[Federal Register Volume 64, Number 222 (Thursday, November 18, 1999)]
[Notices]
[Pages 63064-63065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30090]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42126; File No. SR-Amex-99-40; SR-PCX-99-41; SR-CBOE-
99-59]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the American Stock Exchange LLC; Pacific Exchange, Inc.; and
Chicago Board Options Exchange, Inc. Relating to Permanent Approval of
the Elimination of Position and Exercise Limits for Flex Equity Options
November 10, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on October 5, 1999, October 13, 1999, and November
4, 1999, the American Stock Exchange LLC (``Amex''), Pacific Exchange,
Inc. (``PCX'') and the Chicago Board Options Exchange, Inc. (``CBOE'')
(collectively, the ``Exchanges'') filed with the Securities and
Exchange Commission (``Commission'' or ``SEC'') the proposed rule
change as described in Items I, II and III below, which Items have been
prepared by the self-regulatory organization. The PCX filed an
amendment to the proposed rule change on October 28, 1999.\3\ 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).
\2\ 17 CFR 240.19b-4.
\3\See Letter to Richard Strasser, Commission, from Robert
Pacileo, PCX, dated October 27, 1999 (``PCX Amendment No. 1''). PCX
Amendment No. 1 clarifies that the rule filing is being filed
pursuant to Section 19(b)(4) of the Exchange Act, not Section
19(b)(3).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchanges propose to make permanent their pilot programs to
eliminate position and exercise limits for FLEX Equity options.
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
organizations 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
organizations have 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 purpose of the proposed rule filings is to approve permanently
the Exchanges' pilot programs allowing for the elimination of position
and exercise limits for FLEX Equity options. On September 9, 1997, the
Commission approved separate proposals by the Exchanges to eliminate
position and exercise limits for FLEX Equity options under a 2-year
pilot program.\4\ On September 9, 1999, the Commission approved an
extension of the pilot programs for another 3 months.\5\
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\4\ See Securities Exchange Act Release No. 39032 (September 9,
1997), 62 FR 48683 (September 16, 1997) (approving SR-CBOE-96-79,
SR-Amex-96-19, and SR-PXC-97-09) (``Approval Order'').
\5\ See Securities Exchange Act Release No. 41848 (September 9,
1999), 62 FR 50846 (September 20, 1999).
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The Approval Order required the Exchanges to report to the
Commission on the status of the programs so that the Commission could
use this information to evaluate the consequences of the programs and
to determine whether to approve the elimination of position and
exercise limits for these products on a
[[Page 63065]]
permanent basis. All of the Exchanges have submitted the requisite
reports.\6\ The Exchanges believe that their experiences with the pilot
programs have been positive and therefore, request that the elimination
of position and exercise limits for FLEX Equity options be approved on
a permanent basis.
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\6\ Amex, PCX and CBOE submitted their reports on May 28, 1999,
September 30, 1999, and June 2, 1999, respectively.
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2. Basis
The Exchanges believe that the proposal is consistent with Section
6(b) \7\ of the Act, in general, and Section 6(b)(5) \8\ of the Act, in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and to remove impediments to and perfect the
mechanism of a free and open market and a national market system.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement of 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, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington , DC 20549-0609.
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 Room, located at the above address.
Copies of such filing will also be available for inspection and copying
at the principal office of the self-regulatory organization. All
submissions should refer to File No. SR-Amex-99-40; SR-PCX-99-41; and
SR-CBOE-99-59 and should be submitted by December 9, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland.
Deputy Secretary.
[FR Doc. 99-30090 Filed 11-17-99; 8:45 am]
BILLING CODE 8010-01-M
