[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Notices]
[Pages 15809-15810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7395]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35512; File No. SR-Phlx-95-15]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to the Codification of Order Ticket Marking 
Requirements

March 17, 1995.
    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 March 
13, 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 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 Phlx proposes to consolidate and codify its order ticket 
marking requirements under Floor Procedure Advice (``Advice'') F-4. 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 Phlx included statements 
concerning the purpose of the 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.

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

    The purpose of the proposed rule change is to list the order ticket 
marking requirements in a single advice to facilitate floor compliance. 
By providing a sort of checklist of required marks and by placing the 
checklist in the Floor Procedure Advice Handbook for ease of reference, 
the Exchange believes that it will be easier for trading floor 
personnel to identify and verify in a timely fashion whether an order 
ticket has been properly marked.
    Currently, Advice F-4 requires order tickets for spreads, 
straddles, combinations and synthetics that receive spread priority to 
be marked accordingly (e.g., ``sp,'' ``st,'' etc.). This existing 
requirements, which is now proposed to be labelled as paragraph (a), 
contains a fine schedule for violations, administered pursuant to the 
Exchange's minor rule violation enforcement and reporting plan.\1\ 
Proposed paragraph (b) would not contain a fine schedule, and 
therefore, does not require an amendment to the Exchange's minor rule 
plan. Instead, failure to mark the order ticket is a violation of the 
rule or advice, subject to the applicable fine, if any, requiring that 
mark, not Advice F-4(b). For example, failure to mark ``SS'' respecting 
a trade designated as ``sold sale'' violates Advice F-3. Proposed 
Advice F-4(b) does not in and of itself impose new marking 
requirements.

    \1\The Phlx's minor rule violation enforcement and reporting 
plan (``minor rule plan''), codified in Phlx Rule 970, contains 
floor procedure advices with accompanying fine schedules. Rule 19d-
1(c)(2) authorizes national securities exchanges to adopt minor rule 
violation plans for summary discipline and abbreviated reporting; 
Rule 19d-1(c)(1) requires prompt filing with the Commission of any 
final disciplinary actions. However, minor rule violations not 
exceeding $2,500 are deemed not final, thereby permitting periodic, 
as opposed to immediate, reporting. Violations of Advice F-4 are 
currently subject to a minor rule plan citation and fine.
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    In recent years, several new order types and marking requirements 
have been introduced on the options floors. For example, ``BD'' for 
purposes of the Ten-up Rule, and ``F'' respecting facilitation orders 
may be required on order tickets. In each case, the Phlx believes that 
marking the floor ticket correctly is instrumental to ensuring to 
proper handling of the order in the trading crowd.
    The Phlx believes 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 is designed to prevent 
fraudulent and manipulative acts and practices, as well as to protect 
investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe 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
    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
(3) was provided to the Commission for its review at least five days 
prior to the filing date; and (4) does not become operative for 30 days 
from March 13, [[Page 15810]] 1995, the rule change proposal has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(e)(6) thereunder. In particular, the Commission believes the proposal 
would qualify as a ``noncontroversial filing'' in that the proposed 
standards do not significantly affect the protection of investors or 
the public interest and do not impose any significant burden on 
competition. At any time within 60 days of the filing of the 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 at the 
Commission's Public Reference Section, 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 Phlx. All 
submissions should refer to File No. SR-Phlx-95-15 and should be 
submitted by April 17, 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. 95-7395 Filed 3-24-95; 8:45 am]
BILLING CODE 8010-01-M