[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16825]
[[Page Unknown]]
[Federal Register: July 12, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34320; File No. SR-PSE-94-13]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by Pacific Stock Exchange, Inc., Relating to the Fine Schedule
for the Rule on Dissemination of Quotations in Local Issues
July 6, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 24,
1994, the Pacific Stock Exchange, Inc. (``PSE'' 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 by the self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PSE is proposing to amend its fine schedule for violations of
Equity Floor Procedure Advice 2-B, relating to the dissemination of
quotations in local issues.
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 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 be examined at
the places specified in Item IV below. The self-regulatory organization
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
Equity Floor Procedure Advice (``EFPA'') 2-B of the Rules of the
Pacific Stock Exchange is designed to enforce the requirement that PSE
specialists disseminate quotations in their assigned local issues every
day. Specifically, the specialist must disseminate a quote prior to
one-half (\1/2\) hour after the PSE opening.
In order to enforce this requirement, EFPA 2-B has a schedule that
requires that all specialists be monitored daily on a rotating
quarterly basis. Failure to satisfy the requirement currently results
in a $25 fine for each violation beginning with the sixth violation.
At this time, the PSE is proposing to amend this rule to provide
that the fine be changed to $100 with an implementation upon the third
violation. It is the position of the Exchange that this will provide an
effective deterrent and reflect a more appropriate penalty for non-
compliance with EFPA 2-B.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act, is general, and Sections 6(b)(5) and 6(b)(6), in particular, in
that it is designed to protect investors and the public interest, to
promote just and equitable principles of trade, and to assure that
Exchange members are appropriately disciplined.
B. Self-Regulatory Organization's Statements 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 35 days of the publication of this notice in the Federal
Register or within such other period (i) As the Commission may
designate up to 90 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 self-regulatory organization consents, the Commission will:
(A) By order approve the 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, 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. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the PSE. All
submissions should refer to File No. SR-PSE-94-13 and should be
submitted by August 2, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-16825 Filed 7-11-94; 8:45 am]
BILLING CODE 8010-01-M
