[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Notices]
[Pages 6824-6825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3623]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38257; File No. SR-PSE-97-04]
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, Inc., Relating to
Late SIPC Reports
February 7, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 28, 1997, the Pacific Stock Exchange, Inc. (``PSE'' 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 PSE.\3\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. Sec. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On February 4, 1997, the PSE submitted a technical amendment
that (1) designates the provisos in PSE Rule 2.12(b) as (A) and (B);
and (2) replaces references in PSE Rules 10.13(j)(2) and
10.13(k)(iii)(2) to PSE Rule 2.12(a) with references to PSE Rule
2.12(b). See Letter form Michael D. Pierson, Senior Attorney,
Regulatory Policy, PSE, to Yvonne Fraticelli, OMS, Division of
Market Regulation, Commission, dated February 3, 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 proposes to amend paragraph (b)(2) of PSE Rule 2.12,
``Financial Reports,'' and paragraph (k)(2) of PSE Rule 10.13, ``Minor
Rule Plan,'' to replace references to ``Form SIPC-6'' and ``Form SIPC-
7'' with general references to ``Securities Investor Protection
Corporation (``SIPC'') forms and assessments'' or ``such forms and
assessments as are required pursuant to the Securities Investor
Protection Act of 1970 (``SIPA'').''
The text of the proposed rule change is available at the office of
the Secretary, PSE, 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 Exchange 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 Exchange 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 the
Statutory Basis for, the Proposed Rule Change
(a) Purpose
Currently, PSE Rule 2.12(b)(2) requires members to file with the
Exchange a Form SIPC-6 or Form SIPC-7 pursuant to SIPA.\4\ PSE Rule
2.12(b)(2) provides a late filing charge for members who fail to file
such documents in a timely manner.\5\ In addition, PSE Rule 2.12(b)(2)
provides that a member who files its Form SIPC-6 or Form SIPC-7 within
five business days of receipt of SIPC's final late notice is subject to
a fine pursuant to PSE Rule 10.13,\6\ and that a member who fails to
file its Form SIPC-6 or Form SIPC-7 within five business days after its
receipt of SIPC's final late notice is subject to formal disciplinary
action pursuant to PSE Rule 10.4, ``Hearing.'' \7\
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\4\ See Securities Exchange Act Release Nos, 33347 (December 15,
1993), 58 FR 67888 (December 22, 1993) (order approving File No. SR-
PSE-93-21) (adopting charges for late filing of SIPC-6 and SIPC-7
reports); and 32510 (June 24, 1993), 58 FR 335491 (July 1, 1993)
(order approving File No. SR-PSE-92-15) (approving amendment to the
Exchange's Minor Rule Plan relating to late SIPC reports).
\5\ Under PSE Rule 2.12(b)(2), the charge for late filings are
as follows: (1) $200.00 for reports that are 1 to 30 days late; (2)
$400.00 for reports that are 31 to 60 days late; and (3) $800.00 for
reports that are 61 to 90 days late.
\6\ The fines under PSE Rule 10.13 are: (1) $1,200.00 for a
first violation: (2) $1,800.00 for a second violation; and (3)
$2,400.00 for a third violation.
\7\ In addition, PSE Rule 10.13(j)(2) provides that the failure
to file a Form SIPC-6 or Form SIPC-7 within five days after the
receipt of SIPC's final notice will result in a formal disciplinary
action.
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The Exchange purposes to amend PSE Rules 2.12(b)(2) and 10.13 (j)
and (k) to replace references to ``Form SIPC-6'' and ``Form SIPC-7''
with general references to ``SIPC form and assessment'' and ``such
forms and assessments as are required'' pursuant to SIPA. The Exchange
is taking this action because SIPC recently has replaced Forms SIPC-6
and SIPC-7 with Form SIPC-4. The Exchange believes that the use of a
general reference to SIPC filings, rather than references to specific
SIPC forms, will obviate the need for additional rule
[[Page 6825]]
changes in the event that SIPC again changes its form. The Exchange
also is adding a reference to SIPC ``assessments'' in order to clarify
the subject rules, consistent with the PSE's long-standing
interpretation that a SIPC filing with the Exchange is complete only if
it includes an assessment.
(b) Basis
The PSE believes that the proposal is consistent with Section 6(b)
of the Act, in general, and with Sections 6(b)(5) and 6(b)(6), in
particular, in that it is designed to promote just and equitable
principles of trade and to ensure that members will be appropriately
disciplined for violations of Exchange rules.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The PSE does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(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 were neither solicited
or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change and Amendment No. 1 to the rule
change constitute a stated policy, practice or interpretation with
respect to the meaning, administration, or enforcement of an existing
PSE rule, the proposal and Amendment No. 1 to the proposal have become
effective pursuant to Section 19(b)(3)(A) of the Act and subparagraph
(e) of Rule 19b-4 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.
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 in 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 Exchange. All
submissions should refer to File No. SR-PSE-97-04 and should be
submitted by March 6, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-3623 Filed 2-12-97; 8:45 am]
BILLING CODE 8010-01-M