[Federal Register Volume 59, Number 232 (Monday, December 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29787]


[[Page Unknown]]

[Federal Register: December 5, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35016; File No. SR-Amex-94-46]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by American Stock Exchange, Inc. Revising Qualification 
Examinations Administered by the Exchange.

November 29, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on 
October 25, 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 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 American Stock Exchange, Inc. is filing this proposed rule 
change pursuant to a Commission request that all qualification 
examinations administered by the Exchange be filed with the Commission.
    The text of the proposed rule change is available at the Office of 
the Secretary, 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 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
    The Commission takes the position that self-regulatory 
organizations must file for Commission review all actions imposing 
qualification standards.\1\ The Exchange has gone through an extensive 
process to update and revise its examinations to conform them to new 
rules and procedures. Accordingly, the Amex is submitting the contents 
of its qualification examinations and related materials as a proposed 
rule change.
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    \1\See Securities Exchange Act Release No. 17258 (October 30, 
1980), 45 FR 73906. See also letter from Brandon Becker, SEC, to 
Gordon L. Nash, Amex, dated March 5, 1991.
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    The Amex administers six qualification examinations: the 
Qualification Examination for Regular Members, the Qualification 
Examination for Options Principal Members (``OPMs''), the Put and Call 
Stock Option Examination, the Put and Call Option Questionnaire for 
Listed Personnel, the Specialist Examination and the Registered Equity 
Trader and Registered Equity Market Maker Examination.
    Pursuant to Exchange Rule 50(a) very applicant for regular and 
options principal membership shall pass a qualifying examination prior 
to undertaking any active duties on the Floor. As a result, regular 
members who may trade stocks and options take both the Qualifying 
Examination for Regular Floor Members and the Put and Call Stock Option 
Examination. OPMs, who are prohibited from trading equities, take the 
Qualifying Examination for OPMs and the Put and Call Stock Option 
Examination. Limited Trading Permit Holders take the Qualifying 
Examination for OPMs and the Put and Call Stock Option Examination.
    Commentary .01 to Exchange Rule 50(a) requires that a regular 
member who applies to register as a specialist and a regular or OPM 
member who applies to register as a registered floor trader must also 
pass an examination. Specialists take the Specialist Examination. 
Registered floor traders take the Registered Equity Trader and 
Registered Equity Trader and Registered Equity Market Maker 
Examination.
    Any member who was registered and approved by the Exchange prior to 
1977, the date when the Series 7 exam began to cover standardized 
options, must successfully complete an examination before being 
registered to do public options business.\2\ These individuals must 
take the Listed Put and Call Options Questionnaire for Registered 
Personnel.
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    \2\See Amex Rule 920.
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    The Qualification Examinations for Regular Members and OPMS, and 
the Put and Call Examination are administered by the Director of 
Membership Services.
    The Specialist and Registered Traders Examinations are administered 
by the Assistant Director of Trading Analysis.
    The Put and Call Options Questionnaire for Registered Personnel is 
administered by the broker-dealer firms who certify to the Exchange 
that the applicant has satisfactorily completed the examination.
    All six examinations are specifically designed for Amex membership 
applicants in order to test the applicant's knowledge in a variety of 
areas, including general trading principles and procedures as well as 
specific Amex rules and policies.
2. Statutory Basis
    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), and 6(c)(3)(A) in particular in that the rule change 
is designed to examine the training, experience and competence of 
applicants for Amex membership and verify such applicant qualifications 
for Exchange membership. In addition, the proposed rule change serves 
to protect investors and the public interest by helping to assure 
member competence.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The Exchange has neither solicited nor received written comments on 
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 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 
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. Sec. 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-94-46 and should be 
submitted by December 27, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-29787 Filed 12-2-94; 8:45 am]
BILLING CODE 8010-01-M