[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Pages 24940-24941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11507]


[Release No. 34-35673; File No. SR-PHLX-95-24]

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc., Relating to the Modification of the Dress Code

May 4, 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 May 1, 
1995, the Philadelphia Stock Exchange, Inc. (``PHLX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the self-regulatory 
organization.\1\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.

    \1\On May 4, 1995, the PHLX clarified its proposal by 
eliminating references to tie-dyed clothing and sneakers, which, 
under the proposal, are no longer specifically prohibited. The 
clarification makes the PHLX's description of its proposal 
consistent with the text of the proposed rule change. See Letter 
from Edith Hallahan, Special Counsel, Regulatory Services, PHLX, to 
Michael Walinskas, Branch Chief, Office of Market Supervision, 
Division of Market Regulation, Commission, dated May 4, 1995.

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

    PHLX Regulation 6, ``Dress,'' which was adopted pursuant to 
Exchange Rule 60, ``Assessments for Breach of Regulations,'' is a 
regulation of order and decorumn applicable to all three trading floors 
on the Exchange (equity, foreign currency option (``FCO''), and equity 
option/index option). The PHLX proposes to amend PHLX Regulation 6 to 
update the Exchange's dress code and allow the appropriate floor 
standing committee\2\ to waive the Exchange's dress code for a specific 
period of time. Specifically, the PHLX proposes to amend PHLX 
Regulation 6 to: (1) Prohibit members from wearing clothing with words 
or pictures that detract from a professional atmosphere; (2) allow the 
appropriate floor committee to determine whether males must wear dress 
shirts with collars and neckties; (3) prohibit members from wearing 
golf, polo, or T-shirts, shorts, sweats, sandals, and any shoes that 
are dirty, frayed, faded, or torn; and (4) remove the provision 
prohibiting members from wearing denim garments, other than blue jeans.

    \2\Under Exchange By-Law 10-15, ``Floor Procedure Committee,'' 
the Exchange's Floor Procedures Committee supervises the dealings of 
PHLX members on the equity trading floor. Under Exchange By-Law 10-
16, ``FCO Committee,'' the PHLX's FCO Committee supervises the 
dealings of Exchange members on the FCO trading floor. Under 
Exchange By-Law 10-18, ``Options Committee,'' the Exchange's Options 
Committee supervises PHLX members on the equity and index option 
trading floor.

    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 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

    The purpose of the proposal is to amend PHLX Regulation 6 to update 
the dress code to eliminate outdated terms and reflect changes in 
acceptable types of dress. For example, under the proposal, sneakers 
and denim garments, other than blue jeans, are no longer expressly 
prohibited. However, the proposal expressly prohibits golf, polo, and 
T-shirts, shorts, sweats, and sandals, as well as words or pictures on 
clothing that draw excessive attention or detract from a professional 
atmosphere. Regulation 6 continues to prohibit clothing that is dirty, 
frayed, torn, or attracts excessive attention.
    Under the proposal, males will no longer necessarily be required to 
wear ties; the applicable floor standing committee will determine 
whether ties are required on that particular trading floor. With 
respect to acceptable footwear, although sandals are still prohibited, 
sneakers (running/gym shoes) are permitted. The Exchange believes that 
the proposed changes continue to establish a reasonable dress code 
subject to objective enforcement.
    The PHLX states that the proposed amendments are also designed to 
incorporate a waiver provision into Regulation 6. Specifically, the 
chairperson of the standing floor committee (the Options Committee, the 
Floor Procedure Committee, or the FCO Committee) or his designee may 
waive any part of the dress code for a specified period of time. The 
purpose of this change is to permit flexibility in the dress code when 
deemed necessary by the floor committee chairperson. For example, 
severe weather conditions may warrant relaxing the dress code until the 
conditions abate. The Exchange states that it will provide prior notice 
to the trading floor of any such waiver or [[Page 24941]] reinstatement 
of the dress code. The PHLX notes that this waiver provision is similar 
to a provision enacted recently into PHLX Regulation 2, ``Food, 
Liquids, and Beverages,'' regarding the ability of the floor committee 
chairperson to waive the general prohibition against food and beverages 
on the Exchange's trading floors.\3\ 

    \3\See Securities Exchange Act Release No. 34249 (June 23, 
1994), 59 FR 33565 (June 29, 1994) (order approving File No. SR-

    Accordingly, the PHLX believes that the proposal is consistent with 
Section 6(b) 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 by maintaining a decorous atmosphere on the 
Exchange's trading floor.

(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 either solicited or received.

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

    Because the foregoing 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 after May 1, 1995, it 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 that the 
proposal does not significantly affect the protection of investors or 
the public interest and does not impose any significant burden on 
competition. At any time within 60 days of the filing of such 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, 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 at 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 the file 
number in the caption above and should be submitted by May 31, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\

    \4\17 CFR 200.30-3(a)(12) (1994).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11507 Filed 5-9-95; 8:45 am]