[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7645]
[[Page Unknown]]
[Federal Register: March 31, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33805; File No. SR-DGOC-94-01]
Self-Regulatory Organizations; Delta Government Options Corp.;
Notice of Filing of Proposed Rule Change Relating to the Definition of
Exercise Date
March 23, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'),\1\ notice is hereby given that on January 18, 1994, Delta
Government Options Corp. (``DGOC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-DGOC-94-01) as described in Items I, II, and III below, which Items
have been prepared primarily by DGOC, a self-regulatory organization
(``SRO''). The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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\1\15 U.S.C. 78s(b)(1) (1988).
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I. SRO's Statement of the Terms of Substance of the Proposed Rule
Change
The proposed rule change will amend DGOC's definition of
``expiration date,'' found in Article I of DGOC's Procedures, to
provide that the expiration date may occur on any business day on or
before the second anniversary of the writing of the option contract.
DGOC's rules currently provide that the expiration date will be on the
last Friday of any month on or before the second anniversary of the
writing of the option.
II. SRO's Statement of the Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, DGOC 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. DGOC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.
A. SRO's Statement of the Purpose of, and Statutory Basis for, the
Proposed Rule Change
The purpose of the proposed rule change is to respond to the
requests of DGOC participants that DGOC afford them the opportunity to
select expiration dates that match more precisely the tenor of other
financial contracts developed in the over-the-counter market and in
other trading environments. DGOC believes that by affording its
participants a larger spectrum of expiration dates its participants
will be able to select those expiration dates that are most suited to
each participant's individual trading needs.
DGOC believes that the proposed rule change is consistent with the
Act, particularly section 17A of the Act,\2\ and the rules and
regulations thereunder applicable to DGOC because it will permit more
utilization of DGOC systems by those participants who prefer to trade
in options for hedging purposes or speculation. In particular, DGOC
believes that the tailoring of the options expiration on the basis
proposed by DGOC will afford its participants additional flexibility to
adjust duration in relation to their overall treasury security
portfolios. The proposal, moreover, will enable participants to submit
for processing at DGOC treasury options trades that prior to this
proposal could not have been submitted because their stated expiration
dates were not available through DGOC. DGOC further states that the
proposal will allow for automated clearance and settlement of
securities transactions that, otherwise, would require clearance
through a decentralized, inefficient, and labor-intensive process.
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\2\15 U.S.C. 78q-1 (1988).
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B. SRO's Statement on Burden on Competition
DGOC believes that the proposed rule change will not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. SRO's Statement on Comments on the Proposed Rule Change Received
from Members, Participants, or Others
DGOC has not solicited or received any comments with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within thirty-five 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 ninety 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 SRO 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 in 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 DGOC. All submissions
should refer to File No. SR-DGOC-94-01 and should be submitted by April
21, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\17 CFR 200.30-3(a)(12) (1993).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-7645 Filed 3-30-94; 8:45 am]
BILLING CODE 8010-01-M
