[Federal Register Volume 59, Number 60 (Tuesday, March 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7288]


[[Page Unknown]]

[Federal Register: March 29, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33804; File No. SR-PHLX-93-51]

 

Self-Regulatory Organizations; Filing of Proposed Rule Change by 
the Philadelphia Stock Exchange, Inc., Relating to Excessive Trading

March 22, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on December 
30, 1993, the Philadelphia Stock Exchange, Inc. (``PHLX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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.

I. Self-Regulatory Organization's Statement of the Term of 
Substance of the Proposed Rule Change

    Currently, PHLX rule 771, ``Excessive Trading of Members,'' 
prohibits a member from effecting purchases or sales on the Exchange 
which are excessive in view of his or its financial resources or in 
view of the market for such security. The PHLX proposes to amend PHLX 
rule 771 by deleting the phrase ``or in view of the market for such 
security.'' PHLX rule 1015, ``Excessive Dealing in Options,'' prohibits 
a member from effecting purchases or sales in options which are 
excessive in view of his financial resources or in view of the market 
for such security. The PHLX proposes to amend PHLX rule 1015 by 
deleting the phrase ``in view of his financial resources'' and by 
renumbering the rule as PHLX rule 1021.
    The text of the proposed rule change is available at the Office of 
the Secretary, PHLX, 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 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

    The PHLX proposes to amend PHLX rule 771 and to amend and renumber 
Exchange rule 1015 as PHLX rule 1021. Specifically, the PHLX proposes 
to amend PHLX rule 771, which is located among the financial 
responsibility rules, to delete the phrase ``or in view of the market 
for such security.'' The PHLX states that this phrase is already 
appropriately included in PHLX rule 1015, which in turn would be 
amended to delete the reference to the financial resources of a member, 
because this phrase is already appropriately included in Exchange rule 
771. The PHLX indicates that the financial responsibility reference 
included in the trade practice rule (PHLX rule 1015) was recently the 
source of confusion, which will be corrected by the PHLX's proposal. 
Specifically, under the proposed rule change, PHLX rule 771 will govern 
the financial aspect of excessive trading and PHLX rule 1021 will 
govern the trade practice aspect.
    The Exchange believes that the proposed rule change is consistent 
with section 6 of the Act, in general, and, in particular with section 
6(b)(5), in that it is designed to prevent fraudulent and manipulative 
acts and practices, as well as to protect investors and the public 
interest.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The PHLX does not believe that the proposed rule change will impose 
any inappropriate burden on competition.

(C) Self-Regulatory Organizations' Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    No written comments were either received or requested.

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 reason for so finding or (ii) as to 
which the self-regulatory organization 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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, NW., 
Washington, DC Copies of such filing will also be available for 
inspection and copying at the principal office of the above-mentioned 
self-regulatory organization. All submissions should refer to the file 
number in the caption above and should be submitted by April 19, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7288 Filed 3-38-94; 8:45 am]
BILLING CODE 8010-01-M