[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Page 27646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13101]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38621; File No. SR-PCX-97-11]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to FLEX Equity Options Waiver Extension

May 13, 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 April 23, 1997, the Pacific Exchange, Inc. (``PCX'' 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 PCX. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4
---------------------------------------------------------------------------

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

    The PCX is proposing to waive all customer, firm and market maker 
transaction fees for transactions in FLEX Equity Options until further 
notice.

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 PCX 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 PCX 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.\3\ 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.\4\ The Exchange extended the 
waiver for three additional months, ending on Wednesday, April 29, 
1997.\5\ The Exchange is now proposing to extend the waiver until 
further notice. The purpose of the waiver is to encourage customers, 
firms and market makers to execute transactions in FLEX Equity Options 
on the Exchange and to respond to competitive actions in the industry.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 36841 (February 14, 
1996), 61 FR 6666 (February 21, 1996).
    \4\ See Securities Exchange Act Release No. 37901 (October 31, 
1996), 61 FR 57508 (November 6, 1996).
    \5\ See Securities Exchange Act Release No. 38254 (February 6, 
1996), 62 FR 6823 (February 13, 1996).
---------------------------------------------------------------------------

2. Statutory Basis
    The proposal is consistent with Section 6(b)(5) \6\ of the Act 
because it is designed to facilitate transactions in securities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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 
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)(ii) \7\ of the Act and 
subparagrah (e) of Rule 19b-4 \8\ thereunder. At any time within 60 
days of the filing of such proposed rule change, the Commission may 
summarily abrogate such 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 19b-4(e).
---------------------------------------------------------------------------

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, 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. 552, will be available for 
inspection and copying in the Commission's Public Reference Room, 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 PCX. All submissions should refer to File No. SR-PCX-97-11 and 
should be submitted by July 7, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13101 Filed 5-19-97; 8:45 am]
BILLING CODE 8010-01-M