[Federal Register Volume 60, Number 49 (Tuesday, March 14, 1995)]
[Notices]
[Pages 13742-13743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6164]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35451; File No. SR-Amex-95-10]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange, Inc. Relating to Amendments 
Updating Various Exchange Rules

March 7, 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 
22, 1995, 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 Exchange proposes to amend several of its rules to reflect 
current practices and to update various rules that have become 
obsolete. The text of the proposed rule change is as follows [new text 
is italicized; deleted text is bracketed]:
Over-the-Counter Execution of Equity Securities Transactions
    Rule 5.
    (d)
    [viii any acquisition of a security by a member organization as 
principal in anticipation of making an immediate special offering or 
exchange distribution on the Exchange under Rule 560 or Rule 570;]
    [ix] viii
    [x] ix
    [xi] x
Precedence Accorded to Orders Entrusted to Specialists
    Rule 155.
    Commentary .01 [When a broker inquiries of a specialist as to the 
price at which a block of stock may be sold, the specialist may not 
specify the amount that would be purchased by the book and the amount 
he would take as dealer.]
    If [the] a block is to be sold at a ``clean up'' price the 
specialist should execute at the ``clean-up'' price all of the 
executable buy orders on his book. The report of the block transaction 
on the tape is to be accompanied by a reprint of the last prior 
transaction in the regular-way market in the security.
    However, if the block is sold at different price limits and the 
specialist buys part of the block for his own account he should to the 
extent practicable, buy round lots for his own account at each price 
limit at which buy orders on the book are executed, and in doing so, he 
should divide the stock purchased for his own account into round lots 
of approximately equal size among the price limits at which he 
participates.
    The same principles apply in the case of a purchase of a block of 
stock.
Cancellations Must Be Written
    Rule 181. A cancellation of an order given to a specialist on the 
Floor of the Exchange personally by a Regular member or member 
representative shall not be deemed effective unless in writing [and 
signed].
Specialist Registration Fee
    Rule 183. Each regular specialist registered with the Exchange 
shall pay to the Exchange each year a registration fee [of $400.000 per 
year] as imposed by the Exchange, [which fee shall be] payable [in 
equal quarterly installments in each year] as directed by the Exchange 
during [which] the year such specialist remains so registered.
Specialist Clerks
    Rule 184. (a) A specialist or specialist unit may regularly employ, 
subject to such rules and regulations as the Board of Governors may 
adopt, one or more clerks, to aid such specialist or specialist unit on 
the floor of the Exchange, provided each such clerk receives the 
approval of the Exchange. A yearly fee [of $180.00 per year,] as 
imposed by the Exchange and payable as directed by the Exchange [in 
equal quarterly installments,] shall be charged the specialist or 
specialist unit for each clerk. No rebate shall be given with respect 
to the [quarterly] fee in the event that a specialist or specialist 
unit discontinues the services of such a clerk during any [quarterly] 
period.
Normal Buy-Ins
    Rule 783.
    (d) The Buy-in Desk will deliver a copy of the Floor report to the 
booth of the member or member organization which initiated the order. 
The executing broker will have the responsibility of notifying promptly 
as to the details of the execution, the member or member organization 
listed on the order as being in default. [The member executing the 
order shall be entitled to receive a Floor brokerage 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 Exchange proposes a rule change that would conform its rule to 
a comparable New York Stock Exchange (``NYSE'') rule, which recently 
has been amended. The Exchange proposes to amend Commentary .01 to Rule 
155 (Precedence Accorded to Orders Entrusted to Specialists) to delete 
the prohibition that a specialist may not disclose the amount of stock 
that the specialist and the book would be buying or selling in cleaning 
up the block. This proposed rule change is similar to the NYSE 
amendment to its Rule 104.10(7), which has been approved by the 
Commission.\1\

    \1\See Exchange Act Release No. 34231 (June 17, 1994), 59 FR 
32722 (approving File No. SR-NYSE-90-10).
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    The Exchange is also updating other rules to eliminate obsolete 
references and reflect accurately current Exchange practices. The 
references in Rule [[Page 13743]] 5(d)(viii) (Over-the-Counter 
Execution of Equity Securities Transactions) to Rules 560 and 570 are 
being deleted because Rules 560 and 570 have been rescinded. The 
Exchange is also deleting the signature requirement in Rule 181 
(Cancellations Must Be Written) to reflect the current practice. The 
signature requirement, going back to the N.Y. Curb Exchange circa 1939, 
has not been deemed necessary on the Trading Floor in the era of the 
printed ticket.
    The Exchange is also amending Rules 183 (Specialist Registration 
Fee) and 184 (Specialist Clerks) to eliminate out-of-date charges and 
timing of payments. The Exchange proposes to use general language in 
the rules to alleviate the need for repeated amendments to the Exchange 
Rules each time these fees are changed. The Exchange will make the 
necessary rule filings with the Commission before any fee changes 
become effective. The Exchange is also amendment Rule 783(d) (Normal 
Buy-Ins) to delete the reference to a member's entitlement to a Floor 
brokerage commission because the commissions are negotiated.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act in that it is designed to prevent fraudulent and manipulative acts 
and practices and to perfect the mechanism of a free and open market.

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

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate 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 either solicited or received.

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, N.W., 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, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of the Exchange. All 
submissions should refer to File No. SR-Amex-95-10 and should be 
submitted by April 4, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6164 Filed 3-13-95; 8:45 am]
BILLING CODE 8010-01-M