6824 Federal Register / Vol. 62, No. 30 / Thursday, February 13, 1997 / Notices

8 15 U.S.C. 78s(b)(3)(A).

9 17 CFR 19b–4(e).

10 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3On February 4, 1997, the PSE submitted a

technical amendment that (1) designates the

provisos in PSE Rule 2.12(b) as (A) and (B); and (2)

replaces references in PSE Rules 10.13(j)(2) and

10.13(k)(iii)(2) to PSE Rule 2.12(a) with references

to PSE Rule 2.12(b). See Letter form Michael D.

Pierson, Senior Attorney, Regulatory Policy, PSE, to

Yvonne Fraticelli, OMS, Division of Market

Regulation, Commission, dated February 3, 1997

(‘‘Amendment No. 1’’).

4See Securities Exchange Act Release Nos, 33347

(December 15, 1993), 58 FR 67888 (December 22,

1993) (order approving File No. SR–PSE–93–21)

(adopting charges for late filing of SIPC–6 and

SIPC–7 reports); and 32510 (June 24, 1993), 58 FR

335491 (July 1, 1993) (order approving File No. SR–

PSE–92–15) (approving amendment to the

Exchange’s Minor Rule Plan relating to late SIPC

reports).

5Under PSE Rule 2.12(b)(2), the charge for late

filings are as follows: (1) $200.00 for reports that are

1 to 30 days late; (2) $400.00 for reports that are

31 to 60 days late; and (3) $800.00 for reports that

are 61 to 90 days late.

6The fines under PSE Rule 10.13 are: (1)

$1,200.00 for a first violation: (2) $1,800.00 for a

second violation; and (3) $2,400.00 for a third

violation.

7 In addition, PSE Rule 10.13(j)(2) provides that

the failure to file a Form SIPC–6 or Form SIPC–7

within five days after the receipt of SIPC’s final

notice will result in a formal disciplinary action.

C. 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, as amended, were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change, as

amended, establishes or changes a due,

fee, or other charge imposed by the

Exchange and therefore, has become

effective pursuant to section

19(b)(3)(A) 8 of the Act and

subparagraph (e) of Rule 19b–4 9

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. Solictation 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, N.W.,

Washington, D.C. 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change, as amended, that are filed with

the Commission, and all written

communications relating to the

proposed rule change, as amended,

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 the PSE. All submissions

should refer to File No. SR–PSE–97–03

and should be submitted by March 6,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–3538 Filed 2–12–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38257; File No. SR–PSE–

97–04]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and

Amendment No. 1 to the Proposed

Rule Change by the Pacific Stock

Exchange, Inc., Relating to Late SIPC

Reports

February 7, 1997.

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 January

28, 1997, the Pacific Stock Exchange,

Inc. (‘‘PSE’’ 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 PSE.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The PSE proposes to amend

paragraph (b)(2) of PSE Rule 2.12,

‘‘Financial Reports,’’ and paragraph

(k)(2) of PSE Rule 10.13, ‘‘Minor Rule

Plan,’’ to replace references to ‘‘Form

SIPC–6’’ and ‘‘Form SIPC–7’’ with

general references to ‘‘Securities

Investor Protection Corporation

(‘‘SIPC’’) forms and assessments’’ or

‘‘such forms and assessments as are

required pursuant to the Securities

Investor Protection Act of 1970

(‘‘SIPA’’).’’

The text of the proposed rule change

is available at the office of the Secretary,

PSE, 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

Exchange 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

Exchange 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 the

Statutory Basis for, the Proposed Rule

Change

(a) Purpose

Currently, PSE Rule 2.12(b)(2)

requires members to file with the

Exchange a Form SIPC–6 or Form SIPC–

7 pursuant to SIPA.4 PSE Rule 2.12(b)(2)

provides a late filing charge for

members who fail to file such

documents in a timely manner.5 In

addition, PSE Rule 2.12(b)(2) provides

that a member who files its Form SIPC–

6 or Form SIPC–7 within five business

days of receipt of SIPC’s final late notice

is subject to a fine pursuant to PSE Rule

10.13,6 and that a member who fails to

file its Form SIPC–6 or Form SIPC–7

within five business days after its

receipt of SIPC’s final late notice is

subject to formal disciplinary action

pursuant to PSE Rule 10.4, ‘‘Hearing.’’ 7

The Exchange purposes to amend PSE

Rules 2.12(b)(2) and 10.13 (j) and (k) to

replace references to ‘‘Form SIPC–6’’

and ‘‘Form SIPC–7’’ with general

references to ‘‘SIPC form and

assessment’’ and ‘‘such forms and

assessments as are required’’ pursuant

to SIPA. The Exchange is taking this

action because SIPC recently has

replaced Forms SIPC–6 and SIPC–7

with Form SIPC–4. The Exchange

believes that the use of a general

reference to SIPC filings, rather than

references to specific SIPC forms, will

obviate the need for additional rule
Federal Register / Vol. 62, No. 30 / Thursday, February 13, 1997 / Notices 6825

8 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

changes in the event that SIPC again

changes its form. The Exchange also is

adding a reference to SIPC

‘‘assessments’’ in order to clarify the

subject rules, consistent with the PSE’s

long-standing interpretation that a SIPC

filing with the Exchange is complete

only if it includes an assessment.

(b) Basis

The PSE believes that the proposal is

consistent with Section 6(b) of the Act,

in general, and with Sections 6(b)(5) and

6(b)(6), in particular, in that it is

designed to promote just and equitable

principles of trade and to ensure that

members will be appropriately

disciplined for violations of Exchange

rules.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The PSE 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.

(C) 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 or

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing rule change and

Amendment No. 1 to the rule change

constitute a stated policy, practice or

interpretation with respect to the

meaning, administration, or

enforcement of an existing PSE rule, the

proposal and Amendment No. 1 to the

proposal have 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 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Exchange. All submissions

should refer to File No. SR–PSE–97–04

and should be submitted by March 6,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–3623 Filed 2–12–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38253; File No. SR–PSE–

97–01]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Pacific Stock Exchange

Incorporated Relating to the Limitation

of Liability in Connection With Indexes

on Which Options Are Listed or Traded

on the Exchange

February 6, 1997.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

January 13, 1997, the Pacific Stock

Exchange Incorporated (‘‘PSE’’ 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 self-regulatory

organization. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange is proposing to modify

PSE Rule 7.13, which relates to the

limitation of liability of the PSE in

connection with indexes on which

options are listed or traded on the

Exchange. The text of the proposed rule

change is available at the Exchange 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

1. Purpose

PSE Rule 7.13 currently provides that

the Exchange shall have no liability for

damages, claims, losses or expenses

caused by any errors, omissions or

delays in calculating or disseminating

the index value. The Exchange now

proposes to expand this provision in

several respects. First, the Exchange

proposes to adopt new subsection (a),

which will provide that neither the

Exchange, any affiliate, nor any Index

Licensor or Administrator shall have

any liability for any loss, damages,

claim, or expense arising from or

occasioned by any inaccuracy, error, or

delay in, or omission of or from, (i) any

index and basket information or (ii) the

collection, calculation, compilation,

maintenance, reporting or dissemination

of any index or any index and basket

information, resulting either from any

negligent act or omission by the

Exchange, any affiliate or any Index

Licensor or Administrator or from any

act, condition or cause beyond the

reasonable control of the Exchange, any

affiliate or any Index Licensor or

Administrator, including, but not

limited to, flood, extraordinary weather

conditions; earthquake or other act of

God, fire, war, insurrection, riot, labor

dispute, accident, action of government,

communications or power failure, or

equipment or software malfunction.

The Exchange also proposes to adopt

new subsection (b), which states that

neither the Exchange, any affiliate, nor

any Index Licensor or Administrator

makes any express or implied warranty

as to results that any person or party

may obtain from using (i) any basket, (ii)

the index that is the basis for

determining a basket’s component