[Federal Register Volume 62, Number 206 (Friday, October 24, 1997)]
[Notices]
[Pages 55448-55449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28174]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39254; File No. SR-Phlx-97-47]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Proposing to Amend its Foreign Currency Option Trading 
Hours Respecting Customized Foreign Currency Options

October 17, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on October 7, 1997, the 
Philadelphia Stock Exchange Inc. filed with the Securities and Exchange 
Commission the proposed rule change as described in Items I, II, and 
III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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 I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Philadelphia Stock Exchange, Inc. (``Phlx'' or the 
``Exchange'') pursuant to Rule 19b-4 of the Securities Exchange Act of 
1934 (``Act'') \2\ proposes to cease trading for expiring customized 
currency options at 8:10 a.m. eastern time on business days in which 
the Foreign Currency Floor of the Exchange opens for trading at 8:00 
a.m. eastern time. The text of the proposed rule change is available at 
the Office of the Secretary, the Phlx, and the Commission.
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    \2\ 17 CFR 240.19b-4.
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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

1. Purpose
    The Foreign Currency floor is open from 2:30 a.m. eastern time to 
2:30 p.m. eastern time every business day. However, the Exchange may 
open the foreign currency floor at 8:00 a.m. on some business days, 
usually on business days following a holiday.\3\ The Exchange modified 
the trading hours for all customized options such that an all expiring 
customized option contract cease trading at 8:00 a.m. and expires at 
10:15 a.m. eastern time.\4\ However, this practice prevents the holder 
of an expiring customized currency option to offset an expiring 
position on days in which trading begins at 8:00 a.m. on the Foreign 
Currency floor. Therefore, the Exchange proposes to cease trading in 
expiring customized contracts at 8:10 a.m. on business days in which 
the Exchange opens at 8:00 a.m. and thereby provides a 10 minute window 
for a participant to offset an expiring option. The Phlx will provide 
notification of the change in trading hours for these expiring options 
by means of memoranda to the membership.
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    \3\ On the day following an Exchange holiday such as the Friday 
following Thanksgiving or the day after Christmas day, trading 
commences at 8:00 a.m. rather than 2:30 a.m.
    \4\ See Securities Exchange Act Release No. 37732 (September 26, 
1996). The proposed rule change adjusted the trading hours for all 
customized options such that all customized options would cease 
trading on expiration day at 8:00 a.m. eastern time and would expire 
at 10:15 a.m. eastern time.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act in that it is designed to remove 
impediments to and perfect the mechanism of a free and open market by 
providing the participants with the ability to offset their position 
prior to expiration on those business days in which the Foreign 
Currency floor opens at 8:00 a.m. eastern time.

B. Self-Regulatory Organization's Statement on the 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 solicited or received at the time of the 
filing.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has asserted that the proposed rule change (i) will 
not significantly affect the protection of investors or the public 
interest, (ii) will not impose any significant burden on competition, 
and (iii) will not become operative for 30 days after the date of this 
filing. For the foregoing reasons and because the Exchange provided at 
least five business days notice to the Commission of its intent to file 
this proposed rule change, the rule filing will become operative as a 
``non-controversial'' rule change pursuant to Rule 19b-4(e)(6) under 
the Act.\5\
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    \5\ 17 CFR 240.19b-4(e)(6).
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    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

[[Page 55449]]

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 at the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office at the PHLX. All 
submissions should refer to File No. SR-PHLX-97-47, and should be 
submitted by November 14, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-28174 Filed 10-23-97; 8:45 am]
BILLING CODE 8010-01-M