[Federal Register Volume 68, Number 125 (Monday, June 30, 2003)]
[Notices]
[Pages 38731-38732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16393]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48068]


Self-Regulatory Organizations; Declaration of Effectiveness of 
American Stock Exchange LLC Fingerprinting Plan

June 19, 2003.
    On June 5, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission'' or ``SEC'') an amended fingerprinting plan (``Amended 
Plan'') pursuant to Rule 17f-2(c) \1\ under the Securities Exchange Act 
of 1934 (``Act'').\2\ The Amended Plan \3\ supersedes and replaces the 
Exchange's current fingerprinting plan.\4\ The Exchange believes that 
the Amended Plan will be a significant improvement over the current 
Amex fingerprinting plan.
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    \1\ 17 CFR 240.17f-2(c).
    \2\ 15 U.S.C. 78a et seq.
    \3\ Attached hereto as Exhibit A.
    \4\ The Exchange's current fingerprinting plan was approved by 
the Commission on December 23, 1976. See Securities Exchange Act 
Release No. 13105, 42 FR 753 (January 4, 1977).
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    The Amended Plan establishes fingerprinting procedures in 
connection with the proposed amendment to Exchange Rules 340, 
Disapproval of Employees, and 341, Approval of Registered Employees and 
Officers, and adoption of new Exchange Rule 359, Application and 
Termination Forms (Forms U-4 and U-5). The proposed amendments to 
Exchange Rules 340 and 341 and the proposed adoption of Exchange Rule 
359 provide for the electronic processing of the Uniform Application 
for Securities Industry Registration or Transfer (``Form U-4'') and the 
Uniform Termination Notice for Securities Industry Registration (``Form 
U-5'') by the National Association of Securities Dealers, Inc.''s 
(``NASD's'') Web Central Registration Depository (``Web CRD'') system 
\5\ for all individuals required to be registered with or approved by 
the Exchange.\6\ The Exchange believes that automating the review of 
registration applications and termination notices by transitioning all 
Forms U-4 and U-5 filings to Web CRD will enable the Exchange to 
perform more efficiently its regulatory responsibilities with respect 
to members and member organizations and, thereby, will ultimately 
enhance investor protection.
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    \5\ The Web CRD is a Web-based system that provides broker-
dealers and their associated persons with ``one-stop filing'' with 
the Commission, NASD and other self-regulatory organizations and 
regulators. The Web CRD is operated by NASD and is used by 
participating regulators in connection with registering and 
licensing broker-dealers and their associated persons.
    \6\ See Securities Exchange Act Release No. 48067 (File No. SR-
Amex-2003-48) (effective on filing proposal related to amendments to 
Exchange Rules 340 and 341, and the adoption of Exchange Rule 359, 
filed May 22, 2003), and Securities Exchange Act Release No. 48066 
(File No. SR-Amex-2003-49) (effective on filing proposal related to 
fee schedule changes for Form U-4 and Form U-5 processing, filed May 
27, 2003).
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    In connection with this electronic registration process, and 
pursuant to the Amended Plan, persons seeking registration with the 
Exchange will submit their fingerprints to NASD. NASD will process 
these fingerprints and submit them to the Attorney General. The 
Attorney General will, in turn, provide NASD with fingerprint 
processing results for the persons seeking registration, and the 
results will be provided to the members via Web CRD.
    The Commission has reviewed the procedures detailed in the Amended 
Plan and believes that the Amended Plan is in the public interest and 
consistent with the protection of investors. The Amended Plan should 
significantly improve upon the efficiency of the Amex registration 
system by consolidating with the NASD the role of collecting and 
electronically displaying fingerprint information and the role of 
electronically collecting Form U-4 through the NASD's Web CRD system. 
Thus, the Commission declares the Amended Plan to be effective.
    The Commission notes that securities industry fingerprinting 
procedures are in a state of flux due to rapidly advancing technology. 
In the event that an industry-wide technology standard is adopted or 
becomes prevalent and in the event that this Amended Plan substantially 
differs therefrom, the Commission may declare this Amended Plan 
ineffective. The Commission imposes these terms and conditions on the 
Amended Plan and deems that they are necessary and appropriate in the 
public interest, for the protection of investors, and otherwise in 
furtherance of the purposes of the Act pursuant to Rule 17f-2(c).\7\

    \7\ 17 CFR 240.17f-2(c).
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    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)(17)(iii).
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Margaret H. McFarland,
Deputy Secretary.

Exhibit A \9\--American Stock Exchange Fingerprint Plan
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    \9\ The Exchange requested that the Commission make a technical, 
non-substantive change to the Amended Plan language concerning the 
attachment of copies of certain Commission releases to the Amended 
Plan. Teleconference between William Floyd-Jones, Associate General 
Counsel, Exchange, and Christopher B. Stone, Special Counsel, 
Division of Market Regulation, Commission (June 18, 2003).
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    The American Stock Exchange LLC (``Exchange'') submits this 
Fingerprint Plan (``Plan'') pursuant to Rule 17f-2(c) under the

[[Page 38732]]

Securities Exchange Act of 1934, as amended (``Act''). This Plan 
supersedes and replaces the Exchange's Fingerprint Plan approved by 
the Securities and Exchange Commission (``Commission''), on a 
permanent basis, on December 23, 1976 by Release No. 34-13105.
    The purpose of this Plan is to facilitate compliance by members 
\10\ of the Exchange with section 17(f)(2) of the Act and Rule 17f-2 
thereunder by providing a facility for the fingerprints of 
individual partners, directors, officers and employees of Exchange 
members to be submitted to the Attorney General of the United States 
(``Attorney General'') and processed electronically.
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    \10\ As used herein, the term ``member'' shall have the same 
meaning as set forth in section 3(a)(3)(A) of the Securities 
Exchange Act of 1934.
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    The Exchange has established an arrangement with the National 
Association of Securities Dealers, Inc. (``NASD'') to permit all 
individuals that must be registered with, or approved by, the 
Exchange (``registered persons'') to be electronically registered 
with the Exchange through the NASD's Web Central Registration 
Depository system (``Web CRD'').\11\ The Web CRD is a Web-based 
system that provides broker-dealers and their associated persons 
with ``one-stop filing'' with the Commission, NASD and other self-
regulatory organizations and regulators. The Web CRD is operated by 
NASD and is used by participating regulators in connection with 
registering and licensing broker-dealers and their associated 
persons.
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    \11\ See Exchange Rules 340, 341 and 359, as amended.
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    In connection with this registration process, persons seeking 
registration with the Exchange will submit their fingerprints to 
NASD. NASD will process these fingerprints and submit them to the 
Attorney General. The Attorney General will provide NASD with 
fingerprint processing results for the persons seeking registration, 
and the results will be provided to the members via Web CRD. NASD 
will notify the Exchange if the fingerprint processing results 
received by NASD for one of these registered persons contains 
information that would subject the person to a statutory 
disqualification. In such an instance, the Exchange will review the 
fingerprint processing results to determine the possible existence 
of a statutory disqualification as defined in Section 6(c) of the 
Act, and will take appropriate action, if necessary, concerning 
eligibility or continued eligibility of the individual for 
employment or association with an Exchange member. Copies of 
fingerprint processing results made available by NASD with respect 
to fingerprints submitted by the Exchange pursuant to this Plan will 
be maintained by the Exchange in accordance with the Exchange's 
Record Retention Plan on file with the Commission. Any maintenance 
of fingerprint records by the Exchange shall be for the Exchange's 
own administrative purposes, and the Exchange is not undertaking to 
maintain fingerprint records on behalf of Exchange members pursuant 
to Rule 17f-2(d)(2).
    The Exchange will advise Exchange members and Exchange member 
applicants of the availability of fingerprint services and any fees 
charged by the Exchange and NASD in connection with those services 
and the processing of fingerprints pursuant to this Plan. The 
Exchange shall file any such Exchange fees with the Commission 
pursuant to section 19(b)(3)(A) of the Act.
    The Exchange shall not be liable for losses or damages of any 
kind in connection with the fingerprinting services, as a result of 
a failure to follow, or properly to follow, the procedures described 
above, or as a result of lost or delayed fingerprint cards, 
fingerprint records, or fingerprint processing results, or as a 
result of any action by the Exchange or the Exchange's failure to 
take action in connection with this Plan.

[FR Doc. 03-16393 Filed 6-27-03; 8:45 am]
BILLING CODE 8010-01-P