[Federal Register Volume 61, Number 116 (Friday, June 14, 1996)]
[Notices]
[Pages 30267-30268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15112]
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[[Page 30268]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37288; File No. SR-Amex-96-16]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the American Stock Exchange, Inc. Relating to Amendments to
Rule 170 Pertaining to Specialists' Liquidating Transactions
June 7, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 30, 1996, the American Stock Exchange, Inc. (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Amex requests permanent approval of a pilot program that amends
Exchange Rule 170 to permit a specialist to effect a liquidating
transaction on a zero minus tick, in the case of a ``long'' position,
or zero plus tick, when covering a ``short'' position, without Floor
Official approval.\3\ The pilot program also amends Exchange Rule 170
to set forth the affirmative action that specialists are required to
take subsequent to effecting various types of liquidating transactions.
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\3\ A zero plus tick is a price equal to the last sale where the
last preceding transaction at a different price was at a lower
price. Conversely, a zero minus tick is a price equal to the last
sale where the last preceding transaction at a different price was
at a higher price.
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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 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 III 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
On July 21, 1995, the Commission approved a one-year extension of a
pilot program that amends Exchange Rule 170 to permit a specialist to
effect a liquidating transaction on a zero minus tick, in the case of a
``long'' position, or a zero plus tick, when covering a ``short''
position, without Floor Official approval.\4\ The amendments also set
forth the affirmative action that specialists are required to take
subsequent to effecting various types of liquidating transactions.
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\4\ Securities Exchange Act Release No. 36014 (July 21, 1995),
60 FR 38870. The Commission originally approved the pilot program in
Securities Exchange Act Release No. 33957 (Apr. 22, 1994), 59 FR
22188 (``1994 Approval Order''). On April 21, 1995, the Commission
granted a three month extension to the pilot program, ending on July
21, 1995. Securities Exchange Act Release No. 35635 (Apr. 21, 1995),
60 FR 20780.
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During the course of the pilot program, the Exchange has monitored
compliance with the requirements of the Rule, and the Amex's findings
in this regard have been forwarded to the Commission under separate
cover. The Exchange believes the amendments have provided specialists
with flexibility in liquidating specialty stock positions in order to
facilitate their ability to maintain fair and orderly markets,
particularly during unusual market conditions. In addition, the
specialist's concomitant obligation to participate as dealer on the
opposite side of the market after a liquidating transaction has been
strengthened. The Exchange is therefore proposing approval of the
amendments to Exchange Rule 170.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\5\ in general and furthers the objectives of Section 6(b)(5) \6\ in
particular in that it is designed to promote just and equitable
principles of trade, remove impediments to and perfect the mechanism of
a free and open market, and, in general, protect investors and the
public interest. The proposed rule change also is consistent with
Section 11(b) of the Act \7\ which allows exchanges to promulgate rules
relating to specialists in order to maintain fair and orderly markets.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78k(b).
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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. 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. Sec. 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 also will be available for
inspection and copying at the principal office of the Amex. All
submissions should refer to File No. SR-Amex-96-16 and should be
submitted by July 5, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15112 Filed 6-13-96; 8:45 am]
BILLING CODE 8010-01-M
