[Federal Register Volume 60, Number 54 (Tuesday, March 21, 1995)]
[Notices]
[Pages 14986-14987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6843]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35488; File No. SR-Amex-94-46]


Self-Regulatory Organizations; American Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to 
Qualification Examinations Administered by the Exchange and Notice of 
Filing and Order Granting Accelerated Approval of Amendment No. 1

March 14, 1995.
    On October 25, 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 Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to update and revise its 
examinations to conform them to new rules and procedures.\3\ On March 
10, 1995, the Amex submitted Amendment No. 1 to the above referenced 
rule filing.\4\ The proposed rule change includes the contents of the 
qualification examinations and related materials.

    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\17 CFR 240.19b-4 (1994).
    \3\The proposed rule change was filed pursuant to the SEC's 
position that all qualification examinations administered by the 
Exchange be filed with the Commission. 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.
    \4\See letter from Janice Stroughter, Director of Hearings and 
Special Counsel Legal & Regulatory Policy, Amex, to Amy Bilbija, 
Attorney, Commission, dated March 9, 1995. In Amendment No. 1 the 
Amex made several clarifications and corrections to three of the six 
exams filed with the Commission.
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    The proposed rule change was published for comment in Securities 
Exchange Act Release No. 35016 (November 29, 1994), 59 FR 62428 
(December 5, 1994). No comments were received on the proposal.
    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. 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.
    Pursuant to Amex Rule 50(a) every applicant for regular and options 
[[Page 14987]] principal membership must 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\5\ take the 
Qualifying Examination for OPMs and the Put and Call Stock Option 
Examination.

    \5\This type of member may execute on the Floor transactions in 
options and other derivative products initiated by him for his own 
account and may give orders for such securities for his own account 
to regular members for execution provided, however, that this type 
of member may not trade in individual stock options listed on the 
Exchange. See Amex Constitution, Article IV Sec. 1(j)(3).
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    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 Market Maker Examination.
    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, with the requirements of Sections 6(b)(5) and 
6(c)(3)(B).\6\ Section 6(b)(5) requires, among other things, that the 
rules of an exchange be designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and national market system, and, in general, 
to protect investors and the public interest. Section 6(c)(3)(B) 
provides that a national securities exchange may examine and verify the 
qualifications of an applicant to become a person associated with a 
member in accordance with procedures established by the rules of the 
exchange, and may require any person associated with a member, or any 
class of such persons, to be registered with the exchange in accordance 
with procedures so established.

    \6\15 U.S.C. 78f(b)(5) & (c)(3)(B) (1988).
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    The Commission also believes that the proposed rule change is 
consistent with Section 15(b)(7) of the Act\7\ which stipulates that 
prior to effecting any transaction in, or inducing the purchase or sale 
of any security, a registered broker or dealer must meet certain 
standards of operational capability, and that such broker or dealer 
must meet certain standards of training, experience, competence, and 
such other qualifications as the Commission finds necessary or 
appropriate in the public interest or for the protection of investors.

    \7\15 U.S.C. 78o(b)(7) (1988).
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    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, N.W., 
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 April 11, 1995.
    Finally, the Commission finds good cause for approving Amendment 
No. 1 prior to the thirtieth day after the date of publication of 
notice of filing thereof in the Federal Register. The Commission 
believes that accelerated approval of the proposal is appropriate in 
order to allow the Amex to begin utilizing the exams, as corrected. 
Further, the use of the six qualification exams has been noticed 
previously in the Federal Register for the full statutory period and 
the Commission did not receive any comments on it.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-94-46) is approved.

    \8\15 U.S.C. 78s(b)(2) (1988).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\

    \9\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-6843 Filed 3-20-95; 8:45 am]
BILLING CODE 8010-01-M