[Federal Register Volume 63, Number 78 (Thursday, April 23, 1998)]
[Notices]
[Page 20238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10751]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39882; File No. SR-Phlx-97-62]
Self-Regulatory Organizations; Order Granting Approval of
Proposed Rule Change by the Philadelphia Stock Exchange, Inc., To Amend
its By-Law Article X, Sections 10-16, 10-17 and 10-19 To Require That
Each of its Trading Floor Committees Consult With Its Corresponding
Quality of Markets Committee on All Matters of Policy and All Matters
That Are To Be Presented to the Board
April 17, 1998.
I. Introduction
On December 29, 1997, the Philadelphia Stock Exchange, Inc.
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') a proposed rule change pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder.\2\ In this filing, the Phlx proposed
amendments to By-Law Article X, Sections 10-16, 10-17 and 10-19. Notice
of the proposed rule change was published in the Federal Register on
March 17, 1998.\3\ The Commission received no comments on the proposal.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 39472 (March 11, 1998),
63 FR 13082 (March 17, 1998). The notice of the rule change included
the publication of a technical amendment to the proposal, which was
filed with the Commission on March 10, 1998.
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II. Description of the Proposal
Phlx By-Law Article X, Sections 10-16, 10-17 and 10-19 set forth
the charters of the Exchange's various trading floor standing
committees. The proposed amendments specify that each of the trading
floor standing committees shall consult with its respective quality of
markets committee on all matters of policy and all matters that are to
be presented to the Phlx Board of Governors. The proposed amendments
are intended to foster the sharing of views on policy and other matters
between the various trading floor standing committees (Floor Procedure,
Foreign Currency Options and Options) and corresponding quality of
markets committees. The intended sharing of views on all policy matters
is designed to bring the perspectives of the non-industry
representatives of the various quality of markets committees to matters
that may be referred to the Board of Governors by the various trading
floor standing committees.
III. Discussion
The Commission believes the proposal is consistent with the Act in
general, and in particular, with Section 6(b)(3) of the Act.\4\ Section
6(b)(3) of the Act requires that the rules of an exchange assure a fair
representation of its members in the selection of its directors and
administration of its affairs and provide that one or more directors
shall be representative of issuers and investors and not be associated
with a member of the exchange, broker, or dealer.
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\4\ 15 U.S.C. 78f(b)(3).
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Phlx By-Law Article X, Section 10-20 requires that the quality of
markets committees have broad representation that shall be equally
balanced between industry and non-industry committee members. Thus, by
requiring that the Phlx's quality of markets committees participate in
the Phlx's policy making process, the proposal should help to ensure
that the Phlx's rules fairly represent the views of all of the Phlx's
members and constituents, including investors. The Commission believes
that by promoting the participation of non-industry representatives in
the decision making process of the Phlx, the proposal is consistent
with Section 6(b)(3) of the Act.
Accordingly, the Commission believes the proposed rule change is
consistent with Section 6 of the Act \5\ in general, and in particular,
with Section 6(b)(3) in that it is designed to assure a fair
representation in the administration of the Exchange's affairs.\6\
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\5\ 15 U.S.C. 78f.
\6\ In approving the rule change, the Commission has considered
the proposed rule's impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change SR-Phlx-97-62 be and hereby is
approved.
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\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\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-10751 Filed 4-22-98; 8:45 am]
BILLING CODE 8010-01-M
