[Federal Register Volume 68, Number 151 (Wednesday, August 6, 2003)]
[Notices]
[Page 46674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20027]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 344-48258; File No. SR-Amex-2003-06]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change and Amendment No. 1 Thereto by the American Stock Exchange LLC 
Relating to Mandatory Continuing Education for All floor Members and 
Mandatory Continuing Education and Initial Test Requirements for Floor 
Clerks of Members and Member Firms

July 30, 2003.
    On February 3, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange''), filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to revise its performance evaluation and 
allocations procedures. On May 21, 2003, the Amex amended the proposed 
rule change.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Letter from Ivonne L. Natal, Associate General Counsel, 
Amex, to Katherine A. England, Assistant Director, Division of 
Market Regulation Commission, dated May 20, 2003 (``Amendment No. 
1''). In Amendment No. 1, the Exchange replaced the original filing 
in its entirety. The exchange stated it anticipates implementing 
proposed Rule 359 within eight months of approval by the Commission.
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    Under the proposed rule, Amex proposes to adopt Amex rule 359 
titled the Mandatory Continuing Education for all Floor Members and 
Mandatory Continuing Education and Initial Test Requirements for Floor 
Clerks of Members and Member Firms. Specifically, newly hired floor 
clerks with no previous floor experience will be tested within a three-
month on-the-job training period. Additionally, newly-hired specialist 
clerks with no previous experience as specialists or specialist clerks 
will be subject to the training and exam requirement of a floor clerk. 
Furthermore, a specialist clerk will be required to complete the on-
the-job and classroom training related to the job of specialist clerk. 
The proposed rule change also institutes an annual, mandatory 
continuing education program for members and their employees. Failure 
to attend a mandatory continuing education session may result in a fine 
being imposed under the General Rule Violations Section of the 
Exchange's Minor rule Violation Fine System. Finally, the continuing 
education program will be financed by levying an annual fee of $50 for 
each participant.
    The proposed rule change, as amended, was published for comment in 
the Federal Register on June 25, 2003.\4\ The Commission received no 
comments on the proposal.
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    \4\ See Securities Exchange Act Release No. 48041 (June 17, 
2003), 68 FR 37882 (June 25, 2003).
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    After careful review, the Commission finds that the proposed rule 
change, as amended, is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\5\ Specifically, the Commission finds that the 
proposed rule change promotes the objectives of Section 6(b)(5) of the 
Act,\6\ which requires among other things, that the rules of the 
Exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and national market 
system, and in general, to protect investors and the public interest. 
In addition, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(6) because it provides a sanction under 
Amex's Minor Rule Violation Fine System for failure to comply with the 
continuing education requirement.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission also finds that the proposed rule change is 
consistent with the requirements of Section 6(c)(3)(B) because it 
provides the Exchange with a means to measure a newly hired floor clerk 
or specialist clerk's ability and qualifications as well as to ensure 
that Amex members and persons associated with members meet standards of 
training, experience, and competence. By requiring all current members 
and their employees to attend annual mandatory continuing education 
training, the Exchange assists the members and their employees admitted 
to the Exchange's trading floor to understand critical regulatory and 
operational issues affecting the exchange and the securities industry. 
The Commission believes that Amex's proposal to require members and 
their employees to participate in an education program before being 
permitted to act as members is appropriate and consistent with Section 
6(c)(3)(B).
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Amex-2003-06), as amended, 
be, and hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commissions, 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. 03-20027 Filed 8-5-03; 8:45 am]
BILLING CODE 8010-01-M