[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Notices]
[Pages 37187-37188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17465]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41591; File No. SR-Phlx-99-17]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Philadelphia Stock Exchange, Inc. to Amend By-Law Article
IX--Trustees of Stock Exchange Fund, at Section 9-5--Agent of Trustees,
and Section 9-6--Reports
July 1, 1999.
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 9, 1999, the Philadelphia Stock Exchange, Inc. (``PHLX'' 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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange seeks to amend By-Law Article IX-Trustees of Stock
Exchange Fund, at Section 9-5--Agent of Trustees, and Section 9-6--
Reports. The text of the proposed rule change is set forth below.
Additions are italicized, and deletions are bracketed.
* * *
By-Law Article IX
Trustees of Stock Exchange Fund
* * *
Agent of Trustees
Section 9-5. The Trustees shall, with approval of the Board of
Governors, appoint an [Trust Company to act as their] Agent, to hold
the securities of the Exchange for safekeeping, to collect the
interest, dividends and income therefrom for the Treasurer of the
Exchange. Said Agent shall also, from time to time, make deliveries
of securities held for the Trustees of the Stock Exchange Fund as
the Trustees of the Stock Exchange Fund shall direct.
[[Page 37188]]
Reports
Section 9-6. The Trustees of the Stock Exchange Fund shall
submit to the [Board of Governors] Finance Committee at least
quarterly a statement of the investments of the Exchange held by
them in their capacity of Trustees of the Stock Exchange Fund. The
Finance Committee shall forward that report to the Board with its
recommendation.
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 PHLX 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 Exchange 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
PHLX has proposed an amendment to By-Law Article IX, Sections 9-5
and 9-6, to permit the Board of Governors to appoint an Agent to hold
the securities of the Exchange for safekeeping, and to collect the
interest, dividends, and income therefrom for the Treasurer of the
Exchange, as the Exchange no longer utilizes its subsidiary the
Philadelphia Depository Trust Co. for such services. Additionally, the
Board proposes to have the Finance Committee receive and review the
quarterly report of investments of the Exchange and forward that report
to the Board of Governors with its recommendation. The Board believes
that oversight by the Finance Committee of the Trustees of the Stock
Exchange Fund is appropriate as the Finance Committee, pursuant to By-
Law Article X, Section 10-15, has charge of the funds of the Exchange
and serves in an advisory capacity to the Board in the investment and
sale of securities held by the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 \3\ of the Act in general, and with Section 6 (b)(5)\4\
in particular, in that it is designed to promote just and equitable
principles of trade and protect investors and the public interest by
providing further oversight of the financial arrangements of the Stock
Exchange Fund.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden Competition
The PHLX does not believe that the proposed rule change will impose
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were received in response to Circular 98-17.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 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 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 PHLX 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, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.
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. Copies of the filing will also be
available for inspection and copying at the principal offices of the
PHLX. All submissions should refer to File No. SR-Phlx-99-17 and should
be submitted by July 30, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17465 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M
