regulatory organizations; proposed rule changes: Pacific Exchange, Inc.,
[Federal Register: October 16, 1998 (Volume 63, Number 200)]
[Notices]
[Page 55668-55670]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16oc98-127]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40532; File No. SR-PCX-98-48]
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. To Amend PCX Rule 6 Regarding the Exchange's Dress Code
October 8, 1998.
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 September 23, 1998, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'') filedwith the Securities and Exchange Commission (``Commission'' or ``SEC'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by PCX. 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\ 17 CFR 204.19b-4.
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange is proposing to modify certain rules on Options Floor conduct, including standards of dress and consumption of food and drink on the Trading Floor. The rule change also modifies the current provisions on order tickets that are used on the Floor for options orders. Proposed new language is italicized; proposed deletions are bracketed. * * * * *
para.4733 Admission to and Conduct on the Options Trading Floor
Rule 6.2(a)-(b)--No change.
(c) Standards of Dress and Conduct--No change.
(1) Standards of Dress--No change.
(A) Personal attire must [shall] be neat, clean and presentable.
(B) Men must wear [dress] shirts with collars [and neckties or bow ties tied in a conventional manner and worn under shirt collars; clip bow ties must be clipped to both sides of shirt collars. Golf and Aloha shirts are prohibited for both men and women.]
(C) All persons must wear trading jackets and/or suit or sport coats while present on the Trading Floor.
(D) The following are examples of violations of Trading Floor dress code standards:
(i) Blue jeans that are patched, torn, frayed or faded; tie-dyes; tube tops; overalls; military uniforms or fatigues; sweat suits; or trousers that are frayed or torn.
(ii) Bare or stocking feet or thongs.
(iii) Clothing drawing excessive attention, including costumes of any kind, bare midriffs, halter tops, sheer blouses, miniskirts, T- shirts, hot pants, shorts, or abbreviated clothing of any kind.
(E) [Waiver of the dress code means only that ties and jackets need not be worn]. The Options Floor Trading Committee may impose additional standards of dress or otherwise modify these standards of dress by means of a written policy that will be distributed to Options Floor Members.
(2) Standards of Conduct.
(A)--No change.
(B) The entry of food or drink may be permitted at the discretion of the Options Floor Trading Committee. [of any kind to the Floor during trading hours is prohibited.] Alcoholic beverages may not be consumed on the Trading Floor at any time [unless this prohibition is waived by a majority of the Options Trading Floor Committee. If a quorum of this Committee cannot be
[[Page 55669]]
found, a designated Officer of the Exchange may waive the restriction.]
(C)-(F)--No change. * * * * *
para.5061 Certain Types of Orders Defined
Rule 6.62(a)-(d)--No change.
(e) Not held order. A not held order is an order that is marked ``not held,'' [,] ``NH,'' ``take time'' or that [which] bears any qualifying notation giving discretion as to the price or time at which such order is to be executed. The ``not held'' designation must appear in the ``special instructions'' portion of the order ticket. Orders that merely include a ``not held'' designation as part of the time stamp will not be deemed to be ``not held'' orders.
(f)(-(j)--No change. * * * * *
para.5103 Reporting Duties
Rule 6.69(a)-(d)--No change.
Commentary:
.01-.03--No change.
.04 Time stamping on the back of the hard card does not meet the Exchange's time stamp requirements because the hard card is not submitted to the Exchange.
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Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PCX 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. PCX has prepared summaries, set forth in sections, A, B and C below, of the most significant aspect of such statements.
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Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
Purpose
The PCX is proposing to change the standards of dress on the trading floor (currently set forth in Rule 6.2(c)). The current rule states that men must wear dress shirts with collars and neckties or bow ties tied in a conventional manner and worn under shirt collars; and that clip bow ties must be clipped to both sides of shirt collars. The current rule also states that golf and Aloha shirts are prohibited for both men and women. the rule change eliminates those provisions and replaces them with the requirement that men must wear shirts with collars. The rule change would also adopt a provision stating that the Options Floor Trading Committee (``OFTC'') may impose additional standards of dress or otherwise modify the current standards of dress by means of a written policy that will be distributed to Options Floor Members.
PCX is also proposing to modify the rules on food or drink permitted on the Trading Floor pursuant to Rule 6.2(c)(2)(B). The current rule prohibits food or drink on the Floor during trading hours and prohibits alcoholic beverages at any time unless this prohibition is waived by a majority of the OFTC. The Exchange proposes to change the rule so that it would state that food or drink may be permitted on the Trading Floor at the discretion of the OFTC and by prohibiting the consumption of alcoholic beverages on the Trading Floor at any time.
In addition, PCX is proposing to adopt additional requirements on ``not held'' orders. The current Rule 6.62(e) defines a ``not held'' order as an order marked ``not held'', ``take time'' or which bears any qualifying notation giving discretion as to price or time at which such order is to be executed.\3\ The proposed rule change would require that the appropriate designation, ``not held'' or ``take time,'' must appear in the ``special instructions'' portion of the order ticket. The rule change also provides that orders that include a ``not held'' designation as part of the time stamp will not be deemed to be ``not held'' orders.
\3\ See PCX Rule 6.62(e).
Finally, the PCX is proposing to adopt a new Rule 6.69.04 specifying that time stamping on the back of the hard card does not meet the Exchange's time stamp requirements. This change is based on the fact that the hard card is not routinely submitted to the Exchange. Basis
The Exchange believes that the proposal is consistent with Section 6(b) \4\ of the Act, in general, and Section 6(b)(5),\5\ in particular, in that is designed to promote just and equitable principles of trade, to facilitate transactions in securities, and, in general, to protect investors and the public interest.
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
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Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited nor received.
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Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The foregoing rule change has become effective pursuant to Section 19(b)(3) \6\ of the Act and paragraph (e)(3) of Rule 19b-4 thereunder \7\ because it is concerned solely with the administration of the Exchange. 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 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.
\6\ 15 U.S.C. 78s(b)(3).
\7\ 17 C.F.R. 240.19b-4.
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Solicitation of Comments
Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act.\8\ 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 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, NW, Washington, DC 20549. Copies of such filing will also be available for inspection and copying at the principal office of PCX. All submissions should refer to File No. SR-PCX-98-48 and should be submitted by November 6, 1998.
\8\ In reviewing this proposal, the commission has considered its potential impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f).
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For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\9\
\9\ 17 CFR 200.30-3(a)(12).
Margaret H. McFarland, Deputy Secretary.
[FR Doc. 98-27824Filed10-15-98; 8:45 am]
BILLING CODE 8010-01-M
