[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Notices]
[Pages 6823-6824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3538]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38254; File No. SR-PSE-97-03]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change and Amendment No. 1 to the
Proposed Rule Change by the Pacific Stock Exchange Incorporated
Relating to a Waiver of All Customer, Firm and Market Maker Transaction
Fees for Transactions in FLEX Equity Options Until April 29, 1997
February 6, 1997.
Pursuant to Section 19(b)(1)\1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 27, 1997, the Pacific Stock Exchange Incorporated
(``PSE'' or ``Exchange'') 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 PSE. The Exchange filed with the Commission Amendment No. 1 to
the proposed rule change on January 28, 1997.\3\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended, from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ The Exchange filed Amendment No. 1 to accurately reflect the
expiration date of the three month extension of the waiver. See
Letter from Michael D. Pierson, Senior Attorney, Regulatory Policy,
PSE, to John V. Ayanian, Attorney, Office of Market Supervision,
Division of Market Regulation, Commission, dated January 27, 1997
(``Amendment No. 1'').
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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 extend for a three month period its waiver
of all customer, firm and Market Maker transaction fees for
transactions in 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 PSE included statements
concerning the purpose of and basis for the proposed rule change, as
amended, and discussed any comments it received on the proposed rule
change, as amended. The text of these statements may be examined at the
places specified in Item IV below. The PSE 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
On February 14, 1996, the Commission approved an Exchange proposal
for the listing and trading of Flexible Exchange (FLEX) Options on
equity securities, pursuant to Rule 8.100.\4\ The Exchange commenced
trading of FLEX Equity Options on October 24, 1996. On October 31,
1996, the Commission approved an Exchange proposal to waive for three
months all customer, firm and market maker transaction fees for
transactions in FLEX Equity Options.\5\ The Exchange is now proposing
to extend this waiver for three additional months, ending on Wednesday,
April 29, 1997.\6\ The purpose of the waiver is to encourage customers,
firms and market makers to execute transactions in FLEX Equity Options
on the Exchange and respond to competitive actions in the industry.
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\4\ See Securities Exchange Act Release No. 36841 (February 14,
1996), 61 FR 6666 (February 21, 1996).
\5\ See Securities Exchange Act Release No. 37901 (October 31,
1996), 61 FR 57508 (November 6, 1996).
\6\ See Amendment No. 1, supra note 3.
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2. Statutory Basis
The proposal is consistent with Section 6(b)(5) \7\ of the Act
because it is designed to facilitate transactions in securities.
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\7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change, as
amended, will impose any burden on competition.
[[Page 6824]]
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, as amended, were
neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change, as amended, establishes or changes a
due, fee, or other charge imposed by the Exchange and therefore, has
become effective pursuant to section 19(b)(3)(A) \8\ of the Act and
subparagraph (e) of Rule 19b-4 \9\ thereunder. At any time within 60
days of the filing of such proposed rule change, the Commission may
summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 19b-4(e).
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IV. Solictation 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, N.W., Washington, D.C. 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change, as amended, that
are filed with the Commission, and all written communications relating
to the proposed rule change, as amended, 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. Sec. 552, will be available
for inspection and copying in the Commission's Public Reference Room,
450 Fifth Street, N.W., Washington, D.C. 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-97-
03 and should be submitted by March 6, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-3538 Filed 2-12-97; 8:45 am]
BILLING CODE 8010-01-M
