[Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
[Notices]
[Pages 43801-43802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21607]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37583; File No. SR-PSE-96-25]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange,
Inc., Relating to the Listing and Trading of FLEX Equity Options
August 19, 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 August 16, 1996, 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 and
II 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.
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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 Exchange proposes to amend its rules respecting the listing and
trading of FLEX Equity Options in order to add a provision on the
formation of contracts that was inadvertently omitted from the original
proposal. The text of the proposed rule change is available at the
Office of the Secretary, 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 Exchange included statements
concerning the purpose of and basis for 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
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
On February 14, 1996, the Commission approved an Exchange proposal
to establish rules on the listing and trading of FLEX Equity Options on
the Exchange.\3\ The Exchange is now proposing to amend those rules in
order to add a section on the formation of contracts that was
inadvertently omitted from the proposal as filed with the
Commission.\4\ The Exchange notes that the proposed addition is
consistent with Rule 24A.5(c)(iii) of the Chicago Board Options
Exchange, Incorporated.
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\3\ See Securities Exchange Act Release No. 36841 (February 14,
1996), 61 FR 6666 (February 21, 1996) (File No. SR-PSE-95-24).
\4\ The Exchange proposes to add the following text to Rule
8.103(c):
``If the Submitting Member has indicated an intention to cross
or act as principal with respect to any part of the FLEX trade,
acceptance of the displayed BBO shall be automatically delayed until
the expiration of the BBO Improvement Interval. Prior to the BBO
Improvement Interval, the Submitting Member must indicate at the
post the price at which the member expects to trade. In these
circumstances, the Submitting Member may participate with all other
FLEX-participating members in attempting to improve or match the BBO
during the BBO Improvement Interval. At the expiration of the BBO
Improvement Interval, the Submitting Member must promptly accept or
reject the BBO(s).''
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The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act, in general, and furthers the objectives of
Section 6(b)(5), in particular, in that it is designed to promote just
and equitable principles of
[[Page 43802]]
trade, to foster cooperation with persons engaged in facilitating and
clearing transactions in securities, and to protect 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.
(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
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden of competition;
(3) was provided to the Commission for its review at least five days
prior to the filing date; and (4) does not become operative for 30 days
from August 16, 1996, the rule change proposal has become effective
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(e)(6)
thereunder. In particular, the Commission believes the proposal
qualifies as a ``noncontroversial filing'' in that the proposed
standards do not significantly affect the protection of investors or
the public interest and do not impose any significant burden on
competition. At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate such rule change if
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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. Sec. 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 SR-PSE-96-25 and should be submitted by
September 16, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21607 Filed 8-23-96; 8:45 am]
BILLING CODE 8010-01-M
