[Federal Register Volume 59, Number 176 (Tuesday, September 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22575]
[[Page Unknown]]
[Federal Register: September 13, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34632; File Nos. SR-Amex-94-21, SR-CBOE-94-10, SR-NYSE-
94-22, SR-PSE-94-16, and SR-Phlx-94-09]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change of the Chicago Board Options Exchange, and Notice of Filing and
Order Granting Accelerated Approval of Proposed Rule Changes and
Amendments Thereto by the American Stock Exchange, New York Stock
Exchange, Pacific Stock Exchange, and Philadelphia Stock Exchange
Relating to Short Sales of Nasdaq National Market Securities
September 2, 1994.
I. Introduction
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ on March 31, 1994, the
Chicago Board Options Exchange, Inc. (``CBOE''), on June 1, 1994, the
Philadelphia Stock Exchange, Inc. (``Phlx''), on June 13, 1994, the
American Stock Exchange, Inc., on June 16, 1994, the Pacific Stock
Exchange, Inc. (``PSE''), and on June 27, 1994, the New York Stock
Exchange (``NYSE''), respectively (each individually referred to herein
as an ``Exchange'' and two or more collectively referred to as
``Exchanges''), submitted to the Securities and Exchange Commission
(``Commission'') proposed rule changes designed to allow their members
to designate certain short sales of Nasdaq\3\ National Market (``NM'')
securities\4\ as bid test exempt sales in connection with the bid test
applicable to short sales of such securities (``bid test rule'' or
``short sale rule'') recently adopted by the NASD and included in the
NASD Manual, Rules of Fair Practice (``NASD Rules'').\5\ On May 9,
1994, the CBOE filed Amendment No. 1;\6\ on June 20, 1994, the Phlx
filed Amendment No. 1;\7\ on June 21, 1994, the Amex filed Amendment
No. 1;\8\ on June 30, the PSE filed Amendment No. 1,\9\ and on August
3, 1994, the Phlx filed Amendment No. 2.\10\ The CBOE proposal was
published for comment in the Federal Register on May 18, 1994.\11\ No
comments were received on these proposed rule changes. This order
approves the Exchanges' proposals and the Exchanges' Amendments.
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\1\15 U.S.C. 78s(b)(1) (1988).
\2\17 CFR 240.19b-4 (1993).
\3\Nasdaq is a computerized system that provides brokers and
dealers with price quotations for securities traded over the
counter.
\4\Nasdaq includes both Nasdaq SmallCap Market and Nasdaq NM
securities. In July 1993, the NASD began referring to Nasdaq
National Market System or Nasdaq NMS securities as Nasdaq National
Market securities.
\5\See Securities Exchange Act Release No. 34277 (June 29,
1994), 59 FR 34885 (File No. SR-NASD-92-12).
\6\In Amendment No. 1, the CBOE removes the term ``NMS
securities'' and replaces it with ``Nasdaq National Market
securities,'' National Market securities,'' or ``NM securities.'' In
addition, Amendment No. 1 confirms that surveillance procedures had
been or would be implemented by the CBOE in order for the CBOE to be
deemed a ``qualified Options exchange'' that satisfies the
requirements of the NASD's short-sale rule (File No. SR-NASD-92-12).
See letter from Michael L. Meyer, Schiff Hardin & Waite, to Francois
Mazur, Attorney, Division of Market Regulation (``Division''),
Commission, dated May 9, 1994. See also Securities Exchange Act
Release No. 34277, supra note 5.
\7\See letter from Michele R. Weisbaum, Phlx, to Francois Mazur,
Attorney, Division, Commission, dated June 16, 1994. The Phlx's
amendment revises the term ``NMS securities, and refers instead to
``National Market securities'' or ``NM securities.'' Id.
\8\See letter from Claire P. McGrath, Managing Director and
Special Counsel, Derivative Securities, Amex, to Michael Walinskas,
Branch Chief, Division, Commission, dated June 20, 1994. Amendment
No. 1 corrects a typographical error made in the original
submission.
\9\See letter from Michael D. Pierson, Senior Attorney, Market
Regulation, PSE, to Francois Mazur, Attorney, Division, Commission,
dated June 29, 1994. Amendment No. 1 requests the Commission to find
good cause for accelerating effectiveness of the PSE's proposal.
\10\See Phlx Amendment No. 2. Amendment No. 2 revises the
proposal to allow a Phlx specialist to designate all the Nasdaq NM
securities underlying the options or index options which the
specialist has been allocated as ``designated'' NM securities. Under
the original proposal, Phlx specialists were limited to designating
twenty such securities.
\11\See Securities Exchange Act Release No. 34049 (May 12,
1994), 59 FR 25971.
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II. Description of Proposals
A. Introduction
The Exchanges have submitted substantially similar proposals to the
Commission to amend their respective rules\12\ so as to coordinate them
with the NASD's Rules of Fair Practice relating to a bid test
applicable to short sales of NM securities traded through Nasdaq.\13\
The proposals require Exchange members who initiate, accept, or
transmit for execution, or execute sales of NM securities for the
account of another Exchange member, to designate such sales as long
sales, short sales, or bid test exempt sales. Accordingly, NASD members
who receive orders to sell NM securities from or for the account of
Exchange members will have a basis to determine whether such sales are
short sales subject to or exempt from the bid test.\14\
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\12\CBOE Proposed Rule 15.10; Phlx Proposed Rule 1072; Amex
Proposed Rule 957(d); and PSE Proposed Rule 4.19.
\13\The NASD bid test prohibits broker-dealers from effecting
short sales, for themselves or their customers, at or below the
``bid'' when the current ``inside'' or best bid is below the
previous inside bid.
\14\An executing NASD member is required to make a good-faith
determination whether an order is long, short, or bid test exempt.
Thus, an NASD member is prohibited from effecting a short sale for
the account of a customer or for its own account directly or through
the offices of a third party for the purpose of avoiding the
application of the short sale rule. Further, an NASD member is
prohibited from knowingly, or with reason to know, effecting sales
for the account of a customer or for its own account for the purpose
of avoiding the rule. It is the belief of the NASD that NASD
members' activities to circumvent the short sale rule through
indirect actions such as executions with other members or through
facilitation of customer orders while being protected from loss are
antithetical to the purposes of the rule. See NASD Rules, Article
III, Section 48.
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Under NASD Rules, Article III, Section 48, sales of NM securities
may be designated as bid test exempt if they qualify for one or more of
the exemptions from the bid test included in the rule. One of these
exemptions applies to short sales effected by ``qualified options
market makers''\15\ (``market maker exemption'') to hedge offsetting
options positions. This exemption recognizes the need for options
market makers to hedge their options positions by buying or selling
(including selling short) shares of underlying stocks or underlying
component stocks contained in stock indexes.
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\15\A ``qualified options market maker'' is an options market
maker who has received an appointment as a ``qualified options
market maker'' for certain classes of stock options on Nasdaq
National Market securities and index options on qualified stock
indexes pursuant to the rules of a ``qualified options exchange.''
See NASD Rules, Article III, Section 48(h)(2)(b). For a definition
of a ``qualified options exchange,'' see infra note 16 and
accompanying text.
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To benefit from the bid test exemption afforded to qualified
options market makers, a market maker must be designated as a qualified
options market maker by a ``qualified options exchange.''\16\ The NASD
Rules define a ``qualified options exchange'' as a national securities
exchange with Commission approved rules and procedures governing the
designation of qualified options makers. In addition, to be deemed a
``qualified options exchange,'' the NASD Rules require an exchange to
implement procedures governing the surveillance of its market makers'
use of the exemption, as well as to require the exchange to authorize
the NASD to limit the designation of a qualified options market maker
where the options exchange finds substantial, willful, or continuing
violations of its rule governing qualified options market makers.\17\
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\16\See NASD Rules, Article III, Section 48(h)(2)(c).
\17\Id.
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The Exchanges' rules governing qualified options market makers will
be implemented as an eighteen month pilot and will be effective
concurrently with the NASD's bid test rule pilot program. The proposals
are subject to modification or termination at the end of the pilot
period. Additionally, the exchanges will require market makers to
designate the NM securities to which the NASD market maker exemption
will apply.
If an Exchange determines that a qualified options market maker has
failed to comply with the terms of the market maker exemption, that
Exchange may withdraw, suspend, or modify the designation of a
qualified options market maker based upon that Exchange's determination
that such action is warranted in light of the substantial, willful, or
continuing nature of the violation. Each Exchange also will notify the
NASD of such a determination so that the NASD may take steps to ensure
that Nasdaq NM sales are executed in compliance with all applicable
NASD rules. Moreover, the Exchanges have designed surveillance
procedures to ensure compliance with the proposed rule change.
Specifically, these procedures must be implemented to allow the
Exchanges to be deemed qualified options exchanges as that term is
defined by the NASD pursuant to the options market maker exemption.\18\
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\18\Id.
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B. The CBOE's Proposal
The CBOE proposes to adopt Rule 15.10 to require members to
designate sales of Nasdaq NM securities as long sales, short sales, or
bid-test exempt sales.\19\ The CBOE proposal allows a short sale to be
designated as bid-test exempt if the sale qualifies for one of the
NASD's bid-test exemptions, or, as further provided in the NASD's rule,
if the short sale is an exempt hedge transaction in a ``designated NM
security''\20\ underlying a class of stock options, or included in an
index underlying a class of index options for which the market maker
holds an appointment under the CBOE's rules.\21\
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\19\See CBOE Proposed Rule 15.10(a).
\20\``Designated NM security'' is defined as an NM security
which the market maker has designated as qualifying for the bid-test
exemption. See Proposed CBOE Rule 15.10(c)(2)(B).
\21\See CBOE Proposed Rule 15.10(c).
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Under the CBOE's proposal, a registered market maker will be
considered a qualified options market maker in options on properly
designated NM securities. Such a market maker is entitled to engage in
``exempt hedge transactions'' with respect to those NM securities.\22\
The CBOE's proposed rule will remain effective for the eighteen month
pilot period of the NASD's short sale rule, or for whatever period the
market maker short sale exemption remains effective.\23\
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\22\The CBOE defines an ``exempt hedge transaction,'' consistent
with the definition in the NASD's short sale rule, as a short sale
in an NM security effected to hedge, and which in fact serves to
hedge, an existing offsetting options position or an offsetting
options position that was created in one or more transactions
contemporaneous with the short sale.
With respect to index options, the CBOE will require that the NM
security sold short be a component security of the index underlying
such index option, that at least 10 percent of the value of the
index underlying such index option be represented by one or more NM
securities, and that the current aggregate value of the NM
securities sold short not exceed the aggregate current index value
of the index options position being hedged. Once an underlying index
satisfies the 10 percent test, the continued qualification of the
index shall be reviewed as of the end of each quarter, and the index
shall cease to qualify if the value of the index represented by one
or more NM securities is less than 8 percent at the end of any
subsequent year. See CBOE Proposed Rule 15.10(c)(2)(ii)(A). See also
NASD Rules, Article III, Section 48(h)(2)(d) (defining ``qualified
stock index'').
A transaction unrelated to normal options market making
activity, such as index arbitrage or risk arbitrage, that is
independent of a market maker's market making functions, will not be
considered an exempt hedge transaction. See CBOE Proposed
Interpretation and Policy .01, CBOE Proposed Rule 15.10.
\23\See CBOE Proposed Rule 15.10(d).
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The CBOE proposal also provides that if one of its members
initiates, accepts for execution, transmits for execution, or executes
a short sale of an NM security without properly identifying it, such a
sale may violate certain CBOE rules. In addition, if a participant
designates a short sale as a bid test exempt sale, including claiming
the sale to be exempt by reason of the market maker exemption, but does
not satisfy the requirements for such an exemption, or if the sale is
made with the purpose of disrupting or manipulating the market in the
security that is the subject of the sale of a related option, such a
sale may also violate certain CBOE rules.\24\ The CBOE has designed
surveillance procedures to monitor member compliance with the CBOE's
proposed rule once it becomes effective.\25\ Finally, the CBOE has
stated its commitment to notify the NASD if the CBOE determines that
there has been a substantial, willful, or continuing violation of its
proposed rule.
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\24\See CBOE Proposed Rule 15.10(f).
\25\See CBOE Amendment No. 1, supra note 6.
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C. The Phlx's Proposal
The Phlx proposal is substantially the same as the CBOE proposal.
The Phlx's proposal creates new Rule 1072 entitled Reporting
Requirements Applicable to Short Sales in NASD/NM Securities. The Phlx
proposal applies to Registered Options Traders (``ROTs'') and
specialists. In its original filing, Phlx ROTs and specialists were
both limited to designating Nasdaq NM securities underlying no more
than twenty of the options or index options, which the specialist or
ROT has been allocated or assigned respectively, as designated Nasdaq
NM securities. The Phlx has since amended its proposal to state that a
Phlx specialist may designate all Nasdaq NM securities in which it is
registered.\26\ The Phlx proposal also amends Phlx Rule 455(d)(12)
(Short Sales) by adding a reference to its new Rule 1072.
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\26\See Phlx Amendment No. 2.
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D. The Amex's Proposal
The Amex proposal is substantially the same as the CBOE proposal.
The Amex proposal adds a new paragraph (d) to its Rule 957, Accounts,
Orders and Records of Registered Traders Specialists and Associated
Persons. The Amex refers to options specialists and registered options
traders, as those terms have the same basic meaning as the CBOE term
``market maker.'' The Amex proposal also amends Amex Rule 590 (Minor
Rule Violation Fine Systems) by adding a reference to new paragraph (d)
of its Rule 957.\27\
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\27\When the Amex originally submitted its rule proposal, its
proposed amendment of Rule 590 incorrectly made reference to a Rule
992. The Amex amended its proposal to correct this error. See Amex
Amendment No. 1, supra note 8.
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E. The PSE's Proposal
The PSE proposal is nearly identical to the CBOE proposal. The PSE
proposal creates new Rule 4.19, Reporting Requirements Applicable to
Short Sales in Nasdag/NM Securities. The PSE filed an amendment
requesting accelerated effectiveness of its proposal.28 In
addition, the PSE's proposal contains a non-substantive difference with
respect to format.
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\2\8See PSE Amendment No. 1, supra note 9.
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F. The NYSE's Proposal
The NYSE's proposal is structured differently from those of the
CBOE and other Exchanges, though it is not dissimilar in effect.
Instead of referring to ``Nasdag NM securities,'' the NYSE refers to
``Nasdag NMS securities,'' defining such securities as having the
meaning that Part I of Schedule D to the By-Laws of the NASD assigns
either to NM or NMS securities.29 The NYSE defines a ``qualified
options Exchange market maker'' to mean either an NYSE options
specialist acting in respect of one of his specialty options or an NYSE
Competitive Options Trader (``COT'') acting in respect of an NYSE
listed option.30
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\2\9See Proposed NYSE Rule 759A(a)(iv).
\3\0See NYSE Proposed Rule 759A(a)(v).
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Unlike the CBOE proposal, the NYSE proposed rule does not state
explicitly the prohibition against its members transacting an improper
short sale for the account of another NYSE member. Instead, the NYSE
states that the market maker exemption is available only if the short
sale is related to normal market making activity.31
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\3\1See NYSE Proposed Rule 759A(a)(i)(C)(3). A short sale
effected for such purposes as index arbitrage or risk arbitrage that
in either case is independent of a market maker's market making
functions is not considered related to normal market making
activity. Id.
In its filing, the NYSE states that its specialists are subject
to market making obligations with respect to all activity in their
assigned specialty options and COTs are subject to market making
obligations with respect to all activity in all Exchange listed
options. Nevertheless, the NYSE proposal also includes a requirement
that the market maker exemption only be available for transactions
``related to market making activity'' in order to accommodate the
possibility that the Exchange may someday limit the scope or
parameters pursuant to which COTs must fulfill their market making
obligations in a manner similar to that of the options market makers
on the options exchanges that divide their floors into zones. See
File No. SR-NYSE-94-22.
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III. Discussion
The Commission believes that the Exchanges' proposed rule changes
are consistent with the requirements of the Act and the rules and
regulations thereunder applicable to national securities exchanges.
Specifically, the Commission believes the Exchanges' proposals are
consistent with the requirements of Section 6(b)(5) of the Act32
in that they are designed to promote just and equitable principles of
trade and to protect investors and the public interest. The proposals
coordinate the Exchanges' rules with the NASD's bid test applicable to
short sales of NM securities. The bid test is intended to reduce the
potential for abusive short selling practices in the Nasdaq market
without restricting options market makers who may need to sell stocks
short in order to hedge options positions resulting from their market
making activities.
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\3\215 U.S.C. 78f(b)(5) (1988).
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The Commission approved the NASD's short sale rule proposal on June
29, 1994,33 and in doing so stated that the rule, together with
the market maker exemption, is a reasonable approach to short sale
regulation of Nasdaq National Market securities. The Commission
believes the Exchanges' proposals are consistent with the NASD's bid
test rule. Moreover, the Commission believes the Exchanges' proposals
address the limitations imposed by the NASD for applicability of the
market maker exemption.
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\3\3See Securities Exchange Act Release No. 34277, supra note 5.
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Specifically, the Exchanges' proposals will implement rules
designed so that each Exchange will satisfy the NASD's definition of a
``qualified options exchange.''34 Additionally, the proposals
include provisions to allow the Exchanges to designate options market
makers, specialists, and their equivalents as ``qualified options
market makers.''35 This designation will allow these market
makers, specialists, and their equivalent to make use of the NASD's
market maker exemption to the bid test rule.
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\3\4See supra note 16.
\3\5See supra note 15.
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The first requirement imposed by the NASD for an exchange to be a
``qualified options exchange'' is that it have approved rules and
procedures for designating market makers as qualified options market
makers. These standards must be designed to identify options market
makers who regularly engage in market making activities in the
particular options class(es). Accordingly, the CBOE proposal states
that a CBOE market maker will be considered a ``qualified options
market maker'' in options on properly ``designated NM
securities.''36 CBOE market makers may designate NM securities
underlying options, or included in an index underlying options, for
which they hold an appointment at no more than three trading stations
at the CBOE.37 A short sale in a designated NM security that is an
``exempt hedge transaction,''38 is entitled to the NASD's market
maker exemption from its bid test rule. The Phlx,39 Amex,40
PSE,41 and NYSE42 have very similar provisions in their
proposals. The Commission believes that these standards should help to
ensure that qualified options market makers continue to engage in
market making activities in their assigned options, while not allowing
the market maker exemption to be extended beyond its original purpose.
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\3\6See Proposed CBOE Rule 15.10(c)(2)(B), and supra note 20.
\3\7Id. A Phlx ROT may designate NM securities underlying no
more than 20 of the options or index options which the ROT has been
allocated or assigned as designated NM securities; a Phlx specialist
may designate NM securities underlying all the options or index
options for which the specialist is registered. See Phlx Proposed
Rule 1072(c)(2) (ii) & (iii). Designated securities of an Amex ROT
or options specialist are NM securities underlying a class of stock
options or included in an index underlying a class of index options
in which the specialist is registered or the ROT is assigned. See
Amex Proposed Rule 957(d)(2)(b)(i). A PSE market maker may designate
NM securities underlying options or included in an index underlying
options for which he holds an appointment on the PSE options floor.
See PSE Proposed Rule 4.19(c)(2)(B)(ii). For NYSE specialists and
COTS, designated securities include assigned specialty options for
NYSE options specialists, and all securities underlying NYSE-listed
options with respect to NYSE COTS. See File No. SR-NYSE-94-22.
\3\8The CBOE proposal defines an ``exempt hedge transaction'' as
a short sale in an NM security that was effected to hedge, and in
fact serves to hedge, an existing offsetting options position or an
offsetting options position that was created in one or more
transactions contemporaneous with the short sale. See CBOE Proposed
Rule 15.10(c)(2)(ii)(A), and supra note 22.
\3\9See Phlx Proposed Rule 1072.
\4\0See Amex Proposed Paragraph (d) to its Rule 957.
\4\1See PSE Proposed Rule 4.19.
\4\2See NYSE Proposed Rule 759A.
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The second requirement for an Exchange to be deemed a ``qualified
options exchange'' pursuant to the NASD's rules is that the exchange
have procedures providing for the surveillance of its market makers'
use of the market maker exemption set forth in NASD Rules, Article III,
Section 48(h)(1). The purpose of such procedures is to ensure that
short sales effected by qualified options market makers are exempt
hedge transactions and that other non-qualified market makers are not
using the exemption. The Commission is satisfied that the Exchanges
have provided for the implementation of such procedures to become
effective with the implementation of the NASD's bid test rule. These
procedures are intended to monitor market maker use of the market maker
exemption.
Finally, each Exchange, in its respective proposal, has stated that
if it determines that a qualified options market maker has failed to
comply with the terms of the exemption, the Exchange may withdraw,
suspend, or modify the designation of a qualified options market maker
based upon the Exchange's determination of the substantial, willful, or
continuing nature of the violation.\43\ The purpose of this provision
is to satisfy the third NASD requirement for an exchange to be deemed a
qualified options exchange. That requirement states that an exchange
must have rules and procedures authorizing the NASD to withdraw,
suspend, or modify the designation of a qualified options market maker
if the qualified options exchange has determined that the qualified
options market maker has failed to comply with the terms of the market
maker exemption, and that such a withdrawal, suspension, or
modification of the market maker's exemption is warranted in light of
the substantial, willful, or continuing nature of the violation.\44\
The Commission also notes that because each Exchange proposal contains
a commitment to notify the NASD of such a determination, the Exchanges
have provided the NASD with the means to withdraw, suspend, or modify
the designation of a qualified options market maker insofar as Nasdaq
NM securities are involved.
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\43\See Securities Exchange Act Release No. 34049, supra note
11, and File Nos. SR-Amex-94-21, SR-NYSE-94-22, SR-PSE-94-16, and
SR-Phlx-94-09.
\44\Moreover, the CBOE, in its proposal, provides that it will
not be deemed a violation of the proposed rule when a member
designates a short sale as bid test exempt where the member does not
know or have reason to know that the criteria for designating such a
sale as bid test exempt are not satisfied. See CBOE Proposed Rule
15.10(e). With the exception of the NYSE, the other exchanges have
very similar provisions. See Phlx Proposed Rule 1072(e); Amex
Proposed Rule 957(d)(4); and PSE Proposed Rule 4.19(e).
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The Commission approved the NASD's short sale rule on an eighteen
month temporary basis, effective September 6, 1994, through March 5,
1996.\45\ In doing so, the Commission stated that questions remain
whether the market maker exemption from the short sale rule is
appropriate on an ongoing basis. The Commission noted that specialists
and other market makers do not enjoy similar exemptions from the
Commission's short sale rule for listed securities under Rule 10a-1
under the Exchange Act. Consequently, the Exchanges' proposals are
approved on a temporary basis, to remain in effect so long as there
exists a market maker exemption to the NASD's short sale rule.\46\
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\45\See Securities Exchange Act Release No. 34277, supra note 5.
\46\If the NASD later amends its short sale rule in a manner
that affects the market maker exemption, including its definition,
conditions, and requirements, the Exchanges might be required to
amend their respective companion market maker exemption rules so
that the Exchanges' members may avail themselves of any continued
market maker exemption.
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During the eighteen-month temporary approval period for the NASD's
bid test rule, the Commission expects the Exchanges to gather data on
the operation and effectiveness of the rules and procedures relating to
the market maker exemption. In particular, the Exchanges should focus
on: gathering data regarding the number of market makers using the
market maker exemption, and the frequency with which they use it; the
sufficiency of the surveillance procedures; difficulties in
administering the market maker exemption and the accompanying
surveillance procedures; and the nature of any violations of the market
maker exemption.
The Commission finds good cause for approving File Nos. SR-Phlx-94-
09, and Amendment Nos. 1 and 2 thereto; SR-Amex-94-21, and Amendment
No. 1, thereto; SR-PSE-94-16, and Amendment No. 1 thereto; and SR-NYSE-
94-22 prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. Each of the
Exchanges' proposed rule changes and amendments is consistent with the
CBOE's proposal, notice of which was published on May 18, 1994,\47\ and
contain only minor variations from the CBOE proposal. As a result, the
Commission believes that good cause exists for approving the foregoing
rule proposals and amendments on an accelerated basis given that the
implementation date of the NASD bid test rule is September 6, 1994.
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\47\See Securities Exchange Act Release No. 34049, supra note
11.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning File Nos. SR-Phlx-94-09, and Amendment Nos. 1 and
2 thereto; SR-Amex-94-21, and Amendment No. 1, thereto; SR-PSE-94-16,
and Amendment No. 1 thereto; and SR-NYSE-94-22. 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 submissions, 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 filings will also be
available for inspection and copying at the principal office of the
above-mentioned self-regulatory organizations. All submissions should
refer to the file number(s) in the caption above and should be
submitted by October 4, 1994.
V. Conclusion
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\48\ that the proposed rule changes (File Nos. SR-Amex-94-21, SR-
CBOE-94-10, SR-NYSE-94-22, SR-PSE-94-16, SR-Phlx-94-09), as amended,
are hereby approved on a temporary basis, to remain in effect so long
as the current market maker exemption to the NASD's short sale rule
remains in effect.
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\48\15 U.S.C. 78s(b)(2) (1988).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\49\
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\49\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-22575 Filed 9-12-94; 8:45 am]
BILLING CODE 8010-01-M
