[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Notices]
[Pages 6823-6824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3538]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38254; File No. SR-PSE-97-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 to the 
Proposed Rule Change by the Pacific Stock Exchange Incorporated 
Relating to a Waiver of All Customer, Firm and Market Maker Transaction 
Fees for Transactions in FLEX Equity Options Until April 29, 1997

February 6, 1997.
    Pursuant to Section 19(b)(1)\1\ of the Securities Exchange Act of 
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on January 27, 1997, the Pacific Stock Exchange Incorporated 
(``PSE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'' or ``SEC'') the proposed rule change as 
described in Items I, II and III below, which Items have been prepared 
by the PSE. The Exchange filed with the Commission Amendment No. 1 to 
the proposed rule change on January 28, 1997.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Exchange filed Amendment No. 1 to accurately reflect the 
expiration date of the three month extension of the waiver. See 
Letter from Michael D. Pierson, Senior Attorney, Regulatory Policy, 
PSE, to John V. Ayanian, Attorney, Office of Market Supervision, 
Division of Market Regulation, Commission, dated January 27, 1997 
(``Amendment No. 1'').
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PSE is proposing to extend for a three month period its waiver 
of all customer, firm and Market Maker transaction fees for 
transactions in FLEX Equity Options.

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 PSE included statements 
concerning the purpose of and basis for the proposed rule change, as 
amended, and discussed any comments it received on the proposed rule 
change, as amended. The text of these statements may be examined at the 
places specified in Item IV below. The PSE 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

1. Purpose
    On February 14, 1996, the Commission approved an Exchange proposal 
for the listing and trading of Flexible Exchange (FLEX) Options on 
equity securities, pursuant to Rule 8.100.\4\ The Exchange commenced 
trading of FLEX Equity Options on October 24, 1996. On October 31, 
1996, the Commission approved an Exchange proposal to waive for three 
months all customer, firm and market maker transaction fees for 
transactions in FLEX Equity Options.\5\ The Exchange is now proposing 
to extend this waiver for three additional months, ending on Wednesday, 
April 29, 1997.\6\ The purpose of the waiver is to encourage customers, 
firms and market makers to execute transactions in FLEX Equity Options 
on the Exchange and respond to competitive actions in the industry.
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    \4\ See Securities Exchange Act Release No. 36841 (February 14, 
1996), 61 FR 6666 (February 21, 1996).
    \5\ See Securities Exchange Act Release No. 37901 (October 31, 
1996), 61 FR 57508 (November 6, 1996).
    \6\ See Amendment No. 1, supra note 3.
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2. Statutory Basis
    The proposal is consistent with Section 6(b)(5) \7\ of the Act 
because it is designed to facilitate transactions in securities.
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    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, will impose any burden on competition.

[[Page 6824]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments on the proposed rule change, as amended, were 
neither solicited nor received.

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

    The foregoing rule change, as amended, establishes or changes a 
due, fee, or other charge imposed by the Exchange and therefore, has 
become effective pursuant to section 19(b)(3)(A) \8\ of the Act and 
subparagraph (e) of Rule 19b-4 \9\ thereunder. 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 19b-4(e).
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IV. Solictation 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, as amended, that 
are filed with the Commission, and all written communications relating 
to the proposed rule change, as amended, 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. Sec. 552, will be available 
for inspection and copying in the Commission's Public Reference Room, 
450 Fifth Street, N.W., Washington, D.C. 20549. Copies of such filing 
will also be available for inspection and copying at the principal 
office of the PSE. All submissions should refer to File No. SR-PSE-97-
03 and should be submitted by March 6, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-3538 Filed 2-12-97; 8:45 am]
BILLING CODE 8010-01-M