[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Notices]
[Pages 44023-44024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21748]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38921; International Series Release No. IS-1096; File 
No. SR-AMEX-97-26]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by American Stock Exchange, Inc. 
Relating to Adoption of Foreign Examination Modules

August 11, 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 July 28, 1997, the American Stock Exchange, Inc. (``Amex'' or 
``Exchange'') filed with the Securities and Exchange 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The American Stock Exchange, Inc. proposes to adopt certain foreign 
examination modules of the General Securities Registered Representative 
Examination (``Series 7''), which were developed by the New York Stock 
Exchange (``NYSE''), for use by registered representatives from the 
United Kingdom (``U.K.''), Canada and Japan seeking to qualify as 
general securities registered representatives in the United States.

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 the 
Statutory Basis for, the Proposed Rule Change

(1) Purpose
    Pursuant to Commentary .03 to Exchange Rule 341, natural persons 
seeking to become registered representatives must pass a qualifying 
examination. The Exchange currently requires that all such persons, 
including those qualified in foreign countries, including the U.K., 
Canada and Japan, pass the Series 7 examination. In order to reduce 
redundant qualification requirements, the NYSE developed foreign 
examination modules for the U.K. (Series 17), Canada (Series 37/38) and 
Japan (Series 47). By successfully completing these modified 
examinations rather than the full Series 7 examination, persons in good 
standing with the securities regulators of their respective countries 
may perform all of the functions permitted of a person who holds a 
Series 7 registration, with the exception of selling municipal 
securities. These examination modules are currently in use by the NYSE, 
National Association of Securities Dealers (``NASD'') and the Chicago 
Board Options Exchange (``CBOE'').\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 27967 (May 1, 1990), 
55 FR 19124 (May 8, 1990) (approving File No. SR-NYSE-89-22, Series 
17); Securities Exchange Act Release No. 36629, International Series 
Release No. 909 (Dec. 21, 1995), 60 FR 67385, corrected, Securities 
Exchange Act Release No. 36629A, International Series Release No. 
909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996) (approving File No. 
SR-NYSE-95-29, Series 37 and Series 38); Securities Exchange Act 
Release No. 36708, International Series Release No. 915 (Jan. 11, 
1996), 61 FR 1808 (Jan. 23, 1996) (approving File No. SR-NYSE-95-36, 
Series 47); see also Securities Exchange Act Release No. 36825 (Feb. 
9, 1996), 61 FR 6052 (approving File No. SR-NASD-96-04, Series 37 
and 38); Securities Exchange Act Release No. 37112 (April 12, 1996), 
61 FR 17339 (approving File No. SR-NASD-96-13); Securities Exchange 
Act Release No. 38274 (February 12, 1997), 62 FR 7485 (File No. SR-
CBOE-97-04),
---------------------------------------------------------------------------

    The Series 17 version, the Limited Registered Representative 
Examination, is for U.K. registrants who have successfully completed 
the basic exam of the U.K. and who are in good standing with securities 
regulators in the U.K. It deletes those substantive sections of the 
standard Series 7 which overlap with the U.K. examination. The Series 
17 is a ninety question

[[Page 44024]]

examination dealing with U.S. securities laws, regulations, sales 
practices and special products drawn from the standard Series 7 
examination.
    The Series 37 version is for Canadian registrants who have 
successfully completed the basic core module of the Canadian Securities 
Institute program. The Series 38 version is for Canadian registrants 
who, in addition to having successfully completed the basic core module 
of the Canadian Securities Institute program, have also successfully 
completed the Canadian options and futures program. Although the 
Canadian exam modules contain some overlap with the Series 7, the 
Series 37 and Series 38 cover only subject matter that is not covered, 
or not covered in sufficient detail, on the Canadian qualification 
examination. The Series 37 has 90 questions and is 150 minutes in 
duration, while the Series 38, an abbreviated version of the Series 37, 
has only 45 questions and is 75 minutes in duration.\4\
---------------------------------------------------------------------------

    \4\ Forty-five questions pertaining to options are included in 
the Series 37 but omitted from the Series 38.
---------------------------------------------------------------------------

    The Series 47 version is for Japanese registrants in good standing 
with Japanese securities authorities, and is designed to test a 
Japanese registered representative's knowledge of U.S. securities laws, 
markets, investment products and sales practices. It contains 160 
questions and is 240 minutes long.
(2) Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
in general and furthers the objectives of Section 6(b)(3)(B) in 
particular in that it establishes standards of training, experience and 
competence for persons associated with Exchange members and member 
organizations. The foreign examination modules should provide 
comprehensive coverage of the topics contained in the Series 7 that are 
not adequately covered by the applicable foreign qualification 
examination. The proposal is also consistent with Section 6(b)(5) in 
that it is designed to perfect the mechanism of a free and open market 
by reducing duplicative qualification requirements while ensuring that 
foreign representatives seeking to become registered with the Exchange 
are fully qualified.

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

    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 Exchange has asserted, and the Commission agrees, that the 
proposed rule change (i) will not significantly affect the protection 
of investors or the public interest, (ii) will not impose any 
significant burden on competition, and (iii) will not become operative 
for 30 days after the date of this filing. For the foregoing reasons 
and because the Exchange provided at least five business days notice to 
the Commission of its intent to file this proposed rule change, the 
rule filing will become operative as a ``non-controversial'' rule 
change under Section 19(b)(3)(A) of the Act and Rule 19b-4(e)(6) 
thereunder.
    At any time within 60 days of this filing, the Commission may 
summarily abrogate this proposal 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 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 Room in Washington, D.C. 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 
number SR-AMEX-97-26 and should be submitted by September 8, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-21748 Filed 8-15-97; 8:45 am]
BILLING CODE 8010-01-M