[Federal Register Volume 63, Number 200 (Friday, October 16, 1998)]
[Notices]
[Pages 55668-55670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27824]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40532; File No. SR-PCX-98-48]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. To
Amend PCX Rule 6 Regarding the Exchange's Dress Code
October 8, 1998.
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 September 23, 1998, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by PCX. 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).
\2\ 17 CFR 204.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange is proposing to modify certain rules on Options Floor
conduct, including standards of dress and consumption of food and drink
on the Trading Floor. The rule change also modifies the current
provisions on order tickets that are used on the Floor for options
orders. Proposed new language is italicized; proposed deletions are
bracketed.
* * * * *
para.4733 Admission to and Conduct on the Options Trading Floor
Rule 6.2(a)-(b)--No change.
(c) Standards of Dress and Conduct--No change.
(1) Standards of Dress--No change.
(A) Personal attire must [shall] be neat, clean and presentable.
(B) Men must wear [dress] shirts with collars [and neckties or bow
ties tied in a conventional manner and worn under shirt collars; clip
bow ties must be clipped to both sides of shirt collars. Golf and Aloha
shirts are prohibited for both men and women.]
(C) All persons must wear trading jackets and/or suit or sport
coats while present on the Trading Floor.
(D) The following are examples of violations of Trading Floor dress
code standards:
(i) Blue jeans that are patched, torn, frayed or faded; tie-dyes;
tube tops; overalls; military uniforms or fatigues; sweat suits; or
trousers that are frayed or torn.
(ii) Bare or stocking feet or thongs.
(iii) Clothing drawing excessive attention, including costumes of
any kind, bare midriffs, halter tops, sheer blouses, miniskirts, T-
shirts, hot pants, shorts, or abbreviated clothing of any kind.
(E) [Waiver of the dress code means only that ties and jackets need
not be worn]. The Options Floor Trading Committee may impose additional
standards of dress or otherwise modify these standards of dress by
means of a written policy that will be distributed to Options Floor
Members.
(2) Standards of Conduct.
(A)--No change.
(B) The entry of food or drink may be permitted at the discretion
of the Options Floor Trading Committee. [of any kind to the Floor
during trading hours is prohibited.] Alcoholic beverages may not be
consumed on the Trading Floor at any time [unless this prohibition is
waived by a majority of the Options Trading Floor Committee. If a
quorum of this Committee cannot be
[[Page 55669]]
found, a designated Officer of the Exchange may waive the restriction.]
(C)-(F)--No change.
* * * * *
para.5061 Certain Types of Orders Defined
Rule 6.62(a)-(d)--No change.
(e) Not held order. A not held order is an order that is marked
``not held,'' [,] ``NH,'' ``take time'' or that [which] bears any
qualifying notation giving discretion as to the price or time at which
such order is to be executed. The ``not held'' designation must appear
in the ``special instructions'' portion of the order ticket. Orders
that merely include a ``not held'' designation as part of the time
stamp will not be deemed to be ``not held'' orders.
(f)(-(j)--No change.
* * * * *
para.5103 Reporting Duties
Rule 6.69(a)-(d)--No change.
Commentary:
.01-.03--No change.
.04 Time stamping on the back of the hard card does not meet the
Exchange's time stamp requirements because the hard card is not
submitted to the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, PCX 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. PCX has prepared summaries, set forth in sections, A, B
and C below, of the most significant aspect of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Purpose
The PCX is proposing to change the standards of dress on the
trading floor (currently set forth in Rule 6.2(c)). The current rule
states that men must wear dress shirts with collars and neckties or bow
ties tied in a conventional manner and worn under shirt collars; and
that clip bow ties must be clipped to both sides of shirt collars. The
current rule also states that golf and Aloha shirts are prohibited for
both men and women. the rule change eliminates those provisions and
replaces them with the requirement that men must wear shirts with
collars. The rule change would also adopt a provision stating that the
Options Floor Trading Committee (``OFTC'') may impose additional
standards of dress or otherwise modify the current standards of dress
by means of a written policy that will be distributed to Options Floor
Members.
PCX is also proposing to modify the rules on food or drink
permitted on the Trading Floor pursuant to Rule 6.2(c)(2)(B). The
current rule prohibits food or drink on the Floor during trading hours
and prohibits alcoholic beverages at any time unless this prohibition
is waived by a majority of the OFTC. The Exchange proposes to change
the rule so that it would state that food or drink may be permitted on
the Trading Floor at the discretion of the OFTC and by prohibiting the
consumption of alcoholic beverages on the Trading Floor at any time.
In addition, PCX is proposing to adopt additional requirements on
``not held'' orders. The current Rule 6.62(e) defines a ``not held''
order as an order marked ``not held'', ``take time'' or which bears any
qualifying notation giving discretion as to price or time at which such
order is to be executed.\3\ The proposed rule change would require that
the appropriate designation, ``not held'' or ``take time,'' must appear
in the ``special instructions'' portion of the order ticket. The rule
change also provides that orders that include a ``not held''
designation as part of the time stamp will not be deemed to be ``not
held'' orders.
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\3\ See PCX Rule 6.62(e).
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Finally, the PCX is proposing to adopt a new Rule 6.69.04
specifying that time stamping on the back of the hard card does not
meet the Exchange's time stamp requirements. This change is based on
the fact that the hard card is not routinely submitted to the Exchange.
Basis
The Exchange believes that the proposal is consistent with Section
6(b) \4\ of the Act, in general, and Section 6(b)(5),\5\ in particular,
in that is designed to promote just and equitable principles of trade,
to facilitate transactions in securities, and, in general, to protect
investors and the public interest.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3) \6\ of the Act and paragraph (e)(3) of Rule 19b-4 thereunder
\7\ because it is concerned solely with the administration of the
Exchange. 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.
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\6\ 15 U.S.C. 78s(b)(3).
\7\ 17 C.F.R. 240.19b-4.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act.\8\ 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 Room, 450 Fifth Street, NW, Washington, DC 20549.
Copies of such filing will also be available for inspection and copying
at the principal office of PCX. All submissions should refer to File
No. SR-PCX-98-48 and should be submitted by November 6, 1998.
\8\ In reviewing this proposal, the commission has considered
its potential impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
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[[Page 55670]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-27824 Filed 10-15-98; 8:45 am]
BILLING CODE 8010-01-M