[Federal Register Volume 59, Number 54 (Monday, March 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6479]


[[Page Unknown]]

[Federal Register: March 21, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33757; File No. SR-Amex-94-07]

 

Self-Regulatory Organizations; Filing of Proposed Rule Change by 
the American Stock Exchange, Inc. Relating to the Modification of 
Trading Hours for the EUROTOP 100 Index

March 11, 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 March 7, 
1994, 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 Amex. 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 1 in order to modify 
the trading hours for the Amex's EUROTOP 100 Index.
    The text of the proposed rule change is available at the Office of 
the Secretary, the Amex, and at 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 Amex 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 Amex 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 the 
Statutory Basis for, the Proposed Rule Change

    In October 1992, the Exchange began trading standardized options on 
the EUROTOP 100 Index (``E-100''). The E-100 measures the collective 
performance of the most actively traded stocks on Europe's major stock 
exchanges. This broad-based index is calculated continuously from 5 
a.m. to 11:30 a.m. Eastern Standard Time (11 a.m. to 5:30 p.m. Central 
European time). The Exchange's trading hours for options on the E-100 
are from 8:30 a.m. to 4:15 p.m. (New York time). The one hour earlier 
opening was adopted in hopes of attracting European investors as well 
as to conform more closely with trading hours for futures contracts on 
the E-100 traded at the New York Commodity Exchange (``COMEX''), which 
begins trading at 7:30 a.m. (New York time).
    However, in the aftermath of the bombing of the World Trade Center 
in February 1993, the COMEX curtailed trading hours for all of its 
products and has continued to cease trading the E-100 futures contract 
at 11:30 a.m. (New York time), since such time corresponds with the 
cessation of trading of the underlying component securities in the 
European markets. The exchange now proposes to modify the trading hours 
for its E-100 options to cease trading at 11:30 a.m. as well, since 
these hours will correspond more closely to the current trading hours 
for E-100 futures contract at the COMEX.
    The Exchange believes that its current trading hours for E-100 
options expose both the specialists and market makers to undue risk 
after both the underlying component securities and the E-100 futures 
contract have stopped trading, since they are unable effectively to 
hedge their market risk.
    Once the proposal is approved, the Exchange intends to give its 
membership two weeks notice of the change in E-100 trading hours. An 
information circular advising the membership of the new closing time of 
11:30 a.m. would be sent by facsimile to the Exchange's contacts at the 
major options firms, mailed to recipients of the Exchange's options 
related information circulars, and made available to subscribers of the 
Options News Network.
    The Exchange believes that 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 prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Amex 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer 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 
the self-regulatory organization consents, the Commission will: (A) By 
order approve such 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 in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC. 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-94-07 and should be 
submitted by April 11, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\
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    \1\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-6479 Filed 3-18-94; 8:45 am]
BILLING CODE 8010-01-M