[Federal Register Volume 62, Number 59 (Thursday, March 27, 1997)]
[Notices]
[Pages 14714-14715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7782]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38426; File No. SR-AMEX-97-13]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange, Inc. Relating to Exchange Policy 
on Indications, Openings and Reopenings

March 21, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on March 4, 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. Sec. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to revise Exchange policy regarding indications, 
openings and reopenings. The text of the proposed rule change is 
available at the Office of the Secretary, the 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 self-regulatory organization 
included statements concerning the purpose of an 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 place 
specified in Item IV below. The self-regulatory organization has 
prepared summaries, set forth in

[[Page 14715]]

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
    Amex specialists disseminate indications of interest to the 
consolidated tape prior to the opening or reopening of trading in a 
previously halted stock or in the event of a delayed opening. These 
indications communicate the probably price range where the stock will 
open or reopen.
    The Amex's policy on dissemination of tape indications currently 
requires a minimum of 15 minutes to elapse between the first indication 
and the opening or reopening of a stock. In addition, when multiple 
indications are used, a minimum of 10 minutes must elapse after the 
last indication when it does no overlap the prior indication, and a 
minimum of 5 minutes must elapse after the last indication when it 
overlaps the prior indication.
    The Exchange is proposing that these minimum time periods before 
opening or reopening a stock be compressed from 15 to 10 minutes after 
the first indication; and to 5 minutes after the last indication, 
regardless of whether it overlaps the prior indication, provided that a 
minimum of 10 minutes elapses between the first indication and the 
opening or reopening of a stock. The proposed rule shortens the time 
period for indications and strikes an appropriate balance between 
preserving the price discovery process while providing timely 
opportunities for investors to participate in the market.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act \3\ in that it is designed to prevent fraudulent and manipulative 
acts and practices and to perfect the mechanism of a free and open 
market.
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    \3\ 15 U.S.C. Sec. 78f(b).
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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 longer 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. 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 Exchange. All 
submissions should refer to File No. SR-AMEX-97-13 and should be 
submitted by April 17, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-7782 Filed 3-26-97; 8:45 am]
BILLING CODE 8010-01-M