Self-Regulatory Organizations; Filing of Proposed Rule Change by the American Stock Exchange, Inc. Relating to the Modification of Trading Hours for the EUROTOP 100 Index

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-33757; File No. SR-Amex-94-07]

Self-Regulatory Organizations; Filing of Proposed Rule Change by

the American Stock Exchange, Inc. Relating to the Modification of

Trading Hours for the EUROTOP 100 Index

March 11, 1994.

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 March 7,

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 Amex. 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 is proposing to amend Amex Rule 1 in order to modify

the trading hours for the Amex's EUROTOP 100 Index.

The text of the proposed rule change is available at the Office of

the Secretary, the 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 the

Statutory Basis for, the Proposed Rule Change

In October 1992, the Exchange began trading standardized options on

the EUROTOP 100 Index (``E-100''). The E-100 measures the collective

performance of the most actively traded stocks on Europe's major stock

exchanges. This broad-based index is calculated continuously from 5

a.m. to 11:30 a.m. Eastern Standard Time (11 a.m. to 5:30 p.m. Central

European time). The Exchange's trading hours for options on the E-100

are from 8:30 a.m. to 4:15 p.m. (New York time). The one hour earlier

opening was adopted in hopes of attracting European investors as well

as to conform more closely with trading hours for futures contracts on

the E-100 traded at the New York Commodity Exchange (``COMEX''), which

begins trading at 7:30 a.m. (New York time).

However, in the aftermath of the bombing of the World Trade Center

in February 1993, the COMEX curtailed trading hours for all of its

products and has continued to cease trading the E-100 futures contract

at 11:30 a.m. (New York time), since such time corresponds with the

cessation of trading of the underlying component securities in the

European markets. The exchange now proposes to modify the trading hours

for its E-100 options to cease trading at 11:30 a.m. as well, since

these hours will correspond more closely to the current trading hours

for E-100 futures contract at the COMEX.

The Exchange believes that its current trading hours for E-100

options expose both the specialists and market makers to undue risk

after both the underlying component securities and the E-100 futures

contract have stopped trading, since they are unable effectively to

hedge their market risk.

Once the proposal is approved, the Exchange intends to give its

membership two weeks notice of the change in E-100 trading hours. An

information circular advising the membership of the new closing time of

11:30 a.m. would be sent by facsimile to the Exchange's contacts at the

major options firms, mailed to recipients of the Exchange's options

related information circulars, and made available to subscribers of the

Options News Network.

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) in particular, in that it is designed to prevent

fraudulent and manipulative acts and practices, to promote just and

equitable principles of trade, to foster cooperation and coordination

with persons engaged in facilitating transactions in securities, and to

remove impediments to and perfect the mechanism of a free and open

market and a national market system.

(B) Self-Regulatory Organization's Statement on Burden on Competition

The Amex 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

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

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 also will be available for

inspection and copying at the principal office of the Amex. All

submissions should refer to File No. SR-Amex-94-07 and should be

submitted by April 11, 1994.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.\1\

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\1\17 CFR 200.30-3(a)(12) (1993).

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-6479 Filed 3-18-94; 8:45 am]

BILLING CODE 8010-01-M