[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Notices]
[Pages 16517-16518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7842]




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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35524; International Series Release No. 795 File No. 
SR-Amex-95-04]


Self-Regulatory Organizations; Notice of Filing of Amendment No. 
1 to Proposed Rule Change by the American Stock Exchange, Inc. Relating 
to Margin Levels for Currency Warrants Based on the Value of the U.S. 
Dollar in Relation to the Mexican Peso

March 22, 1995.
    Pursuant to Section 19(b)(1) of the Securities and Exchange Act of 
1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 16, 1995, the American Stock Exchange, Inc. (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') Amendment No. 1 to the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the Exchange. The Exchange filed the original proposal with the 
Commission on February 8, 1995. Notice of the proposed rule change 
appeared in the Federal Register on February 17, 1995.\3\ The 
Commission is publishing this notice to solicit comments on Amendment 
No. 1 to the proposed rule change from interested persons.

    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\17 CFR 240.19b-4 (1991).
    \3\See Securities Exchange Act Release No. 35363 (February 13, 
1995), 60 FR 9416.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to amend its pending proposal to list warrants on 
the Exchange based upon the value of the U.S. dollar in relation to the 
Mexican peso (``Mexican Peso Warrants'') in order to specify applicable 
margin requirements. The text of Amendment No. 1 to the proposed rule 
change is available at the Office of the Secretary, 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 Exchange included statements 
concerning the purpose of and basis for Amendment No. 1 to the proposed 
rule change and discussed any comments it received on the amendment. 
The text of these statements may be examined at the places specified in 
Item IV below. The Amex 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

    In the Exchange's proposal to list and trade Mexican Peso Warrants 
pursuant to Section 106 of the Amex Company Guide, the Amex represented 
that ``the Exchange will require that customer positions in Mexican 
Peso Warrants be subject to the margin requirements applicable to 
foreign currency options.''\4\ The Exchange is now amending that 
proposal to specify objective margin levels that will be applicable to 
Mexican Peso Warrants trading on the Exchange. Specifically, the 
Exchange proposes that for Mexican Peso Warrants held ``short'' in a 
customer's account, the margin will be 100% of the current market value 
of each such warrant plus 12% of the product of the units of underlying 
currency per warrant and the spot price for such currency. This 
requirement would apply to both initial and maintenance margin. The 
minimum ``add-on'' for out-of-the-money Mexican Peso Warrants would be 
8% of the product of the units of underlying currency per warrants and 
the spot price for such currency.

    \4\Id.
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    The Exchange believes that Amendment No. 1 to the proposed rule 
change is consistent with Section 6 of the Act, in general, and 
furthers the objectives of Section 6(b)(5) of the Act,\5\ in 
particular, in that the proposal will promote just and equitable 
principles of trade and will contribute to the protection of investors 
and the public interest.

    \5\15 U.S.C. 78f(b)(5) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that Amendment No. 1 to 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

    Written comments on Amendment No. 1 to the proposed rule change 
were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer 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 Exchange consents, the Commission will:
    (a) By order approve such proposed rule change, as amended, or
    (b) Institute proceedings to determine whether the proposed rule 
change, as amended, should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning Amendment No. 1 to the proposed rule change. 
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, as amended, that are filed with the Commission, and all written 
[[Page 16518]] communications relating to the proposed rule change, as 
amended, 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 in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC. 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-95-04 and should 
be submitted by April 20, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\

    \6\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-7842 Filed 3-29-95; 8:45 am]
BILLING CODE 8010-01-M