[Federal Register Volume 59, Number 60 (Tuesday, March 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7288]
[[Page Unknown]]
[Federal Register: March 29, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33804; File No. SR-PHLX-93-51]
Self-Regulatory Organizations; Filing of Proposed Rule Change by
the Philadelphia Stock Exchange, Inc., Relating to Excessive Trading
March 22, 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 December
30, 1993, the Philadelphia Stock Exchange, Inc. (``PHLX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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.
I. Self-Regulatory Organization's Statement of the Term of
Substance of the Proposed Rule Change
Currently, PHLX rule 771, ``Excessive Trading of Members,''
prohibits a member from effecting purchases or sales on the Exchange
which are excessive in view of his or its financial resources or in
view of the market for such security. The PHLX proposes to amend PHLX
rule 771 by deleting the phrase ``or in view of the market for such
security.'' PHLX rule 1015, ``Excessive Dealing in Options,'' prohibits
a member from effecting purchases or sales in options which are
excessive in view of his financial resources or in view of the market
for such security. The PHLX proposes to amend PHLX rule 1015 by
deleting the phrase ``in view of his financial resources'' and by
renumbering the rule as PHLX rule 1021.
The text of the proposed rule change is available at the Office of
the Secretary, PHLX, 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 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 PHLX proposes to amend PHLX rule 771 and to amend and renumber
Exchange rule 1015 as PHLX rule 1021. Specifically, the PHLX proposes
to amend PHLX rule 771, which is located among the financial
responsibility rules, to delete the phrase ``or in view of the market
for such security.'' The PHLX states that this phrase is already
appropriately included in PHLX rule 1015, which in turn would be
amended to delete the reference to the financial resources of a member,
because this phrase is already appropriately included in Exchange rule
771. The PHLX indicates that the financial responsibility reference
included in the trade practice rule (PHLX rule 1015) was recently the
source of confusion, which will be corrected by the PHLX's proposal.
Specifically, under the proposed rule change, PHLX rule 771 will govern
the financial aspect of excessive trading and PHLX rule 1021 will
govern the trade practice aspect.
The Exchange believes that the proposed rule change is consistent
with section 6 of the Act, in general, and, in particular with section
6(b)(5), in that it is designed to prevent fraudulent and manipulative
acts and practices, as well as to protect investors and the public
interest.
(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 Organizations' Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
No written comments were either received or requested.
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 reason 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, 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 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 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 the file
number in the caption above and should be submitted by April 19, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7288 Filed 3-38-94; 8:45 am]
BILLING CODE 8010-01-M
