44024 Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Notices

4Forty-five questions pertaining to options are

included in the Series 37 but omitted from the

Series 38.

5 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1) (1998).

2 17 CFR 240.19b–4 (1991).

3This proposed rule change was originally filed

on June 24, 1997. The CSE subsequently submitted

Amendment No. 1 which altered minor technical

language in Item II. Letter from Adam W. Gurwitz,

Vice President Legal and Secretary, CSE, to Karl J.

Varner, Esq., SEC, dated August 4, 1997. This

proposed rule change replaces SR–CSE–97–06,

which has been withdrawn. Letter from Adam W.

Gurwitz, Vice President Legal and Secretary, CSE,

to Katherine England, Assistant Director, SEC,

dated June 23, 1997.

examination dealing with U.S. securities

laws, regulations, sales practices and

special products drawn from the

standard Series 7 examination.

The Series 37 version is for Canadian

registrants who have successfully

completed the basic core module of the

Canadian Securities Institute program.

The Series 38 version is for Canadian

registrants who, in addition to having

successfully completed the basic core

module of the Canadian Securities

Institute program, have also successfully

completed the Canadian options and

futures program. Although the Canadian

exam modules contain some overlap

with the Series 7, the Series 37 and

Series 38 cover only subject matter that

is not covered, or not covered in

sufficient detail, on the Canadian

qualification examination. The Series 37

has 90 questions and is 150 minutes in

duration, while the Series 38, an

abbreviated version of the Series 37, has

only 45 questions and is 75 minutes in

duration.4

The Series 47 version is for Japanese

registrants in good standing with

Japanese securities authorities, and is

designed to test a Japanese registered

representative’s knowledge of U.S.

securities laws, markets, investment

products and sales practices. It contains

160 questions and is 240 minutes long.

(2) Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act

in general and furthers the objectives of

Section 6(b)(3)(B) in particular in that it

establishes standards of training,

experience and competence for persons

associated with Exchange members and

member organizations. The foreign

examination modules should provide

comprehensive coverage of the topics

contained in the Series 7 that are not

adequately covered by the applicable

foreign qualification examination. The

proposal is also consistent with Section

6(b)(5) in that it is designed to perfect

the mechanism of a free and open

market by reducing duplicative

qualification requirements while

ensuring that foreign representatives

seeking to become registered with the

Exchange are fully qualified.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The proposed rule change will impose

no 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 Exchange has asserted, and the

Commission agrees, that the proposed

rule change (i) will not significantly

affect the protection of investors or the

public interest, (ii) will not impose any

significant burden on competition, and

(iii) will not become operative for 30

days after the date of this filing. For the

foregoing reasons and because the

Exchange provided at least five business

days notice to the Commission of its

intent to file this proposed rule change,

the rule filing will become operative as

a ‘‘non-controversial’’ rule change under

Section 19(b)(3)(A) of the Act and Rule

19b–4(e)(6) thereunder.

At any time within 60 days of this

filing, the Commission may summarily

abrogate this proposal 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.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing.

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. 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 in Washington, D.C. 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 number SR–AMEX–

97–26 and should be submitted by

September 8, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–21748 Filed 8–15–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–38922; File No. SR–CSE–

97–07]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

The Cincinnati Stock Exchange, Inc.

Relating to Minor Rule Plan Violations

August 11, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,

notice is hereby given that on August 5,

1997, The Cincinnati Stock Exchange,

Incorporated (‘‘CSE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the Exchange.3

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CSE hereby proposes to amend

Exchange Rule 8.14 to expand its Minor

Rule Violation Program. The text of the

proposed rule change is below.

Additions are italicized.

The Cincinnati Stock Exchange,

Incorporated

Rule 8.14 Imposition of Fines for Minor

Violation(s) of Rules

No Change.

Interpretations and Policies

.01 List of Exchange Rule Violations

and Fines Applicable thereto Pursuant

to Rule 8.14:

(a)–(d) No Change.
Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Notices 44025

4 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

(e) Rule 4.2 and Interpretations

thereunder related to the requirement to

furnish Exchange-related order, market

and transaction data, as well as

financial or regulatory records and

information.

(f) Rule 11.9(c) related to the

requirement to comply with quotation

policies.

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

CSE 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 CSE has prepared

summaries, set forth in sections A, B

and C below, of the most significant

parts of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

(1) Purpose

The purpose of the proposed rule

change is to enhance the Exchange’s

Minor Rule Violation Program.

Exchange Rule 8.14 provides for an

alternative disciplinary regime

involving violations of Exchange Rules

that the Exchange determines are of a

minor nature. The Minor Rule Violation

Program provides the Exchange with the

ability, but not the obligation, to address

minor rule violations by imposing a

fine, not to exceed $2500, on any

member that the Exchange determines

has violated such rule. Adding a

particular rule violation to the Minor

Rule Violation Program in no way

circumscribes the Exchange’s ability to

treat violations of those rules through

more formal disciplinary measures. The

Minor Rule Violation Program simply

provides the Exchange with greater

flexibility in addressing rule violations

appropriately. Section (e) of Rule 8.14

requires the Exchange from time to time

to prepare a list of minor rule violations.

As part of its ongoing effort to

improve its regulatory program, the

Exchange has determined that certain

rule violations should be added to the

Minor Rule Violation Program. The

Minor Rule Violation Program currently

includes the requirements of Exchange

Rules 4.1 and 4.2, concerning books and

records, to submit trade data to the

Exchange. The Exchange intends to

clarify that a member must also provide

financial and regulatory records in

accordance with Rule 4.2 and

Interpretation thereunder as well as

trade-related information.

Similarly, the proposed rule change

will include quotation policies set by

the Exchange’s Securities and Market

Performance Committee and delineated

by Regulatory Circular. Exchange Rule

11.9(c) requires Designated Dealers, the

Exchange’s multiple, competing

specialists, to maintain continuous

quotations throughout the trading day.

Including these quotation requirements

in the Minor Rule Violation Program

will help the Exchange ensure

compliance with its quotation

requirements and spread parameters

because the Exchange will have

adequate regulatory flexibility in

dealing with potential violations. This,

in turn, will enhance the value of

quotations made by the Exchange’s

multiple, competing specialists.

(2) Basis

The proposed rule change is

consistent with Section 6(b) of the Act

in general, and furthers the objectives of

Section 6(b)(5) in particular in that it is

designed to promote just and equitable

principles of trade and 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. Specifically, the

proposed rule change will augment the

Exchange’s ability to police its market

and will increase the Exchange’s

flexibility in responding to minor rule

violations. The Exchange will be able to

address appropriate minor rule

violations promptly and efficiently

through the minor rule procedures,

without the need to initiate formal

disciplinary proceedings.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The CSE does not believe that the

proposed rule change will impose any

inappropriate burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

No comments were solicited in

connection with 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 reason 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

determined 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.

People making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. 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 the filing will also be

available for inspection and copying at

the CSE’s principal offices. All

submissions should refer to File No.

SR–CSE–97–07 and should be

submitted by September 8, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–21749 Filed 8–15–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–38923; File No. SR–OCC–

97–09]

Self-Regulatory Organizations; The

Options Clearing Corporation; Notice

of Filing of a Proposed Rule Change

Seeking To Amend the Valuation Rate

Applied to Equity Securities and

Corporate Debt Deposited as Margin

Collateral

August 11, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

May 21, 1997, The Options Clearing

Corporation (‘‘OCC’’) filed with the