[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Notices]
[Pages 44027-44028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21750]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38920; File No. SR-PCX-97-22]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Pacific Exchange, Inc., Relating FLEX Index Options and 
LEAPS on the Dow Jones & Co. Taiwan Index

August 11, 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 9, 1997, the Pacific Exchange, Inc. (``PCX'' 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 self-regulatory organization. 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) (1988).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PCX, pursuant to Rule 19b-4 of the Act, proposes to amend its 
rules to allow the trading of FLEX Index options and LEAPS on the Dow 
Jones & Co. Taiwan Index.

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

1. Purpose
    On December 23, 1996, the Commission approved an Exchange proposal 
to list and trade cash-settled, European-style stock index options on 
the Dow Jones & Co. Taiwan Index (``Index'').\3\ The Index is comprised 
of 113 representative stocks traded on the Taiwan Stock Exchange. The 
Index is deemed to be a broad-based index.
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    \3\ See Securities Exchange Act Release No. 38081 (December 23, 
1996), 62 FR 138 (January 2, 1997) (order approving File No. SR-PSE-
96-40).
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    The Exchange is now proposing to amend its rules on Flexible 
Exchange options (``FLEX Options'') \4\ to provide that FLEX Options on 
the Dow Jones & Co. Taiwan Index are approved for trading on the 
Exchange. In this regard the Exchange is proposing to amend PCX Rules 
8.100(a)(1) and 8.102(e)(1).\5\

[[Page 44028]]

The Exchange is also requesting the ability to list and trade long-term 
index option series (``LEAPS''), pursuant to PCX Rule 6.4(d), on the 
Index.
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    \4\ See Securities Exchange Act Release No. 36841 (February 14, 
1996), 61 FR 6666 (February 21, 1996) (order approving File No. SR-
PSE-95-24).
    \5\ These rules currently allow the Exchange to trade FLEX Index 
options on the Wilshire Small Cap Index and the PSE Technology 
Index. Pursuant to PSE Rule 8.107, the position and exercise limits 
for FLEX options on the Index will be set at 200,000 contracts.
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2. Statutory Basis
    The PCX believes that the proposed rule change is consistent with 
Section 6(b)(5) of the Act in that it is designed to facilitate 
transactions in securities as well as to promote just and equitable 
principles of trade.

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

    The self-regulatory organization does not believe that the proposed 
rule change will impose any inappropriate burden on competition.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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 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 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 PCX. All 
submissions should refer to File No. SR-PCX-97-22 and should be 
submitted by September 8, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-21750 Filed 8-15-97; 8:45 am]
BILLING CODE 8010-01-M