[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Notices]
[Pages 35294-35295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17068]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37378; File No. SR-PHLX-96-24]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the 
Philadelphia Stock Exchange, Inc. To Amend Its Holiday Schedule 
Respecting the Early Closure of Its Equity Trading Floor at 1:15 p.m., 
Equity and Index Options Trading Floor at 1:10 and 1:15 p.m. 
Respectively, and its Currency Options at 1:00 p.m. on Friday July 5, 
1996

June 27, 1996.
    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 June 24, 1996, the Philadelphia Stock Exchange, Inc. (``PHLX'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 approving this proposal on 
an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PHLX, pursuant to Rule 19b-4 of the Act, proposes to amend its 
holiday schedule respecting the early closure of the PHLX equity 
trading floor at 1:15 p.m.,\3\ equity and index options trading floor 
at 1:10 and 1:15 p.m. respectively, and PHLX currency options at 1:00 
p.m. on Friday July 5, 1996.
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    \3\ The Commission notes that, according to PHLX, equity trading 
between 1:00 and 1:15 p.m. will be pursuant to PHLX Rule 101.02 
which facilitates ``PPS'' and ``GTX'' designated orders. Telephone 
Conversation between Murray L. Ross, Secretary, PHLX, and Elizabeth 
Prout Lefler, SEC, on June 26, 1996.
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II. Self-Regulatory Organization's Statement Regarding 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 III below. The self-regulatory 
organization has prepared summaries, set forth in Section 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 PHLX, under its previously adopted holiday schedule, had 
planned to be open for a full day of trading on Friday, July 5, 1996. 
However, the registered national securities exchanges are planning an 
early closure of equity trading at 1:00 P.M.\4\ on Friday, July 5, 
1996, in part due to fact that the exchanges do not anticipate that 
there will be significant trading volume on the day after the Fourth of 
July, Independence Day, our national holiday. Therefore, the PHLX 
proposes the early closure of its equity trading floor at 1:15, the 
equity and index options trading floor at 1:10 P.M. and 1:15 P.M. 
respectively, and PHLX currency options at 1:00 P.M. on Friday, July 5, 
1996.
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    \4\ The Commission notes that, according to the PHLX, the New 
York Stock Exchange will conduct its normal after-hours session 
between 1:00 and 1:30 P.M. Id.
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    The PHLX requests accelerated effectiveness of this proposed rule 
change pursuant to Section 19(b)(2) in order to provide member firms 
and customers with sufficient notice and lead time to prepare for 
closing on July 5, 1996.
2. Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(5) that an exchange have rules that are 
designed to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to 
protect and perfect the mechanism of a free and open market and a 
national market system, and in general, to 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 inappropriate burden on competition.

[[Page 35295]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    No written comments were either solicited or received.

III. 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, N.W., 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, N.W., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the PHLX. All 
submissions should refer to File No. SR-PHLX-96-24 and should be 
submitted by July 26, 1996.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the PHLX's proposal to amend its holiday 
schedule respecting the early closure of the PHLX equity trading floor 
at 1:15 P.M., equity and index options trading floor at 1:10 and 1:15 
P.M. respectively, and PHLX currency options at 1:00 P.M. on Friday, 
July 5, 1996, is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.
    The Commission believes that, because the registered national 
securities exchanges are planning an early closure of equity trading at 
1:00 P.M. on Friday, July 5, 1996, in part due to fact that the 
exchanges do not anticipate that there will be significant trading 
volume on the day after the Fourth of July, Independence Day, our 
national holiday, it is appropriate to grant the request of the PHLX to 
modify its previously adopted holiday schedule. Because the PHLX had 
planned to be open for a full day of trading on Friday, July 5, 1996, 
accelerated approval will permit the PHLX to provide member firms and 
customers with sufficient notice and lead time to prepare for closing 
early on July 5, 1996.
    Based on the above, the Commission finds that there is good cause, 
consistent with Section 6(b)(5) of the Act, to accelerate approval of 
the amended proposed rule change in that it will promote just and 
equitable principles of trade and remove impediments to a free and open 
market by providing the Exchange with the basis for notifying its 
members and customers of the scheduled change, thus ensuring the 
protection of investors and the public.
    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice of filing thereof in the Federal Register. Accelerating approval 
of this proposal will provide the Exchange with sufficient time to 
notify member firms, and customers of the schedule change and allow 
such persons and entities to consider their trading strategies in light 
of the amended holiday schedule. The Commission believes that granting 
accelerated approval of the proposed rule change is appropriate and 
consistent with Sections 6(b)(5) and 19(b)(2) of the Act.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,<SUP>5 that the proposed rule change (SR-PHLX-96-24) is approved.

    \5\ 15 U.S.C. Sec. 78s(b)(2) (1988).
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    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.<SUP>6
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    \6\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-17068 Filed 7-3-96; 8:45 am]
BILLING CODE 8010-01-M