[Federal Register Volume 66, Number 85 (Wednesday, May 2, 2001)]
[Notices]
[Pages 22058-22059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10886]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44213; File No. SR-Phlx-01-21]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. Relating to Primary 
Trading Session Hours for Equities Whose Primary Market Is Not the 
Exchange

April 23, 2001.
    On March 16, 2001, the Philadelphia Stock Exchange, Inc. (Phlx) 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, a proposal to amend Phlx 
Rule 101 to establish the Primary Trading Session hours of securities 
whose primary market is not Phlx. On March 28, 2001, the Commission 
published the proposed rule change in the Federal Register.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 44088 (March 20, 
2001), 66 FR 16966.
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    The Commission finds that the proposed rule change is consistent 
with the Act and the rules and regulations thereunder applicable to a 
national securities exchange.\4\ In particular, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act which 
requires, among other things, that the rules of an exchange be designed 
to promote just and equitable principles of trade; to facilitate 
transactions in securities; to remove impediments to and perfect the 
mechanisms of a free and open market and a national market system; and, 
in general, to protect investors and the public interest.\5\
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    \4\ In approving the proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    Many securities are traded on Phlx pursuant to unlisted trading 
privileges (``UTP''). The proposed rule change would make the hours of 
the Phlx Primary Trading Session for these securities the same hours 
that they are traded on their primary markets (except if the primary 
market is PCX Equities, Inc.). The Commission has previously stated 
that, absent any regulatory concerns, the decision to change an 
exchange's trading hours is a matter that falls within the business 
discretion of the exchange.\6\ The Commission does not believe that the 
proposal raises any regulatory concerns and notes that no comments on 
the proposal were submitted. In addition, although the proposed rule 
change will not affect the current equity trading hours on Phlx,

[[Page 22059]]

the hours of Phlx's Primary Trading Session will automatically change 
whenever the hours of a primary market change, thereby alleviating the 
need for additional rule changes. Accordingly, the Commission concludes 
that Phlx's proposal is reasonable and consistent with the Act.
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    \6\ See, e.g., Securities Exchange Act Release No. 38766 (June 
24, 1997), 62 FR 35244, 35245 (June 30, 1997) (approving proposal by 
the Pacific Exchange to change the closing time of its equity floor 
from 1:50 to 1:30 Pacific Time).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Phlx-01-21) is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-10886 Filed 5-1-01; 8:45 am]
BILLING CODE 8010-01-M