[Federal Register Volume 65, Number 80 (Tuesday, April 25, 2000)]
[Notices]
[Pages 24234-24235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10261]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42697; File No. SR-Amex 00-11]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by American Stock Exchange LLC Relating to Floor Official 
Rulings

April 18, 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 February 22, 2000, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described

[[Page 24235]]

in Items I, II, and III below, which Items have been prepared by the 
Amex. The Commission is publishing this notice to solicit comments on 
the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to revise Amex Rule 22 to require a written 
record of all Floor Official rulings. The text of the proposed rule 
change follows. Additions are in italics; deletions are in [brackets].

Floor Official Rulings

Rule 22  Authority of Floor Officials
    (a) through (d) No change
<bullet> Commentary
    .01 No change.
    .02 [If requested by a member on the Floor, a Floor Official must 
render his decision or ruling in writing.] A written record of all 
Floor Official decisions or rulings must be made on a form provided by 
the Exchange. The written record should be prepared as soon as 
practicable after the decision or ruling is made. Floor Officials must 
submit the completed rulings forms to the Exchange at the end of each 
trading day. Failure to submit completed rulings forms may result in 
the removal of a Floor Official or a Floor Official becoming ineligible 
for reappointment.

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 has decided to adopt a requirement that Floor 
Officials provide a written record of all rulings, including rulings 
involving complaints of harassment, intimidation or other activities in 
violation of Exchange rules by either specialists or traders. 
Currently, Floor Officials are not required to make a written record of 
their rulings unless specifically requested to do so by a member. The 
Exchange believes, however, that a written record of Floor Official 
rulings will be useful, especially in situations where the conduct of 
floor members is involved. Having a written record of a complaint and/
or a ruling involving a broad range of activities, including alleged 
harassment or intimidation on the trading floor, can be used in 
investigations and other inquiries. Therefore, the Exchange is now 
proposing to amend Rule 22 to require Floor Officials to make a written 
record of all rulings on a form provided by the Exchange. The form will 
be designed to be completed quickly and efficiently as soon as possible 
after the incident occurs or the ruling is made. The Exchange believes 
that a properly designed form will help alleviate concerns that Floor 
Officials will object to the time it takes to make a written record of 
their rulings. The rule will require Floor Officials to submit the form 
to the Exchange at the end of the trading day.
2. Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) \3\ of the Act, in general, and furthers the 
objectives of Section 6(b)(5),\4\ in particular, because it is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of change, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanism of a 
free and open market and a national market system.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) by order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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, N.W., Washington, D.C. 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. 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-00-11 and should 
be submitted by May 16, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-10261 Filed 4-24-00; 8:45 am]
BILLING CODE 8010-01-M