[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42635-42636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20208]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36081; File No. SR-Amex-94-30]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange,
Inc. Relating to Transaction Charges
August 10, 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 July 21,
1995, 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 has made a determination to waive Exchange transaction
charges for proprietary equity trades effected on the Floor by
Registered Equity Market Makers (``REMMs'').
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
In 1991, for the first time, the Exchange imposed transaction
charges on proprietary equity trades by members and member
organizations. While these charges were waived for proprietary trades
of equity specialists to facilitate their market making function,
members trading on the Floor as REMMs were not similarly exempted.
REMMs are members that trade on a proprietary basis on the Floor in
designated equity securities. Exchange Rule 114 sets forth the
obligations and requirements under which REMMs are permitted to conduct
such proprietary trading on the Floor. When trading in their designated
securities, REMMs are required under the Rule to contribute to the
maintenance of a fair and orderly market in such securities. REMMs also
are required to engage in dealings in such securities which contribute
to price continuity or depth or minimize the effects of a temporary
disparity between the supply and demand for such securities. Thus,
while not subject to a specialist's continuous market making
obligation, when REMMs effect proprietary equity trades on the Floor,
they are required to comply with the same market making obligations as
specialists.
In view of this requirement to comply with market making
obligations similar to those of specialists, the Exchange believes that
REMMs should be treated the same as specialists with respect to
transaction charges on proprietary equity trades. Accordingly, the
Exchange has made a determination, as it did with specialists, to waive
transaction charges on proprietary equity trades effected by REMMs to
facilitate their market making function.
Although the Exchange currently has 30 members registered to trade
as REMMs, less than half that number trade on a regular basis.
2. Statutory Basis
The fee change is consistent with Section 6(b) of the Act in
general and furthers the objectives of Section 6(b)(4) in particular in
that it is intended to assure the equitable allocation of reasonable
dues, fees, and other charges among members, issuers, and other persons
using the Exchange's facilities.
B. Self-Regulatory Organization's Statement on Burden on Competition
The fee 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
fee change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule proposal changes a fee imposed by the Exchange
and therefore has become effective pursuant to Section 19(b)(3)(A) of
the Act and subparagraph (e) of Rule 19b-4 thereunder. At any time
within 60 days of the filing of such proposed rule change, the
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
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, N.W., Washington, D.C. 20549.
Copies of the submission, all subsequent amendments, all written
statements
[[Page 42636]]
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 Amex. All
submissions should refer to File No. SR-Amex-95-30 and should be
submitted by September 6, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20208 Filed 8-15-95; 8:45 am]
BILLING CODE 8010-01-M
