[Federal Register Volume 62, Number 206 (Friday, October 24, 1997)]
[Notices]
[Pages 55448-55449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28174]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39254; File No. SR-Phlx-97-47]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Philadelphia Stock
Exchange, Inc. Proposing to Amend its Foreign Currency Option Trading
Hours Respecting Customized Foreign Currency Options
October 17, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on October 7, 1997, the
Philadelphia Stock Exchange Inc. filed with the Securities and Exchange
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Philadelphia Stock Exchange, Inc. (``Phlx'' or the
``Exchange'') pursuant to Rule 19b-4 of the Securities Exchange Act of
1934 (``Act'') \2\ proposes to cease trading for expiring customized
currency options at 8:10 a.m. eastern time on business days in which
the Foreign Currency Floor of the Exchange opens for trading at 8:00
a.m. eastern time. The text of the proposed rule change is available at
the Office of the Secretary, the Phlx, and the Commission.
---------------------------------------------------------------------------
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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
The Foreign Currency floor is open from 2:30 a.m. eastern time to
2:30 p.m. eastern time every business day. However, the Exchange may
open the foreign currency floor at 8:00 a.m. on some business days,
usually on business days following a holiday.\3\ The Exchange modified
the trading hours for all customized options such that an all expiring
customized option contract cease trading at 8:00 a.m. and expires at
10:15 a.m. eastern time.\4\ However, this practice prevents the holder
of an expiring customized currency option to offset an expiring
position on days in which trading begins at 8:00 a.m. on the Foreign
Currency floor. Therefore, the Exchange proposes to cease trading in
expiring customized contracts at 8:10 a.m. on business days in which
the Exchange opens at 8:00 a.m. and thereby provides a 10 minute window
for a participant to offset an expiring option. The Phlx will provide
notification of the change in trading hours for these expiring options
by means of memoranda to the membership.
---------------------------------------------------------------------------
\3\ On the day following an Exchange holiday such as the Friday
following Thanksgiving or the day after Christmas day, trading
commences at 8:00 a.m. rather than 2:30 a.m.
\4\ See Securities Exchange Act Release No. 37732 (September 26,
1996). The proposed rule change adjusted the trading hours for all
customized options such that all customized options would cease
trading on expiration day at 8:00 a.m. eastern time and would expire
at 10:15 a.m. eastern time.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act in that it is designed to remove
impediments to and perfect the mechanism of a free and open market by
providing the participants with the ability to offset their position
prior to expiration on those business days in which the Foreign
Currency floor opens at 8:00 a.m. eastern time.
B. Self-Regulatory Organization's Statement on the Burden on
Competition
The Phlx 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 at the time of the
filing.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has asserted that the proposed rule change (i) will
not significantly affect the protection of investors or the public
interest, (ii) will not impose any significant burden on competition,
and (iii) will not become operative for 30 days after the date of this
filing. For the foregoing reasons and because the Exchange provided at
least five business days notice to the Commission of its intent to file
this proposed rule change, the rule filing will become operative as a
``non-controversial'' rule change pursuant to Rule 19b-4(e)(6) under
the Act.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.19b-4(e)(6).
---------------------------------------------------------------------------
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
[[Page 55449]]
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 at 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 at the PHLX. All
submissions should refer to File No. SR-PHLX-97-47, and should be
submitted by November 14, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-28174 Filed 10-23-97; 8:45 am]
BILLING CODE 8010-01-M