[Federal Register Volume 66, Number 212 (Thursday, November 1, 2001)]
[Notices]
[Pages 55236-55237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27442]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44991; File No. SR-PHLX-2001-74]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. To Amend Phlx By-Law 
Article XII, Section 12-4 and Article XV, Sections 15-1 and 15-2

October 26, 2001.
    On August 7, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'' 
or ``Exchange'') submitted to 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 thereunder,\2\ a 
proposed rule change that would: (i) Amend Phlx By-Law Article XII, 
section 12-4 and Article XV sections 15-1 and 15-2 to reduce the 
current 14-day posting period for membership and foreign currency 
options participation transfers to seven days,\3\ (i) change the notice 
of posting from the Exchange bulletin board to the Phlx website while 
retaining publication in the Secretary's Weekly Bulletin; and (iii) 
allow the Chairman or his designate to reduce the posting period as 
deemed appropriate upon determination that such action is in the best 
interests of the Exchange. The Federal Register published the proposed 
rule change for comment on September 26, 2001.\4\ The Commission 
received no comments on the propsoal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ As required by Exchange By-Law Article, XXII, section 22-2, 
the Exchange issued notice of the proposed By-Law amendments to 
Articles XII and XV to its membership on April 11, 2001 and July 10, 
2001, respectively. The Exchange represents that it did not receive 
a request from 17 or more members for a special meeting of the 
Exchange to consider the proposed amendment. As a result, the Board 
approved the proposed amendment to By-Law Article XII on May 16, 
2001, and approved the proposed amendment to By-Law Article XV on 
August 1, 2001. Telephone conversation between Murray L. Ross, Vice 
President and Secretary, Phlx, Florence Harmon, Senior Special 
Counsel, Division of Market Regulation (``Division'') Commission, 
and Sonia Patton, Special Counsel, Division, Commission (September 
13, 2001).
    \4\ Securities Exchange Act Release No. 44819 (September 19, 
2001), 66 FR 49242.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \5\ and, in 
particular, the requirements of section 6 of the Act \6\ and the rules 
and regulations thereunder. The Commission finds that the proposed rule 
change is consistent with section 6(b)(5) of the Act \7\ and believes 
that the proposed rules should continue to provide members with 
sufficient notice of proposed transfers of memberships or foreign 
currency options participations to allow for the submission of 
information concerning an applicant's qualifications and fitness for 
membership. Therefore, the Commission finds the proposed rule change is 
designed to promote just and equitable principles of trade, to prevent 
fraudulent and manipulative acts and,

[[Page 55237]]

in general, to protect investors and the public interest.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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    It Is Therefore Ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Phlx-2001-74) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-27442 Filed 10-31-01; 8:45 am]
BILLING CODE 8010-01-M