Federal Register / Vol. 60, No. 54 / Tuesday, March 21, 1995 / Notices 14985

6The SIA is a trade association that represents the

business interests of securities firms throughout

North America. Its members include investments

banks, brokers, dealers and mutual fund companies.

7The TIMC focuses on issues pertaining to data

processing, market data, telecommunications and

related technology activities.

8Letter from Heidi H. Heiden, Chairman, SIA

TIMC, to Margaret H. McFarland, Deputy Secretary,

SEC (September 9, 1994).

9 15 U.S.C. 78k–1(a)(1) (C)(iii) and (D).

10Supra, note 2 at (c)(2).

11Supra, note 2.

12 15 U.S.C. 78k–1(a)(3)(B).

13 17 CFR 300.30–3(a)(29).

Securities Industry Association’s

(‘‘SIA’’) 6 Telecommunications and

Information Management Committee

(‘‘TIMC’’) 7 is opposed to the

amendment to the OPRA Plan.8 TIMC

anticipates the separate access charges

that result from the unbundling of FCO

and index options will constitute a

substantial price increase for the data

currently provided by OPRA. In

addition, TIMC concluded that the

establishment of separate accounting

centers as well as the necessity for

systems modifications by SIAC, vendors

and some securities firms will result in

additional costs to both the distribution

and accounting systems used by

securities firms to monitor OPRA’s

information services. TIMC concluded

that the amendment, while generating

additional costs, does not provide

additional benefits to those entities that

use OPRA’s services.

III. Discussion

The Commission has determined to

approve the amendment to the OPRA

Plan. The Commission finds that the

proposed amendment is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to OPRA, including the

requirements of Sections 11A(a)(1)

(C)(iii) and (D) of the Act.9 Section

11A(a)(1)(C)(iii) states that the

availability of information to brokers,

dealers and investors, with respect to

quotations for and transactions in

securities, is in the public interest and

appropriate for the protection of

investors and the maintenance of fair

and orderly markets. Section

11A(a)(1)(D) provides for the linking of

all markets for qualified securities

through communications and data

processing facilities to foster efficiency,

enhance competition, increase the

information available to brokers, dealers

and investors, facilitate the offsetting of

investors’ orders, and contribute to the

best execution of such orders. Further,

the Commission believes that the

amendment is consistent with Rule

11Aa3–2(c)(2) 10 in that it is appropriate

in the public interest; for the protection

of investors and the maintenance of fair

and orderly markets; and to remove

impediments to, and perfect the

mechanisms of, a national market

system.

Although the Commission

understands the concerns raised by

TIMC, the Commission believes that the

proposed amendment is consistent with

the Act and the rules and regulations

thereunder applicable to OPRA. As

noted above in the summary of

comments, TIMC is opposed to the Plan

amendment. Generally, the basis for

TIMC’s opposition is its expectation that

additional costs will accrue as a result

of the proposal. The amendment,

however, does not include a fee increase

for the market data currently provided

by OPRA. Instead, the amendment

permits OPRA to unbundle its services

pertaining to FCOs and index options

and to change separately for such

services on or after January 1, 1996.

Under the amendment, the decision to

unbundle fees is subject to the

conditions of the OPRA Plan and the

requirements of Rule 11Aa3–2.11 Any

subsequent decision to change fees by

OPRA, therefore, will be filed with the

Commission. Further, while some

entities may have to incur initial costs

to accommodate the changes

contemplated by the amendment, such

changes will provide flexibility to both

vendors and subscribers. Unbundling

will allow OPRA market information

services to be tailored to the individual

needs of vendors and subscribers.

It is therefore ordered, pursuant to

Section 11A(a)(3)(B) of the Act,12 that

the amendment (S7–8–90) to the OPRA

Plan be, and hereby is, approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.13

Jonathan G. Katz,

Secretary.

[FR Doc. 95–6844 Filed 3–20–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35492; File No. SR–Amex–

95–09]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange, Inc.

Relating to the Entry of Market-at-theClose Orders

March 15, 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 February 22, 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.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to adopt new

Commentary .02 to Exchange Rule 109

to provide that members entering

market-at-the-close (‘‘MOC’’) orders

through the PER of AMOS systems must

do so no later than 3:50 p.m. The text

of the proposed rule change is as

follows [new text is italicized]:

Rule 109

Commentary

.01 Each ‘‘stopped’’ transaction shall

be reported for printing on the tape in

the form and manner prescribed by the

Exchange.

.02 Members entering market-at-theclose orders through the PER or AMOS

systems must do so no later than 3:50

p.m. The foregoing shall not limit or

restrict the entry of market-at-the-close

orders (or their cancellation) other than

via such systems.

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

Rule 109 sets forth the procedures to

be followed in executing MOC orders.

Paragraph (d) of the Rule provides that

where there is an imbalance between

MOC buy and sell orders, the imbalance

of buy orders would be executed against

the offer and an imbalance of sell orders

would be executed against the bid. The

remaining buy and sell orders are then

paired off and executed at the price of
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