[Federal Register Volume 64, Number 181 (Monday, September 20, 1999)]
[Notices]
[Pages 50851-50852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24353]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41849; File No. SR-PCX-99-29]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Regarding the Extension of the Pilot Program Eliminating Position and
Exercise Limits in FLEX Equity Options
September 9, 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 August 13, 1999, 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 PCX. The Exchange
has designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act \3\ which renders the proposal effective upon receipt of this
filing by the Commission.\4\ The Commission is publishing this notice
to solicit comments on the proposed rule change from interested persons
and to accelerate the operative date of the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
\4\ The Exchange has represented that the proposed rule change:
(i) will not significantly affect the protection of investors or the
public interest; (ii) will not impose any significant burden on
competition; and (iii) will not become operative for 30 days after
the date of this filing, unless otherwise accelerated by the
Commission. The Commission is waiving the minimum five business day
notice requirement as permitted by Rule 19b-4(f)(6) under the Act.
Id. The Commission notes that the Exchange has requested that the
Commission accelerate the operative date of the rule change to
permit uninterrupted operation of the pilot program.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The PCX proposes a three month extension of the pilot program, set
to expire on September 9, 1999, relating to the elimination of position
and exercise limits for FLEX Equity options. The Exchange proposes that
the three month extension expire on December 9, 1999.
The text of the proposed rule change is available at the Office of
the Secretary, PCX, 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 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
On February 14, 1996, the Commission approved the Exchange's
proposal to trade FLEX Equity options on specified equity
securities.\5\ On September 9, 1997, the Commission approved the
Exchange's proposal to eliminate position and exercise limits for FLEX
Equity options pursuant to a two-year pilot program.\6\ Under the two-
year pilot program, position and exercise limits for FLEX Equity
options pursuant to PCX Rules 8.107 and 8.108 were eliminated. The
current pilot program expires on September 9, 1999. The Exchange
proposes a three month extension of the current pilot program to expire
on December 9, 1999. The Exchange requests the extension to be able to
complete a report required pursuant to the original approval order for
the two-year pilot program.\7\
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\5\ Securities Exchange Act Release No. 36841 (February 14,
1996), 61 FR 6666 (February 21, 1996).
\6\ Securities Exchange Act Release No. 39032 (September 9,
1997), 62 FR 48683 (September 16, 1997).
\7\ Under the current pilot program, the Exchange was required
to submit a status report eighteen months following the commencement
of the program. Although the PCX has not submitted such report, it
intends to do so within the proposed three month extension period.
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2. Statutory Basis
The Exchange believes that this proposed rule change is consistent
with Section 6(b)\8\ of the Act in general and furthers the objectives
of Section 6(b)(5)\9\ in particular in that it is designed to
facilitate transactions in securities, promote just and equitable
principles of trade, and protect investors and the public interest.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments
with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
This proposed rule filing has been filed by the Exchange as a
``non-controversial'' rule change pursuant to Section 19(b)(3)(A)(i) of
the Act \10\ and subparagraph (f)(6) of Rule 19b-4
[[Page 50852]]
thereunder.\11\ 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 on competition,
(3) by its terms does not become operative for 30 days after the date
of filing, or such shorter time as the Commission may designate, and
because (4) the Commission is waiving the required written notice of
intent to file the proposed rule change at least five days prior to the
filing date, it has become effective for a pilot period until December
9, 1999, pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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The Commission has determined, consistent with the protection of
investors and the public interest, to make the proopsed rule change
operative upon filing, pursuant to Section 19(b)(3)(A) of the Act \14\
and Rule 19b-4(f)(6)(iii).\15\ Under Rule 19b-4(f)(6)(iii), a proposed
``non-controversial'' rule change does not become operative for 30 days
after the date of filing, unless the Commission designates a shorter
time.\16\ The Commission believes that because the two-year pilot
program is scheduled to expire on September 9, 1999, and the three
month extension is based on the same terms and conditions of the
original pilot, it is consistent with the protection of investors and
the public interest to make the proposed rule change operative upon
filing.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ Id.
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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 the furtherance of the purposes of the Act.\17\
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\17\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
is consistent with the Act. Persons making written submissions should
file six copies thereof with the Secretary, Secruities and Exchange
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-0609. Copies
of 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, D.C.
20549. Copies of such filing will also be available for inspection and
copying at the principal office of the PCX. All submissions should
refer to file number SR-PCX-99-29 and should be submitted by October
12, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-24353 Filed 9-17-99; 8:45 am]
BILLING CODE 8010-01-M
