[Federal Register Volume 62, Number 136 (Wednesday, July 16, 1997)] [Notices] [Page 38180] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-18606] [[Page 38180]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-38821; File No. SR-PCX-97-27] Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the Pacific Exchange, Inc. Relating to the Addition of a Public Governor to Its Board of Governors and Permitting an Additional Public Governor To Serve on the Executive Committee July 8, 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 June 27, 1997, the Pacific Exchange (``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 self-regulatory organization. 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 PCX is proposing to amend Sections 1(a) and 6 of Article II and Section 2(a) of Article III of its Constitution so that another individual from the public sector may serve on the Board of Governors and to permit an additional public governor to serve on the Executive Committee for the Exchange. The complete text of the proposed rule change is available at the principal office of the Exchange 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 Purpose The purpose of the proposed rule change is to add one additional public governor to the Board. This additional public governor would broaden the representation on the Board and would add another outside dimension to the Board, thereby adding to its depth. Furthermore, the proposed rule change would also permit another public governor to serve on the Executive Committee for additional outside input in the administration of the Exchange. This proposed rule change reflects some sentiment in the industry, including from Commission Chairman Arthur Levitt, to increase public presence on exchange boards. This proposed rule change will bring the PCX Board up to seven public governors on the twenty-two person Board. Also, the Executive Committee will now have two public governors as opposed to its single public participant prior to these proposed rule changes. These additions will add valuable input and insight at the highest levels of the administration of the PCX. Also, the proposed rule change contains an alteration to the text of Section 2(a), Article III to make it gender neutral. Basis The proposed rule change is consistent with Section 6(b) of the Act, in general, and Section 6(b)(5), in particular, in that it is designed to promote just and equitable principles of trade and to protect the investors and the public interest. 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 Within 35 days of the date of the publication of this notice in the Federal Register or within such longer 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 such 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 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 PCX. All submissions should refer to File No. SR-PCX-97-27 and should be submitted by August 6, 1997. \1\ 15 U.S.C. Sec. 78s(b) (1). \2\17 CFR 240.19b-4. --------------------------------------------------------------------------- For the Commission, by the Division of Market Regulation, pursuant to delegated authority. Margaret H. McFarland, Deputy Secretary. [FR Doc. 97-18606 Filed 7-15-97; 8:45 am] BILLING CODE 8010-01-M