[Federal Register Volume 65, Number 123 (Monday, June 26, 2000)]
[Notices]
[Pages 39454-39455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16028]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42957; File No. SR-Amex-00-32]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Amending Its Rules To Mandate Decimal Pricing Testing

June 19, 2000.
    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 June 12, 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 Exchange. The Amex 
has designated this proposal as one concerned solely with the 
administration of the Exchange under Section 19(b)(3)(A)(iii) of the 
Act,\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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to adopt Amex Rule 431 relating to mandatory 
decimal pricing testing. In addition, the Exchange proposes to rescind 
Rule 430 (Mandatory Participation in Year 2000 Testing).
    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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received regarding the proposed rule change. 
The text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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
    On January 28, 2000, the Commission issued an order (``January 28 
Order'') directing the securities markets to begin phasing in decimal 
pricing by July 3, 2000.\4\ The Commission subsequently suspended all 
deadlines set forth in the January 28 Order and stated its intention to 
issue a new order for the implementation schedule of decimal 
pricing.\5\ On June 8, 2000, the Commission issued an order (``June 8 
Order'') directing the securities markets to begin phasing in decimal 
pricing no later than September 5, 2000.\6\
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    \4\ Securities Exchange Act Release No. 42360 (Jan. 28, 2000), 
65 FR 5003 (Feb. 2, 2000).
    \5\ Securities Exchange Act Release No. 42685 (Apr. 13, 2000), 
65 FR 21046 (Apr. 19, 2000).
    \6\ Securities Exchange Act Release No. 42914 (June 8, 2000), 65 
FR 38010 (June 19, 2000).
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    Proposed Amex Rule 431 requires members and member organizations to 
conduct or participate in decimal pricing testing in order to 
facilitate compliance with the Commission's June 8 Order, as well as 
with any subsequent Commission directives relating to implementation of 
decimal pricing.
    Proposed Amex Rule 431 requires members and member organizations to 
participate in or conduct, in a manner and frequency to be prescribed 
by the Exchange, testing of their computer systems to ascertain the 
compatibility of those systems with decimal pricing.
    In addition, the proposed rule requires members and member 
organizations to provide such reports about the required tests as the 
Exchange may prescribe. Members and member organizations will be 
responsible for maintaining adequate documentation of any testing 
required by this rule, as well as the results of such testing, for 
examination by the Exchange. Members and member organizations subject 
to the rule who fail to test as required or to file any required 
reports would be subject to disciplinary action by the Exchange.
    The Exchange also proposes to rescind Amex Rule 430 relating to 
mandatory Year 2000 testing because such testing has been completed and 
the rule is no longer necessary.
2. Statutory Basis
    The Exchange believes proposed Amex Rule 431, whose purpose is to 
ensure the participation of Exchange members in important testing prior 
to the securities industry's conversion to decimal pricing, is 
consistent with Section 6(b) of the Act \7\ in general and furthers the 
objectives of Section 6(b)(5)\8\ in particular in that it is 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 investors and the public interest; 
and in that it is not designed to permit unfair discrimination between 
customers, issuers, brokers and dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Amex does not believe that the proposed rule change will impose 
any 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

    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

    Because the foregoing rule change is concerned solely with the 
administration of the Exchange, it has become effective pursuant to 
Section 19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(3) of Rule 
19b-4 thereunder.\10\ At any time within 60 days of the filing of such 
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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
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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 
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

[[Page 39455]]

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 Exchange. All submissions should refer to File 
No. SR-Ame-00-32 and should be submitted by July 17, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-16028 Filed 6-23-00; 8:45 am]
BILLING CODE 8010-01-M