Federal Register / Vol. 62, No. 33 / Wednesday, February 19, 1997 / Notices 7485

16The Commission expects the Amex to

implement the new odd-lot pricing procedures no

later than the May 12, 1997 expiration of this pilot

extension.

17See Securities Exchange Act Release No. 35344

(Feb. 8, 1995), 60 FR 8430; Securities Exchange Act

Release No. 36821 (Feb. 8, 1996), 61 FR 6050;

Securities Exchange Act Release No. 37462 (July 19,

1996), 61 FR 39170; and Securities Exchange Act

Release No. 38024 (Dec. 6, 1996), 61 FR 65623

(approving File No. SR–Amex–96–47).

18 15 U.S.C. 78s(b)(2).

19 17 C.F.R. 200.30–3(a)(12).

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

2See Securities Exchange Act Release No. 27967

(May 1, 1990), 55 FR 19131 (May 8, 1990)

(approving File No. SR–NYSE–89–22, Series 17);

Securities Exchange Act Release No. 36629,

International Series Release No. 909 (Dec. 21, 1995),

60 FR 67385, corrected, Securities Exchange Act

Release No. 36629A, International Series Release

No. 909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996)

(approving File No. SR–NYSE–95–29, Series 37 and

Series 38); Securities Exchange Act Release No.

36708, International Series Release No. 915 (Jan. 11,

1996), 61 FR 1808 (Jan. 23, 1996) (approving File

No. SR–NYSE–95–36, Series 47).

3See Securities Exchange Act Release No. 27967

(May 1, 1990), 55 FR 19131 (May 8, 1990)

(approving File No. SR–NYSE–89–22, Series 17);

Securities Exchange Act Release No. 36629,

International Series Release No. 909 (Dec. 21, 1995),

60 FR 67385, corrected, Securities Exchange Act

Release No. 36629A, International Series Release

No.909A (Jan 4, 1996), 61 FR 744 (Jan. 10, 1996)

(approving File No. SR–NYSE–95–29, Series 37 and

Series 38); Securities Exchange Act Release No.

36708, International Series Release No. 915 (Jan. 11,

1996), 61 FR 1808 (Jan 23, 1996) (approving File

No. SR–NYSE–95–36, Series 47); see also Securities

Exchange Act Release No. 36825 (Feb. 9, 1996), 61

FR 6052 (approving File No. SR–NASD–96–04,

Series 37 and 38); Securities Exchange Act Release

No. 37112 (April 12, 1996), 61 FR 17339 (approving

File No. SR–NASD–96–13).

progress towards such completion, the

Commission again requests that the

Exchange provide the Commission with

a status report regarding this project on

the first day of every month until the

necessary system modifications are

completed. Finally, upon completion of

the systems modifications, the Exchange

should give advance notice to the

Commission of the date when the new

odd-lot pricing procedures are to be

implemented.16

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice thereof in the

Federal Register. This will permit the

pilot program to continue on an

uninterrupted basis while the Amex

works to implement the new

procedures. In addition, the procedures

the Exchange proposes to continue

using are identical to the procedures

that were published previously in the

Federal Register for the full comment

period and were approved by the

Commission.17

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,18 that the

proposed rule change (SR–Amex–97–

08) is approved on a pilot basis for a

three-month period ending on May 12,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.19

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4051 Filed 2–18–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38274; International Series

Release No. 1051; File No. SR–CBOE–97–

04]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated Relating to Adoption of

Foreign Examination Modules

February 12, 1997.

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

Securities Exchange Act of 1934

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

January 24, 1997, the Chicago Board

Options Exchange, Incorporated (‘‘CBOE

or Exchange’’) filed with Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change as described

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

have been prepared by the CBOE. The

CBOE has designated this proposal as a

noncontroversial rule change pursuant

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

subparagraph (e)(6) of Rule 19b–4. 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 CBOE proposes to adopt certain

foreign examination modules for the

United Kingdom (‘‘U.K.’’), Canada and

Japan, which would reduce duplicative

qualification standards. The exams were

developed by the New York Stock

Exchange (‘‘NYSE’’) and currently are in

use by the NYSE and National

Association of Securities Dealers

(‘‘NASD’’). Exchange Rule 9.3 has

certain requirements for registered

representatives, one of which is passing

various tests. The Exchange previously

has recognized the requirement that all

registered representative pass the Series

7 examination. The CBOE now is

expanding the types of exams that may

satisfy the Series 7 requirement.

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

CBOE 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 CBOE 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

The purpose of the proposed rule

change is to adopt foreign examination

modules for the U.K., Canada and Japan.

Exchange Rule 9.3 has certain

requirements for registered

representatives, one of which is passing

various tests. The Exchange previously

has recognized the requirement that all

registered representatives pass the

Series 7 examination. The CBOE now is

expanding the types of exams that may

satisfy the Series 7 requirement.

These foreign examination modules

allow persons in good standing with the

securities regulators of their respective

countries to qualify as general securities

registered representatives (Series 7

registrants) by successfully completing

certain modified general securities

representative examinations which have

been developed by the NYSE.2

The purpose of the proposal is to

reduce duplicative qualification

standards that foreign registered

representatives from the U.K., Canada

and Japan encounter to qualify as a U.S.

general securities registered

representative, the equivalent of the

Series 7 registration. A person who

qualifies through one of these

examinations may perform all of the

functions permitted of a person who

holds a Series 7 registration, with the

exception of selling municipal

securities. The examination modules for

the U.K. (Series 17), Canada (Series 37/

38) and Japan (Series 47) currently are

in use by the NYSE and NASD.3 At the

present time, the CBOE has no rule

which allows CBOE registration of a

person who has passed the Series 17,

Series 37/38 or series 47 versions of the

modified general securities

representative examinations.

The CBOE wishes to give U.K.,

Canadian, and Japanese registered

representatives the same advantage they

have at the NYSE and NASD by

eliminating duplicative examinations.

the CBOE believes that these

examinations will benefit both the

Exchange and the foreign representative

affected by the proposal.

The Series 17 version, the Limited

Registered Representative Examination,
7486 Federal Register / Vol. 62, No. 33 / Wednesday, February 19, 1997 / Notices

4TSA is a U.K. self-regulatory organization which

regulates members of the U.K. exchanges and

broker-dealer firms, and has rule making authority

granted to it by the Securities and Investment

Board.

5 15 U.S.C. 78s(b)(3)(A).

6 17 CFR 240.19b–4(e)(6).

7 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by DTC.

is for U.K. registrants who have

successfully completed the basic exam

of the U.K. and who are in good

standing with The Securities

Association (‘‘TSA’’).4 Essentially, the

modified Series 7 Examination deletes

those substantive sections of the

Standard Series 7 which overlap with

the TSA examination. The Series 17 is

a ninety (90) question 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 option and

futures program. Both the Series 37 and

38 share topics and test questions with

the parent Series 7 program but 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. Forty-five

questions pertaining to options from the

series 37 were omitted from the Series

38.

To become registered with the

Exchange, qualified Japanese registered

representatives in good standing with

the Japanese securities authorities

would be required to obtain a passing

score on the Series 37. As a subset of the

Series 7, this 160 question and 240

minute long module is designed to test

a Japanese registered representative’s

knowledge of U.S. securities law,

markets investment products, and sales

practices.

The statutory basis for these foreign

examination modules lies in Section

6(c)(3)(B) of the Act. Under that section,

it is the Exchange’s responsibility to

prescribe standards of training,

experience, and competence for persons

associated with Exchange members and

member organizations. Pursuant to this

statutory obligation, the Exchange has

adopted examinations that are

administered to establish that persons

associated with Exchange members and

member organizations have attained

specified levels of competence and

knowledge.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The CBOE 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

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; (3)

does not become operative for thirty

days from January 24, 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 business days

prior to the filing date, it has become

effective pursuant to Section 19(b)(3)(A)

of this Act 5 and Rule 19b–4(e)(6) 6

thereunder. At any time within sixty

days of the filing of the 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.

V. 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, NW.,

Washington, DC 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 CBOE. All

submissions should refer to the file

number in the caption above and should

be submitted by March 12, 1997.

For the Commission by the Division of

market Regulation pursuant to the delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–4048 Filed 2–18–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38271; File No. SR–DTC–

96–23]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Immediate Effectiveness of

Proposed Rule Relating to Revision of

Fees

February 11, 1997.

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

Securities Exchange Act of 1934

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

December 31, 1996, The Depository

Trust Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which items have been

prepared primarily by DTC. The

Commission is publishing this notice to

solicit comments from interested

persons on the proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The proposed rule change revises the

fees charged to users who are not DTC

participants for automated reports

listing the positions of DTC participants

in an issue.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2