[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Page 27646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13101]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38621; File No. SR-PCX-97-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to FLEX Equity Options Waiver Extension
May 13, 1997.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 23, 1997, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the 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).
\2\ 17 CFR 240.19b-4
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The PCX is proposing to waive all customer, firm and market maker
transaction fees for transactions in FLEX Equity Options until further
notice.
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 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 The 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
1. Purpose
On February 14, 1996, the Commission approved an Exchange proposal
for the listing and trading of Flexible Exchange (FLEX) Options on
equity securities, pursuant to Rule 8.100.\3\ The Exchange commenced
trading of FLEX Equity Options on October 24, 1996. On October 31,
1996, the Commission approved an Exchange proposal to waive, for three
months, all customer, firm and market maker transaction fees for
transactions in FLEX Equity Options.\4\ The Exchange extended the
waiver for three additional months, ending on Wednesday, April 29,
1997.\5\ The Exchange is now proposing to extend the waiver until
further notice. The purpose of the waiver is to encourage customers,
firms and market makers to execute transactions in FLEX Equity Options
on the Exchange and to respond to competitive actions in the industry.
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\3\ See Securities Exchange Act Release No. 36841 (February 14,
1996), 61 FR 6666 (February 21, 1996).
\4\ See Securities Exchange Act Release No. 37901 (October 31,
1996), 61 FR 57508 (November 6, 1996).
\5\ See Securities Exchange Act Release No. 38254 (February 6,
1996), 62 FR 6823 (February 13, 1996).
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2. Statutory Basis
The proposal is consistent with Section 6(b)(5) \6\ of the Act
because it is designed to facilitate transactions in securities.
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\6\ 15 U.S.C. 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
The foregoing rule change, as amended, establishes or changes a
due, fee, or other charge imposed by the Exchange and therefore, has
become effective pursuant to Section 19(b)(3)(A)(ii) \7\ of the Act and
subparagrah (e) of Rule 19b-4 \8\ thereunder. At any time within 60
days of the filing of such proposed rule change, the Commission may
summarily abrogate such rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 19b-4(e).
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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, as amended, that
are filed with the Commission, and all written communications relating
to the proposed rule change, as amended, 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 Room, 450
Fifth Street, NW., Washington, DC 20549. Copies of such filing will
also be available for inspection and copying at the principal office of
the PCX. All submissions should refer to File No. SR-PCX-97-11 and
should be submitted by July 7, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13101 Filed 5-19-97; 8:45 am]
BILLING CODE 8010-01-M
