[Federal Register Volume 62, Number 9 (Tuesday, January 14, 1997)]
[Notices]
[Pages 1945-1946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-806]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38127; File No. SR-PSE-96-48]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Pacific Stock Exchange Incorporated Relating to A.M.-
Settlement
January 6, 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 December 18, 1996, the Pacific Stock Exchange Incorporated (``PSE''
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. 78s(b)(1) (1982).
\2\ 17 CFR 240.19b-4 (1991).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PSE is proposing to amend its rules to codify certain existing
procedures relating to a.m.-settled index options. The text of the
proposed rule change is available at the Office of the Secretary, PSE
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
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 adopt new Rule 7.8(e), entitled
``A.M.-Settled Index Options.'' This rule provides that the last day of
trading for A.M.-settled index option shall be the business day
preceding that last day of trading in the underlying securities prior
to expiration. It states that the current index value at the expiration
of an A.M.-settled option shall be determined on the last day of
trading in the underlying securities prior to expiration. It states
that the current index value at the expiration of an A.M.-settled
option shall be determined on the last day of trading in the underlying
securities prior to expiration. It further provides that the current
index value shall be determined by reference to the reported level of
such index as derived from first reported sale (opening) prices of the
underlying securities on such day. In addition, in any case where the
security
[[Page 1946]]
does not open for trading on that day, the last reported sale price of
such security shall be used unless the exercise settlement amount is
fixed in accordance with the Rules and By-Laws of The Options Clearing
Corporation.
Subsection (1)(B) of the proposed rule states that in any case
where an exercise settlement amount is fixed for any series of index
options pursuant to the Rules and By-Laws of The Options Clearing
Corporation, the amount so fixed shall be the amount required to be
paid upon exercise of options of that series notwithstanding any
difference between the current index value used by The Options Clearing
Corporation in fixing that amount and the index value determined
pursuant to Exchange Rules or practices.
The rule change further states that the following A.M.-settled
index options are approved for trading on the Exchange: the PSE
Technology Index; the Wilshire Small Cap Index; and the Dow Jones & Co.
Taiwan Index.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act, in general, and Section 6(b)(5), in
particular, in that it is designed to promote just and equitable
principles of trade and to foster cooperation and coordination with
persons engaged in regulating, clearing, settling and processing
information with respect to transactions in securities.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor received.
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
which 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 at the
Commission's Public Reference Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of such filing will also be available for inspection
and copying at the principal office of the PSE. All submissions should
refer to File No. SR-PSE-96-48 and should be submitted by January 27,
1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-806 Filed 1-13-97; 8:45 am]
BILLING CODE 8010-01-M
