14986 Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Notices

1A ‘‘stopped stock’’ transaction is one in which

a floor broker or specialist pairs-off buy and sell

market-at-the-close orders when holding those

orders simultaneously in the same stock.

2The closing price is the price at which the MOC

orders were executed. Telephone conversation with

Stuart Diamond and Linda Tarr, Amex, and Glen

Barrentine and Jennifer Choi, SEC, on March 7,

1995.

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1994).

3The proposed rule change was filed pursuant to

the SEC’s position that all qualification

examinations administered by the Exchange be filed

with the Commission. See Securities Exchange Act

Release No. 17258 (October 30, 1980), 45 FR 73906.

See also letter from Brandon Becker, SEC, to

Gordon L. Nash, Amex, dated March 5, 1991.

4See letter from Janice Stroughter, Director of

Hearings and Special Counsel Legal & Regulatory

Policy, Amex, to Amy Bilbija, Attorney,

Commission, dated March 9, 1995. In Amendment

No. 1 the Amex made several clarifications and

corrections to three of the six exams filed with the

Commission.

the immediately preceding last sale. The

‘‘pair off’’ transaction is reported to the

consolidated last-sale reporting system

as ‘‘stopped stock.’’ 1

Currently, members may enter MOC

orders until 4:00 p.m. when trading

closes. MOC orders that are entered

through the Exchange’s order routing

systems, PER and AMOS, can have a

disruptive effect on the market when

they are entered very shortly before the

close. Under these circumstances it can

take several minutes for the specialist to

ascertain whether an imbalance exists

and to pair off buyers and sellers, with

the result that the executed MOC

transactions do not print until after the

close. When this happens, it becomes

difficult for market participants to

ascertain the closing price of a security

in a timely fashion.2

To address this concern, the Exchange

is proposing an amendment to

Commentary .02 to Exchange Rule 109

to provide for a 3:50 p.m. cut-off time

for MOC orders entered through PER or

AMOS on both expiration and nonexpiration days. After this time, no

MOC order could be entered or reduced

in size via AMEX systems. MOC orders

may still be entered, modified, or

canceled until 4:00 p.m. other than

through the automated systems. The

Exchange expects that this proposed

change will enable specialists to more

efficiently execute and report MOC

orders.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b)(5) of the

Act in that it is designed to prevent

fraudulent and manipulative acts and

practices and to perfect the mechanism

of a free and open market.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate 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 either

solicited or received.

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, 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–Amex–95–

09 and should be submitted by April 11,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6938 Filed 3–20–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35488; File No. SR–Amex–

94–46]

Self-Regulatory Organizations;

American Stock Exchange, Inc.; Order

Granting Approval to Proposed Rule

Change Relating to Qualification

Examinations Administered by the

Exchange and Notice of Filing and

Order Granting Accelerated Approval

of Amendment No. 1

March 14, 1995.

On October 25, 1994, the American

Stock Exchange, Inc. (‘‘Amex’’ 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

update and revise its examinations to

conform them to new rules and

procedures.3 On March 10, 1995, the

Amex submitted Amendment No. 1 to

the above referenced rule filing.4 The

proposed rule change includes the

contents of the qualification

examinations and related materials.

The proposed rule change was

published for comment in Securities

Exchange Act Release No. 35016

(November 29, 1994), 59 FR 62428

(December 5, 1994). No comments were

received on the proposal.

The Amex administers six

qualification examinations: the

Qualification Examination for Regular

Members, the Qualification Examination

for Options Principal Members

(‘‘OPMs’’), the Put and Call Stock

Option Examination, the Put and Call

Option Questionnaire for Listed

Personnel, the Specialist Examination

and the Registered Equity Trader and

Registered Equity Market Maker

Examination. All six examinations are

specifically designed for Amex

membership applicants in order to test

the applicant’s knowledge in a variety of

areas, including general trading

principles and procedures as well as

specific Amex rules and policies.

Pursuant to Amex Rule 50(a) every

applicant for regular and options
Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Notices 14987

5This type of member may execute on the Floor

transactions in options and other derivative

products initiated by him for his own account and

may give orders for such securities for his own

account to regular members for execution provided,

however, that this type of member may not trade

in individual stock options listed on the Exchange.

See Amex Constitution, Article IV § 1(j)(3).

6 15 U.S.C. 78f(b)(5) & (c)(3)(B) (1988).

7 15 U.S.C. 78o(b)(7) (1988).

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1) (1988).

2Letters from Barry E. Silverman, President,

DGOC, to Jerry Carpenter, Assistant Director,

Securities Processing Regulation, Division of

Market Regulation (‘‘Division’’), Commission,

(December 16, 1994); Barry E. Silverman, President,

DGOC, to Jerry W. Carpenter, Assistant Director,

Office of Securities Regulation (‘‘OSPR’’), Division,

Commission (January 9, 1995); Kathryn V. Natale,

Morgan, Lewis & Bockius, to Jerry W. Carpenter,

Assistant Director, Division, Commission, (January

20, 1995); Kathryn V. Natale, Morgan, Lewis &

Bockius, to Jerry W. Carpenter, Assistant Director,

Division, Commission (February 10, 1995); and

Barry Silverman, President, DGOC, to Christine

Sibille, Senior Counsel, OSPR, Division,

Commission (March 2, 1995).

principal membership must pass a

qualifying examination prior to

undertaking any active duties on the

Floor. As a result, regular members, who

may trade stocks and options, take both

the Qualifying Examination for Regular

Floor Members and the Put and Call

Stock Option Examination. OPMs, who

are prohibited from trading equities,

take the Qualifying Examination for

OPMs and the Put and Call Stock

Option Examination. Limited Trading

Permit Holders 5 take the Qualifying

Examination for OPMs and the Put and

Call Stock Option Examination.

Commentary .01 to Exchange Rule

50(a) requires that a regular member

who applies to register as a specialist

and a regular or OPM member who

applies to register as a registered floor

trader must also pass an examination.

Specialists take the Specialist

Examination. Registered floor traders

take the Registered Equity Trader and

Registered Equity Market Maker

Examination.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange, and, in particular, with the

requirements of Sections 6(b)(5) and

6(c)(3)(B).6 Section 6(b)(5) requires,

among other things, that the rules of an

exchange be designed to promote just

and equitable principles of trade, to

remove impediments to and perfect the

mechanism of a free and open market

and national market system, and, in

general, to protect investors and the

public interest. Section 6(c)(3)(B)

provides that a national securities

exchange may examine and verify the

qualifications of an applicant to become

a person associated with a member in

accordance with procedures established

by the rules of the exchange, and may

require any person associated with a

member, or any class of such persons,

to be registered with the exchange in

accordance with procedures so

established.

The Commission also believes that the

proposed rule change is consistent with

Section 15(b)(7) of the Act 7 which

stipulates that prior to effecting any

transaction in, or inducing the purchase

or sale of any security, a registered

broker or dealer must meet certain

standards of operational capability, and

that such broker or dealer must meet

certain standards of training,

experience, competence, and such other

qualifications as the Commission finds

necessary or appropriate in the public

interest or for the protection of

investors.

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, N.W.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to File No. SR–Amex–94–

46 and should be submitted by April 11,

1995.

Finally, the Commission finds good

cause for approving Amendment No. 1

prior to the thirtieth day after the date

of publication of notice of filing thereof

in the Federal Register. The

Commission believes that accelerated

approval of the proposal is appropriate

in order to allow the Amex to begin

utilizing the exams, as corrected.

Further, the use of the six qualification

exams has been noticed previously in

the Federal Register for the full

statutory period and the Commission

did not receive any comments on it.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (SR-Amex–94–46)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 95–6843 Filed 3–20–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35491; File No. SR–DGOC–

94–06]

Self-Regulatory Organizations; Delta

Government Options Corp.; Notice of

Proposed Rule Change Relating to

Implementing New Procedures

Allowing for the Clearance and

Settlement of Repurchase

Transactions and Reverse Repurchase

Transactions

March 15, 1995.

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

Securities Exchange Act of 1934

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

October 31, 1994, Delta Government

Options Corp. (‘‘DGOC’’) 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 DGOC. On

December 9, 1994, January 10, 1995,

January 24, 1995, February 13, 1995,

and March 3, 1995, DGOC filed

amendments to the proposed rule

change.2 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

DGOC is proposing amendments to its

Procedures that will insert new

procedures allowing for the

establishment of a clearance and

settlement system for repurchase

agreements (‘‘repos’’) and reverse

repurchase agreements (‘‘reverse

repos’’). Standards for participation,

financial requirements, financial

reports, audits, admission procedures,

withdrawal of a participant(s), and such

other standards as described in these

new procedures are similar to DGOC’s

existing procedures and have been

modified only insofar as they reflect

repos and reverse repos.