[Federal Register Volume 63, Number 10 (Thursday, January 15, 1998)]
[Notices]
[Pages 2437-2438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1038]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39530; File No. SR-Amex-97-45]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the American 
Stock Exchange, Inc. Relating to Options Qualification Examinations

January 8, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 19, 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 and II 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 and to grant accelerated approval on the 
proposed rule change.
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    \1\ 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 Exchange is proposing to discontinue the use of its Listed Put 
and Call Option Questionnaire for Registered Personnel, and instead, 
require affected individuals to satisfactorily complete the Series 42 
examination administered by the National Association of Securities 
Dealers, Inc. (``NASD'').\2\
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    \2\ See Securities Exchange Act Release No. 33892 (April 11, 
1994), 59 FR 18433 (April 18, 1994) (release approving the 
Registered Options Representative exam).
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    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, and statutory 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 III 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
    The Exchange is proposing to discontinue its Listed Put and Call 
Option Questionnaire for Registered Personnel.\3\ This examination has 
been administered to an Amex member or registered employee who was 
registered and approved by the Exchange prior to 1977,\4\ and who 
wishes to engage in a public options business.\5\ The Listed Put and 
Call Option Questionnaire had been administered by the broker-dealer 
member organization with which the individual was associated, which 
would then certify to the Exchange that the applicant had 
satisfactorily completed the examination.
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    \3\ This examination was previously referred to as the Put and 
Call Option Questionnaire for Listed Personnel.
    \4\ In 1997 the Series 7 examination began to cover standardized 
options.
    \5\ See Exchange Rule 920.
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    The Exchange is proposing that, in lieu of the Listed Put and Call 
Option Questionnaire, members and registered employees seeking to 
become qualified to engage in a public options business, pursuant to 
Exchange Rule 920(b) satisfactorily complete the Series 42 examination 
administered by the NASD. This examination is currently in use by the 
NASD, and prior to the Exchange's proposed termination of the Listed 
Put and Call Option Questionnaire, affected individuals were able to 
take either of the examinations in order to become options qualified. 
The Exchange, therefore, believes that the proposed termination of the 
Listed Put and Call Questionnaire examination will result in greater 
industry-wide consistency in the qualification testing of registered 
personnel.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act, specifically Section 6(b)(5) in that the proposal, in general, 
protects investors and the public interest by helping to assure member 
competence. In addition, the proposal furthers the objectives of 
Section 6(c)(3)(A) because it is designed to set standards of training, 
experience and competence and to examine and verify the qualifications 
of its members and associated persons of its members.

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. 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 the file 
number in the caption above and should be submitted by February 5, 
1998.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the Exchange's proposal is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange. Specifically, 
the Commission finds that the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\6\ which requires that an exchange have 
rule that, in general, protect investors and the public interest. 
Moreover, the Commission finds the proposed rule change consistent with 
Section 6(c)(3)(A) of the Act \7\ in that the proposal is designed to 
ensure that members, and those persons associated with members, meet 
certain standards of training, experience and competence.
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    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(c)(3)(A).
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    The Commission believes that replacing the Listed Put and Call 
Option Questionnaire for Registered Personnel with the NASD's series 42 
will provide more consistency in educating and examining for competence 
for those who wish to engage in a public options

[[Page 2438]]

business. The Listed Put and Call Option Questionnaire and the Series 
42 both consist of 50 multiple choice questions. The Series 42, 
however, has a question bank of 307 questions so a person who has 
failed the exam is unlikely to receive the same series of questions 
upon re-testing, thereby assuring that an individual is properly tested 
for his competency in the subject matter. Moreover, the Commission 
believes that because the Series 42 is only given at designated and 
secured testing sites the integrity of the examination process is 
protected.
    The Commission therefor finds good cause for approving the proposed 
rule change (SR-Amex-97-45) prior to the thirtieth day after date of 
publication of notice thereof in the Federal Register.
    It is Therefore Ordered, pursuant to Section 19(b)(2),\8\ that the 
proposed rule change be, and hereby is, approved.

    \8\ 15 U.S.C. 78s(b)(2).
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    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 98-1038 Filed 1-14-98; 8:45 am]
BILLING CODE 8010-01-M