[Federal Register Volume 59, Number 155 (Friday, August 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19743]
[[Page Unknown]]
[Federal Register: August 12, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34500; International Series Release No. 397; File No.
SR-Amex-94-20]
Self-Regulatory Organizations; American Stock Exchange, Inc.;
Order Granting Accelerated Approval of a Proposed Rule Change and
Amendment Nos. 2 and 3, and Filing and Order Granting Accelerated
Approval of Amendment No. 4 to the Proposed Rule Change Relating to the
Listing and Trading of Options on the Mexico Index
August 8, 1994.
On June 3, 1994, the American Stock Exchange, Inc. (``Amex'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``SEC'' or ``Commission''), pursuant to Section 19(b)(1) of the
Securities and Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade options on the
Mexico Index (``Mexico Index'' or ``Index''). On June 27, 1994, the
Exchange filed Amendment No. 1 to the proposed rule change, the subject
matter of which was superseded with the filing of Amendment No. 2
(``Amendment No. 2''), which was filed on July 7, 1994.\3\ Amendment
No. 1 was formally withdrawn on July 8, 1994.\4\ On July 11, 1994, the
Exchange filed Amendment No. 3 (``Amendment No. 3'') to the proposed
rule change to provide for certain standards to be used in conjunction
with the maintenance of the Index, as described below.\5\ On July 12,
1994, the Exchange filed Amendment No. 4 (``Amendment No 4'') to the
proposed rule change to amend the applicable position limits from
10,500 contracts to 7,500.\6\
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\1\15 U.S.C. Sec. 78s(b)(1) (1988).
\2\17 CFR Sec. 249.19b-4 (1991).
\3\See Letter from Howard Baker, Senior Vice President,
Derivative Securities, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated July 7, 1994. In the original
proposal, the Amex sought approval for the listing of options based
upon a Mexico Index that was capitalization-weighted and based upon
shares of twenty Mexican stocks or American Depositary Receipts
(``ADRs'') traded on the New York Stock Exchange, Amex or that were
National Market securities. The Amex proposed that the Index be
classified as a broad-based index. Amendment No. 2 supersedes the
original proposal and Amendment No. 1.
\4\See Letter from Howard A. Baker, Senior Vice President,
Derivative Securities, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated July 8, 1994.
\5\See Letter from Howard A. Baker, Senior Vice President,
Derivative Securities, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated July 11, 1994.
\6\See Letter from Claire McGrath, Managing Director and Special
Counsel, Derivative Securities, Amex, to Michael Walinskas,
Derivative Products Regulation, SEC, dated July 12, 1994.
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Notice of the proposed rule change and Amendment Nos. 2 and 3 was
published for comment and appeared in the Federal Register on July 15,
1994.\7\ No comments were received on the proposal. This order approves
the proposal and Amendment Nos. 2, 3 and 4.
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\7\See Securities Exchange Act Release No. 34356 (July 12,
1994), 59 FR 36235.
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I. Description of the Proposal
The Amex has developed a new index called the Mexico Index, based
entirely on the value of shares or related American Depositary Receipts
(``ADRs'') of widely held Mexican companies traded on the NYSE, Amex,
or that are National Market (``NM'') securities traded through the
National Association of Securities Dealers Automated Quotation system
(``NASDAQ''). The Index contains securities of highly-capitalized
companies with major business interests in Mexico. The Exchange states
that these companies have been drawn from a variety of industries,
including construction, telecommunications, banking, shipping, tobacco,
media, and food and beverage, to reflect the diversity of the Mexican
market.
Index Calculation and Maintenance
The Index is calculated using a ``modified'' equal dollar weighting
methodology. In an attempt to more closely approximate the industry
weightings within the Mexico stock market, the two highest capitalized
components within the Index are given higher weightings, 24% and 12%,
respectively, while the eight remaining Index components are weighted
equally at 8%. Accordingly, as of the market close on June 17, 1994, a
portfolio of ten Mexican component securities was established
representing a hypothetical investment (rounded to the nearest whole
share) of $24,000 in the largest capitalized component in the Index,
$12,000 in the second largest, and $8,000 in each of the remaining
Index components. The value of the Index equals the current market
value (i.e., based on U.S. primary market prices) of the sum of the
assigned number of shares of each of the Index components divided by
the Index divisor. The Index divisor has been established to yield the
benchmark value of 175.00 at the close of trading on July 22, 1994.\8\
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\8\See Letter from Howard A. Baker, Senior Vice President,
Derivative Securities, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated August 3, 1994. The Amex initially
proposed to utilize a divisor calculated to yield the value of
231.00 at the close of trading on June 17, 1994.
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Each quarter thereafter, following the close of trading on the
third Friday of March, June, September and December, the Index
components will be ranked in descending market capitalization order and
the Index portfolio adjusted by changing the number of whole shares of
each component so that the largest capitalized Index component once
again represents 24% of the Index value, the second largest component
represents 12%, and each of the remaining components represent 8%. If
the number of components in the Index increases to greater than ten,
the Amex will continue to weight the two components with the highest
market capitalizations 24% and 12%, respectively. The remaining
components will then be weighted equally.\9\ For example, if two new
components are added to the Index, the two securities with the highest
market capitalizations will be assigned a 24% and 12% weighting,
respectively, while the remaining ten Index components will be assigned
a 6.4% weighting.
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\9\See Amendment No. 3.
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If it becomes necessary to remove an Index component, the exchange
will either add an Index component having characteristics that will
permit the Index to remain within the maintenance criteria specified in
the Generic Narrow-Based Index Approval Order (and also contained in
exchange Rule 901C),\10\ or will permit the Index to be calculated
based upon the remaining components (but no fewer than nine) until the
next quarterly rebalancing, at which time the Exchange will replace the
component so that the Index will continue to have at least ten
components.\11\ The Exchange has chosen to rebalance following the
close of trading on the quarterly expiration cycle because it allows an
option contract to be held for up to three months without a change in
the Index portfolio. If necessary, a divisor adjustment is made at the
rebalancing to ensure continuity of the Index's value. The newly
adjusted portfolio becomes the basis for the Index's value on the first
trading day following the quarterly adjustment.
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\10\See Securities Exchange Act Release No. 34157 (June 3,
1994), 59 FR 30062 (June 10, 1994) (``Generic Narrow Based Index
Approval Order'').
\11\See Amendment No. 3.
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The Amex states that it has routine experience making regular
quarterly adjustments to a number of its indexes and has not
encountered investor confusion regarding the adjustments, since they
are done on a regular basis and timely, proper, and adequate notice is
given to market participants. Particularly, an information circular is
distributed to all Exchange members notifying them of the quarterly
changes. This circular is also 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. In addition, the Exchange will
include in its promotional and marketing materials for the Index a
description of the ``modified'' equal dollar weighting methodology.
As noted above, the number of shares of each component in the Index
portfolio remain fixed between quarterly reviews except in the event of
certain types of corporate actions such as the payment of a dividend
other than an ordinary cash dividend, a stock distribution, stock
splits, reverse stock splits, rights offering distribution,
reorganization, recapitalization, or similar event with respect to the
Index component securities. In a merger or consolidation of an issuer
of an Index component, if the component remains in the Index, the
number of shares of that component in the Index portfolio may be
adjusted, to the nearest whole share, to maintain the component's
relative weight in the Index at the level immediately prior to the
corporate action. Further, if the Exchange replaces an Index component
at a time other than at a quarterly rebalancing, it will do so in the
following manner: if one of the two highest weighted Index components
is replaced, the Exchange will determined the weighting of the Index
component being replaced and assign the same weighting to the newly
added component. If one of the equally weighted Index components is
replaced, the average dollar value of the remaining Index components
within that tier will be calculated and the resulting figure used to
determine the assigned Index portfolio shares, to the nearest whole
share. In all cases, the divisor will be adjusted, if necessary, to
ensure Index continuity, and the Index will be rebalanced at the next
regularly scheduled rebalancing.\12\
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\12\See Letter from Nathan Most, Senior Vice President, New
Products Development, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated August 3, 1994, This Letter also
withdraws that portion of Amendment No. 3 as it relates to the
replacement of Index components.
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The Amex will calculate and maintain the Index and, pursuant to
Exchange Rule 901C(b), may at any time or from time to time substitute
Index component securities, or adjust the number of components included
in the Index, based on changing conditions in Mexico. However, the
Exchange will not decrease the number of Index components to greater
than nine or increase the number of components to greater than thirteen
without prior Commission approval.\13\
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\13\See Amendment No. 3.
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The value of the Index will be calculated continuously and
disseminated every 15 seconds over the Consolidated Tape Association's
Network B.
Expiration and Settlement
The Exchange proposes to trade cash-settled, European-style Index
options (i.e., exercises are permitted at expiration only). The
Exchange also proposes that Mexico Index options will have trading
hours from 9:30 a.m. to 4:15 p.m. EST. As with other index options
traded on the Amex, the options on the Index will expire on the
Saturday following the third Friday of the expiration month
(``Expiration Friday''). The last trading day in an option series will
normally be the second to last business day preceding the Saturday
following the third Friday of the expiration month (normally a
Thursday). Trading in expiring options will cease at the close of
trading on the last trading day.
The Index value for purposes of settling a specific Mexico Index
option will be calculated based upon the primary exchange regular way
opening sale prices for the Index component securities. In the case of
NM securities, the first reported sale price will be used. As trading
begins in each of the Index's component securities, its opening sale
price is used to calculate the Index settlement value. The Index
settlement value can be determined once all of the components have
opened. If any of the components do not open for trading on the last
trading day before expiration, then the prior day's last sale price is
used in the Index settlement value calculation.
The Exchange plans to list options series with expirations in the
three near-term calender months and in the two additional calendar
months in the March cycle. In addition, longer term option series
having up to thirty-six months to expiration may be traded. In lieu of
such long-term options on a full-value Index level, the Exchange may
instead list long-term, reduced-value put and call options based on
one-tenth (1/10th) the Index's full-value. In either event, the
interval between expiration months for either a full-value or reduced-
value long-term option will not be less than six months.
Eligibility and Maintenance Standards for Index Components
The Exchange has represented that it will ensure that the Index
initially and thereafter satisfies the initial listing and maintenance
criteria set forth in the Generic Narrow-Based Index Approval Order. In
choosing among Index component securities that meet the initial minimum
criteria set forth in the Generic Narrow-Based Index Approval Order (as
well as Exchange Rule 901C), the Exchange will select components that:
(1) have a minimum market value of at least U.S. $75 million, except
that for each of the lowest weighted component securities in the Index
that in the aggregate account for no more than 10% of the weight of the
Index, the market value may be at least $50 million; (2) have an
average monthly trading volume in the U.S. markets over the previous
six-month period of not less than one million shares (or ADRs) except
that for each of the lowest weighted component securities in the Index
that in the aggregate account for no more than 10% of the weight of the
Index, the trading volume shall be at least 500,000 shares in each of
the last six months; (3) have at least 90% of the numerical Index value
and at least 80% of the total number of component securities meeting
the current criteria for standardized option trading set forth in
Exchange Rule 915; and (4) are reported securities that trade on either
the NYSE, Amex (subject to the limitations of Rule 901C), or are NM
securities. In addition, no individual stock in the Index may represent
more than 25% of the Index weight (at the time of rebalancing) and the
five highest weight stocks may not constitute more than 60% of the
Index weight (at the time of rebalancing).
The Amex will ensure that not more than 20% of the weight of the
Index is represented by ADRs overlying foreign securities that are not
subject to comprehensive surveillance sharing agreements.\14\
Currently, one component ADR, accounting for 8% of the Index value, has
the majority of its trading volume occurring on the Bolsa Mexicana de
Valores, an exchange with which the Amex does not currently have in
place an effective information sharing agreement.
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\14\See Amendment No. 3: Also, see infra note 23.
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If the Index fails at any time to satisfy the maintenance criteria
set forth in the Generic Narrow-Based Index Approval Order and Exchange
Rule 901C, the Exchange will immediately notify the Commission of that
fact and will not open for trading any additional series of options of
the Index unless such failure is determined by the Exchange not to be
significant and the Commission concurs in that determination, or unless
the continued listing of options on the Mexico Index has been approved
by the Commission under Section 19(b)(2) of the Exchange Act.\15\
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\15\See Amendment No. 3.
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Exchange Rules Applicable to Stock Index Options
Amex Rules 900C through 980C will apply to the trading of regular
and long-term contracts based on the Index. These Rules cover issues as
such as surveillance, exercise prices, and position limits.
Surveillance procedures currently used to monitor trading in each of
the Exchange's other index options will also be used to monitor trading
in options on the Index. The Index is deemed to be a Stock Index option
under Rule 901C(a) and a Stock Index Group under Rule 900C(b)(1). With
respect to Rule 903C(b), the Exchange proposes to list near-the-money
(i.e., within ten points above or below the current index value)
options series on the Index at 2\1/2\ point strike (exercise) price
intervals when the value of the Index is below 200 points. In addition,
the Exchange proposes to establish, pursuant to Rule 904C(c), a
position limit of 7,500 contracts on the same side of the market.\16\
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\16\See Amendment No. 4.
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The Exchange seeks to have the ability to utilize its Auto-Ex
system for orders in the Index options of up to 50 contracts. Auto-Ex
is the Exchange's automated execution system which provides for the
automatic execution of market and marketable limit orders at the best
bid or offer at the time the order is entered. The Amex believes the
ability to use Auto-Ex for orders of up to 50 contracts will provide
customers with deep, liquid markets as well as expeditious executions.
The Amex represents that it has the necessary systems capacity to
support new series that would result from the introduction of Mexico
Index Options.\17\
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\17\See Letter from Edward Cook, Jr., Managing Director,
Information Technology, Amex, to Michael Walinskas, Derivative
Products Regulation, SEC, dated July 8, 1994. Additionally, the
Options Price Reporting Authority (``OPRA'') has stated that it has
the necessary systems capacity to support those new series of index
options that would result from the introduction of Index options and
Index LEAPS. See Memorandum from Joe Corrigan, Executive Director,
OPRA, to Charles Faurot, Managing Director, Market Data Services,
Amex, dated July 8, 1994.
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II. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange and, in
particular, the requirements of Section 6(b)(5).\18\ Specifically, the
Commission finds that the trading of Mexico Index options, including
full-value and reduced-value Index LEAPS, will serve to promote the
public interest and help to remove impediments to a free and open
securities market by providing investors with a means of hedging
exposure to market risk associated with Mexican securities.\19\
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\18\15 U.S.C. Sec. 78f(b)(5) (1988).
\19\Pursuant to Section 6(b)(5) of the Act, the Commission must
predicate approval of any new option proposal upon a finding that
the introduction of such new derivative instrument is in the public
interest. Such a finding would be difficult for a derivative
instrument that served no hedging or other economic function,
because any benefits that might be derived by market participants
likely would be outweighted by the potential for manipulation,
diminished public confidence in the integrity of the markets, and
other valid regulatory concerns. In this regard, the trading of
listed Index options and full-value Index LEAPS will provide
investors with a hedging vehicle that should reflect the overall
movement of Mexican stocks and ADRs in the U.S. securities markets.
The Commission also believes that these Index options will provide
investors with a means by which to make investment decisions
regarding Mexican securities traded in the U.S. securities markets,
allowing them to establish positions or increase existing positions
in such markets in a cost effective manner. Moreover, the Commission
believes that the reduced-value Index LEAPS, which will be traded on
an index computed at one-tenth the value of the Mexico Index, will
serve the needs of retail investors by providing them with the
opportunity to use a long-term option to hedge their portfolios from
long-term market moves, at a reduced cost.
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The trading of options on the Mexico Index, including full-value
and reduced-value Index LEAPS, however, raises several concerns, namely
issues related to index design, customer protection, surveillance, and
market impact. The Commission believes, for the reasons discussed
below, that the Amex adequately has addressed these concerns.
A. Index Design and Structure
The Commission finds that the Mexico Index is a narrow-based index.
The Mexico Index is composed of only ten securities, all of which
represent Mexico companies.\20\ Accordingly, in light of the limited
number of components in the Index, the Commission believes it is proper
to classify the Mexico Index as narrow-based and apply Amex's rules
governing narrow-based index options to trading in the Index options.
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\20\The reduced-value Mexico Index, which is composed of the
same component securities as the Index and calculated by dividing
the Index value by ten, is identical to the Mexico Index.
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The Commission also finds that the large capitalizations, Liquid
markets, and relative weightings of the Index's component securities
significantly minimize the potential for manipulation of the Index.
First, the overwhelming majority of the components that comprise the
Index are actively traded, with an average daily trading volume for the
period from November, 1993 through May, 1994, ranging from a high of
430,000 shares per day to a low of 106,000 shares per day. Second, the
market capitalizations of the securities in the Index are very large,
ranging, during the same period, from a high of $31 billion to a low of
$156.92 billion, with the mean and median being $6.77 billion and $1.94
billion, respectively. Third, although the Index is only comprised of
ten component securities, no one particular security or group of
securities dominates the Index. Specifically, no one stock or ADR
comprises more than 24 percent of the Index's total value and the
percentage weighting of the five largest issues in the Index account
for 60 percent of the Index's value. Fourth, at least 90 percent of the
securities in the Index, by weight, and at least 80 percent of the
number of components of the Index, must be eligible for standardized
options trading. This proposed maintenance requirement will ensure that
the Index is substantially comprised of options-eligible securities.
Fifth, if the Amex increases the number of component securities to more
than thirteen or decreases that number to less than nine, the Amex will
be required to seek Commission approval pursuant to Section 19(b)(2) of
the Act before listing new strike price or expiration month series of
Mexico Index options and Index LEAPS. This will help protect against
material changes in the composition and design of the Index that might
adversely affect the Amex's obligations to protect investors and to
maintain fair and orderly markets in Mexico Index options and Index
LEAPS. Sixth, the Amex will be required to ensure that each component
of the Index is subject to last sale reporting pursuant to Rule 11Aa3-1
of the Act.\21\ This will further reduce the potential for manipulation
of the value of the Index. Finally, the Commission believes that the
expense of attempting to manipulate the value of the Mexico Index in
any significant way through trading in component stocks, ADRs, or
securities underlying ADRs (or options on those securities) coupled
with, as discussed below, existing mechanisms to monitor trading
activity in those securities, will help deter such illegal activity.
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\21\ See Amendment No. 3.
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Furthermore, the Commission notes that the Amex has agreed to apply
the initial listing and maintenance standards set forth in the Generic
Narrow Based Index Approval Order to the Index and Index options. These
standards are reasonably designed to ensure the protection of investors
and the public interest. Specifically, the Commission finds that the
generic standards covering minimum capitalization, monthly trading
volume, and relative weightings of component stocks are designed to
ensure that the trading markets for component stocks are adequately
capitalized and sufficiently liquid, and that no one stock or stock
group dominates an Index. Thus, the Commission believes that the
satisfaction of these requirements significantly minimizes the
potential for manipulation of the Index.
B. Customer Protection
The Commission believes that a regulatory system designed to
protect public customers must be in place before the trading of
sophisticated financial instruments, such as Mexico Index options
(including full-value and reduced-value Mexico LEAPS), can commence on
a national securities exchange. The Commission notes that the trading
of standardized exchange-traded options occurs in an environment that
is designed to ensure, among other things, that: (1) the special risks
of options are disclosed to public customers; (2) only investors
capable of evaluating and bearing the risks of options trading are
engaged in such trading; and (3) special compliance procedures are
applicable to options accounts. Accordingly, because the Index options
and Index LEAPS will be subject to the same regulatory regime as the
other standardized options currently traded on the Amex, the Commission
believes that adequate safeguards are in place to ensure the protection
of investors in Mexico Index options and full-value and reduced-value
Mexico Index LEAPS.
C. Surveillance
The Commission believes that a surveillance sharing agreement
between an exchange proposing to list a security index derivative
product and the exchange(s) trading the securities underlying the
derivative product is an important measure for surveillance of the
derivative and underlying securities markets. Such agreements ensure
the availability of information necessary to detect and deter potential
manipulations and other trading abuses, thereby making the security
index product less readily susceptible to manipulation.\22\ In this
regard, the Amex, NYSE, and NASD are all members of the ISG, which
provides for the exchange of all necessary surveillance
information.\23\ Further, as to present and future ADR components of
the Index, either the Exchange will have comprehensive surveillance
sharing agreements with the primary foreign markets for the securities
underlying the ADRs or the U.S. will be the relevant market for
surveillance purposes.\24\
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\22\Securities Exchange Act Release No. 31243 (September 28,
1992), 57 FR 45849 (October 5, 1992).
\23\If the prices of the ADR components, or the composition of
the Index, should change so that greater than 20% of the weight of
the Index would be represented by ADRs whose underlying securities
were not the subject of a comprehensive surveillance sharing
agreement with the Amex, then it would be difficult for the
Commission to reach the conclusions reached in this order and the
Commission would have to determine whether it would be suitable for
the Exchange to continue to trade options on this Index. The Amex
should, accordingly, notify the Commission immediately if more than
20% of the numerical value of the Index is represented by ADRs whose
underlying securities are not subject to a comprehensive
surveillance sharing agreement. Such a change in the current
relative weights of the Index or in the composition of the Index may
warrant the submission of a rule filing pursuant to Section 19 of
the Act. In determining whether a particular ADR is subject to a
comprehensive surveillance sharing agreement, see, e.g., Securities
Exchange Act Release Nos. 31531 (November 27, 1992), 57 FR 57250
(December 3, 1992); and 33554 (January 31, 1994), 59 FR 5622
(February 7, 1994).
\24\See Securities Exchange Act Release Nos. 31531 (November 27,
1992), 57 FR 57250 (December 3, 1992); and 33554 (January 31, 1994),
59 FR 5622 (February 7, 1994).
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D. Market Impact
The Commission believes that the listing and trading of Mexico
Index options, including full-value and reduced-value Index LEAPS, on
the Amex will not adversely impact the underlying securities markets.
First, as described above, for the most part, no one security or group
of securities dominates the Index. Second, because at least 90% of the
numerical value of the Index and at least 80% of the components of the
Index must be accounted for by securities that meet the Exchange's
options listing standards, and because each of the component securities
must be subject to last sale reporting pursuant to Rule 11Aa3-1 of the
Act,\25\ the component securities generally will be actively-traded,
highly-capitalized securities. Third, the 7,500 contract position and
exercise limits applicable to Index options and Index LEAPS will serve
to minimize potential manipulation and market impact concerns.
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\25\See Amendment No. 3.
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The Commission believes that settling expiring Mexico Index options
(including full-value and reduced-value Index LEAPS) based on the
opening prices of component securities is consistent with the Act. As
noted in other contexts, valuing options for exercise settlement on
expiration based on opening prices rather than closing prices may help
reduce adverse effects on markets for securities underlying options on
the Index.\26\ Lastly, the Commission believes the ability to use Auto-
Ex for orders of up to 50 contracts will provide customers with liquid
markets and efficient executions.
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\26\See Securities Exchange Act Release No. 30944 (July 21,
1992), 57 FR 33376 (July 28, 1992).
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The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, the requirements of Section 6(b)(5).\27\ In particular, the
Commission believes the proposal is consistent with the Section 6(b)(5)
requirement that the rules of an exchange be designed to promote just
and equitable principles of trade and not to permit unfair
discrimination between customers, issuers, brokers, and dealers.
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\27\15 U.S.C. Sec. 78f(b)(5) (1988).
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The Commission finds good cause for approving the proposed rule
change, as amended, and Amendment No. 4 to the Exchange's proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. Amendment No. 4
clarifies that the Exchange will apply its current rules to determine
applicable position limits for the Index options and, therefore, raises
no new or unique regulatory issues. Furthermore, the Commission notes
that the Amex did not realize the proposal would have been eligible for
filing, pursuant to Section 19(b)(3)(A) of the Act, under the Generic
Narrow Based Index Approval Order. Accordingly, because the
effectiveness of the proposal was therefore delayed, in part, by
confusion over the proper method under which to file, and considering
the proposal has already been subject to a 21-day comment period, and
no comments were received, the Commission believes it is consistent
with Sections 19(b)(2) and 6(b)(5) of the Act to approve the proposed
rule change, as amended, on an accelerated basis.
III. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning Amendment No. 4. 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. Copies of such filing will also be available for
inspection and copying at the principal office of the above-mentioned
self-regulatory organization. All submissions should refer to the file
number in the caption above and should be submitted by September 2,
1994.
It therefore is Ordered, pursuant to Section 19(b)(2) of the
Act,\28\ that the proposed rule change, as amended, (SR-AMEX-94-20) is
approved.
\28\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.\29\
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\29\17 CFR Sec. 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19743 Filed 8-11-94; 8:45 am]
BILLING CODE 8010-01-M