1954 Federal Register / Vol. 61, No. 16 / Wednesday, January 24, 1996 / Notices

5The term ‘‘equity derivative’’ refers to an

underwritten security the value of which is

determined by reference to another security, or to

a currency, commodity, interest rate or index of the

foregoing. Such securities are commonly listed

pursuant to Amex Company Guide (‘‘Guide’’)

Sections 106 (‘‘Index and Currency Warrants’’), 107

(‘‘Other Securities’’), 118 (‘‘Investment Trusts’’), or

Amex Rule 1002 (‘‘Portfolio Depositary Receipts’’).

6 It is in the case of listings under sections 107

and 118A of the Guide that the underlying can be

a single security, so that restrictions analogous to

those applicable to equity options are appropriate.

7Exchange Rule 193 permits the affiliates of

specialists to obtain an exemption from most

specialist restrictions through the use of an

Exchange-approved ‘‘Chinese wall’’. 8 17 CFR 200.30–3(a)(12).

security. It will leave in place the

restriction against popularizing the

underlying security, subject of course to

the exceptions that have long been

contained in Amex Rule 950. This will

better conform the Amex rules to those

applicable to DPMs at the CBOE

regarding communications concerning

specialty securities.

In addition, the Exchange is also

proposing two other changes to the

restrictions on popularizing by

specialists. The Exchange seeks to

conform its rules to those of the NYSE

to eliminate generally the prohibition on

communications that simply identify a

firm as the specialist in a particular

security. Finally, the Exchange seeks to

amend its rules regarding equity

derivative5 specialists to harmonize

them with restrictions on options

specialists. Thus, the Exchange would

amend its rules to prohibit material

business transactions between certain

equity derivative specialists and the

issuer of the security underlying the

equity derivative.6

Of course, all options specialists

would remain subject to the rules

regulating the conduct and public

communications of members generally

(e.g., Exchange Rule 991, the ‘‘options

advertising’’ rule). In addition, all other

restrictions applicable to specialists and

their affiliates would remain in place.

Thus, specialists and their affiliates still

would be prohibited from trading a

specialist security outside the specialist

function (Rules 170(e) and 950(n)),

holding or granting an option on a

specialty stock (Rule 175), engaging in

a business transaction with either the

issuer of a specialty security or the

underlying security in the case of

options (Rules 190(a) and 950(k)), and

accepting orders from the issuer of a

specialty security, its insiders and

enumerated institutional investors

(Rules 190(b) and 950(k)).7

The Exchange represents that the

respective proposed rule changes either

seek to conform the Exchange’s rules to

those of the CBOE and NYSE, or

represent a rational harmonization of

the regulation of listed options and

equity derivatives. In addition, the

Exchange believes that changes in

market structure, the role of the

specialist in the secondary market, and

enhanced surveillance capabilities over

the last thirty years have eliminated the

need for continuation of at least certain

of the original specialist prohibitions.

This is most clearly true with respect to

the wholesale application of restrictions

on stock specialists to options

specialists, due to the derivative pricing

of the specialty securities. This is most

clearly demonstrated by the experience

of the CBOE, which has been able to

adequately regulate its DPMs without

the use of such wholesale restrictions.

Finally, the Exchange believes that the

experience of the NYSE demonstrates

that with respect to all specialists there

is no need to go so far as to preclude

even the public identification of a

particular firm as the specialist in

particular securities.

2. Basis

The Exchange believes that the

proposed rule change is consistent with

section 6(b) of the Act, in general, and

further the objectives of section 6(b)(5)

in particular, in that they are designed

to prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system, and in

general, to protect investors and the

public interest.

B. Self-Regulatory Organization’s

Statement on Burden Competition

The Amex 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 solicited

or received with respect to the proposed

rule change.

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 self-regulatory

organization consents, the Commission

will:

(A) By order approve such 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 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–95–54 and should be

submitted by February 14, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1030 Filed 1–23–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36733; File No. SR–Amex–

95–55]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

American Stock Exchange, Inc.

Relating to Fee Changes

January 17, 1996.

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 December 21, 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
Federal Register / Vol. 61, No. 16 / Wednesday, January 24, 1996 / Notices 1955

1 17 CFR 200.30–3(a)(12) (1994).

1On November 15, 1995, the MSRB filed

Amendment No. 1 with the Commission.

Amendment No. 1 was a minor technical

amendment, the text of which may be examined in

the Commission’s Public Reference Room. See

Letter from Jill C. Finder, Assistant General

Counsel, MSRB, to Ethan D. Corey, Senior Counsel,

Division of Market Regulation, Commission, dated

November 15, 1995.

2 15 U.S.C. 78s(b)(1).

3 17 CFR 240.19b–4.

4MSRB Manual, General Rules, G–8 (CCH) ¶

3536.

5MSRB Manual, General Rules, G–9 (CCH) ¶

3541.

6MSRB Manual, General Rules, G–37 (CCH) ¶

3681.

7Letter from David J. Rubin (‘‘Rubin’’) to Jonathan

G. Katz, Secretary, Commission, dated December 6,

1995 (‘‘Rubin Letter’’).

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 Amex proposes to increase its

options transaction charge, options floor

brokerage fee, and CRD fee, as well as

adopt a new technology fee.

The text of 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

Amex 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 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

1. Purpose

The Exchange is increasing three

charges imposed on members and

member organizations. The options

transaction charge for specialist and

market maker proprietary trades is being

increased from $.07 to $.08 per contract

side for equity option contracts and

from $.11 to $.12 per contract side for

index option contracts. An option floor

brokerage fee, currently imposed on all

customer and non-market making

member firm principal activity at the

rate of $.03 per contract side, will now

also be imposed on all specialist and

market maker proprietary trades at the

rate of $.02 per contract side. The fees

charged to member firms for registering

sales personnel through the CRD System

are being increased from $25 to $30 for

renewals, from $20 to $25 for

terminations, from $45 to $55 for initial

registration, and from $30 to $40 for

transfers.

The Exchange is also imposing a new

technology fee of $1,200 per year on all

members to help offset the costs

associated with the Exchange’s

continued investment in trading floor

technology. All of the above fees are

scheduled to take effect on January 1,

1996.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with section

6(b) of the Act in general and furthers

the objectives of section 6(b)(4) in

particular in that they provide for the

equitable allocation of reasonable dues,

fees, and other charges among Amex

members, issuers, and other persons

using the Exchange’s facilities.

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 on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The fee changes have become

effective pursuant to section 19(b)(3)(A)

of the Act and subparagraph (e)(2) of

Rule 19b–4. At any time within 60 days

of the filing of such fee changes, the

Commission may summarily abrogate

such fee changes 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 coping 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 Amex. All submissions

should refer to File No. SR–Amex–95–

55 and should be submitted by February

14, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.1

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1031 Filed 1–23–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36727; File No. SR–MSRB–

95–15]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the Municipal Securities Rulemaking

Board Relating to Consultants

January 17, 1996.

On September 28, 1995,1 the

Municipal Securities Rulemaking Board

(‘‘MSRB’’ or ‘‘Board’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) a proposed rule change

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

Securities Exchange Act of 1934

(‘‘Act’’) 2 and Rule 19b–4 thereunder.3

The proposed rule change amends rules

G–8 4 and G–9,5 on recordkeeping and

record retention, rule G–37,6 on

political contributions and prohibitions

on municipal securities business, and

adds a new rule G–38 regarding

consultants. The proposed rule change

also amends MSRB Form G–37, and

redesignates it as Form G–37/G–38.

Notice of the proposed rule change,

together with the substance of the

proposal, was provided by issuance of a

Commission release (Securities

Exchange Act Release No. 36522,

November 28, 1995) and by the

publication in the Federal Register (60

FR 62275, December 5, 1995). One

comment letter was received.7 This

order approves the proposed rule

change.