[Federal Register Volume 62, Number 136 (Wednesday, July 16, 1997)]
[Notices]
[Page 38180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18606]
[[Page 38180]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38821; File No. SR-PCX-97-27]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Pacific Exchange, Inc. Relating to the Addition of a
Public Governor to Its Board of Governors and Permitting an Additional
Public Governor To Serve on the Executive Committee
July 8, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 27, 1997, the Pacific Exchange (``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 self-regulatory organization. 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
PCX is proposing to amend Sections 1(a) and 6 of Article II and
Section 2(a) of Article III of its Constitution so that another
individual from the public sector may serve on the Board of Governors
and to permit an additional public governor to serve on the Executive
Committee for the Exchange.
The complete text of the proposed rule change is available at the
principal office of the Exchange and at the Commission.
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
Purpose
The purpose of the proposed rule change is to add one additional
public governor to the Board. This additional public governor would
broaden the representation on the Board and would add another outside
dimension to the Board, thereby adding to its depth. Furthermore, the
proposed rule change would also permit another public governor to serve
on the Executive Committee for additional outside input in the
administration of the Exchange.
This proposed rule change reflects some sentiment in the industry,
including from Commission Chairman Arthur Levitt, to increase public
presence on exchange boards. This proposed rule change will bring the
PCX Board up to seven public governors on the twenty-two person Board.
Also, the Executive Committee will now have two public governors as
opposed to its single public participant prior to these proposed rule
changes. These additions will add valuable input and insight at the
highest levels of the administration of the PCX. Also, the proposed
rule change contains an alteration to the text of Section 2(a), Article
III to make it gender neutral.
Basis
The proposed rule change is consistent with Section 6(b) of the
Act, in general, and Section 6(b)(5), in particular, in that it is
designed to promote just and equitable principles of trade and to
protect the investors and the public interest.
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 35 days of the date of the publication of this notice in the
Federal Register or within such longer 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 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, 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. 552, will be available for inspection and copying in the
Commission's Public Reference Room, 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 PCX. All submissions should
refer to File No. SR-PCX-97-27 and should be submitted by August 6,
1997.
\1\ 15 U.S.C. Sec. 78s(b) (1).
\2\17 CFR 240.19b-4.
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-18606 Filed 7-15-97; 8:45 am]
BILLING CODE 8010-01-M
