[Federal Register Volume 60, Number 240 (Thursday, December 14, 1995)]
[Notices]
[Pages 64190-64192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30492]
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[[Page 64191]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36566; File No. SR-Amex-95-46]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the American Stock Exchange, Inc., Relating to the Exchange's
Arbitration Rules
December 8, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 28, 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 solicit comments on the proposed rule change
from interested persons.
\1\15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend Amex Rules 600 (Arbitration),
606 (Initiation of Proceedings), 607 (General Provision Governing
Prehearing Proceeding), 620 (Schedule of Fees), and add a new rule, 624
(Failure to Honor Award). 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 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 Exchange is proposing to amend its rules and procedures
governing the administration of arbitration. These amendments codify
modifications to the Uniform Code of Arbitration already approved by
the Securities Industry Conference on Arbitration.
The Exchange is proposing to amend Amex Rule 600 to clarify that
all class action claims, including claims involving members, allied
members, member organizations, and associated persons, are ineligible
for submission to the Exchange's arbitration facility.
Currently, Amex Rule 606(c)(6) provides that decisions concerning
the right to arbitrate are made by the Director of Hearings, subject to
appeal to the Exchange's Board of Governors. In order to conform the
Exchange's rules with the Uniform Code of Arbitration, adopted by the
Amex in 1980, the Exchange proposes to delete Amex Rule 606(c)(6). The
Exchange believes decisions concerning the right to arbitrate a claim
should be made by the panel of arbitrators selected to hear the matter.
The Exchange's proposed amendment to Amex Rule 607(c) would allow
parties to provide a list of documents they intend to present at the
hearing instead of exchanging copies of documents that have previously
been produced to the other side. This would provide for more efficient
prehearing exchanges by not requiring the parties to again exchange
those documents that have previously been produced. Another aspect of
this amendment would require the list identifying witnesses include the
address and business affiliation of the witnesses listed. This would
allow the parties to receive advance notice as to the background of
witnesses and the location of nonparty witnesses. The final aspect of
the proposed amendment to Amex Rule 607(c) would require prehearing
exchanges to occur twenty calendar days in advance of the hearing,
instead of ten days in advance as is presently required. This would
serve to avoid surprise and provide the parties with time to organize
and present their cases in an efficient manner.
The Exchange is proposing to amend Amex Rule 620 to provide that
the filing fee for an industry party shall be $500 when the dispute
does not specify a money claim. This would unify the filing fee for all
industry claims at $500.
The Exchange is proposing to add a new rule, Amex Rule 624. This
new rule would provide that the failure of a member firm or registered
representative to honor an arbitration award, including those issued at
another self-regulatory organization or by the American Arbitration
Association, would subject the firm or registered representative to
disciplinary proceedings at the Exchange. This would recognize the
enforceability of arbitration awards issued by other self-regulatory
organizations and by the American Arbitration Association.
2. Statutory Basis
The proposed rule changes are consistent with Section 6(b)\2\ of
the Act in general and furthers the objectives of Section 6(b)\3\ in
particular in that they are designed to promote just and equitable
principles of trade and to protect investors and the public interest by
improving the administration of an impartial forum for the resolution
of disputes relating to the securities industry.
\2\15 U.S.C. 78f(b).
\3\15 U.S.C. 78f(b)(5).
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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.
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 other 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, 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
[[Page 64192]]
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, D.C. 20549. Copies
of such filing also will be available for inspection and copying at the
principal office of the American Stock Exchange. All submissions should
refer to File No. SR-Amex-95-46 and should be submitted by January 4,
1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\4\
\4\17 C.F.R. 200.30-3(a)912).
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[FR Doc. 95-30492 Filed 12-13-95; 8:45 am]
BILLING CODE 8010-01-M