Doc. 95-12983 Filed 5-28-95; 8:45 am]
BILLING CODE 8010-01-M
