[Federal Register Volume 62, Number 206 (Friday, October 24, 1997)]
[Notices]
[Pages 55442-55443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28181]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39253; File No. SR-Amex-97-35]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by American Stock Exchange, Inc. 
Relating to Amendments to Rule 120 (Units of Trading)

October 17, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on October 1, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to amend Exchange Rule 120 to provide for a unit 
of trading in bonds other than $1,000 in par value. The text of the 
proposed rule change is available at the Office of the Secretary, the 
Amex 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.

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

(1) Purpose
    Amex Rule 120 provides for a unit of trading in bonds of $1,000 in 
par value, except for U.S. Government issues, for which the unit of 
trading is the minimum denomination in which such securities are 
issued. Rule 120 also provides that a unit of trading in stocks is 100 
shares, unless the Exchange fixes a lesser amount.
    There are instances where bond issuers and broker-dealers 
underwriting bond issuances desire an exchange-listing of bonds with a 
unit of trading greater than $1,000 in par value. For example, an 
issuer or underwriter may prefer a unit of trading of $100,000 or 
$250,000 in par value per trading unit in specific cases. Such 
issuances, which currently trade on the New York Stock Exchange, can be 
expected to appeal primarily to institutional investors and to trade 
infrequently.
    The Amex believes it is appropriate and competitively desirable to 
clarify its authority to allow listing and trading of such issues. Rule 
120, therefore, is proposed to be amended in a manner similar to NYSE 
Rule 55 to specifically provide that a unit of trading of other than 
$1,000 in par value may be designated by the Exchange for specific 
issues of bonds denominated in U.S. dollars for foreign currencies.
(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)(5) \2\ in 
particular in that it is designed to remove impediments to and perfect 
the mechanism of a free and open market, to promote just and equitable 
principles of trade and, in general, to protect investors and the 
public interest.
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    \2\ 15 U.S.C. 78(b)(5).
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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 a burden on competition.

[[Page 55443]]

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 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 pursuant to Rule 19b-4(e)(6) under 
the Act.\3\
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    \3\ 17 CFR 240.19b-4(e)(6).
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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, 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 
principlal office of the Amex. All submission should refer to the file 
number in the caption above and should be submitted by November 14, 
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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-28181 Filed 10-23-97; 8:45 am]
BILLING CODE 8010-01-M