[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Pages 27641-27642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13096]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38620; File No. SR-PCX-97-13]
Self-Regulatory Organizations; The Pacific Exchange, Inc.; Notice
of Filing of Proposed Rule Change Relating to the Use of the Internet
or Similar Electronic Networks for Providing Market Quotations or
Advertising to the General Public
May 13, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 23, 1997, The
Pacific Exchange, Inc. (``PCX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which items have
been prepared primarily by PCX. 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. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend PCX Rule 9.24 to require its
Members and Member Organizations for which it is the designated
examining authority (``DEA''), to obtain the consent of the Exchange
prior to making use of the internet or similar electronic networks for
the purpose of providing market quotations or advertising to the
general public.\2\
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\2\ The text of the proposed rule change is attached as Exhibit
A to File No. SR-PCX-97-13, and is available for review at the
principal office of PCX and in the Public Reference Room of the
Commission.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PCX 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. PCX 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
PCX Rule 9.24, ``Radio, Television, Telephone Reports,'' currently
provides that Member firms desiring to broadcast Exchange quotations on
radio or television programs, or in public telephone market reports, or
to make use of radio or television broadcasts for any business purpose,
shall first obtain the consent of the Exchange by submitting an outline
of the program. The rule further provides that the text of all
commercials and program material (except lists of market quotations)
about securities or investing sponsored by member firms on radio,
television, or public telephone market reports, or program material
supplied to these media shall be sent to the Exchange promptly
following the program in which it is used.
The Exchange is proposing to add three provisions to the text of
Rule 9.24. The first provision provides that Members and Member
organizations desiring to make use of the internet or similar
electronic networks for the purpose of providing market quotations or
advertising to the general public, must first obtain the consent of the
Exchange by submitting an outline of the program to the Exchange.
The second provision provides that the text of all commercials and
program material (except lists of market quotations) about securities
or investing sponsored by Member or Member Organizations on the
internet, or similar electronic networks, or program material supplied
to such media, must be sent to the Exchange promptly following the
program in which it is used.
Finally, the Exchange is proposing to clarify the limited scope of
Rule 9.24 by stating expressly that it only applies to Members and
Member Organizations for which the Exchange is the DEA.
The Exchange believes that Rule 9.24 should be expanded given the
increasing use of the internet and similar electronic networks in mass
communications. Accordingly, the Exchange is proposing these amendments
in order to preserve the essential purpose of Rule 9.24.
The Exchange believes that the proposal is consistent with Section
6(b) of the Act, and Section 6(b)(5) of the Act \3\ in particular, in
that it promotes just and equitable principles of trade
[[Page 27642]]
and protects investors and the public interest.
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\3\ 15 U.S.C. Sec. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any 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
Written comments on the proposed rule change were neither solicited
nor received.
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 PCX 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. Sec. 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 PCX. All submissions
should refer to File No. SR-PCX-97-13 and should be submitted by July
7, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13096 Filed 5-19-97; 8:45 am]
BILLING CODE 8010-01-M
