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AMEX ASKS SEC FOR BLANKET APPROVAL OF INDUSTRY INDEX OPTIONS; NEW RULES WOULD ALLOW AMEX TO SERVE IMMEDIATE NEEDS OF INVESTING PUBLIC

 AMEX ASKS SEC FOR BLANKET APPROVAL OF INDUSTRY INDEX OPTIONS; NEW RULES WOULD ALLOW AMEX TO SERVE IMMEDIATE NEEDS OF INVESTING PUBLIC
 NEW YORK, Sept. 23 /PRNewswire/ -- The American Stock Exchange today filed for approval with the Securities and Exchange Commission (SEC) for a specific set of criteria to be used in the development of new industry indexes. If approved, the proposal would permit the Exchange to introduce options trading on industry-sector indices without further approval from the Commission.
 In its proposal, the Exchange established specific criteria for the creation of industry indexes, which reflect sharply defined industry groupings based on the most highly capitalized and most actively traded securities in each area. The criteria would require that each component stock in an industry index must have an average monthly trading volume in excess of one million


shares and a market value in excess of $100 million. In addition, under the Exchange's proposal, a vast majority (i.e. 90 percent) of the stocks in an industry index must be options eligible.
 "Due to the cyclical nature of various industry sectors, the Exchange believes that by shortening the development and regulatory approval process of narrow-based index options, investors will be afforded a more timely opportunity to express their investment sentiments," said American Stock Exchange Chairman James R Jones.
 All Amex product developments go through an intricate process which entails consulting end users, broker-dealers, Amex member firms, regulators, and ultimately the Exchange's New Products Committee.
 To date, the Amex trades options on three narrow-based indices -- the Oil Index (XOI), the Computer Technology Index (XCI) and the Pharmaceutical Index (DRG). Options trading on the Exchange's Biotechnology Index (BTK) and Retail Index (RTL) are also expected to commence within a few weeks.
 The Amex also trades a total of 291 stock options, including 79 options on over-the-counter stocks , as well as 33 LEAPS(tm) (Long-term Equity AnticiPation Securities). In addition, options are traded on five broad-market indexes -- the Major Market Index (XMI), the XMI LEAPS(tm) Index, the S&P MidCap 400 Index (MID), the Institutional Index (XII), and the Japan Index (JPN).
 -0- 9/23/92
 /CONTACT: Shelly E. Wolfe, director of Amex, 212-306-1641/ CO: American Stock Exchange ST: New York IN: FIN SU:


PS -- NY072 -- 2738 09/23/92 15:11 EDT
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Publication:PR Newswire
Date:Sep 23, 1992
Words:380
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