[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4339]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33638; File No. SR-PSE-94-04]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange,
Inc. Relating to Customer Hedge Exemption Procedures for Options on
Broad-Based Indexes
February 17, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on February
15, 1994, the Pacific Stock Exchange, Inc. (``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 Exchange.\1\ The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\The Exchange previously submitted this proposal on February
8, 1994, however, in response to Commission concerns, the PSE
delayed effectiveness of the rule change pending amendment and
resubmission to the Commission in its current form.
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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 amend its rule to codify its existing
policy on customer hedge exemption procedures for options on broad-
based indexes. The Exchange is not proposing to make any substantive
changes to these procedures. The text of the proposed rule change is
available at the Office of the Secretary, PSE, and at the Commission.
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. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Section (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
On September 14, 1993, the Commission approved an Exchange proposal
to add Commentary .02 to PSE Rule 7.6 allowing a customer hedge
exemption from position and exercise limits for options on broad-based
indexes.\2\ The Subject commentary specified that such exemptions would
be based upon Exchange procedures and criteria that would be made
available to Exchange members in a regulatory bulletin.\3\ The Exchange
is now proposing to incorporate these procedures and criteria into
Commentary .02 to Rule 7.6. The Exchange represents that the substance
of these procedures and criteria have not been changed since they were
approved by the Commission. The Exchange is, however, proposing to make
certain housekeeping changes involving renumbering and a cross-
reference in Rule 7.6, Commentary .02.
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\2\See Securities Exchange Act Release No. 32900 (September 14,
1993), 58 FR 49077 (September 21, 1993) (order granting partial
approval to File No. SR-PSE-92-38).
\3\The procedures and criteria that the Commission approved were
the same as those set forth in Interpretation .01 to Rule 24.4 of
the Chicago Board Options Exchange, Inc. Id.
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The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act, in general, and Section 6(b)(5), in
particular, in that it is designed to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and to promote just and equitable principles of trade.
(B) Self-Regulatory Organization's Statement on Burden on Completion
The Exchange 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
Because the foregoing rule change constitutes a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, it has become
effective pursuant to section 19(b)(3)(A) of the Act and subparagraph
(e)(1) of Rule 19b-4 thereunder. At any time within 60 days of the
filing of the 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.
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, 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 at the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 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-94-04 and should be
submitted by March 18, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4339 Filed 2-24-94; 8:45 am]
BILLING CODE 8010-01-M
