28004 Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Notices

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).

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.

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–

26 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.

[FR Doc. 95–12985 Filed 5–25–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35743; File No. SR–CBOE–

95–24]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated Relating to the Content

Outline for the General Securities

Registered Representative (Series 7)

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’’) 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

Content Outline for the General

Securities Registered Representative

(Series 7) Examination (‘‘Series 7’’).

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.

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 revise and update the

Content Outline for the Series 7

examination. The Series 7 examination

was created in 1974 as an industry-wide

qualification examination for persons

seeking registration as general securities

representatives. The Series 7

examination is generally required under

rules of the self-regulatory organizations

(‘‘SROs’’) for persons who are engaged

in the solicitation, purchase, and/or sale

of securities for the accounts of

customers. The purpose of the Series 7

examination is to ensure that registered

representatives have the basic

knowledge necessary to perform their

functions and responsibilities. The

Series 7 Content Outline details the

subject coverage and questions

allocation of the Series 7 examination.

Revision of the Series 7 examination

and Content Outline was initiated in

April 1993 by an industry committee of

SROs and broker-dealers

representatives 1 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 Content Outline for the

Series 7 examination has 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, drafted statements of

tasks expected to be performed by entrylevel registered representatives, and

conformed the existing Content Outline

to the task statements. The Content

Outline reflects the revised content of

the Series 7 examination. Under the

proposed rule change, the total number
Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Notices 28005

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).

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 19b–4(e)(6) thereunder.2

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–

24 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.

[FR Doc. 95–12984 Filed 5–25–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35744; File No. SR–CBOE–

95–25]

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 Registered

Representative (Series 7) 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’’) 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

Registered Representative (Series 7)

Examination (‘‘Series 7’’) 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.

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 revise, update, and seek

approval for the Series 7 examination

and specifications. The Series 7

examination was created in 1974 as an

industry-wide qualification examination

for persons seeking registration as

general securities representatives. The

Series 7 examination is generally

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

persons who are engaged in the

solicitation, purchase, and/or sale of

securities for the accounts of customers.

The purpose of the Series 7 examination

is to ensure that registered

representatives have the basic

knowledge necessary to perform their

functions and responsibilities. The

Series 7 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 7 examination

and specifications was initiated in April