[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16825]


[[Page Unknown]]

[Federal Register: July 12, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34320; File No. SR-PSE-94-13]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by Pacific Stock Exchange, Inc., Relating to the Fine Schedule 
for the Rule on Dissemination of Quotations in Local Issues

July 6, 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 May 24, 
1994, the Pacific Stock Exchange, Inc. (``PSE'' 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 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 Terms of Substance 
of the Proposed Rule Change

    The PSE is proposing to amend its fine schedule for violations of 
Equity Floor Procedure Advice 2-B, relating to the dissemination of 
quotations in local issues.

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

1. Purpose
    Equity Floor Procedure Advice (``EFPA'') 2-B of the Rules of the 
Pacific Stock Exchange is designed to enforce the requirement that PSE 
specialists disseminate quotations in their assigned local issues every 
day. Specifically, the specialist must disseminate a quote prior to 
one-half (\1/2\) hour after the PSE opening.
    In order to enforce this requirement, EFPA 2-B has a schedule that 
requires that all specialists be monitored daily on a rotating 
quarterly basis. Failure to satisfy the requirement currently results 
in a $25 fine for each violation beginning with the sixth violation.
    At this time, the PSE is proposing to amend this rule to provide 
that the fine be changed to $100 with an implementation upon the third 
violation. It is the position of the Exchange that this will provide an 
effective deterrent and reflect a more appropriate penalty for non-
compliance with EFPA 2-B.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act, is general, and Sections 6(b)(5) and 6(b)(6), in particular, in 
that it is designed to protect investors and the public interest, to 
promote just and equitable principles of trade, and to assure that 
Exchange members are appropriately disciplined.

B. Self-Regulatory Organization's Statements 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

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the publication of this notice in the Federal 
Register or within such other 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 reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the 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, D.C. 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, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of the PSE. All 
submissions should refer to File No. SR-PSE-94-13 and should be 
submitted by August 2, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-16825 Filed 7-11-94; 8:45 am]
BILLING CODE 8010-01-M