regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.,

Text

---

Federal Register: March 17, 1998 (Volume 63, Number 51)NoticesPage 13082-13083From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr17mr98-118

SECURITIES AND EXCHANGE COMMISSION

Release No. 34-39742; File No. SR-Phlx-97-62Self-Regulatory Organizations: Notice of Filing of Proposed Rule Change by the Philadelphia Stock Exchange, Inc. To Amend Its By-Law Article X, Sections 10-16, 10-17 and 10-19 To Require That Each of Its Trading Floor Committees Consult With Its Corresponding Quality of Markets Committee on All Matters of Policy and All Matters That Are To Be Presented to the Board

March 11, 1998.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ notice is hereby given that on December 29, 1997, the Philadelphia Stock Exchange, Inc. (``Phlx'' or ``Exchange'') filedwith the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule changed as described in Items, I, II, and III below, which Items have been prepared by the self-regulatory organization.\2\ 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).

\2\ A technical amendment, Amendment No. 1, was filedwith the Commission on March 10, 1998. It amended By-Law Article X, Sections 10-17 to require that the Foreign Currency Options Committee (``Committee'') consult with the Foreign Currency Options Trading Floor's Quality of Markets Committee on ``all'' matters which are to be presented to the Phlx Board of Governors by the Committee, consistent with proposed amendments to Section 10-16 and 10-19. The qualifying term ``all'' was unintentionally left out of the initial filing provisions relating to Section 10-17.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Phlx hereby proposes to amend its By-Law Article X, Sections 10-16, 10-17 and 10-19 so that each of its respective trading floor standing

[Page 13083]committees shall consult with its corresponding quality of markets committee on all matters which are to be presented to the Board of Governors.

The text of the proposed rule change is set forth in full in Exhibit B to the filing.

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. 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

Phlx By-Law Article X, Sections 10-16, 10-17 and 10-19 set forth the charters of the Exchange's various trading floor standing committees. The proposed amendments specify that each of the trading floor standing committees shall consult with its respective quality of markets on all matters of policy and all matters which are to be presented to the Board of Governors. The proposed amendments are intended to foster sharing of views on policy and other matters between the various trading floor standing committees (Floor Procedure, Foreign Currency Options and Options) and corresponding quality of markets committees. The intended sharing of views on all policy matters is designed to bring the perspectives of the non-industry representatives of the various quality of markets committees to matters that may be referred to the Board of Governors by the various trading floor standing committees.

The proposed rule change is consistent with Section 6 of the Act \3\ in general, and in particular, with Section 6(b)(5) \4\ in that it is designed to promote just and equitable principles of trade, prevent fraudulent and manipulative acts and practices, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and national market system, as well as to protect investors and the public interest.

\3\ 15 U.S.C. 78f.

\4\ 15 U.S.C. 78f(b)(5).

B. Self-Regulatory Organization's Statement on 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 either solicited or received.

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 submission is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, DC 20549. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of such filing will also be available for inspection and copying at the principal office of Phlx. All submissions should refer to File No. SR-Phlx-97-62 and should be submitted by April 7, 1998.

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\5\

\5\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland, Deputy Secretary.

FR Doc. 98-6762Filed3-16-98; 8:45 amBILLING CODE 8010-01-M

---