[Federal Register Volume 66, Number 74 (Tuesday, April 17, 2001)]
[Notices]
[Pages 19818-19819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9429]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44159; File No. SR-Amex-2001-21]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Revisions to the Exchange's Qualifying Examination

April 6, 2001.

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 4, 2001, 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.\2\ 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\ The proposal was originally submitted on March 29, 2001. The 
Amex filed Amendment No. 1, which made several technical changes to 
the proposal. See Letter from Michael J. Ryan, Jr., Executive Vice 
President and General Counsel, Amex, to Katherine A. England, Esq., 
Assistant Director, Division of Market Regulation, Commission (April 
4, 2001).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to combine its two current membership 
examinations--equities and options--into one floor member examination 
covering all areas.

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 Amex 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
    The Exchange proposes to discontinue using its ``Qualification 
Examination for Regular Members'' (equities exam) and ``Put and call 
Stock Option Examination'' (options exam) and combine these two exams 
into a comprehensive, four-hour floor member examination designed to 
test applicants on all three Exchange product lines--equities, options 
and exchange--traded funds. In the near future, the floor member 
examination will be assigned a series number by the National 
Association of Securities Dealers, Inc. (NASD), since the Amex Board 
has approved, and the Exchange is proposing to adopt, subject to SEC 
approval, new filing procedures for Forms U-4 and U-5 using the NASD's 
Web Central Registration Depository (``CRD'') System. A separate 
proposed rule filing will be submitted to the Commission shortly on the 
Exchange's proposed use of the NASD's CRD System.
    Under Amex's current options and equities examinations, applicants 
for Exchange membership have a total of three (3) hours to respond to 
157 questions (100 equity questions and 57 options questions). The 
proposed floor member examination will consist of 200 questions and 
applicants will be allowed four (4) hours to complete the exam. The 
questions will test all three Exchange product lines--equities, options 
and exchange-traded funds. No two examinations will be alike. A 
computer will pre-select from among 242 approved questions, and each 
applicant will take a different version of the exam. The examination 
will continue to be given once a month and the passing grade will be 
70% or 140 correct answers. The combination of the Exchange's equities 
and options examinations into the proposed floor member examination 
should result in greater industry-wide consistency and efficiency in 
the administration of the Exchange's examination process.
(2) Statutory Basis
    The proposed rule change is consistent with Section 6(b) \3\ of the 
Act in general and furthers the objectives of Sections 6(b)(5) \4\ and 
6(c)(3)(A) \5\ of the Act in particular in that it is designed to 
examine and verify the qualifications of an applicant for Amex 
membership. In addition, the proposed rule change serves to protect 
investors and the public interest by helping to assure member 
competence.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 15 U.S.C. 78f(c)(3)(A).
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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 any 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \6\ and subparagraph (f)(1) of Rule 19b-4 \7\ 
thereunder because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration or 
enforcement of an existing rule. 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
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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 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

[[Page 19819]]

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. 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-2001-21 and should be 
submitted by May 8, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-9429 Filed 4-16-01; 8:45 am]
BILLING CODE 8010-01-M