[Federal Register Volume 59, Number 54 (Monday, March 21, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-6479] [[Page Unknown]] [Federal Register: March 21, 1994] ======================================================================= ----------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \1\17 CFR 200.30-3(a)(12) (1993). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-6479 Filed 3-18-94; 8:45 am] BILLING CODE 8010-01-M