[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