[Federal Register Volume 62, Number 239 (Friday, December 12, 1997)]
[Notices]
[Pages 65459-65463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32486]



[[Page 65459]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39402; File No. SR-Amex-97-46]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Immediate Effectiveness of Proposed Rule Change by American 
Stock Exchange, Incorporated Relating to the Listing of Commodity 
Indexed Preferred or Debt Securities

December 4, 1997.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 
1934, as amended, (``Act''),\1\ notice is hereby given that on November 
25, 1997, the American Stock Exchange, Incorporated (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. The Exchange has designated the proposed rule change as 
constituting a ``non-controversial'' rule change under paragraph (e)(6) 
of Rule 19b-4 under the Act \2\ which renders the proposal effective 
upon receipt of this filing by the Commission.\3\ 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\ 17 CFR 240.19b-4(e)(6).
    \3\ The Exchange has represented that this 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. The Exchange also has provided at least 
five business days notice to the Commission of its intent to file 
this proposed rule change, as required by Rule 19b-4(e)(6) under the 
Act.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Under Section 107A of the Amex Company Guide, the Exchange may 
approve for listing and trading securities that cannot be readily 
categorized under the listing criteria for common and preferred stock, 
bonds and debentures and warrants. The Amex proposes to list and trade 
commodity index preferred or debt securities (``ComPS'') on futures 
contracts for: corn; soybeans; wheat; a corn, soybean and wheat index 
(``Agricultural Index''); the ``total return'' variation of the J.P. 
Morgan Commodity Index (``JPMCI''); the ``excess return'' variation of 
the JPMCI (``JPMCI:X''); and the total return and excess return 
versions of the Energy (``JPMCI:E''), Base Metal (``JPMCI:B'') and 
Precious Metal (``JPMCI:P'') subindices of the JPMCI.\4\ An excess 
return represents the cumulative returns of investing in unleveraged 
positions in nearby commodity futures contracts and constantly rolling 
the position forward to the next designated contract as the contract 
nears expiration. A total return consists of the excess return plus the 
return on the three-month Treasury Bills. In 1996, the Commission 
approved ComPS overlying various financial instruments for listing on 
both the Amex and the New York Stock Exchange, Incorporated 
(``NYSE'').\5\
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    \4\ Telephone call between Bill Floyd-Jones, Assistant General 
Counsel, Amex and Marianne H. Duffy, Special Counsel, Division of 
Market Regulation, SEC on December 1, 1997 (``Amex Call'').
    \5\ Securities Exchange Act Release No. 36885 (February 26, 
1996) 61 FR 8315 (March 4, 1996) (order approving the listing and 
trading of ComPS on the Amex linked to one of eleven physical 
commodities that comprise the JPMCI and JPMCI:X (``Amex Individual 
ComPS Order'')) and Securities Exchange Act Release No. 37188 (May 
9, 1996) 61 FR 24846 (May 16, 1996) (order approving the listing and 
trading of commodity futures index preferred securities (``CFIPs'') 
on the NYSE linked to one of eleven physical commodities that 
comprise the JPMCI and JPMCI:X (``NYSE Individual CFIPs Order'')).
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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 self-regulatory organization 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
    As previously stated, the Amex proposes to list for trading ComPS 
overlying futures contracts for: corn; soybeans; wheat; the 
Agricultural Index; the JPMCI; the JPMCI:X; the JPMCI:E; the JPMCI:B; 
and the JPMCI:P. The ComPS and the issuer of the ComPS will conform to 
the Amex's listing guidelines under Section 107A of the Company 
Guide.\6\ Accordingly, all issuances of ComPS must have: a public 
distribution of one million trading units; 400 holders; and a market 
value of not less than $4 million. The Exchange also will require that 
the issuer have a minimum tangible net worth of $150 million.
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    \6\ The proposed underwriter of the ComPS has advised the 
Exchange that the securities will comply with the ``hybrid 
exemption'' of the Commodity Futures Trading Commission (``CFTC'') 
under 17 CFR Part 34. The underwriter has further advised the 
Exchange that it presented a description of the structure and sample 
term sheet of ComPS to the staff of the CFTC when the underwriter 
first proposed the structure for ComPS overlying individual 
commodities in 1995. The CFTC raised no objection to the structure. 
See Amex Individual ComPS Order, id.
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    Holders of ComPS may receive a dividend or interest payment as 
applicable on the face value of their securities. The frequency and 
rate of the dividend or interest payment varies from issue to issue 
based upon prevailing interest rates and other factors. In addition, 
investors will receive at maturity a payment linked to the value of an 
index based upon a single commodity in accordance with the following 
formula: Face Amount  x  (Ending Index Value/Beginning Index Value) - 
Factor.
    The ``Beginning Index Value'' is announced at the time of the 
offering. The ``Ending Index Value'' is based upon a 10 day average of 
the daily index value computed during the determination period prior to 
the redemption date. The ``Factor'' represents the costs of issuing and 
hedging the securities and also may include the future value of the 
stated dividend or interest payment (if any).
    Commodity prices for the purpose of determining the payment to 
holders at maturity will be determined by reference to prices for a 
linked commodity over at least a ten business day period. The 
securities will have a term of from two to ten years. Holders of the 
securities have no claim to any of the underlying physical linked 
commodities.\7\
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    \7\ Amex Call, supra note 4.
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    (a) Design of the Underlying Instruments. The Amex asserts that the 
futures contracts are all actively traded for: Corn, soybeans, and 
wheat on the Board of Trade of the City of Chicago (``CBOT''); the base 
metal components of the JPMCI and JPMCI:X on the London Mercantile 
Exchange (``LME''); the energy components of the JPMCI and JPMCI:X on 
the New York Mercantile Exchange (``NYMEX''); and the precious metal 
components of the JPMCI and JPMCI:X of the Comex division of the NYMEX 
(``COMEX''). The Amex asserts that prices for all of the above 
commodities are widely reported by vendors of financial information and 
the press. Information

[[Page 65460]]

regarding the proposed underlying contracts follows: \8\
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    \8\ For liquidity purposes, JPMCI and JPMCI:X indices skip May 
and September wheat, September corn and August and September 
soybeans in the designated contract definitions.

----------------------------------------------------------------------------------------------------------------
                                   1996 average open     1996 ADT                                               
       Underlying futures               interest          volume       Contract month          Description      
                                       (billions)       (millions)                                              
----------------------------------------------------------------------------------------------------------------
Corn............................  $6.6...............         $1.4  Mar, May, Jul, Dec.  No. 2 yellow corn &    
                                                                                          substitutes as        
                                                                                          specified by CBOT     
                                                                                          rules.                
Soybeans........................  $7.0...............         $2.1  Jan, Mar, May, Jul,  No. 2 yellow soybeans &
                                                                     & Nov.               substitutes as        
                                                                                          specified by CBOT     
                                                                                          rules.                
Wheat...........................  $2.0...............         $516  Mar, Jul, Dec......  Hard winter wheat &    
                                                                                          substitute grades as  
                                                                                          specified by CBOT     
                                                                                          rules.                
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    The following commodities comprise the JPMCI and JPMCI:X:

----------------------------------------------------------------------------------------------------------------
            Name/units                     Market             Units per contract           Contracts in index   
----------------------------------------------------------------------------------------------------------------
Aluminum $/Metric Tons............  LME (MT)             25 tons.....................  3rd Wed of Mar, Jun, Sep 
                                                                                        and Dec.                
Copper $/MT.......................  LME                  25 tons.....................  3rd Wed of Mar, Jun, Sep 
                                                                                        and Dec.                
Nickel $/MT.......................  LME                  6 tons......................  3rd Wed of Mar, Jun, Sep 
                                                                                        and Dec.                
Zinc $/MT.........................  LME                  25 tons.....................  3rd Wed of Mar, Jun, Sep 
                                                                                        and Dec.                
Heat Oil $/gal....................  NYMEX                42,000 gal..................  Every month.             
Nat Gas $/MM BTU..................  NYMEX                10,000 MM BTU...............  Every month.             
Unleaded Gas $/gal................  NYMEX                42,000 gal..................  Every month.             
WTI Lt Swt Crude Oil $/BBL........  NYMEX                1,000 bbl...................  Every month.             
Platinum $/troy ounce.............  NYMEX                50 troy oz..................  Jan, Apr, Jul, Oct.      
Gold $/troy ounce.................  COMEX                100 troy oz.................  Feb, Apr, Jun, Aug, and  
                                                                                        Dec.                    
Silver $/troy ounce...............  COMEX                5,000 troy oz...............  Mar, May, Jul, Sep and   
                                                                                        Dec.                    
----------------------------------------------------------------------------------------------------------------

    The relative weighting of the various commodities in the JPMCI:E, 
JPMCI:B, JPMCI:P and Agricultural Index are as follows:

------------------------------------------------------------------------
                                                              Weight in 
            Component                      Subindex            subindex 
                                                              (percent) 
------------------------------------------------------------------------
Aluminum.........................  Base metal..............        40.91
Copper...........................  Base metals.............        36.36
Nickel...........................  Base metals.............         9.09
Zinc.............................  Base metals.............        13.64
Crude Oil........................  Energy..................        60.00
Heating Oil......................  Energy..................        18.18
Unleaded Gas.....................  Energy..................         9.09
Natural Gas......................  Energy..................        12.73
Gold.............................  Precious metals.........        65.22
Silver...........................  Precious metals.........        21.74
Platinum.........................  Precious metals.........        13.04
Corn.............................  Agricultural............        33.33
Soybeans.........................  Agricultural............        33.33
Wheat............................  Agricultural............        33.33
------------------------------------------------------------------------

    Based on the foregoing information and for the following reason, 
the Exchange believes that the JPMCI and the JPMCI:X are diversified 
indices of industrial commodities. The JPMCI is a weighted arithmetic 
average of total returns afforded by an investment in liquid exchange 
traded futures on eleven industrial commodities. In addition, the 
Exchange notes that the Commission has previously reviewed and approved 
the listing of a security which was linked to the performance of the 
JPMCI or the JPMCI:X.\9\
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    \9\ Securities Exchange Act Release No. 35581 (March 21, 1995) 
60 FR 15804 (March 27, 1997) (order approving the listing and 
trading of commodity linked intermediate term notes (``COINs'') 
overlying the JPMCI and the JPMC:X on the Amex).
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    b. Maintenance of Underlying Instruments. It is anticipated that 
the contract or contracts underlying a particular issue of ComPS will 
remain unchanged during the term of the instrument. Certain 
developments, however, may necessitate changes with respect to the 
underlying contract or contracts.\10\ Decisions regarding such changes 
will be made by J.P. Morgan upon the advice of the JPMCI Policy 
Committee, a neutral business committee. This committee consists of 
senior employees in the commodities and research areas of J.P. Morgan 
as well as independent and academic experts. Personnel from J.P. 
Morgan's Commodities group serve only in an advisory, non-voting role 
on the committee. J.P. Morgan will immediately notify the Exchange and 
vendors of financial information if there is a change in the design, 
composition or calculation of the securities.
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    \10\ Such developments could include, among other things, 
changing liquidity conditions or the discontinuation of existing 
contracts, the emergence of new ``benchmark'' contracts for the 
particular linked commodity or the imposition of a tax or other 
charge on transactions.
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    If it becomes necessary to choose a replacement price source for 
the securities, the new price source will meet the following criteria: 
(i) it will be

[[Page 65461]]

priced in U.S. dollars, or if priced in a foreign currency, the 
exchange on which the contract is traded must publish an official 
exchange rate for conversion of the price into U.S. dollars and such 
currency must be freely convertible in U.S. currency, (ii) it will be 
traded on a regulated futures exchange in the U.S., Canada, U.K, Japan, 
Singapore or an O.E.C.D. country,\11\ and (iii) it will have a minimum 
annual volume of 300,000 contracts of $500 million. The underwriter 
will immediately notify the Exchange and vendors of financial 
information in the event that there is a change in the futures contract 
underlying a particular series of ComPS.
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    \11\ The O.E.C.D. (Organization of Economic Cooperation and 
Development) consists of the following countries: the U.S., Japan, 
Germany, France, Italy, U.K., Canada, Australia, Austria, Belgium, 
Denmark, Finland, Greece, Iceland, Ireland, Luxembourg, Mexico, 
Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, 
Switzerland and Turkey.
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    In the event that a determination is made to change a contract 
related to an issue of ComPS and an appropriate benchmark replacement 
contract is identified, the substitution of the new contract for the 
old only will be done where: (1) the Exchange has established a 
comprehensive information sharing agreement with the market or self-
regulator for the replacement contract, or (2) the SEC has established 
suitable alternative agreements with an appropriate regulator of the 
market for the replacement contract.
    When there is no suitable benchmark replacement contract or, there 
is suitable benchmark contract but the Exchange's or the Commission's 
information sharing arrangement do not meet the above criteria, in the 
case of ComPS on a single commodity, the affected ComPS either will be 
called by the issuer or the payment to be made to holders at maturity 
will be fixed as of such time using prices derived from the old 
underlying contract, and thereafter the principal amount will not 
fluctuate throughout the term of the instrument as a result of the 
price of a linked commodity. In the case of ComPS related to a basket 
of commodities, the affected contract within the index basket will be 
removed from the basket. Unlike ComPS on individual commodities, the 
index value of ComPS related to baskets will not be fixed and 
determined early. Rather, the index will continue to be calculated 
using the above described index calculation methodology by excluding 
the removed commodity, and using the new weights determined by J.P. 
Morgan under the advice of the JPMCI Policy Committee. The new weights 
will adjust only for the removed commodity, taking its old arithmetic 
percentage weight in the index and dividing it up among one or more of 
its same sector index group members (i.e., energy, precious metal, base 
metal or agricultural). Thus, for example, the removal of an energy 
related commodity will not change the energy related weighting in the 
JPMCI basket, but it will change the individual weightings of some or 
all of the remaining energy components within the energy subindex. For 
example, if natural gas were removed from the JPMCI, its 7% weight in 
the basket would be divided among the three remaining energy 
commodities as determined by J.P. Morgan with the advice of the JPMCI 
Policy Committee and the energy subindex would remain at 55% of the 
basket. The removal of a commodity will not change the value of the 
index; it only will change the weights of the contracts in the index 
which, going forward, will be used to determine future changes in the 
value of the index.
    Members of the JPMCI Policy Committee will be prohibited from 
trading ComPS and from communicating any knowledge concerning changes 
in the underlying commodities.
    c. Surveillance. The Amex is able to obtain market surveillance 
information, including customer identify information, with respect to 
transactions occurring on the LME pursuant to its information sharing 
arrangements with the Securities and Futures Authority (``SFA'') 
through the Intermarket Surveillance Group (``ISG''). The Exchange also 
is able to obtain market surveillance information, including customer 
identity information, with respect to transactions occurring on NYMEX 
or COMEX pursuant to its information sharing agreement with NYMEX. In 
addition, the Exchange is able to obtain market surveillance 
information, including customer identity information, regarding 
transactions on the CBOT through the ISG.\12\
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    \12\ The Exchange currently has information sharing arrangements 
that qualify as comprehensive information sharing agreements with 
the following futures markets and self-regulators: CBOT; Chicago 
Mercantile Exchange, London International Financial Futures and 
Options Exchange; Montreal Exchange; New York Futures Exchange; 
NYMEX; the SFA; and the Sydney Futures Exchange.
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    d. Calculation of Value of Underlying Instruments. The JPMCI:E, 
JPMCI:B, JPMCI:P and agricultural index (collectively the ``sector 
indices'') are calculated using the same methodology as the JPMCI or 
JPMCI:X which the Commission previously approved.\13\ The sector 
indexes are dollar weighted, arithmetic averages measuring the return 
from an investment in the applicable futures contracts. The value of 
each sector index is defined by a trading strategy that holds a futures 
position in each of the commodities for a one month period and then 
rebalances the value of the commodities held for the following month 
based on a constant dollar weighting scheme. The rebalancing generally 
occurs at the end of the trading on the 4th business day of every month 
on which the relevant exchanges are open. The new contract used to 
rebalance is the nearest designated futures contract which has 
termination of trading or first notice day at least 10 business days 
into the following month. In addition, due to the periodic expiration 
of the futures contracts used to compute the index value, it also is 
necessary to ``roll'' out of expiring contracts and into the new nearby 
contracts. To minimize possible pricing volatility arising from 
conducting the roll on a single business day, the substitution of the 
new contract for the old is accomplished over a five business day 
period in increments of 20%.
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    \13\ See Amex Individual ComPS Order and NYSE Individual CFIPs 
Order, supra note 4.
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    The futures contract to be used for monthly rebalancing and rolling 
of each commodity will be the nearest designated futures contract to be 
used in the index, with a termination of trading date or first notice 
day not earlier than ten business days into the following month. The 
futures contract used for rebalancing will be called the ``new 
contracts'' and the futures contract that the index refers to up to the 
rebalancing date will be called the ``old contract.'' For energy 
futures the new and old contracts will be different. For precious 
metals, base metals and agricultural commodities, the new and old 
contracts may be the same contract because of the absence of a 
designated contract for every month. Where the new and old contracts 
are the same, rebalancing and rolling only involve and adjustment of 
the amount held of the old contract.
    Rebalancing is calculated according to the following formulae on 
the rebalancing date: number of new units needed = current index value 
* weight of the commodity in the index/current price of the new 
contract per unit; and number of contracts needed = number of new units 
needed/number of units per contract.
    After rebalancing has occurred, the roll is executed. This is the 
process by which the old contracts are sold and the

[[Page 65462]]

new contracts are purchased. Twenty per cent of the roll volume is 
transacted on each of the five subsequent business days after the 
rebalance date.
    The rebalancing and rolling process determines the new contract and 
the number of new contracts to be used in the daily index calculation 
for the coming month. (During the five day roll period, the theoretical 
portfolio may consist of a blend of the new and old contracts for each 
commodity.) The daily index value is calculated as the sum of the 
previous day's closing index value plus the gain, or minus the loss, of 
the theoretical portfolio on that day. For each component commodity, 
the gain for the day is calculated by multiplying the difference 
between the current day's price and the previous day's price times the 
number of these contracts held in the theoretical portfolio times the 
number of units of the commodity per contract.\14\ The daily gain or 
loss on the theoretical portfolio then is simply the sum total of the 
gains and losses of the individual positions in the theoretical 
portfolio. The index value calculated in this manner for today then 
serves as the base to which tomorrow's gain or loss on the theoretical 
portfolio is added to determine the next day's index level. The 
foregoing describes an ``excess return'' methodology for calculating 
the index such as used in the JPMCI:X. If a total return index is used, 
a return based upon the U.S. Treasury Bill rate is incorporated into 
the index. The index calculation may be described as follows: Index 
(today) = Index (yesterday) + P&L on theoretical portfolio + Daily 
collateral interest where; Daily collateral interest = Index 
(yesterday)  x  Treasury Bill yield; and P&L on theoretical portfolio = 
Sum of individual P&L calculations for all commodities in theoretical 
portfolio. The P&L calculations are in the form of: P&L = [number of 
contracts  x  change in price of designated contracts].
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    \14\ This last step is a result of the convention that contract 
prices are quoted on a per unit basis rather than a per contract 
basis.
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    e. Dissemination of Value of Underlying Instruments. During U.S. 
market hours, index values with respect to ComPS based upon corn, wheat 
and soybeans will be calculated every 60 seconds and distributed by 
Reuters and Bloomberg. Index values with respect to the JPMCI, JPMCI:X 
and the four sector indices also will be calculated every 60 seconds 
and distributed by an independent calculation agent. The last 
disseminated price from the applicable exchange will be incorporated 
into the index calculations. The Ending Index Value for ComPS prior to 
the redemption date will be calculated by J.P. Morgan or an affiliate.
    f. Suitability. Returns to investors in ComPS are unleveraged with 
neither a cap nor a floor. The Amex asserts that since commodity 
returns historically have been negatively correlated with financial 
assets, the ownership of ComPS (although their return is uncertain) 
will help to diversify a portfolio of financial instruments. There is 
an element of derivative pricing, however with respect to the 
calculation of the final payment. The Exchange, accordingly, will 
require members, member organizations and employees thereof to make a 
determination with respect to customers whose accounts have not 
previously been approved to trade futures or options that a transaction 
in the proposed securities is suitable for such customer. In addition, 
members, member organizations or employees thereof recommending a 
transaction in ComPS would be required: (1) to determine that the 
transaction recommended is suitable for the customer and (2) to have a 
reasonable basis for believing that the customer can evaluate the 
special characteristics of, and is able to bear the financial risks of, 
the recommended transaction. This is more than the duty to know and 
approve customers, but entails an obligation to make a determination 
that the transaction is suitable for the customer. The Exchange will 
distribute a circular to its membership prior to trading such 
securities providing guidance with regard to member firm compliance 
responsibilities (including suitability recommendations) when handling 
transactions in ComPS and highlighting the special risks and 
characteristics thereof. The Exchange will provide the Commission staff 
with a copy of the circular prior to distribution.
    ComPS will be subject to the quality margin and trading rules of 
the Exchange, except when ComPS are issued as debt in denominations 
with a face value of $1,000 or more, they will be traded subject to the 
Exchange's debt trading rules (although they will still remain subject 
to the Exchange's equity margin rules).\15\
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    \15\ Amex Call, supra note 6.
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2. Statutory Basis
    The Exchange asserts that the proposed rule change is consistent 
with Section 6(b) of the Act in general and furthers the objectives of 
Section 6(b) in particular in that it is designed to prevent fraudulent 
and manipulative acts and practices, promote just and equitable 
principles of trade, remove the impediments to and perfect the 
mechanisms of a free and open market and a national market system, and, 
in general, protect investors and the public interest.

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

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    This proposed rule change has been filed by the Exchange as a 
``noncontroversial'' rule change pursuant to paragraph (e)(6) of Rule 
19b-4. Consequently, the rule change shall become operative 30 days 
after the date of filing, or such shorter time as the Commission may 
designate, if the change (1) does not significantly affect the 
protection of investors or the public interest and (2) does not impose 
any significant burden on competition, pursuant to Section 
19(b)(3)(A)(iii) of the Act \16\ and subparagraph (e)(6) of Rule 19b-4 
thereunder.
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    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
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    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. Because the foregoing 
proposed rule change: (1) does not significantly affect the protection 
of investors or the public interest; (2) does not impose any 
significant burden on competition; and (3) does not become operative 
for 30 days from November 25, 1997, the date on which it was filed, and 
the Exchange provided the Commission with written notice of its intent 
to file the proposed rule change at least five days prior to the filing 
date, it has become effective pursuant to Section 19(b)(3)(A) of the 
Act and Rule 19b-4(e)(6) thereunder.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing.

[[Page 65463]]

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. Copies of such filing will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to File No. SR-Amex-97-46 and should be 
submitted by January 2, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-32486 Filed 12-11-97; 8:45 am]
BILLING CODE 8010-01-M