[Federal Register Volume 59, Number 110 (Thursday, June 9, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-13962] [[Page Unknown]] [Federal Register: June 9, 1994] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-34137; File No. Phlx-94-25] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Philadelphia Stock Exchange, Inc. Relating to the Modification of Trading Hours on the Big Cap Index June 1, 1994. 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 May 6, 1994, 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 Phlx. 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) (1988). \2\17 CFR 240.19b-4 (1993). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify the trading hours applicable to the Phlx's Big Cap Index (``Index''), a broad-based index. The trading hours originally proposed in connection with the Index were from 9:30 a.m. to 4:10 p.m. on business days. The Phlx now proposes to modify Phlx Rules 101 and 1101A to reflect that the trading hours of the Index from 9:30 a.m. to 4:15 p.m. on business days. Because the Exchange believes that this proposal is an extension of an existing policy of the Exchange to trade broad-based indexes until 4:15 p.m., it has submitted this proposed rule change effective immediately upon filing so that the Index will be open for trading until 4:15 p.m. each business day from the time it commences trading on May 17, 1994. The text of the proposed rule change is available at the office of the Secretary, Phlx, and at the Commission. 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, 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 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 On April 28, 1994, the Commission issued an order approving the Exchange's proposal to list and trade options on the Index.\3\ That proposal had specified that the trading hours for the Index would be from 9:30 a.m. to 4:10 p.m., and the Commission approved the proposal with these trading hours in effect. However, the Exchange states that the trading hours were communicated incorrectly to Commission staff while the proposal was pending. The Exchange states that it intended for the Index to be open until 4:15 p.m. on each business day, consistent with all of the other broad-based indexes listed on the Exchange (as well as all other broad-based indexes listed on all other options exchanges). Further, the Exchange states that its Board of Governors approved the Index with the intention of having it trade until 4:15 p.m.\4\ Traditionally, it has been the policy of the Phlx, as well as all of the other options exchanges, to trade broad-based indexes until 4:15 p.m. Additionally, early materials that were distributed to the public announcing the new Index and showing its specifications indicated that the Index would close at 4:15 p.m. Because at the time this proposal was filed the Index had not yet started trading, the Exchange does not expect any customer confusion regarding the change in the closing time of Index. Accordingly, the Exchange is submitting this filing as an extension of an existing policy and practice of the Exchange and requests that the filing be effective immediately upon filing pursuant to section 19(b)(3)(A). --------------------------------------------------------------------------- \3\See Securities Exchange Act Release No. 33973 (April 28, 1994), 59 FR 23245 (May 5, 1994). \4\Phlx Rule 101 states that its Board of Governors shall determine by resolution the hours during which business may be transacted on the Exchange. --------------------------------------------------------------------------- The Exchange believes that the proposed rule change is consistent with section 6 of the Act, and, in particular, section 6(b)(5) thereof, in that it will foster cooperation and coordination with persons engaged in regulating, clearing, settling, and processing information with respect to and facilitating transactions in securities; remove impediments to and perfect the mechanism of a free and open market and a national market system; and, in general, protect investors and the public interest. (B) Self-Regulatory Organization's Statement on Burden on 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, and Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing Exchange rule, it has become effective pursuant to section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 19b-4 thereunder. 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing. 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 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 Section, 450 Fifth Street, NW., Washington, DC. Copies of such filing also will be available for inspection and copying at the principal office of the above-mentioned self-regulatory organization. All submissions should refer to the file number in the caption above and should be submitted by June 30, 1994. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. Jonathan G. Katz, Secretary. [FR Doc. 94-13962 Filed 6-8-94; 8:45am] BILLING CODE 8010-01-M