[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Notices]
[Pages 44027-44028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21750]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38920; File No. SR-PCX-97-22]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Pacific Exchange, Inc., Relating FLEX Index Options and
LEAPS on the Dow Jones & Co. Taiwan Index
August 11, 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 9, 1997, the Pacific Exchange, Inc. (``PCX'' 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.
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\1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
\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, pursuant to Rule 19b-4 of the Act, proposes to amend its
rules to allow the trading of FLEX Index options and LEAPS on the Dow
Jones & Co. Taiwan Index.
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
On December 23, 1996, the Commission approved an Exchange proposal
to list and trade cash-settled, European-style stock index options on
the Dow Jones & Co. Taiwan Index (``Index'').\3\ The Index is comprised
of 113 representative stocks traded on the Taiwan Stock Exchange. The
Index is deemed to be a broad-based index.
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\3\ See Securities Exchange Act Release No. 38081 (December 23,
1996), 62 FR 138 (January 2, 1997) (order approving File No. SR-PSE-
96-40).
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The Exchange is now proposing to amend its rules on Flexible
Exchange options (``FLEX Options'') \4\ to provide that FLEX Options on
the Dow Jones & Co. Taiwan Index are approved for trading on the
Exchange. In this regard the Exchange is proposing to amend PCX Rules
8.100(a)(1) and 8.102(e)(1).\5\
[[Page 44028]]
The Exchange is also requesting the ability to list and trade long-term
index option series (``LEAPS''), pursuant to PCX Rule 6.4(d), on the
Index.
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\4\ See Securities Exchange Act Release No. 36841 (February 14,
1996), 61 FR 6666 (February 21, 1996) (order approving File No. SR-
PSE-95-24).
\5\ These rules currently allow the Exchange to trade FLEX Index
options on the Wilshire Small Cap Index and the PSE Technology
Index. Pursuant to PSE Rule 8.107, the position and exercise limits
for FLEX options on the Index will be set at 200,000 contracts.
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2. Statutory Basis
The PCX believes that the proposed rule change is consistent with
Section 6(b)(5) of the Act in that it is designed to facilitate
transactions in securities as well as to promote just and equitable
principles of trade.
B. Self-Regulatory Organization's Statement on Burden on Competition
The self-regulatory organization does not believe that the proposed
rule change will impose any inappropriate 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 solicited or received with respect to the
proposed rule change.
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 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 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, 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 at the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the PCX. All
submissions should refer to File No. SR-PCX-97-22 and should be
submitted by September 8, 1997.
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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-21750 Filed 8-15-97; 8:45 am]
BILLING CODE 8010-01-M
