[Federal Register Volume 60, Number 109 (Wednesday, June 7, 1995)]
[Notices]
[Pages 30124-30125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13898]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35784; File No. SR-Amex-95-18]
Self-Regulatory Organizations; Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change by the American
Stock Exchange, Inc. Relating to the Use of the Series 7A and 7B
Examination Modules
May 31, 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 22,
1995, 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, 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 Amex is seeking approval to utilize the Series 7A examination
administered by the New York Stock Exchange, Inc. (``NYSE'') for
members seeking to conduct a professional customer business from the
Amex Floor. The Amex is also seeking approval to utilize the Series 7B
examination for clerks of such members.
The text of the proposed rule change is available at the Amex 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 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
Exchange Rule 50(a) requires every applicant for regular or options
principal membership to pass a qualifying examination prior to
undertaking active duties on the Floor, and the Amex administers six
such examinations.\1\ The contents of these examinations and related
materials were approved by the Commission, pursuant to Rule 19b-4 under
the Act.\2\ In addition, some members choose to take the Series 7
examination (administered by the National Association of Securities
Dealers, Inc.), an industry-wide qualification examination for persons
seeking registration as general securities representatives.
\1\The following examinations are administered by the Amex: the
Qualification Examination for Regular Members, the Qualification
Examination for Options Principal Members, the Put and Call Stock
Option Exam, the Put and Call Option Questionnaire for Registered
Personnel, the Specialist Exam and the Registered Equity Trader and
Registered Equity Market Maker Exam.
\2\See Securities Exchange Act Release No. 35488 (Mar. 14, 1995)
60 FR 14986 (File No. SR-Amex-94-46).
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A new more specialized examination, the Series 7A (administered by
the NYSE), is designed only to qualify an exchange Floor member to
accept orders from professional customers for execution on an exchange
trading floor.\3\ The Exchange is now proposing to permit members who
pass the Series 7A examination to accept orders from professional
customers for execution on the Amex trading Floor.\4\ Those members who
anticipate receiving orders in listed options from such customers will
also be required to pass the Listed Put and Call Options Questionnaire
for Registered Personnel, which is administered by the Amex. The use of
this examination was previously approved by the Commission.\5\ Clerks
of the Floor members would be required to pass the new Series 7B
examination, which is administered by the NYSE.
\3\Professional customers are defined as a: bank, trust company,
insurance company, investment trust, state or political subdivision
thereof, charitable or nonprofit educational institution regulated
under the laws of the United States, or any state, or pension or
profit-sharing plan subject to ERISA or of any agency of the United
States, or any state or a political subdivision thereof or any
person (not including a natural person) who has, or has under
management, net tangible assets of at least sixteen million dollars.
\4\Exchange Rule 50(c) provides that: The Exchange may require
that a member pass additional examinations before undertaking
particular types of activities.
\5\See Securities Exchange Act Release No. 35488 (Mar. 14, 1995)
60 FR 14986 (File No. SR-Amex-94-46).
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It should be noted that the Commission has approved the content and
use of both the Series 7A and 7B examinations.\6\
\6\See Securities Exchange Act Release Nos. 32698 (July 29,
1993), 58 FR 41539 (File No. SR-NYSE-93-10); 34334 (July 8, 1994) 59
FR 35964 (File No. SR-NYSE-94-13).
[[Page 30125]]
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
in general and furthers the objectives of Sections 6(b)(5) and 6(c)(3)
in particular in that it is designed to examine the training,
experience and competence of Amex members and persons associated with
them, and to verify the qualifications of such persons with respect to
Amex membership. In addition, the proposed rule change serves to
protect investors and the public interest by helping to assure member
competence.
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, 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submissions should refer to File No. SR-Amex-95-18 and should be
submitted by June 28, 1995.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder pertaining to a national securities exchange. In particular,
the Commission believes that the proposed rule change is consistent
with Sections 6(b)(5) and 6(c)(3)(B) of the Act.\7\ Section 6(b)(5)
requires, among other things, that the rules of an exchange be designed
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. Section 6(c)(3)(B) provides that a national securities
exchange may examine and verify the qualifications of an applicant to
become a person associated with a member in accordance with procedures
established by the rules of the exchange, and require any person
associated with a member, or any class of such persons, to be
registered with the exchange in accordance with procedures so
established.
\7\15 U.S.C. 78f(b)(5) and (c)(3)(B) (1988 & Supp. V 1993).
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The Commission also believes that the proposed rule change is
consistent with Section 15(b)(7) of the Act,\8\ which stipulates that
prior to effecting any transaction in, or inducing the purchase or sale
of, any security, a registered broker or dealer must meet certain
standards of operational capability, and that such broker or dealer and
all natural persons associated with such broker or dealer must meet
certain standards of training, experience, competence, and such other
qualifications as the Commission finds necessary or appropriate in the
public interest or for the protection of investors.
\8\16 U.S.C. 78o(b)(7) (1988).
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The Commission believes that the proposed requirement that members
who accept orders from profession customers for execution on the Amex
trading Floor pass the Series 7A examination is consistent with the
Act. Moreover, the Commission believes that the proposed requirement
that the clerks of such Floor members pass the new Series 7B
examination also is consistent with the Act. These requirements should
help to ensure that only those Floor members and Floor clerks with a
comprehensive knowledge of Exchange rules and the Act are able to
accept orders from professional customers for execution on the trading
Floor.\9\
\9\The Exchange will continue to require the successful
completion of the Series 7 examination for members and their Floor
clerks seeking to become registered representatives dealing with
other than professional customers. In addition, any person who has
successfully completed the Series 7 Examination will not be required
to complete the Series 7A and 7B Examinations.
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The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. The Commission
believes that accelerated approval is appropriate given the prior
approval of the examinations and their use on the NYSE and because the
accelerated approval will allow Amex to begin utilizing the
examinations as soon as practicable.
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-Amex-95-18) is approved.
\10\15 U.S.C. Sec. 78s(b)(2) (1988).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
\11\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-13898 Filed 6-6-95; 8:45 am]
BILLING CODE 8010-01-M
