[Federal Register Volume 59, Number 86 (Thursday, May 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10748]


[[Page Unknown]]

[Federal Register: May 5, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33980; File No. SR-Amex-94-11]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by American Stock Exchange, Inc. Relating to the Floor Official 
Zone System

April 28, 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 April 
18, 1994, 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 is proposing to amend Amex Rule 22 to delete its 
references to the Floor Official zone system, and provide that matters 
which currently require the approval of a majority of the Floor 
Officials in a zone may be determined by a Floor Official with the 
concurrence of a Senior Floor Official.\1\ The text of the proposed 
rule change is available at the Office of the Secretary, Amex, and at 
the Commission.
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    \1\The Amex has clarified that the proposed rule change will 
affect both its equity and options trading floors. Telephone 
conversation between Claudia Crowley, Special Counsel, Legal and 
Regulatory Policy, Amex, and Beth Stekler, Attorney, Division of 
Market Regulation, SEC, on April 20, 1994.
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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 an 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
    The Trading Floor has historically been divided into zones 
comprised of designated trading posts. Pursuant to Rule 22, the Senior 
Supervisory Officer assigns Floor Officials to each zone and they are 
expected to exercise their authority in their assigned zones. In 
addition, Rule 22(c) provides that a majority of the available Floor 
Officials in each zone may (i) restrict or ban trading by Registered 
Traders, (ii) restrict or ban transactions pursuant to off-Floor orders 
for accounts in which members or member organizations have an interest, 
(iii) prohibit specialists from accepting stop or stop limit orders, or 
(iv) restrict or ban the use of hand signals with respect to any or all 
of the securities in their zone.
    Rule 22 was adopted in 1965 at a time when all of the trading posts 
were located on one main Trading Floor, the Exchange was not trading 
options, and new types of trading products were not frequently added. 
Although the zone system was useful when implemented, it is not 
appropriate in today's environment. As a result of improved technology 
and the faster pace of trading generally (and particularly in options 
and other derivatives), members typically require quick resolution of 
trading questions from Floor Officials. With the expansion of the 
Trading Floor and changes in its configuration, it is unduly time-
consuming and burdensome to attempt to deal only with Floor Officials 
assigned to a particular zone.
    The Exchange is therefore proposing that Rule 22 be amended to (i) 
delete the references to the zone system and permit Floor Officials to 
make determinations anywhere on the Floor, and (ii) provide that 
matters which currently require the approval of a majority of the Floor 
Officials in a zone may be determined by a Floor Official with the 
concurrence of one of the Senior Floor Officials.\2\
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    \2\Pursuant to Exchange Rule 21(a), Senior Floor Officials 
include the Floor Governors and those Exchange Officials who were 
previously Floor Governors and continue to be active on the Floor.
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2. Statutory Basis
    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 promote just and equitable principles of 
trade and remove impediments to and perfect the mechanism of a free and 
open market.

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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the publication of this notice in the Federal 
Register or within such other 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 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the 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 at the 
Commission's Public Reference Section, 450 Fifth Street. NW., 
Washington, DC 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-94-11 and should be 
submitted by May 26, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
[FR Doc. 94-10748 Filed 5-4-94; 8:45 am]
BILLING CODE 8010-01-M