[Federal Register Volume 60, Number 240 (Thursday, December 14, 1995)]
[Notices]
[Pages 64190-64192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30492]



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[[Page 64191]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36566; File No. SR-Amex-95-46]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange, Inc., Relating to the Exchange's 
Arbitration Rules

December 8, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 28, 1995, the 
American Stock Exchange, Inc. (``Amex'' 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 self-regulatory organization. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.

    \1\15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend Amex Rules 600 (Arbitration), 
606 (Initiation of Proceedings), 607 (General Provision Governing 
Prehearing Proceeding), 620 (Schedule of Fees), and add a new rule, 624 
(Failure to Honor Award). 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 Exchange is proposing to amend its rules and procedures 
governing the administration of arbitration. These amendments codify 
modifications to the Uniform Code of Arbitration already approved by 
the Securities Industry Conference on Arbitration.
    The Exchange is proposing to amend Amex Rule 600 to clarify that 
all class action claims, including claims involving members, allied 
members, member organizations, and associated persons, are ineligible 
for submission to the Exchange's arbitration facility.
    Currently, Amex Rule 606(c)(6) provides that decisions concerning 
the right to arbitrate are made by the Director of Hearings, subject to 
appeal to the Exchange's Board of Governors. In order to conform the 
Exchange's rules with the Uniform Code of Arbitration, adopted by the 
Amex in 1980, the Exchange proposes to delete Amex Rule 606(c)(6). The 
Exchange believes decisions concerning the right to arbitrate a claim 
should be made by the panel of arbitrators selected to hear the matter.
    The Exchange's proposed amendment to Amex Rule 607(c) would allow 
parties to provide a list of documents they intend to present at the 
hearing instead of exchanging copies of documents that have previously 
been produced to the other side. This would provide for more efficient 
prehearing exchanges by not requiring the parties to again exchange 
those documents that have previously been produced. Another aspect of 
this amendment would require the list identifying witnesses include the 
address and business affiliation of the witnesses listed. This would 
allow the parties to receive advance notice as to the background of 
witnesses and the location of nonparty witnesses. The final aspect of 
the proposed amendment to Amex Rule 607(c) would require prehearing 
exchanges to occur twenty calendar days in advance of the hearing, 
instead of ten days in advance as is presently required. This would 
serve to avoid surprise and provide the parties with time to organize 
and present their cases in an efficient manner.
    The Exchange is proposing to amend Amex Rule 620 to provide that 
the filing fee for an industry party shall be $500 when the dispute 
does not specify a money claim. This would unify the filing fee for all 
industry claims at $500.
    The Exchange is proposing to add a new rule, Amex Rule 624. This 
new rule would provide that the failure of a member firm or registered 
representative to honor an arbitration award, including those issued at 
another self-regulatory organization or by the American Arbitration 
Association, would subject the firm or registered representative to 
disciplinary proceedings at the Exchange. This would recognize the 
enforceability of arbitration awards issued by other self-regulatory 
organizations and by the American Arbitration Association.
2. Statutory Basis
    The proposed rule changes are consistent with Section 6(b)\2\ of 
the Act in general and furthers the objectives of Section 6(b)\3\ in 
particular in that they are designed to promote just and equitable 
principles of trade and to protect investors and the public interest by 
improving the administration of an impartial forum for the resolution 
of disputes relating to the securities industry.

    \2\15 U.S.C. 78f(b).
    \3\15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no 
burden on competition.

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.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such other period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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, 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 

[[Page 64192]]
public in accordance with the provisions of 5 U.S.C. Sec. 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 also will be available for inspection and copying at the 
principal office of the American Stock Exchange. All submissions should 
refer to File No. SR-Amex-95-46 and should be submitted by January 4, 
1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\

    \4\17 C.F.R. 200.30-3(a)912).
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[FR Doc. 95-30492 Filed 12-13-95; 8:45 am]
BILLING CODE 8010-01-M