[Federal Register Volume 65, Number 66 (Wednesday, April 5, 2000)]
[Notices]
[Pages 17934-17936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8323]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42592; File No. SR-Amex-00-06]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Providing Access to the Trading Floor by Allied Members and Former 
Members

March 29, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on

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March 7, 2000, the American Stock Exchange LLC (``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 Amex 
filed the proposal pursuant to Section 19(b)(3)(A) of the Act,\2\ and 
Rule 19b-4(f)(6) thereunder,\3\ which renders the proposal effective 
upon filing with the Commission. 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).
    \2\ 15 U.S.C. 78s(b)(3)(A).
    \3\ 17 CFR 240.19b-4(f)(6).
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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 its Constitution to provide access to 
its trading floor (``Trading Floor'' or ``Floor'') by allied members 
and to establish a formal policy of permitting former members who have 
worked on the Trading Floor for more than 10 years to visit the Floor. 
The text of the proposed rule change is available upon request from the 
Amex or 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 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Allied members are individuals who exercise control over members or 
member organizations. From time to time, allied members visit the Floor 
to exercise managerial oversight and to discuss business with their 
personnel, clients and others. Currently, allied members are not 
allowed on the Floor unless they are signed-in as visitors. These 
visitor clearance procedures are inconsistent with the status of allied 
members at the Exchange and unnecessarily delay the access of allied 
members to the Floor. To rectify this situation, the Exchange proposes 
to amend Article IV to provide that allied members may have access to 
the Trading Floor without the need for clearing the Exchange's security 
procedures for visitors. Allied members will continue to be prohibited 
from effecting securities transactions on the Floor, except when 
effected in compliance with the provisions of Article IV, Section 3, of 
the Constitution, which provides that, under certain conditions, an 
approved allied member may be authorized to effect securities 
transactions as a ``representative`` when (i) a governor who is 
associated with the allied member is away from the Floor on Exchange 
business, (ii) an Exchange Official who is associated with the allied 
member is away from the Floor to attend a meeting of the Amex Board, or 
(iii) a member who is associated with the allied member is away from 
the Floor due to the requirements of military service or training.
    The Exchange is proposing to establish a formal policy of providing 
those individuals who were members for more than 20 years before 
leaving the Floor with gold identification badges allowing them access 
to the Floor as visitors without going through the sign-in procedures 
applicable to visitors.\4\ Individuals who currently hold gold 
identification badges, but who have worked less than 20 years as 
members, would be permitted to keep their badges once the proposed 
policy is implemented. Going forward, however, an individual must have 
worked 20 years as a member on the Floor in order to receive the 
special gold identification badge. Eligible former members may only use 
their special access privileges for social purposes or to discuss 
membership leases. In addition, a Floor Official or other officer of 
the Exchange may terminate the special access privileges of a former 
member if these are used for purposes other than those expressly 
permitted, or if a former member disturbs the conduct of business at 
the Exchange.
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    \4\ As visitors, former members would remain subject to the 
Exchange's policies regarding visitors' access to the Floor. 
Telephone conversation between Bill Floyd-Jones, Assistant General 
Counsel, Amex, and Matthew Boesch, Paralegal, Division of Market 
Regulation, Commission, on March 29, 2000.
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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) \5\ in 
particular in that its terms are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investor and the public interest; and are not 
designed to permit unfair discrimination between customers, issuers, 
brokers or dealers.
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    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will impose no burden on competition not 
necessary or appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, and since 
the Amex has given the Commission written notice of its intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the date 
of filing of the proposed rule change, it has become effective pursuant 
to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) 
thereunder.\7\ 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.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ In reviewing this proposal, the Commission has considered 
the proposal's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule

[[Page 17936]]

change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 
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, 450 Fifth Street, NW, Washington, 
DC 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-00-06 and should be submitted by April 26, 
2000.
    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).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-8323 Filed 4-4-00; 8:45 am]
BILLING CODE 8010-01-M