[Federal Register Volume 62, Number 93 (Wednesday, May 14, 1997)]
[Notices]
[Pages 26605-26606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12546]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38580; File No. SR-PCX-15]
Self-Regulatory Organizations; Notice of Filing of a Proposed
Rule Change by the Pacific Exchange, Inc. Relating to Trading
Differentials for Equity Securities
May 7, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 5, 1997, the Pacific
Exchange, Inc. (``PCX'') or ``Exchange'') filed with the Securities and
Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization (``SRO''). The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to modify its Rule 5.3(b) to allow the
Exchange to establish trading differentials for equity securities at
its discretion. The text of the proposed rule change is available at
the PCX and at the Commission.
II. Self-Regulatory Organization's Statement of the Propose 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 examined at the
places specified in Item III below. The self-regulatory organization
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
1. Purpose
PCX Rule 5.3(b) currently provides that, unless specifically ruled
otherwise, the trading differentials on stocks shall be as follows: On
stocks other than those traded on the New York Stock Exchange
(``NYSE'') or American Stock Exchange (``Amex''); if the selling price
is below \1/2\ of $1, the trading differential is \1/32\; if the
selling price is \1/2\ of $1 but under $5, the trading differential is
\1/16\; and if the selling price is $5 and above, the trading
differential is \1/8\. The rule further provides that on stocks also
traded on the NYSE or the Amex, the trading differentials shall be the
same as those prescribed by such exchanges.
The Exchange is proposing to modify Rule 5.3(b) to provide that the
Exchange shall determine the trading differentials for equity
securities traded on the Exchange. The Exchange is proposing this
change in order to add flexibility, so that it can change the trading
differentials on an immediate basis. The Exchange notes that some
exchanges do not have specific rules on trading differentials and are
able to change them on an immediate basis. The Exchange
[[Page 26606]]
intends to base any changes to trading differentials on competitive
considerations and other factors as appropriate, but such trading
differentials will conform to any applicable Intermarket Trading System
(``ITS'') rules.\2\
---------------------------------------------------------------------------
\2\ The PCX indicated to the Commission that it intends to take
into account the manner in which ITS is operating at the time the
Exchange is considering changes to its trading differentials.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \3\ of the Act in general and furthers the objectives of
Section 6(b)(5) \4\ in particular in that it is designed to facilitate
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market, and to promote just and equitable
principles of trade.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed rule change will impose no
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments.
III. 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, N.W., 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Room, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Also, copies of such filing will be available
for inspection and copying at the principal office of the PCX. All
submissions should refer to File No. SR-PCX-97-15 and should be
submitted by June 4, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Security.
[FR Doc. 97-12546 Filed 5-13-97; 8:45 am]
BILLING CODE 8010-01-M