[Federal Register Volume 60, Number 245 (Thursday, December 21, 1995)]
[Notices]
[Pages 66333-66334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31088]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36592; File No. SR-PSE-95-29]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Pacific Stock Exchange, Inc. Relating to the Composition
and Duties of the Options Allocation Committee of the Exchange
December 14, 1995.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 15, 1995, 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.
\1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PSE proposes to amend the rules relating to the composition and
duties of its Options Allocation Committee (``OAC'').
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
The Exchange proposes to make five changes to PSE Rule 11.10(c).
First, the Rule currently provides in part that the OAC shall consist
of Floor Brokers and Market Makers. The Exchange proposes to amend this
provision to provide that the OAC shall consist of Market Makers, Lead
Market Makers, Floor Brokers, and/or persons associated with floor
members, office members or office allied members.\2\
\2\ Cf. PSE Const., Art. IV, Sec. 5(a) (similar provision for
Equity Allocation Committee).
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Second, Commentary .01 to Rule 11.10(c) currently provides that the
OAC shall be comprised of (i) two Floor Brokers from either the Options
Floor Trading Committee or the Options Listing Committee; (ii) two
Market Makers or Lead Market Makers from either the Options Floor
Trading Committee or the Options Listing Committee; (iii) three at-
large Floor Brokers; and (iv) three at-large Market Makers or Lead
Market Makers. The Exchange proposes to amend this provisions to
provide that attempts shall be made in order for the OAC to have a
composition that includes: Floor Brokers from either the Options Floor
Trading Committee or the Options Listing Committee; Market Makers or
Lead Market Makers from either the Options Floor Trading Committee or
the Options Listing Committee; at-large Floor Brokers; and at-large
Market Makers or Lead Market Makers.
Third, the Exchange proposes to eliminate the provision in
Commentary .01 that the OAC shall be limited to no more than three
members of the Options Floor Trading Committee and no more than three
members of the Options Listing Committee.
Fourth, Rule 11.10(c) currently provides that it shall be the duty
of the OAC to allocate, reallocate and evaluate options issues. The
Exchange proposes to change this provision to provide that the OAC
shall allocate and reallocate option issues.
Finally, Rule 11.10(c) currently provides that the OAC shall be
responsible for monitoring the performances of trading crowds and Lead
Market Makers. The Exchange proposes to change this provision to
provide that the OAC shall be responsible for evaluating and monitoring
the performances of Market Makers, trading crowds and Lead Market
Makers.\3\
\3\ The OAC currently evaluates Market Makers and Lead Market
Makers pursuant to Options Floor Procedure Advice B-13.
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The Exchange believes that the current rules on the composition of
the OAC are unnecessarily restrictive and that the proposed changes to
these rules are appropriate in order to allow for greater flexibility
in the committee selection process and the process for replacing
committee members who resign or change their status in regard to floor
membership or service on other committees of the Exchange. With regard
to the proposed changes to the rules on the duties of the OAC, the
Exchange believes that they clarify the existing rules and do not
otherwise change the way business is conducted on the Exchange.
The Exchange believes that the proposal is consistent with Section
6(b) of the Act, in general, and Section 6(b)(5), in particular, in
that it promotes just and equitable principles of trade, and Section
6(b)(4), in particular, in that it assures a fair representation of
members in the administration of the affairs of the Exchange.
(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 organizations 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
[[Page 66334]]
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 Section, 450 Fifth Street,
NW., Washington, DC. Copies of such filing will also be available for
inspection and copying at the principal office of the above-mentioned
self-regulatory organization. All submissions should refer to File No.
SR-PSE-95-29 and should be submitted by January 11, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\4\
\4\ 17 CFR 200.20-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-31088 Filed 12-20-95; 8:45 am]
BILLING CODE 8010-01-M
