[Federal Register Volume 59, Number 213 (Friday, November 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27357]


[[Page Unknown]]

[Federal Register: November 4, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34911; File No. SR-PSE-94-32]

 

Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the Pacific 
Stock Exchange, Incorporated, Relating to a One Year Extension of 
Municipal Bond Trading Pilot Program

October 28, 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 October 
26, 1994, the Pacific Stock Exchange Incorporated (``PSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons, and is simultaneously 
granting accelerated approval of the proposed rule change.

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

    The PSE proposes to extend the municipal bond trading pilot program 
for an additional year until November 2, 1995.

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 March 7, 1994, the Commission approved an Exchange proposal to 
establish new rules for the listing and trading of municipal securities 
on the Exchange.\1\ The Commission approved the pilot for an interim 
period of 120 days through July 5, 1994.\2\ On July 5, 1994, the 
Commission granted an additional 120 day extension of the pilot through 
November 2, 1994.\3\ The Exchange has not yet begun to trade any 
municipal securities. The Exchange is now requesting a one year 
extension of the pilot in order to allow for proper evaluation of the 
program in the event that it lists any municipal securities during that 
period.
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    \1\See Exchange Act Release No. 33721 (March 7, 1994), 59 FR 
11636 (March 11, 1994) (granting temporary accelerated approval to 
File No. SR-PSE-94-05).
    \2\Id. at 59 FR 11638.
    \3\Exchange Act Release No. 34317, 59 FR 35546 (July 12, 1994).
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    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act, in general, and furthers the objectives 
of Section 6(b)(5), in particular, in that it will promote just and 
equitable principles of trade, foster cooperation and coordination with 
persons engaged in regulating, clearing, settling and processing 
information with respect to, and facilitating transactions in 
securities, and, in general will contribute to the protection of 
investors and the public interest.

B. Self-Regulatory Organizations Statement 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

    The Exchange requests that the Commission find good cause for 
approving the proposed rule change prior to the thirtieth day after 
publication of the notice in the Federal Register. PSE believes it 
appropriate to approve the proposed rule change so that its authority 
to list municipal securities does not lapse. The Commission finds that 
the proposed rule change extending the PSE pilot program is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to the PSE and, in particular, the requirements 
of Section 6, and the rules and regulations thereunder.
    The Commission finds good cause for approving the proposed rule 
change on an accelerated basis prior to the thirtieth day after the 
date of publication of the notice of filing thereof in that the pilot 
program will expire on November 2, 1994, without reauthorization. The 
Commission believes that extension of the pilot is desirable in that it 
will permit the exchange to evaluate its program prior to filing a 
request for permanent approval.

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 Room, 450 Fifth Street NW., Washington, 
DC 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-94-32 and should be submitted by November 25.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change be, and hereby is, approved through 
November 2, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority. 17 CFR 200.30-3(a)(12) (1993).
Margaret H. McFarland,
Secretary.
[FR Doc. 94-27357 Filed 11-3-94; 8:45 am]
BILLING CODE 8010-01-M