20304 Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Notices

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1995).

3On March 11, 1996, the PSE provided additional

information concerning the purpose of the proposal.

Specifically, the PSE explained that the proposal is

designed to make Commentary .01 to PSE Rule

11.10(d), ‘‘Options Listing Committee,’’ easier to

follow and to prevent legal appeals of Options

Listing Committee (‘‘OLC’’) decisions on the

technical argument that the OLC was not authorized

to act because its composition did not conform to

the rigid requirements of PSE Rule 11.10(d),

Commentary .01. According to the PSE, such an

appeal could be made currently if, for example, a

non-floor broker is placed in one of the floor broker

slots on the OLC because of a shortage of floor

brokers willing to serve on the OLC, or if a floor

broker on the OLC becomes a market maker midyear and the OLC decides to retain that member on

the OLC. The PSE expects that, under the proposal,

the OLC will be composed as specified in

Commentary .01 under virtually all circumstances.

The Exchange represents that it intends to comply

with the spirit of the Commentary and anticipates

departures from this general rule only in

exceptionally rare circumstances. See Letter from

Michael D. Pierson, Senior Attorney, Market

Regulation, PSE, to Michael Walinskas, Branch

Chief, Options Regulation, Division of Market

Regulation, Commission, dated March 11, 1996

(‘‘Amendment No. 1’’).

4See Securities Exchange Act Release No. 36984

(March 18, 1996), 61 FR 12126.

5See Amendment No. 1, supra note 3.

6 15 U.S.C. §§ 78f(b)(3) and (b)(5) (1988).

7See Amendment No. 1, supra note 3.

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30–3(a)(12) (1995).

1 15 U.S.C. 78s(b)(1) (1988).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–11143 Filed 5–3–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37148; File No. SR–PSE–

96–02]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the Pacific Stock Exchange, Inc.,

Relating to the Composition of the

Exchange’s Options Listing Committee

April 29, 1996.

I. Introduction

On January 16, 1996, the Pacific Stock

Exchange, Inc. (‘‘PSE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’),

pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a

proposal to amend its rules relating to

the composition of the Options Listing

Committee (‘‘OLC’’). On March 11,

1996, the PSE amended its approval.3

The proposed rule change and

Amendment No. 1 were published for

comment in the Federal Register on

March 25, 1996.4 No comments were

received on the proposed rule change.

II. Description of the Proposal

Currently, Commentary .01 to PSE

Rule 11.10(d) provides that the OLC

shall be comprised of (i) four floor

brokers; (ii) five market makers or lead

market makers; and (iii) one member of

the PSE or a general partner or officer

of a member organization, or any other

person who is considered to be

qualified. The PSE proposes to amend

PSE Rule 11.10(d), Commentary .01, to

provide that the Exchange will attempt,

but will not be required, to maintain the

composition of the OLC as provided

currently under Commentary .01.

Specifically, the Exchange proposes to

amend Commentary .01 by eliminating

the phrase ‘‘shall be comprised of’’ and

replacing it with a provision stating that

‘‘attempts shall be made’’ in order for

the OLC to have a composition that

includes those currently specified in

subsections (i) through (iii).

The Exchange believes that

Commentary .01 is overly restrictive and

that the proposal is appropriate in order

to allow for greater flexibility in the

committee selection procedure and the

process for replacing committee

members who resign or change their

floor status. The proposal is designed to

make Commentary .01 easier to follow

and to prevent members from appealing

decisions of the OLC on the grounds

that the OLC was not authorized to act

because its composition did not

conform to the requirements of

Commentary .01. The PSE represents

that the Exchange will make every effort

to ensure that the OLC maintains the

composition specified in Commentary

.01. The Exchange expects that, under

the proposal, the composition of the

OLC will remain as specified currently

in Commentary .01 in virtually all

circumstances.5

III. Discussion

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange, and, in particular, with

Section 6(b)(3) of the Act, in that the

proposal provides for a fair

representation of the Exchange’s

members in the administration of its

affairs, and also with Section 6(b)(5) of

the Act, in that the proposal is designed

to protect investors and the public

interest.6

The Commission believes that the

proposal will allow greater flexibility in

the composition of the OLC.

Specifically, the proposal provides that

the Exchange will attempt, but will not

be required, to maintain the

composition of the OLC as provided

currently under PSE Rule 11.10(d),

Commentary .01. The PSE expects that

the OLC will continue to be composed

as provided currently in Commentary

.01 in virtually all circumstances, and

the PSE represents that the Exchange

will attempt to ensure that the

composition of the OLC remains as

specified in Commentary .01.7

Accordingly, the Commission believes

that the proposal will provide flexibility

in the composition of the OLC while

ensuring that diverse interests are

represented on the OLC. In addition, the

proposal should simplify the process of

replacing a member who resigns from

the committee and allow the OLC to

retain a member who changes his status

(e.g., a floor broker who becomes a

maker) during his service on the

committee.

IV. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (SR–PSE–96–02)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–11142 Filed 5–3–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37152; File No. SR–PTC–

96–02]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing and Order Granting Accelerated

Approval of Proposed Rule Change

Establishing on a Permanent Basis the

Margin and Pricing Methodology for

Collateralized Mortgage Obligations

April 30, 1996.

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

Securities Exchange Act of 1934

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

March 8, 1996, the Participants Trust

Company (‘‘PTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PTC–96–02) as

described in Items I and II below, which

Items have been prepared primarily by

PTC. The Commission is publishing this

notice and order to solicit comments

from interested persons and to grant

accelerated approval of the proposed

rule change.