[Federal Register Volume 60, Number 35 (Wednesday, February 22, 1995)]
[Notices]
[Pages 9880-9881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4275]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35376; File No. SR-Phlx-095-11]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc., Relating to the 
Listing of Five Year Long-Term Index Options

February 14, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 73s(b)(1), notice is hereby given that on February 
8, 1995, 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.

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

    The Phlx, pursuant to Rule 19b-4 of the Act, proposes to amend its 
Rule 1101A to permit the listing of index option series with up to 60 
months (five years) until expiration. Currently, Rule 1101A permits 
``long-term'' options up to 36 months until expiration.\1\ The text of 
the proposed rule change is available at the Office of the Secretary, 
the Phlx, and at the Commission.

    \1\See Rule 1101A(b)(iii).
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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 Phlx 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 Phlx has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of such 
statements. [[Page 9881]] 

(A) Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory for, the Proposed Rule Change

    The purpose of the proposed rule change is to provide investors 
with the ability to trade additional long-term options by permitting 
the listing of index options with up to 60 months until expiration. The 
Exchange represents that the proposed five year long-term options are 
in response to increasing investor interest in longer-term instruments. 
In the Exchange's opinion, such instruments will enable investors to 
trade based on long-term projections, providing added flexibility and 
trading opportunities in index options trading. The proposed amendment 
to Rule 1101A will permit five-year long-term options in all of the 
index options traded on the Phlx, both market (i.e., broad-based 
indexes) and industry (i.e., narrow-based indexes).
    The Exchange believes that the foregoing rule change proposal is 
consistent with Section 6 of the Act, in general, and with Section 
6(b)(5), in particular, in that it is designed to promote just and 
equitable principles of trade, and remove impediments to and perfect 
the mechanism of a free and open market, by providing additional 
trading opportunities for investors.

(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

    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

    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 submissions 
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 Phlx. All 
submissions should refer to File No. SR-Phlx-95-11 and should be 
submitted by March 15, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\2\

    \2\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-4275 Filed 2-21-95; 8:45 am]
BILLING CODE 8010-01-M