[Federal Register Volume 59, Number 110 (Thursday, June 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13962]
[[Page Unknown]]
[Federal Register: June 9, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34137; File No. Phlx-94-25]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Relating to the Modification of Trading Hours on the Big
Cap Index
June 1, 1994.
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 May 6, 1994, the Philadelphia Stock Exchange, Inc. (``Phlx'' 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 Phlx. 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) (1988).
\2\17 CFR 240.19b-4 (1993).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify the trading hours applicable to the
Phlx's Big Cap Index (``Index''), a broad-based index. The trading
hours originally proposed in connection with the Index were from 9:30
a.m. to 4:10 p.m. on business days. The Phlx now proposes to modify
Phlx Rules 101 and 1101A to reflect that the trading hours of the Index
from 9:30 a.m. to 4:15 p.m. on business days. Because the Exchange
believes that this proposal is an extension of an existing policy of
the Exchange to trade broad-based indexes until 4:15 p.m., it has
submitted this proposed rule change effective immediately upon filing
so that the Index will be open for trading until 4:15 p.m. each
business day from the time it commences trading on May 17, 1994.
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
On April 28, 1994, the Commission issued an order approving the
Exchange's proposal to list and trade options on the Index.\3\ That
proposal had specified that the trading hours for the Index would be
from 9:30 a.m. to 4:10 p.m., and the Commission approved the proposal
with these trading hours in effect. However, the Exchange states that
the trading hours were communicated incorrectly to Commission staff
while the proposal was pending. The Exchange states that it intended
for the Index to be open until 4:15 p.m. on each business day,
consistent with all of the other broad-based indexes listed on the
Exchange (as well as all other broad-based indexes listed on all other
options exchanges). Further, the Exchange states that its Board of
Governors approved the Index with the intention of having it trade
until 4:15 p.m.\4\ Traditionally, it has been the policy of the Phlx,
as well as all of the other options exchanges, to trade broad-based
indexes until 4:15 p.m. Additionally, early materials that were
distributed to the public announcing the new Index and showing its
specifications indicated that the Index would close at 4:15 p.m.
Because at the time this proposal was filed the Index had not yet
started trading, the Exchange does not expect any customer confusion
regarding the change in the closing time of Index. Accordingly, the
Exchange is submitting this filing as an extension of an existing
policy and practice of the Exchange and requests that the filing be
effective immediately upon filing pursuant to section 19(b)(3)(A).
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\3\See Securities Exchange Act Release No. 33973 (April 28,
1994), 59 FR 23245 (May 5, 1994).
\4\Phlx Rule 101 states that its Board of Governors shall
determine by resolution the hours during which business may be
transacted on the Exchange.
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The Exchange believes that the proposed rule change is consistent
with section 6 of the Act, and, in particular, section 6(b)(5) thereof,
in that it will foster cooperation and coordination with persons
engaged in regulating, clearing, settling, and processing information
with respect to and facilitating transactions in securities; remove
impediments to and perfect the mechanism of a free and open market and
a national market system; and, in general, 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 burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, and 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 constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing Exchange rule, it has
become effective pursuant to section 19(b)(3)(A) of the Act and
subparagraph (e) of Rule 19b-4 thereunder. At any time within 60 days
of the filing of such 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, 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 in the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC. Copies of such filing also will 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 June 30, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-13962 Filed 6-8-94; 8:45am]
BILLING CODE 8010-01-M