[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Notices]
[Pages 24940-24941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11507]
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SECURITIES AND EXCHANGE COMMISSION
[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.
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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.
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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-
PHLX-94-13).
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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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11507 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M