[Federal Register Volume 60, Number 102 (Friday, May 26, 1995)]
[Notices]
[Pages 28006-28007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X95-20526]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35746; File No. SR-CBOE-95-27]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchange, Incorporated, Relating to the Examination Specifications for 
the General Securities Sales Supervisor (Series 8) Examination

May 19, 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 May 12, 
1995, the Chicago Board Options Exchange, Incorporated (``CBOE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') 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 CBOE proposes to use a revised version of the General 
Securities Sales Supervisor (Series 8) Examination (``Series 8'') and 
corresponding specifications.
    The text of the proposed rule change is available at the CBOE and 
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. [[Page 28007]] 

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Propose Rule Change

1. Purpose
    The Series 8 examination is an industry-wide qualification 
examination for securities sales supervisors. The Series 8 examination 
is generally required under rules of the self-regulatory organizations 
(``SROs'') for persons who are engaged in the supervision of general 
securities branch offices (i.e., branch office managers) and of general 
securities registered representatives. The Series 8 examination tests a 
candidate's knowledge of securities industry rules and regulations and 
certain statutory provisions applicable to general securities sales 
supervision. The Series 8 examination specifications detail the areas 
covered by the examination and break down the number of examination 
questions culled from each area.
    Revision of the Series 8 examination and specifications was 
recently undertaken by an industry committee composed of 
representatives from SROs (the New York Stock Exchange, the American 
Stock Exchange, the Chicago Board Options Exchange, the Municipal 
Securities Rulemaking Board, the National Association of Securities 
Dealers, and the Philadelphia Stock Exchange) and representatives from 
broker-dealers, including branch office managers, compliance personnel, 
and corporate executives, in order to update the examination in view of 
changes in relevant laws, rules, and regulations, the development of 
new products, and to reflect various changes in industry practices. The 
committee reviewed the examination specifications, content areas, and 
item bank and developed some new questions in new areas.
    The revised examination continues to cover the areas of knowledge 
required to supervise sales activities in securities. However, the 
focus of the content of the examination has been shifted to concentrate 
more closely on supervisory duties. Accordingly, certain questions have 
been deleted from the examination that deal with routine calculations 
and basic product knowledge, and questions on new federal and SRO rules 
and regulations have been incorporated into the examination, as well as 
questions on new products, supervision, and changes in industry 
practices. The revised examination and specifications include coverage 
of these new areas. The examination will remain a six-hour, two-part, 
200 question examination.
2. Statutory Basis
    The statutory basis for the Series 8 examination lies in Section 
6(c)(3)(B) of the Act. Under that Section, it is the Exchange's 
responsibility to prescribe standards of training, experience, and 
competence for persons associated with Exchange members and member 
organizations. Pursuant to this statutory obligation, the Exchange has 
developed examinations that are administered to establish that persons 
associated with Exchange members and member organizations have attained 
specific levels of competence and knowledge.
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

    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

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from May 12, 1995, the 
date on which it was filed, and the Exchange provided the Commission 
with written notice of its intent to file the proposed rule change at 
least five days prior to the filing date, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(e)(6) 
thereunder.\1\

    \1\The proposed rule change is identical to the rule change 
previously approved by the Commission for the New York Stock 
Exchange, Inc. and the National Association of Securities Dealers. 
See Securities Exchange Act Release No. 34967 (Nov. 10, 1994), 59 FR 
59803 (Nov. 18, 1994) (File Nos. SR-NYSE-94-23; SR-NYSE-94-24); 
Securities Exchange Act Release No. 35208 (Jan. 10, 1995), 60 FR 
3688 (Jan. 18, 1995) (File No. SR-NASD-94-66).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

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 Exchange. All 
submissions should refer to File No. SR-CBOE-95-27 and should be 
submitted by June 16, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.