Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Notices 16883

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

2The Commission notes that the Amex’s Post

Execution Reporting (‘‘PER’’) system provides

member firms with the means to electronically

transmit equity orders, up to volume limits

specified by the Exchange, directly to a specialist’s

post on the trading floor of the Exchange. Securities

Exchange Act Release No. 34869 (Oct. 20, 1994), 59

FR 54016.

3The Commission notes that orders of competing

market makers do qualify for this fee cap.

Telephone conversation between Michael Cavalier,

Associate General Counsel, Amex, and Anthony P.

Pecora, Attorney, Division of Market Regulation,

SEC (Apr. 1, 1997).

4The Commission notes that this definition of

‘‘competing market maker’’ is identical to the

definition used by the New York Stock Exchange.

See Securities Exchange Act Release No. 37273

(June 4, 1996), 61 FR 29438, at n.14 (approving a

similar fee change proposed by the NYSE).

5 15 U.S.C. 78f(b).

6 15 U.S.C. 78f(b)(4).

7 15 U.S.C. 78s(b)(3)(A).

8 17 CFR 240.19b–4.

such time as the calculation

methodology for the BBO is based on a

price/size/time algorithm pursuant to

the 1997 Extension Request or other

mutual agreement among the

Participants approved by the

Commission. The Commission further

finds that it is appropriate to extend the

exemptive relief from Rule 11Aa3–1

under the Act, that requires transaction

reporting plans to include market

identifiers for transaction reports and

last sale data, to the BSE through June

30, 1997. The Commission believes that

the extensions of the exemptive relief

provided to vendors and the BSE,

respectively are consistent with the Act,

the Rules thereunder, and specifically

with the objectives set forth in Sections

12(f) and 11A of the Act and in Rules

11Aa3–1 and 11Aa3–2 thereunder.

VII. Conclusion

It is therefore ordered, pursuant to

Sections 12(f) and 11A of the Act and

(c)(2) of Rule 11Aa3–2 thereunder, that

the Participants’ request to extend the

effectiveness of the Joint Transaction

Reporting Plan, as amended, for

Nasdaq/National Market securities

traded on an exchange on an unlisted or

listed basis through June 30, 1997, and

certain exemptive relief until such time

as the calculation method for the BBO

is based on a price/size/time algorithm,

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(29).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8873 Filed 4–7–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–38460; File No. SR–Amex–

97–16]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

American Stock Exchange, Inc.

Relating to Equity Transaction Fee

Changes

April 1, 1997.

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

Securities Exchange Act of 1934

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

March 25, 1997, the American Stock

Exchange, Inc. (‘‘Amex’’ or ‘‘Exchange’’)

filed with the Securities Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by the selfregulatory organization. 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 Amex is making certain changes

to its schedule of transaction charges

imposed on trades in equity securities

executed on the Exchange. The text of

the proposed rule change is available at

the Office of the Secretary, the Amex,

and at the Commission.

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

self-regulatory organization 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

The Amex is revising its schedule of

equity transaction charges for PER

orders by expanding the exemption

from share-based and value-based

transaction charges to include PER

orders up to 1,099 shares, increased

from 500 shares.2 In addition, the value

portion of the Amex’s equity transaction

charge (based on the value of shares

traded as opposed to the other portion

of the charge based on the number of

shares traded), will be subject to a

maximum charge of $40 per trade.3

The exemption for PER orders up to

1,099 shares will not apply to orders of

a member or member organization

trading as an agent for the account of a

non-member competing market maker.

A ‘‘competing market maker’’ will be

defined as a specialist or market maker

registered as such on a registered stock

exchange (other than the Amex), or a

market maker bidding and offering overthe-counter in an Amex-traded

security.4 The schedule of Amex sharebased and value-based transaction

charges otherwise remains unchanged.

The Exchange’s schedule of equity

transaction charges, as revised, is

attached as Exhibit A to the filing and

will be implemented by the Exchange

beginning May 30, 1997.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b) of the Act 5 in general and furthers

the objectives of Section 6(b)(4) 6 in

particular in that it provides for the

equitable allocation of reasonable dues,

fees, and other charges among the

Exchange’s members and other persons

using its facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes the proposed

rule change does not impose any burden

on competition that is not necessary or

appropriate in furtherance of the

purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change constitutes

or changes a due, fee, or other charge

imposed by the Exchange and, therefore,

has become effective pursuant to

Section 19(b)(3)(A) of the Act 7 and

subparagraph (e) of Rule 19b–4

thereunder.8

At any time within sixty 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,
16884 Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Notices

9 17 CFR 200.30–3(a)(12).

1On December 17, 1996, the NASDR filed the

proposed rule change with the Commission.

However, Amendment No. 1, modifying the rule

language, replaces the original rule filing.

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 at

the Commission’s Public Reference

Section, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to File No. SR–Amex–97–

16 and should be submitted by April 29,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8876 Filed 4–7–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–38468; File No. SR–NASD–

96–46]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

NASD Regulation, Inc. Relating to the

Submission of Information in

Electronic Form

April 2, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on March 17, 1997,1

NASD Regulation, Inc. (‘‘NASDR’’) 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 NASDR. 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

NASDR is proposing to amend Rule

8210 of the Procedural Rules of the

National Association of Securities

Dealers, Inc. (‘‘NASD’’ or ‘‘Association’’)

to permit the NASD to request that

members provide regulatory information

in electronic form (where the member

maintains its records in electronic form)

and to establish electronic submission

programs for regularly filed regulatory

information. Below is the text of the

proposed rule change. Proposed new

language is in italics.

Procedural Rules

8000. Complaints, Investigations and

Sanctions

* * * * *

8200. Investigations

8210. Reports and Inspection of Books

for Purpose of Investigating Complaints

(a) For the purpose of any

investigation, or determination as to

filing a complaint or any hearing of any

complaint against any member of the

Association or any person associated

with a member made or held in

accordance with the Rule 9000 Series,

or made or held by another domestic or

foreign self-regulatory organization,

association, securities or contract

market or regulator of such markets,

with whom the Association has entered

into an agreement providing for the

exchange of information and other

forms of material assistance solely for

market surveillance, investigative,

enforcement or other regulatory

purposes, any District Business Conduct

Committee, the Market Surveillance

Committee, or the Board of Governors,

or any duly authorized member or

members of any such Committees or

Board or any duly authorized agent or

agents of any such Committee or Board

shall have the right:

(1) to require any member of the

Association, person associated with a

member, or person no longer associated

with a member when such person is

subject to the Association’s jurisdiction

to report, either informally or on the

record, orally or in writing or

electronically (if the requested

information is maintained in electronic

form) with regard to any matter

involved in any such investigation or

hearing, and

(2) to investigate the books, records

and accounts of any such member or

person with relation to any matter

involved in any such investigation or

hearing.

(b) No such member or person shall

fail to make any report as required in

this Rule, or fail to permit any

inspection of books, records and

accounts as may be validly called for

under this Rule. Any notice requiring an

electronic, oral, or written report or

calling for an inspection of books,

records and accounts pursuant to this

Rule shall be deemed to have been

received by the member or person to

whom it is directed by the mailing

thereof to the last known address of

such member or person as reflected on

the Association’s records.

(c) In carrying out its responsibilities

under this paragraph, the Association

may, as approved by the Commission,

establish programs for the submission of

information to the Association on a

regular basis through a direct or indirect

electronic interface between the

Association and members.

* * * * *

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NASDR 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. NASDR 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

(a) Various NASD and SEC rules

require members to maintain records of

compliance so that information will be

available to NASD staff for on-site

examination. In addition, members are

required by NASD and SEC rules to

submit certain information to the NASD

on a regular basis or on request. The

various rules and regulations of the

Municipal Securities Rulemaking Board

(‘‘MSRB’’) also impose recordkeeping

requirements on members of the

Association. Rule 8210 of the

Association’s Conduct Rules (formerly,

Article IV, Section 5 of the Rules of Fair

Practice) requires members to respond

to any NASD request for information for

the purpose of any investigation or

determination as to the filing of a