[Federal Register Volume 59, Number 86 (Thursday, May 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10748]
[[Page Unknown]]
[Federal Register: May 5, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33980; File No. SR-Amex-94-11]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by American Stock Exchange, Inc. Relating to the Floor Official
Zone System
April 28, 1994.
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 April
18, 1994, the American Stock Exchange, Inc. (``Amex'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'' or
``SEC'') 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 Exchange is proposing to amend Amex Rule 22 to delete its
references to the Floor Official zone system, and provide that matters
which currently require the approval of a majority of the Floor
Officials in a zone may be determined by a Floor Official with the
concurrence of a Senior Floor Official.\1\ The text of the proposed
rule change is available at the Office of the Secretary, Amex, and at
the Commission.
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\1\The Amex has clarified that the proposed rule change will
affect both its equity and options trading floors. Telephone
conversation between Claudia Crowley, Special Counsel, Legal and
Regulatory Policy, Amex, and Beth Stekler, Attorney, Division of
Market Regulation, SEC, on April 20, 1994.
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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 an 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 Trading Floor has historically been divided into zones
comprised of designated trading posts. Pursuant to Rule 22, the Senior
Supervisory Officer assigns Floor Officials to each zone and they are
expected to exercise their authority in their assigned zones. In
addition, Rule 22(c) provides that a majority of the available Floor
Officials in each zone may (i) restrict or ban trading by Registered
Traders, (ii) restrict or ban transactions pursuant to off-Floor orders
for accounts in which members or member organizations have an interest,
(iii) prohibit specialists from accepting stop or stop limit orders, or
(iv) restrict or ban the use of hand signals with respect to any or all
of the securities in their zone.
Rule 22 was adopted in 1965 at a time when all of the trading posts
were located on one main Trading Floor, the Exchange was not trading
options, and new types of trading products were not frequently added.
Although the zone system was useful when implemented, it is not
appropriate in today's environment. As a result of improved technology
and the faster pace of trading generally (and particularly in options
and other derivatives), members typically require quick resolution of
trading questions from Floor Officials. With the expansion of the
Trading Floor and changes in its configuration, it is unduly time-
consuming and burdensome to attempt to deal only with Floor Officials
assigned to a particular zone.
The Exchange is therefore proposing that Rule 22 be amended to (i)
delete the references to the zone system and permit Floor Officials to
make determinations anywhere on the Floor, and (ii) provide that
matters which currently require the approval of a majority of the Floor
Officials in a zone may be determined by a Floor Official with the
concurrence of one of the Senior Floor Officials.\2\
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\2\Pursuant to Exchange Rule 21(a), Senior Floor Officials
include the Floor Governors and those Exchange Officials who were
previously Floor Governors and continue to be active on the Floor.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
in general and furthers the objectives of Section 6(b)(5) in particular
in that it is designed to promote just and equitable principles of
trade and remove impediments to and perfect the mechanism of a free and
open market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change will impose no 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
Within 35 days of the publication of this notice in the Federal
Register or within such other 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 self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation 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, 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. NW.,
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-94-11 and should be
submitted by May 26, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
[FR Doc. 94-10748 Filed 5-4-94; 8:45 am]
BILLING CODE 8010-01-M
