[Federal Register Volume 60, Number 248 (Wednesday, December 27, 1995)]
[Notices]
[Pages 67007-67008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31305]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36603; File No. SR-PSE-95-31]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Pacific Stock Exchange Incorporated Relating to Pre-
Arbitration Hearing Document Exchanges

December 19, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 7, 1995, the 
Pacific Stock Exchange Incorporated (``PSE'' 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. On 
December 18, 1995, the Exchange submitted to the Commission Amendment 
No. 1 to the proposed rule change.\2\ The Commission is publishing this 
notice to solicit comments on the amended proposed rule change from 
interested persons.

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ The amendment corrected the proposal's reference to Section 
15A(b)(6) as its statutory basis and deleted superfluous language 
describing an affirmative obligation to supplement and correct 
discovery. See Letter dated December 13, 1995, from Rosemary A. 
MacGuiness, Senior Counsel, PSE, to Glen Barrentine, Senior Counsel/
Team Leader, SEC.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to increase the prehearing document exchange 
deadline contained in PSE Rule 12, Arbitration, from ten (10) days to 
twenty (20) days.

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.

[[Page 67008]]


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

1. Purpose
    Currently, the PSE's Arbitration Department responds to numerous 
requests for additional, but late, discovery that arise from the 
exchange of documents intended to be used by the parties at the 
hearing. Accordingly, the Exchange is proposing to amend PSE Rule 
12.14(c) to increase the amount of time before a hearing where the 
parties are required to exchange documents from ten (10) days to twenty 
(20) days. By increasing the time for exchanging prehearing memoranda, 
the proposed rule change is intended to reduce the burden on the 
Arbitration Department and the arbitrators in responding to last minute 
discovery requests. The Securities Industry Conference on Arbitration 
approved the proposed rule change as an amendment to the Uniform Code 
of Arbitration at its meeting on October 21, 1994.
2. Statutory Basis
    The PSE believes the proposed rule change is consistent with the 
provisions of Section 6(b)(5) \3\ of the Act because it is designed to 
facilitate the arbitration process by providing a more reasonable time 
frame in which to address last minute discovery requests and alleviate 
the burdens on the forum staff and arbitrators in dealing with such 
requests.

    \3\ 15 U.S.C 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will not impose any 
burden on competition that is not necessary or appropriate in 
furtherance of purposes of the Act.

 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.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such other 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 the 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 at the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the Pacific Stock 
Exchange. All submissions should refer to File No. SR-PSE-95-31 and 
should be submitted by January 17, 1996.

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

    \1\ 17 C.F.R. 200.30-3(a)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-31305 Filed 12-26-95; 8:45 am]
BILLING CODE 8010-01-M