[Federal Register Volume 61, Number 28 (Friday, February 9, 1996)]
[Notices]
[Page 5052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2871]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36809; File No. SR-PSE-95-31]
Self-Regulatory Organizations; Pacific Stock Exchange,
Incorporated; Order Granting Approval to Proposed Rule Change Relating
to Arbitration Procedures Involving Prehearing Document Exchanges
February 5, 1996.
On December 7, 1995, the Pacific Stock Exchange Incorporated
(``PSE'' or ``Exchange'') submitted to the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change relating to arbitration
procedures that would increase the prehearing document exchange
deadline from ten days to twenty days. On December 18, 1995, the
Exchange submitted Amendment No. 1 to the proposed rule change to the
Commission.\3\
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ The amendment corrected the proposal's reference to Section
15A(b)(6) as its statutory basis and deleted superfluous language
describing an affirmative obligation to supplement and correct
discovery. See Letter dated December 13, 1995, from Rosemary A.
MacGuinness, Senior Counsel, PSE, to Glen Barrentine, Senior
Counsel/Team Leader, SEC.
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The proposed rule change, together with Amendment No. 1, was
published for comment in the Federal Register on December 27, 1995.\4\
No comments were received on the proposal.
\4\ Securities Exchange Act Release No. 36603 (Dec. 19, 1995),
60 FR 67007.
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PSE Rule 12.14(c) currently requires that, at least ten calendar
days prior to the first scheduled hearing date, all parties serve on
each other copies of documents in their possession that they intend to
present at the hearing and identify the witnesses they intend to
present at the hearing. The Exchange has proposed to increase this time
period from ten to twenty calendar days. The Exchange maintains that
this change will help alleviate the burden that currently falls on the
Exchange's Arbitration Department and parties to an arbitration
proceeding in responding to last minute discovery requests arising from
the exchange of documents intended to be used by the parties at the
arbitration hearing.
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, with the requirements of Section 6(b).\5\ Specifically, the
Commission believes the proposal is consistent with the Section 6(b)(5)
\6\ requirements that the rules of an exchange be designed to promote
just and equitable principles of trade, to prevent fraudulent and
manipulative acts, and, in general, to protect investors and the public
interest. Moreover, the proposed amendment should assist parties in the
process of preparing and organizing their cases and should provide the
parties with a more reasonable time frame within which to address last
minute discovery requests.
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-PSE-95-31) is approved.
\7\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. MacFarland,
Deputy Secretary.
[FR Doc. 96-2871 Filed 2-8-96; 8:45 am]
BILLING CODE 8010-01-M
