Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the American Stock Exchange, Inc. Relating to Exchange Policy on Indications, Openings and Reopenings

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38426; File No. SR-AMEX-97-13]

Self-Regulatory Organizations; Notice of Filing of Proposed Rule

Change by the American Stock Exchange, Inc. Relating to Exchange Policy

on Indications, Openings and Reopenings

March 21, 1997.

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

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that

on March 4, 1997, 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.

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\1\ 15 U.S.C. Sec. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

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I. Self-Regulatory Organization's Statement of the Terms of Substance

of the Proposed Rule Change

The Amex proposes to revise Exchange policy regarding indications,

openings and reopenings. 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 self-regulatory organization

included statements concerning the purpose of an 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 place

specified in Item IV below. The self-regulatory organization has

prepared summaries, set forth in

[[Page 14715]]

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

Amex specialists disseminate indications of interest to the

consolidated tape prior to the opening or reopening of trading in a

previously halted stock or in the event of a delayed opening. These

indications communicate the probably price range where the stock will

open or reopen.

The Amex's policy on dissemination of tape indications currently

requires a minimum of 15 minutes to elapse between the first indication

and the opening or reopening of a stock. In addition, when multiple

indications are used, a minimum of 10 minutes must elapse after the

last indication when it does no overlap the prior indication, and a

minimum of 5 minutes must elapse after the last indication when it

overlaps the prior indication.

The Exchange is proposing that these minimum time periods before

opening or reopening a stock be compressed from 15 to 10 minutes after

the first indication; and to 5 minutes after the last indication,

regardless of whether it overlaps the prior indication, provided that a

minimum of 10 minutes elapses between the first indication and the

opening or reopening of a stock. The proposed rule shortens the time

period for indications and strikes an appropriate balance between

preserving the price discovery process while providing timely

opportunities for investors to participate in the market.

2. Statutory Basis

The proposed rule change is consistent with Section 6(b)(5) of the

Act \3\ in that it is designed to prevent fraudulent and manipulative

acts and practices and to perfect the mechanism of a free and open

market.

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\3\ 15 U.S.C. Sec. 78f(b).

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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 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, N.W. Washington, D.C. 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, N.W.,

Washington, D.C. 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-97-13 and should be

submitted by April 17, 1997.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.\4\

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\4\ 17 CFR 200.30-3(a)(12).

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Jonathan G. Katz,

Secretary.

[FR Doc. 97-7782 Filed 3-26-97; 8:45 am]

BILLING CODE 8010-01-M