[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Notices]
[Pages 42635-42636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20208]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-36081; File No. SR-Amex-94-30]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange, 
Inc. Relating to Transaction Charges

August 10, 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 July 21, 
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. 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 has made a determination to waive Exchange transaction 
charges for proprietary equity trades effected on the Floor by 
Registered Equity Market Makers (``REMMs'').

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
    In 1991, for the first time, the Exchange imposed transaction 
charges on proprietary equity trades by members and member 
organizations. While these charges were waived for proprietary trades 
of equity specialists to facilitate their market making function, 
members trading on the Floor as REMMs were not similarly exempted.
    REMMs are members that trade on a proprietary basis on the Floor in 
designated equity securities. Exchange Rule 114 sets forth the 
obligations and requirements under which REMMs are permitted to conduct 
such proprietary trading on the Floor. When trading in their designated 
securities, REMMs are required under the Rule to contribute to the 
maintenance of a fair and orderly market in such securities. REMMs also 
are required to engage in dealings in such securities which contribute 
to price continuity or depth or minimize the effects of a temporary 
disparity between the supply and demand for such securities. Thus, 
while not subject to a specialist's continuous market making 
obligation, when REMMs effect proprietary equity trades on the Floor, 
they are required to comply with the same market making obligations as 
specialists.
    In view of this requirement to comply with market making 
obligations similar to those of specialists, the Exchange believes that 
REMMs should be treated the same as specialists with respect to 
transaction charges on proprietary equity trades. Accordingly, the 
Exchange has made a determination, as it did with specialists, to waive 
transaction charges on proprietary equity trades effected by REMMs to 
facilitate their market making function.
    Although the Exchange currently has 30 members registered to trade 
as REMMs, less than half that number trade on a regular basis.
2. Statutory Basis
    The fee change is consistent with Section 6(b) of the Act in 
general and furthers the objectives of Section 6(b)(4) in particular in 
that it is intended to assure the equitable allocation of reasonable 
dues, fees, and other charges among members, issuers, and other persons 
using the Exchange's facilities.

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

    The fee 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 
fee change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule proposal changes a fee imposed by the Exchange 
and therefore has become effective pursuant to Section 19(b)(3)(A) of 
the Act and subparagraph (e) of Rule 19b-4 thereunder. At any time 
within 60 days of the filing of such 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, N.W., Washington, D.C. 20549. 
Copies of the submission, all subsequent amendments, all written 
statements 

[[Page 42636]]
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, N.W., 
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-95-30 and should be 
submitted by September 6, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20208 Filed 8-15-95; 8:45 am]
BILLING CODE 8010-01-M