[Federal Register Volume 59, Number 210 (Tuesday, November 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27043]
[[Page Unknown]]
[Federal Register: November 1, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34898; International Series Release No. 735; File No.
SR-PHLX-94-47]
Self-Regulatory Organizations; Order Granting Accelerated
Approval of Proposed Rule Change by the Philadelphia Stock Exchange,
Inc., Relating to Amendment to Foreign Currency Option Trading Hours
October 26, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ on September 22, 1994, the
Philadelphia Stock Exchange, Inc. (``PHLX'' or ``Exchange'') submitted
to the Securities and Exchange Commission (``SEC'' or ``Commission'') a
proposed rule change to amend PHLX Rule 101, ``Hours of Business,'' to
provide that foreign currency option (``FCO'') trading will be
conducted between 2:30 a.m. Eastern Time (``ET'') and 2:30 p.m. ET each
business day.
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\1\15 U.S.C. 78s(b)(1) (1988).
\2\17 CFR 240.19b-4 (1993).
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Notice of the proposal appeared in the Federal Register in
Securities Exchange Act Release No. 34798 (October 6, 1994), 59 FR
51649 (October 12, 1994). No comments were received on the proposal.
Currently, PHLX Rule 101 provides that the FCO trading session will
be conducted between 1:30 a.m. ET and 2:30 p.m. ET each business day.
The PHLX proposes to amend PHLX Rule 101 to move the opening of FCO
trading from 1:30 a.m. ET to 2:30 a.m. ET for all PHLX-listed FCOs
except the Canadian dollar, which will continue to commence trading at
7:00 a.m. ET each business day.
According to the PHLX, the Exchange's FCO trading hours for the
last nine months have commenced at 1:30 a.m. ET each Monday through
Friday and terminated at 2:30 p.m. ET on the afternoon of each trading
day. During that time, less than one percent of the PHLX's FCO volume
was generated during the 1:30 a.m. ET to 2:30 a.m. ET time period. Upon
the recommendation of the Exchange's FCO Committee, a standing
committee of the Board of Governors (``Board''), the Board approved the
proposed adjustment in trading hours to change the commencement of FCO
trading from 1:30 a.m. ET to 2:30 a.m. ET. The proposal is designed to
ease the staffing burden on current registered FCO specialist units as
well as floor brokerage units and registered option trader firms. The
PHLX proposes to implement the adjusted 2:30 a.m. ET commencement of
FCO trading on October 31, 1994, to coordinate with the resumption of
Eastern Standard time, as October 30, 1994, will mark the end of
Eastern Daylight savings time.
The PHLX believes that the proposed rule change is consistent with
Section 6 of the Act, in general, and, in particular, with Section
6(b)(5), in that it is designed to further promote the mechanism of a
free and open market and to protect investors and the public interest.
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, the requirements of Section 6(b)(5)\3\ in that it is
designed to foster just and equitable principles of trade and to remove
impediments to and perfect the mechanism of a free and open market. The
PHLX has stated that over the last nine months less than one percent of
the PHLX's FCO trading volume occurred during the 1:30 a.m. ET to 2:30
a.m. ET time period. Accordingly, the Commission believes that the
proposal to begin FCO trading at 2:30 a.m. ET, rather than at 1:30 a.m.
ET, will not have a material impact on market participants. At the same
time, the proposal will help to reduce the operational burdens on the
current registered FCO specialist units as well as floor brokerage
units and registered option trader firms. In addition, the Exchange
will be open for trading FCOs (other than Canadian dollar FCOs) from
2:30 a.m. ET to 2:30 p.m. ET, so that investors will have the ability
to access the Exchange's FCO market. Moreover, the Commission notes
that the Exchange has issued a notice to its membership advising them
of the proposed rule change, and will issue another notice to its
members upon approval of the proposal, thereby avoiding any possible
investor confusion.
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\3\15 U.S.C. 78f(b)(5) (1988).
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The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. Accelerating approval
of the proposal will allow the PHLX to implement the proposal on the
morning of October 31, 1994, to coordinate with the resumption of
Eastern Standard time. In addition, accelerating approval of the
proposal will permit the Exchange to ease the operational burdens
associated with the low FCO trading activity that occurs between 1:30
a.m. ET and 2:30 a.m. ET. Based on the foregoing, the Commission
believes that it is consistent with Section 6(b)(5) of the Act to
approve the proposal on an accelerated basis.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\4\ that the proposed rule change (File No. SR-PHLX-94-47) is
approved.
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\4\15 U.S.C. 78s(b)(2) (1988).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\17 CFR 200.30-3(a)(12) (1993).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-27043 Filed 10-31-94; 8:45 am]
BILLING CODE 8010-01-M
