[Federal Register Volume 59, Number 198 (Friday, October 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25481]


[[Page Unknown]]

[Federal Register: October 14, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34800; File No. SR-Phlx-94-44]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 Thereto by the Philadelphia Stock Exchange, 
Inc. Relating to Extending the Circuit Breaker Pilot Program

October 6, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 12, 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 self-regulatory organization. On September 
30, 1994, the Exchange Filed Amendment No. 1 to the proposed rule 
change.\2\ 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).
    \2\In Amendment No. 1, the Phlx requests accelerated treatment 
for its proposal pursuant to Section 19(b)(2) of the Act to allow 
the circuit breaker pilot program to continue without interruption. 
See. letter from Gerald D. O'Connell, First Vice President, 
Regulation and Trading Operations, Phlx, to Michael Walinskas, 
Branch Chief, Division of Market Regulation, Commission, dated 
September 30, 1994 (``Amendment No. 1'').
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Self-Regulatory Organization's Statement of the Terms of Substance of 
the Proposed Rule Change

    The Phlx proposes to extend the effectiveness of its circuit 
breaker pilot program, which appears in Phlx Rule 133, until October 
31, 1995, Generally, Rule 133 provides for a one hour trading halt if 
the Dow Jones Industrial Average (``DJIA'') declines 250 or more points 
from its previous day's closing level, and, thereafter, a two hour 
trading halt if the DJIA declines 400 points from the previous day's 
closing level.

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 an basis for the proposed 
rule change and discussed any comments it received on the proposed rule 
change. The text of these statement 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 purpose of this proposal is to extend the Exchange's circuit 
breaker pilot program for a one-year period, in order to afford the 
Exchange and the Commission additional time to evaluate the 
effectiveness of the pilot program. The Exchange's circuit breaker rule 
provides an important safety mechanism, in conjunction with the circuit 
breakers of other self-regulatory organizations (``SROs''). The 
Commission approved the Exchange's circuit breaker proposal on a 
temporary basis in 1988.\3\ Thereafter, the Exchange's circuit breaker 
pilot program was extended five times, most recently until October 31, 
1994.\4\
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    \3\Securities Exchange Act Release No. 26386 (December 22, 
1988), 53 FR 52904.
    \4\Securities Exchange Act Release Nos. 27370 (October 23, 
1989), 54 FR 43881; 28580 (October 25, 1990), 55 FR 45895; 29868 
(October 28, 1991), 56 FR 56535; 26942 (November 6, 1992), 57 FR 
53157; and 33120 (October 29, 1993), 58 FR 59503.
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    The Exchange believes that its 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 promote just and equitable 
principles of trade, prevent fraudulent and manipulative acts and 
practices, remove impediments to and perfect the mechanism of a free 
and open market and national market system, as well as to protect 
investors and the public interest, by providing a reasonable means to 
retard a rapid, one-day market decline that can have a destabilizing 
effect on the nation's financial markets and the participants in these 
markets.

(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 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

    The Exchange requests that the Commission find good cause for 
accelerating approval of its proposed rule change pursuant to Section 
19(b)(2) of the Act. The Exchange notes that Rule 133 expires on 
October 31, 1994, which will be prior to the thirtieth day after 
publication of notice in the Federal Register of the Exchange's 
proposal.
    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 reasons 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 submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., 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 in the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 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 File No. 
SR-Phlx-94-44 and should be submitted by November 4, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-25481 Filed 10-13-94; 8:45 am]
BILLING CODE 8010-01-M