[Federal Register Volume 62, Number 24 (Wednesday, February 5, 1997)]
[Notices]
[Page 5502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2779]



[[Page 5502]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38216; File No. SR-Amex-97-03]


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

January 29, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 22, 1997, 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 Amex. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to extend its waiver of transaction charges for 
FLEX Equity Options traded on the Exchange until further notice. The 
text of the proposed rule change is available at the Office of the 
Secretary, Amex and at 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 Amex 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 Amex 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In conjunction with the commencement of trading FLEX Equity 
Options, the Exchange waived transaction charges for the first ninety 
days of trading. The ninety day period is due to expire on January 24, 
1997 and the Exchange has determined to extend the waiver. The Exchange 
continues to believe that waiving transaction charges is a meaningful 
factor in encouraging trading in FLEX Equity Options.
    The Exchange intends to establish a transaction charge for FLEX 
Equity Options in the near future. However, until it is ready to do so 
it proposes to extend the waiver of transaction charges until further 
notice.\2\ The waiver of the imposition and collection of transaction 
charges for FLEX Equity Option orders executed on the Exchange will be 
for all account types, e.g., the accounts of floor traders, specialists 
and customer and firm proprietary off-floor orders.
---------------------------------------------------------------------------

    \2\ The Commission notes that any imposition of transaction 
charges for Flex Equity Options would have to be submitted to the 
Commission pursuant to Section 19(b) of the Act.
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \3\ of the 
Act in general and furthers the objectives of Section 6(b)(5) \4\ in 
particular in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of change, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange believes 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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore, has become 
effective pursuant to Section 19(b)(3))A) of the Act \5\ and 
subparagraph (e) of the Rule 19b-4 \6\ thereunder. At any time within 
60 days of the filing of such a 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 19b-4(e).
---------------------------------------------------------------------------

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 in 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-97-03 and should be 
submitted by February 26, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-2779 Filed 2-4-97; 8:45 am]
BILLING CODE 8010-01-M