28006 Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Notices

1SROs on the committee include the New York

Stock Exchange, American Stock Exchange, Chicago

Board Options Exchange, Municipal Securities

Rulemaking Board, National Association of

Securities Dealers, and Philadelphia Stock

Exchange. Broker-dealer representatives include

branch office managers, compliance officers,

training personnel, and registered representatives.

2The proposed rule change is identical to the rule

change previously approved by the Commission for

the New York Stock Exchange, Inc. and the

National Association of Securities Dealers. See

Securities Exchange Act Release No. 34853 (Oct. 18,

1994), 59 FR 53694 (Oct. 25, 1994) (File Nos. SR–

NYSE–94–26; SR–NYSE–94–27); Securities

Exchange Act Release No. 35401 (Feb. 22, 1995), 60

FR 10886 (Feb. 28, 1995) (File No. SR–NASD–95–

04).

1993 by an industry committee of SROs

and broker-dealers representatives1 in

order to update the examination in view

of changes in the securities industry,

including changes in relevant rules and

regulations, the development of new

securities products, and changes in the

job of registered representatives as firms

offer an increasingly wide range of

financial services. The examination

specifications for the Series 7

examination have not been revised since

1986.

The industry committee updated the

existing statements of the critical

functions of registered representatives to

ensure current relevance and

appropriateness and drafted statements

of tasks expected to be performed by

entry-level registered representatives.

Under the proposed rule change, the

total number of questions in the Series

7 examination will remain at 250, and

the revised examination will cover all

financial product areas covered on the

present Series 7 examination as well as

several new products, including

collateralized mortgage obligations

(‘‘CMOs’’), long term equity anticipation

securities (‘‘LEAPS’’), and CAPS, with

reduced emphasis on direct

participation programs.

2. Statutory Basis

The statutory basis for the Series 7

examination 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 developed

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 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

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 May 12, 1995, 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 129b–(e)(6) thereunder.2

At any time written 60 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 of appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act.

IV. Socitiation 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, 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, NW.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Exchange. All submiss9ions

should refer to File No. SR–CBOE–95–

25 and should be submitted by June 16,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Kartz,

Secretary.

[FR Doc. 95–12983 Filed 5–28–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35746; File No. SR–CBOE–

95–27]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated, Relating to the

Examination Specifications for the

General Securities Sales Supervisor

(Series 8) Examination

May 19, 1995.

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 May 12, 1995, the

Chicago Board Options Exchange,

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) 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 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 CBOE proposes to use a revised

version of the General Securities Sales

Supervisor (Series 8) Examination

(‘‘Series 8’’) and corresponding

specifications.

The text of the proposed rule change

is available at the CBOE and 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.
Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Notices 28007

1The proposed rule change is identical to the rule

change previously approved by the Commission for

the New York Stock Exchange, Inc. and the

National Association of Securities Dealers. See

Securities Exchange Act Release No. 34967 (Nov.

10, 1994), 59 FR 59803 (Nov. 18, 1994) (File Nos.

SR–NYSE–94–23; SR–NYSE–94–24); Securities

Exchange Act Release No. 35208 (Jan. 10, 1995), 60

FR 3688 (Jan. 18, 1995) (File No. SR–NASD–94–66).

1 15 U.S.C. § 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1994).

3See CHX 37(a), Article XX.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Propose Rule

Change

1. Purpose

The Series 8 examination is an

industry-wide qualification examination

for securities sales supervisors. The

Series 8 examination is generally

required under rules of the selfregulatory organizations (‘‘SROs’’) for

persons who are engaged in the

supervision of general securities branch

offices (i.e., branch office managers) and

of general securities registered

representatives. The Series 8

examination tests a candidate’s

knowledge of securities industry rules

and regulations and certain statutory

provisions applicable to general

securities sales supervision. The Series

8 examination specifications detail the

areas covered by the examination and

break down the number of examination

questions culled from each area.

Revision of the Series 8 examination

and specifications was recently

undertaken by an industry committee

composed of representatives from SROs

(the New York Stock Exchange, the

American Stock Exchange, the Chicago

Board Options Exchange, the Municipal

Securities Rulemaking Board, the

National Association of Securities

Dealers, and the Philadelphia Stock

Exchange) and representatives from

broker-dealers, including branch office

managers, compliance personnel, and

corporate executives, in order to update

the examination in view of changes in

relevant laws, rules, and regulations, the

development of new products, and to

reflect various changes in industry

practices. The committee reviewed the

examination specifications, content

areas, and item bank and developed

some new questions in new areas.

The revised examination continues to

cover the areas of knowledge required to

supervise sales activities in securities.

However, the focus of the content of the

examination has been shifted to

concentrate more closely on supervisory

duties. Accordingly, certain questions

have been deleted from the examination

that deal with routine calculations and

basic product knowledge, and questions

on new federal and SRO rules and

regulations have been incorporated into

the examination, as well as questions on

new products, supervision, and changes

in industry practices. The revised

examination and specifications include

coverage of these new areas. The

examination will remain a six-hour,

two-part, 200 question examination.

2. Statutory Basis

The statutory basis for the Series 8

examination 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 developed

examinations that are administered to

establish that persons associated with

Exchange members and member

organizations have attained specific

levels of competence and knowledge.

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

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 May 12, 1995, 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.1

At any time within 60 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.

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, 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 at

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. 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–CBOE–95–

27 and should be submitted by June 16,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[Release No. 34–35753; File No. SR–CHX–

95–08]

Self-Regulatory Organizations;

Chicago Stock Exchange,

Incorporated; Order Granting Approval

to Proposed Rule Change and Notice

of Filing and Order Granting

Accelerated Approval to Amendment

No. 1 Relating to Order Execution

Guarantees

May 22, 1995.

I. Introduction

On March 2, 1995, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’), pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 and Rule 19b–4

thereunder,2 a proposed rule change to

adopt new Rule 37(d), Article XX to

allow specialists on the Exchange to

provide order execution guarantees that

are more favorable than those currently

required under CHX Rule 37(a), Article

XX (‘‘BEST Rule’’) 3 through the

Exchange’s automated execution system

(‘‘MAX’’).