[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Notices]
[Pages 35294-35295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17068]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37378; File No. SR-PHLX-96-24]
Self-Regulatory Organizations; Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change by the
Philadelphia Stock Exchange, Inc. To Amend Its Holiday Schedule
Respecting the Early Closure of Its Equity Trading Floor at 1:15 p.m.,
Equity and Index Options Trading Floor at 1:10 and 1:15 p.m.
Respectively, and its Currency Options at 1:00 p.m. on Friday July 5,
1996
June 27, 1996.
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 24, 1996, the Philadelphia Stock Exchange, Inc. (``PHLX''
or ``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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 approving this proposal on
an accelerated basis.
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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 PHLX, pursuant to Rule 19b-4 of the Act, proposes to amend its
holiday schedule respecting the early closure of the PHLX equity
trading floor at 1:15 p.m.,\3\ equity and index options trading floor
at 1:10 and 1:15 p.m. respectively, and PHLX currency options at 1:00
p.m. on Friday July 5, 1996.
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\3\ The Commission notes that, according to PHLX, equity trading
between 1:00 and 1:15 p.m. will be pursuant to PHLX Rule 101.02
which facilitates ``PPS'' and ``GTX'' designated orders. Telephone
Conversation between Murray L. Ross, Secretary, PHLX, and Elizabeth
Prout Lefler, SEC, on June 26, 1996.
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II. Self-Regulatory Organization's Statement Regarding 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 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
The PHLX, under its previously adopted holiday schedule, had
planned to be open for a full day of trading on Friday, July 5, 1996.
However, the registered national securities exchanges are planning an
early closure of equity trading at 1:00 P.M.\4\ on Friday, July 5,
1996, in part due to fact that the exchanges do not anticipate that
there will be significant trading volume on the day after the Fourth of
July, Independence Day, our national holiday. Therefore, the PHLX
proposes the early closure of its equity trading floor at 1:15, the
equity and index options trading floor at 1:10 P.M. and 1:15 P.M.
respectively, and PHLX currency options at 1:00 P.M. on Friday, July 5,
1996.
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\4\ The Commission notes that, according to the PHLX, the New
York Stock Exchange will conduct its normal after-hours session
between 1:00 and 1:30 P.M. Id.
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The PHLX requests accelerated effectiveness of this proposed rule
change pursuant to Section 19(b)(2) in order to provide member firms
and customers with sufficient notice and lead time to prepare for
closing on July 5, 1996.
2. Statutory Basis
The basis under the Act for the proposed rule change is the
requirement under Section 6(b)(5) that an exchange have rules that are
designed to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to
protect and perfect the mechanism of a free and open market and a
national market system, and in general, to protect investors and the
public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The PHLX does not believe that the proposed rule change will impose
any inappropriate burden on competition.
[[Page 35295]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
No written comments were either solicited or received.
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, 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. 552, will be available for inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the PHLX. All
submissions should refer to File No. SR-PHLX-96-24 and should be
submitted by July 26, 1996.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the PHLX's proposal to amend its holiday
schedule respecting the early closure of the PHLX equity trading floor
at 1:15 P.M., equity and index options trading floor at 1:10 and 1:15
P.M. respectively, and PHLX currency options at 1:00 P.M. on Friday,
July 5, 1996, is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.
The Commission believes that, because the registered national
securities exchanges are planning an early closure of equity trading at
1:00 P.M. on Friday, July 5, 1996, in part due to fact that the
exchanges do not anticipate that there will be significant trading
volume on the day after the Fourth of July, Independence Day, our
national holiday, it is appropriate to grant the request of the PHLX to
modify its previously adopted holiday schedule. Because the PHLX had
planned to be open for a full day of trading on Friday, July 5, 1996,
accelerated approval will permit the PHLX to provide member firms and
customers with sufficient notice and lead time to prepare for closing
early on July 5, 1996.
Based on the above, the Commission finds that there is good cause,
consistent with Section 6(b)(5) of the Act, to accelerate approval of
the amended proposed rule change in that it will promote just and
equitable principles of trade and remove impediments to a free and open
market by providing the Exchange with the basis for notifying its
members and customers of the scheduled change, thus ensuring the
protection of investors and the public.
The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. Accelerating approval
of this proposal will provide the Exchange with sufficient time to
notify member firms, and customers of the schedule change and allow
such persons and entities to consider their trading strategies in light
of the amended holiday schedule. The Commission believes that granting
accelerated approval of the proposed rule change is appropriate and
consistent with Sections 6(b)(5) and 19(b)(2) of the Act.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,5 that the proposed rule change (SR-PHLX-96-24) is approved.
\5\ 15 U.S.C. Sec. 78s(b)(2) (1988).
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For the Commission by the Division of Market Regulation,
pursuant to delegated authority.6
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\6\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-17068 Filed 7-3-96; 8:45 am]
BILLING CODE 8010-01-M
