[Federal Register Volume 60, Number 35 (Wednesday, February 22, 1995)]
[Notices]
[Pages 9880-9881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4275]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35376; File No. SR-Phlx-095-11]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Philadelphia Stock Exchange, Inc., Relating to the
Listing of Five Year Long-Term Index Options
February 14, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 73s(b)(1), notice is hereby given that on February
8, 1995, the Philadelphia Stock Exchange, Inc. (``Phlx'' 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 Phlx. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Phlx, pursuant to Rule 19b-4 of the Act, proposes to amend its
Rule 1101A to permit the listing of index option series with up to 60
months (five years) until expiration. Currently, Rule 1101A permits
``long-term'' options up to 36 months until expiration.\1\ The text of
the proposed rule change is available at the Office of the Secretary,
the Phlx, and at the Commission.
\1\See Rule 1101A(b)(iii).
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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 Phlx 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 Phlx has prepared summaries, set forth in sections
(A), (B), and (C) below, of the most significant aspects of such
statements. [[Page 9881]]
(A) Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory for, the Proposed Rule Change
The purpose of the proposed rule change is to provide investors
with the ability to trade additional long-term options by permitting
the listing of index options with up to 60 months until expiration. The
Exchange represents that the proposed five year long-term options are
in response to increasing investor interest in longer-term instruments.
In the Exchange's opinion, such instruments will enable investors to
trade based on long-term projections, providing added flexibility and
trading opportunities in index options trading. The proposed amendment
to Rule 1101A will permit five-year long-term options in all of the
index options traded on the Phlx, both market (i.e., broad-based
indexes) and industry (i.e., narrow-based indexes).
The Exchange believes that the foregoing rule change proposal is
consistent with Section 6 of the Act, in general, and with Section
6(b)(5), in particular, in that it is designed to promote just and
equitable principles of trade, and remove impediments to and perfect
the mechanism of a free and open market, by providing additional
trading opportunities for investors.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Phlx does not believe that the proposed rule change will impose
any inappropriate burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
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, N.W., Washington, D.C. 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 in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. Copies of such filing will also be available for
inspection and copying at the principal office of the Phlx. All
submissions should refer to File No. SR-Phlx-95-11 and should be
submitted by March 15, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\2\
\2\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-4275 Filed 2-21-95; 8:45 am]
BILLING CODE 8010-01-M
