[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