[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Notices]
[Pages 37187-37188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17465]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41591; File No. SR-Phlx-99-17]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. to Amend By-Law Article 
IX--Trustees of Stock Exchange Fund, at Section 9-5--Agent of Trustees, 
and Section 9-6--Reports

July 1, 1999.
    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, 1999, the Philadelphia Stock Exchange, Inc. (``PHLX'' 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 Exchange. 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. 78s(b)(1).
    \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 Exchange seeks to amend By-Law Article IX-Trustees of Stock 
Exchange Fund, at Section 9-5--Agent of Trustees, and Section 9-6--
Reports. The text of the proposed rule change is set forth below. 
Additions are italicized, and deletions are bracketed.
* * *

By-Law Article IX

Trustees of Stock Exchange Fund

* * *

Agent of Trustees

    Section 9-5. The Trustees shall, with approval of the Board of 
Governors, appoint an [Trust Company to act as their] Agent, to hold 
the securities of the Exchange for safekeeping, to collect the 
interest, dividends and income therefrom for the Treasurer of the 
Exchange. Said Agent shall also, from time to time, make deliveries 
of securities held for the Trustees of the Stock Exchange Fund as 
the Trustees of the Stock Exchange Fund shall direct.

[[Page 37188]]

Reports

    Section 9-6. The Trustees of the Stock Exchange Fund shall 
submit to the [Board of Governors] Finance Committee at least 
quarterly a statement of the investments of the Exchange held by 
them in their capacity of Trustees of the Stock Exchange Fund. The 
Finance Committee shall forward that report to the Board with its 
recommendation.

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 PHLX 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    PHLX has proposed an amendment to By-Law Article IX, Sections 9-5 
and 9-6, to permit the Board of Governors to appoint an Agent to hold 
the securities of the Exchange for safekeeping, and to collect the 
interest, dividends, and income therefrom for the Treasurer of the 
Exchange, as the Exchange no longer utilizes its subsidiary the 
Philadelphia Depository Trust Co. for such services. Additionally, the 
Board proposes to have the Finance Committee receive and review the 
quarterly report of investments of the Exchange and forward that report 
to the Board of Governors with its recommendation. The Board believes 
that oversight by the Finance Committee of the Trustees of the Stock 
Exchange Fund is appropriate as the Finance Committee, pursuant to By-
Law Article X, Section 10-15, has charge of the funds of the Exchange 
and serves in an advisory capacity to the Board in the investment and 
sale of securities held by the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 \3\ of the Act in general, and with Section 6 (b)(5)\4\ 
in particular, in that it is designed to promote just and equitable 
principles of trade and protect investors and the public interest by 
providing further oversight of the financial arrangements of the Stock 
Exchange Fund.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden Competition

    The PHLX does not believe that the proposed rule change will impose 
any 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 received in response to Circular 98-17.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 35 days of the date of 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 PHLX 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, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 
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. Copies of the filing will also be 
available for inspection and copying at the principal offices of the 
PHLX. All submissions should refer to File No. SR-Phlx-99-17 and should 
be submitted by July 30, 1999.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17465 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M