[Federal Register Volume 60, Number 40 (Wednesday, March 1, 1995)]
[Notices]
[Pages 11153-11157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4994]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35411; File No. SR-Amex-95-08]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by American Stock Exchange, Inc. Relating to Membership 
Structure and Requirements

February 22, 1995.
    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 February 
17, 1995, 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.\1\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.

    \1\This filing withdraws and replaces File No. SR-Amex-94-23, 
which was noticed for comment in Securities Exchange Act Release No. 
34968 (November 10, 1994), 59 FR 59804 (November 18, 1994). The 
prior Amex proposal and the comments received in response thereto 
are available at the Commission.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing certain revisions to its Constitution, 
Rules and Membership Lease Plan regarding membership structure and 
requirements. The text of the proposed rule change is available at the 
Office of the Secretary, the Amex, and at the 
Commission. [[Page 11154]] 

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 Section 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

Background

    The Exchange Member Ownership Issues Committee was established in 
June of 1992 to examine the need for changes and revisions in the 
Exchange's membership structure and requirements. Following an 
extensive review, the Committee recommended certain changes in order to 
update the membership structure and respond to the expressed needs of 
the membership. These changes, which have been approved by the 
Exchange's Board of Governors and membership, are described below.

Seat Ownership

    Currently, each of the 661 regular memberships and 203 options 
principal memberships are held in the name of an individual member.\2\ 
Member firms and member corporations may beneficially own these 
memberships by designating an individual (typically a general partner 
or employee of a member firm or an officer or employee of a member 
corporation) nominally to own the seat in their behalf. This is 
accomplished by either using a lease\3\ or an a-b-c agreement.\4\ In 
the case of a lease, a member organization must also place the lease in 
the name of an individual nominee as lessor.

    \2\Both regular members and options principal members are 
exchange members as defined in Section 3(a)(3) of the Act. A regular 
member may execute transactions in both equities and derivatives. In 
contrast, an options principal member is limited to trading as 
principal in options and other derivative products. For further 
discussion of types of memberships, see Art. IV. Sec. 1 of the Amex 
Constitution.
    \3\As noted below, the lease must be executed by the nominal 
seat owner, rather than the member organization with which such 
individual is associated and which is the beneficial owner of the 
membership.
    \4\An a-b-c agreement is an arrangement between the individual 
who nominally owns a seat and the member organization with which 
such individual is associated and which is the beneficial owner of 
the membership. Upon termination of the a-b-c agreement, the 
individual must either (1) retain the membership and pay the member 
organization the amount necessary to purchase another membership; 
(2) sell the membership with the proceeds paid over to the member 
organization; or (3) transfer the membership to a person designated 
by the member organization.
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    Individuals are not permitted to own more than one seat. Member 
organizations, on the other hand, may own multiple seats beneficially, 
but each seat must be nominally owned by an individual member.
    The Exchange proposes to eliminate the requirement that seats be 
individually owned. The Amex believes that this requirement is outdated 
and not responsive to the needs of the member community. Several other 
exchanges permit organizations, as well as individuals, to own 
memberships (e.g., the Chicago Board Options Exchange (``CBOE''), the 
New York Futures Exchange and the Pacific Stock Exchange (``PSE'')).
    Under the proposal, an organization would be able to be both legal 
and beneficial owner of one or more memberships. The organization would 
be able to lease a seat to a lessee or to designate an individual as 
nominee to ``operate'' the seat. As a general matter, nominees (like 
lessees) would be deemed to be members of the Exchange and would be 
subject to all of the obligations and enjoy all the privileges of 
membership under the Exchange Constitution and Rules, except (1) for 
purposes of participating in any distribution of Exchange assets or 
funds upon liquidation, dissolution or winding up of the affairs of the 
Exchange and (2) ultimate control of the membership would rest with the 
organization owner.\5\ The a-b-c agreement would no longer be required. 
It would be replaced with another document to authorize the nominee to 
act on the member organization's behalf in all Exchange matters and to 
provide that the member organization is responsible for all the 
nominee's Exchange-related obligations.

    \5\As discussed below, see infra note 9 and accompanying text, 
the owner would retain the right to vote seats held by nominees and 
certain lessees.
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    The proposal also would permit both individuals and organizations 
to own multiple memberships. Individuals would be able to lease their 
additional seats, or to designate nominees to ``operate'' the seats and 
act as their employees.
    A number of members have indicated that they would be interested in 
acquiring more than one membership. The Exchange finds no compelling 
reason to continue to prohibit multiple memberships. In this regard, it 
should be noted that the CBOE, the PSE, the Philadelphia Stock Exchange 
(``Phlx'') and virtually all commodities exchanges permit multiple 
ownership.

Leasing

    Currently, both the lessor and the lessee of a leased seat must be 
individuals. Because, under the proposal, organizations would be 
permitted to own seats directly, as well as beneficially, the member 
organization may be the lessor. Such member organization would not be 
required to designate a nominee as the lessor on the seat.

Claims Procedure

    Under the current rules, no member may sell or transfer his 
membership unless he does so pursuant to established Exchange 
procedures. All transfers must be posted on the Exchange Bulletin Board 
and published in the Weekly Bulletin for at least seven days. During 
this time, other members and member organizations must file their 
claims against the seat with the Exchange. The same procedures are used 
for intrafirm transfers. Before the seat can be transferred to another 
employee in the firm, the firm is required to satisfy any outstanding 
claims.
    Basically, the same transfer and claims procedures would be 
utilized under the new membership structure. In addition, the 
designation of a nominee by a seat owner would be deemed to be a 
transfer, and the posting and claims procedures would apply.
Subordination of Membership to Trading Losses and Debts

    Currently, all memberships are subordinated to (i.e., ``stand 
behind'') the trades of the member in whose name the seat is held. In 
the case of a leased seat, the lessor's seat is at risk for his 
lessee's's trading losses and other debts incurred in connection with 
membership. In the case of seats held pursuant to a-b-c agreements, 
member organizations are responsible for obligations that their a-b-c 
seatholders incur.\6\

    \6\A member organization is responsible even if its a-b-c 
seatholder's obligations exceed the value of the seat.
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    The above requirements would remain the same under the proposal. If 
an individual or organization owns multiple memberships that are held 
subject to one or more leases, only the [[Page 11155]] seat used by a 
given lessee's would stand behind that lessee trades. If, however, an 
individual or organization owns multiple memberships as to which 
nominees have been designated, all of the owner's seats would stand 
behind the trades of any nominee.

Fees

    Currently, when a seat is sold, the initiation fee is $2,500 for 
both a regular and options principal membership. The initiation fee on 
a nominal transfer (i.e., within a firm pursuant to an a-b-c 
agreement)\7\ is $2,500 for a regular membership and $500 for an 
options principal membership. When a membership is transferred to a 
lessee, the initiation fee is $1,500 for a regular membership and $500 
for an options principal membership. Dues for all members are $750 per 
year. Floor facilities fees are $1,400 per year for active members.

    \7\See supra, note 4 and accompanying text.
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    The Exchange is proposing to change the fee structure in order to 
equalize fees between regular and options principal memberships.\8\ The 
initiation fee of $2,500 when a seat is sold would be retained for both 
regular and options principal memberships. However, all nominal 
transfers (i.e., intra-firm) and leases would be subject to a $1,500 
initiation fee. Changes in nominees would be deemed to be nominal 
transfers. According to the Exchange, it does not appear to be 
necessary or appropriate to retain the disparity in initiation fees for 
nominal and lease transfers of regular and options principal 
memberships in view of the fact that the administrative expenses (i.e., 
staff time and paperwork) attributable to the two types of membership 
are identical.

    \8\This proposal would not affect any change to annual dues or 
other fees.
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    The Exchange, however, does not believe that it would be 
appropriate for the initiation fee requirement to deter members from 
taking advantage of the new alternatives that would be available in 
structuring ownership of Amex seats. Accordingly, for the ninety-day 
period, after these changes become effective, no initiation fee would 
be charged for changes in membership ownership, except for bona fide 
sales and bona fide changes in leases or nominees. A $250 processing 
fee would be imposed on transfers where no initiation fee is charged.
Voting

    Currently, members subject to an a-b-c agreement sign an 
irrevocable proxy giving their votes to their member organizations. The 
organization then designates an individual (typically an employee) who 
is authorized to vote on behalf of the membership. In the case of 
leased seats, the vote is negotiable between the lessor and lessee.
    Under the new rules, organizations would be entitled to vote all of 
the memberships that they own (and do not lease out) and would have to 
designate an individual who is authorized to vote on their behalf. 
Individuals who own more than one seat would be able to vote on behalf 
of the seat that they are actively using, as well as the seats of their 
nominees. With respect to leased seats, the vote would still be 
negotiable between lessor and lessee. There would be a specific box on 
the lease itself on which the parties would indicate who is authorized 
to vote.\9\

    \9\If no specification is made, the lessee would vote the seat.
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Gratuity Fund

    Currently, the Exchange Gratuity Fund (``Fund'') provides that only 
families of regular members\10\ receive the Gratuity Fund death benefit 
of $100,000. To fund the death benefit, each regular member contributes 
$152 to the Fund upon becoming a member and is assessed $152 each time 
a fellow regular member dies (subject to reduction in the first 
assessment of the year to reflect income earned by the Fund in the 
previous year). In the case of leased seats, the lessor is considered 
the member for purposes of the Gratuity Fund.

    \10\See supra, note 2.
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    A number of changes to the Gratuity Fund are proposed. These 
changes are intended to achieve two goals: To provide increased 
benefits and to close ``loopholes'' which could enable persons to 
become Participants in the Gratuity Fund under circumstances which 
would be inappropriate.
    Under the proposal, the benefit would be increased to $125,000. The 
amount of each assessment would fluctuate since, as discussed below, 
the number of Participants in the Fund would vary based on who is 
eligible at the time of a member's death and since the extent to which 
Participants were ``phased-in'' would vary.\11\ As is currently the 
case, Participants would have to pay both an initial assessment upon 
becoming a Participant and an assessment each time an eligible 
individual dies. The first group of persons to become newly eligible 
for the Gratuity Fund upon the adoption of these changes would be 
required to pay an initial assessment of $300.\12\ Thereafter, persons 
who become eligible would be required to pay an initial assessment 
based on the number of Participants in the Fund at that time.

    \11\For further discussion of the ``phase-in'' schedule for 
Gratuity Fund Participants, see infra note 18 and accompanying text.
    \12\The Gratuity Fund currently maintains a reserve of $200,000, 
the amount necessary to pay two death benefits. If the benefit is 
increased, the reserve would be increased accordingly. The initial 
assessment of $300 on new Participants would allow the Fund to 
achieve this goal, and would place new Participants on a par with 
existing Participants who, of course, paid an initial assessment 
when they first became eligible to participate in the Fund.
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    Under the proposal, options principal members and both options 
principal and regular member lessees (and nominees) would be included 
in the Gratuity Fund,\13\ in additional to regular members and some 
lessors.\14\ In order for a lessor's beneficiaries to be eligible to 
receive a Gratuity Fund benefit, the lessor must have been ``active'' 
on the Floor for at least two continuous years during this career (but 
after June 10, 1993).\15\ ``Active'' is defined as meeting all Exchange 
requirements to be active on the Floor,\16\ including passing any 
necessary examinations and being registered as, or associated with, a 
broker-dealer. ``Two continuous years'' is defined as two calendar 
years, meaning a period from one date through the preceding date two 
years hence (e.g., from May 1, 1995 through April 30, 1997). Lessees 
and nominees would have to be currently active for their beneficiaries 
to receive a benefit. Individuals who own seats either would have to be 
currently active on the Floor or would have to have been active for at 
least two continuous years during their career (but after June 10, 
1993) in order for their beneficiaries to receive a Gratuity Fund 
benefit.

    \13\Options principal members, lessees and nominees would also 
be eligible to become trustees of the Gratuity Fund.
    \14\Lessors (and owners of seats as to which nominees have been 
designated) could be included in the Gratuity Fund pursuant to the 
transition arrangements, see infra notes 24-28 and accompanying 
text, or based on their prior active status, see infra notes 15-17 
and accompanying text.
    \15\As noted below, see infra note 28 and accompanying text, 
June 10, 1993 would be the cut-off date for eligibility for the 
transition arrangements.
    \16\See Para. 9176 of the Amex Guide (``Membership Requirements 
and Admissions Procedures'').
    It should be noted that a person would not have to maintain the 
same status for the two-year period. For example, a person who is a 
lessee for one and a half years and who then buys the seat (or another 
seat) and remains on it for at least six months would satisfy the 
active requirement. In addition, a person may be off the seat for up to 
sixty consecutive days during the two-year period without being 
considered to have [[Page 11156]] interrupted that period. Individuals 
would lose their right to participate in the Gratuity Fund based on 
prior active status if there should be any five-year period in which 
the person is not a lessor, lessee, nominee or seat owner.\17\ Lessors 
who lose their prior active status would have to be active for another 
two continuous years in order to requalify for the Gratuity Fund. 
Members and nominees would either have to be currently active or active 
for another two continuous years in order to be eligible for the 
Gratuity Fund again.

    \17\This provision would apply to a person who had satisfied the 
active requirement and thus was eligible for the Gratuity Fund based 
on prior status and who thereafter disposed of his membership. If, 
within five years of leaving the Exchange, such person becomes a 
lessor or other inactive seat owner, he would retain his right to 
participate in the Gratuity Fund. If, however, more than five years 
pass, such person would lose his prior active status and would have 
to requalify for the Gratuity Fund. A person who leaves the Exchange 
would not be eligible for the Gratuity Fund benefit during any 
period when he is not a lessor, lessee, nominee or seat owner.
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    Further, under the proposal, the Exchange would implement, for new 
Gratuity Fund Participants, a four year ``phase-in'' schedule based 
upon the length of time the individual in question had been a 
Participant.\18\ The ``phase-in'' would operate as follows:

    \18\This schedule is similar to that used by the New York Stock 
Exchange (``NYSE'') regarding payments from its Gratuity Fund. See 
Art. XV, Sec. 3 of the NYSE Constitution.
    The Amex's proposed ``phase-in'' schedule would be applied only 
on a prospective basis and would not be applicable to persons who 
are already Gratuity Fund Participants or who become Gratuity Fund 
Participants by virtue of the proposed amendments (e.g., options, 
principal members and lessees) regardless of whether such persons 
have been Participants or members for four years or more. However, 
an existing options principal member or lessee who ``opts out'' of 
the Gratuity Fund and on some other basis later becomes eligible 
would at that time be subject to the ``phase-in.'' See infra notes 
26-27 and accompanying text.
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    Upon the death of a Participant, a payment would be made based upon 
the length of time such person had been a Participant, according to the 
following schedule:
     Less than one year--$25,000 (20% ``phase-in'').
     One year or more but less than two years--$50,000 (40% 
``phase-in'').
     Two years or more but less than three years--$75,000 (60% 
``phase-in'').
     Three years or more but less than four years--$100,000 
(80% ``phase-in'').
     Four years or more--$125,000 (100% ``phase-in'').
    If a participant who was ``phasing-in'' ceases to be a Participant 
for a period of less than five years, and such individual thereafter 
again becomes a Participant, he would be able to aggregate his periods 
of participation for purposes of the ``phase-in.'' For example, if an 
individual is a Participant for one year and then ceases to be a 
Participant for four years, and if he were again to become a 
Participant, he would be credited with the amount of time he previously 
spent as a Participant for purposes of the ``phase-in'' schedule.
    If an individual who was a Participant ceases to be a Participant 
for a period of five years or more, and such individual thereafter 
again becomes a Participant, he would not be able to aggregate his 
periods of participation for purposes of the ``phase-in'' described 
above (i.e., regardless of the length of time he had previously been a 
Participant, the ``phase-in'' schedule would be applied as if he had 
never been a Participant in the past).
    Each membership would pay at least one assessment, regardless of 
whether the owner or a lessee or nominee qualifies for the Gratuity 
Fund.\19\ In some instances, there would be one assessment per seat and 
on others two (i.e., when both lessor and lessee are qualified). 
Gratuity Fund assessments would be based in all cases on the amount of 
the benefit payable and would be the same for all memberships assessed, 
regardless of whether or to what extent a particular Participant being 
assessed has already ``phased-in'' to full eligibility.

    \19\The only exception to this would be in the case of an 
individual who is both the independent owner of and the user of a 
particular options principal membership and who ``opts-out'' of the 
Gratuity Fund under the transition provisions discussed below. For 
such a person's ``opt-out'' to be able to have any practical effect, 
his options principal seat would have to be exempt entirely from the 
obligation to pay assessments to the Gratuity Fund for so long as he 
remains the owner and user of that seat.
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    No member's beneficiaries would be entitled to receive more than 
one Gratuity Fund benefit upon the member's death by virtue of the 
deceased member's status as both lessor and lessee, or for any other 
reason. The family of a member who owns multiple memberships would be 
able to collect only one benefit. The member would be eligible on only 
one seat, and must designate that seat to the Exchange. The lessees or 
nominees of the other seats, of course, would be eligible on those 
seats.
    The individuals who are nominee-lessors on behalf of member 
organizations would no longer be qualified for the Gratuity Fund under 
the proposed system (although, as discussed below, there would be a 
grandfather clause). This is because the member organization itself 
would be the lessor. Under the proposal, however, the individual who 
would have been named as lessor most likely would not qualify for the 
Gratuity Fund anyway, since member organizations typically named an 
upstairs executive as lessor and such person would not be ``active'' 
and may not have been ``active'' in the past, at least within the last 
five years.
    The trustees of the Gratuity Fund would have the authority to 
resolve disputes with respect to a person's eligibility to participate 
in the Fund.\20\

    \20\For further discussion of rules governing trustees of the 
Gratuity Fund, see Art. IX of the Amex Constitution.
Pension Trusts

    Currently, the Exchange does not permit ownership of seats by 
trusts.\21\ The proposal would permit pension plans (generally 
comprised of trusts or custodial accounts, including Keoghs and 
Individual Retirement Accounts) of ``active'' members (as defined 
above) to acquire ownership of one or more seats for investment 
purposes, and either to lease the seat or to designate a nominee to 
operate it.\22\ The intent is to make this available only to pension 
trusts where the trust sponsor is an active member, or where the 
sponsor is a member organization and at least fifty percent (50%) of 
the pension trust beneficiaries are active members and/or Floor 
employees of the member organization. The trust itself would be the 
owner of the membership, and the trustee would have to become an 
approved person.\23\ Only the nominee or lessee would be eligible for 
the Gratuity Fund, provided he or she is not already eligible for the 
Gratuity Fund with respect to another seat (e.g., as the owner of that 
seat). As is the case for other member organizations, the trust would 
be entitled to vote all of the seats that it owns (and does not lease 
out) and may designate who may vote on its behalf. If the seat is 
leased, the vote would be negotiable between the trust and the lessee.

    \21\Both the Phlx and the Chicago Mercantile Exchange permit 
pension trusts to own seats.
    \22\The Exchange has been advised that the prohibited 
transaction provisions of the Employee Retirement Income Security 
Act and the Internal Revenue Code would preclude a member from being 
the nominee or lessee of the seat owned by his own pension trust.
    \23\See Art. I, Sec. 3(g) of the Amex Constitution.
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Transition Arrangements

    The proposal includes a grandfathering provision for the Gratuity 
Fund revisions.\24\ All regular members ad existing regular member 
lessors would be grandfathered with respect to the ``active'' 
requirement, that [[Page 11157]] is, they would be deemed to have met 
it, even if they never were active for a two-year period. The 
grandfathering provision would include those lessors who are nominee-
lessors on seats beneficially owned by an organization. A person 
grandfathered could lose his right to participate in the Gratuity Fund 
based on prior active status if there should be any five-year period in 
which he is not a lessor, lessee, nominee or seat owner.\25\ As 
discussed above, for all non-grandfathered individuals, the ``active'' 
requirement must be satisfied after June 10, 1993.

    \24\For further discussion of the cut-off date for eligibility 
for the transition arrangements, see infra note 28 and accompanying 
text.
    \25\See supra, note 17 and accompanying text.
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    Individuals who currently own options principal memberships would 
have a one-time opportunity to ``opt-in'' or ``opt-out'' of the 
Gratuity Fund. A decision to ``opt-out'' would be irrevocable for the 
rest of the person's life (unless the person subsequently buys a 
regular membership).\26\ Options principal members who ``opt-in'' would 
be grandfathered with respect to the ``active'' requirement. Current 
lessees (both regular and options principal membership) would also have 
the right to ``opt-out'' of the Gratuity Fund, but such decisions would 
be effective only for the duration of their current lease, and new 
leases would require lessee participation in the Gratuity Fund. Lease 
renewals by the same two parties would not be considered to be new 
leases. Any new options principal member seat owner (other than an 
individual owner who previously chose to ``opt-out'' irrevocably as 
discussed above)\27\ would be covered by the new rules.

    \26\If that person subsequently buys a different options 
principal membership, the decision to ``opt-out'' would apply to 
that seat as well.
    \27\See supra, note 26.
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    With respect to the ``phase-in'' requirement, all those who are 
Participants in the Gratuity Fund on the date these proposals become 
effective, and all those who become Participants by virtue of these 
amendments (e.g., lessees and options principal members), would be 
deemed to be fully ``phased-in,'' regardless of how long such persons 
have been Participants or Exchange members. All who become Participants 
thereafter would be subject to the ``phase-in'' requirements. If a 
lessee or options principal member ``opted out'' of the Gratuity Fund, 
as described above, and on some other basis later becomes a 
Participant, he would at that time be subject to the ``phase-in.''
    While the foregoing grandfather provisions are appropriate in most 
cases, there was a concern that some people might attempt to rush 
through the ``loopholes'' referred to earlier by becoming lessors prior 
to the date these proposals finally become effective. Accordingly, 
notwithstanding the above provisions, an individual who was not a 
regular member or a regular member lessor as of the date of the Board 
meeting at which these proposals were approved by the Exchange Board of 
Governors (June 10, 1993), and subsequently became a regular member 
lessor after June 10, 1993, would not be grandfathered with respect to 
the two-year active requirement.\28\ Similarly, an individual who was 
not a regular or options principal member or a regular or options 
principal lessor as of June 10, 1993, and subsequently became an 
options principal lessor after June 10, 1993, would not be allowed to 
``opt-in'' to the Gratuity Fund. Such individuals would be covered by 
the new rules.

    \28\However, in the event that such an individual dies during 
the period after June 10, 1993 but before the effective date of the 
changes, his beneficiaries would receive a Gratuity Fund benefit 
under existing requirements.
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    Most of the above described changes in membership structure would 
expand the choices available to persons and organizations in 
structuring their relationships. However, the proposed changes would 
eliminate the existing a-b-c agreement, and certain individuals and 
organizations may find that disruptive. Accordingly, a member 
organization would be permitted to continue to utilize its existing a-
b-c agreements for so long as the respective individual members remain 
on their seats.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
in general and furthers the objectives of Sections 6(b)(3), 6(b)(4) and 
6(b)(5) in particular in that it assures a fair representation of 
Exchange members in the administration of its affairs, provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members, and is designed to prevent fraudulent and manipulative acts 
and practices.
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, D.C. 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, D.C. 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-95-08 and should be 
submitted by March 22, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-4994 Filed 2-28-95; 8:45 am]
BILLING CODE 8010-01-M