Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by American Stock Exchange, Inc. Revising Qualification Examinations Administered by the Exchange.

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35016; File No. SR-Amex-94-46]

Self-Regulatory Organizations; Notice of Filing of Proposed Rule

Change by American Stock Exchange, Inc. Revising Qualification

Examinations Administered by the Exchange.

November 29, 1994.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on

October 25, 1994, 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 American Stock Exchange, Inc. is filing this proposed rule

change pursuant to a Commission request that all qualification

examinations administered by the Exchange be filed with the Commission.

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 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 Commission takes the position that self-regulatory

organizations must file for Commission review all actions imposing

qualification standards.\1\ The Exchange has gone through an extensive

process to update and revise its examinations to conform them to new

rules and procedures. Accordingly, the Amex is submitting the contents

of its qualification examinations and related materials as a proposed

rule change.

---------------------------------------------------------------------------

\1\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.

---------------------------------------------------------------------------

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.

Pursuant to Exchange Rule 50(a) very applicant for regular and

options principal membership shall 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 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 Trader and Registered Equity Market Maker

Examination.

Any member who was registered and approved by the Exchange prior to

1977, the date when the Series 7 exam began to cover standardized

options, must successfully complete an examination before being

registered to do public options business.\2\ These individuals must

take the Listed Put and Call Options Questionnaire for Registered

Personnel.

---------------------------------------------------------------------------

\2\See Amex Rule 920.

---------------------------------------------------------------------------

The Qualification Examinations for Regular Members and OPMS, and

the Put and Call Examination are administered by the Director of

Membership Services.

The Specialist and Registered Traders Examinations are administered

by the Assistant Director of Trading Analysis.

The Put and Call Options Questionnaire for Registered Personnel is

administered by the broker-dealer firms who certify to the Exchange

that the applicant has satisfactorily completed the 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.

2. Statutory Basis

The Exchange believes that the proposed rule change is consistent

with Section 6(b) of the Act in general and furthers the objectives of

Section 6(b)(5), and 6(c)(3)(A) in particular in that the rule change

is designed to examine the training, experience and competence of

applicants for Amex membership and verify such applicant qualifications

for Exchange membership. In addition, the proposed rule change serves

to protect investors and the public interest by helping to assure

member competence.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will

impose any 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

Within 35 days of the 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 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. Sec. 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 Amex. All

submissions should refer to File No. SR-Amex-94-46 and should be

submitted by December 27, 1994.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-29787 Filed 12-2-94; 8:45 am]

BILLING CODE 8010-01-M