Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the Philadelphia Stock Exchange, Inc., Relating to Amendment to Foreign Currency Option Trading Hours

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34798; International Series Release No. 726; File No.

SR-PHLX-94-47]

Self-Regulatory Organizations; Notice of Filing of Proposed Rule

Change by the Philadelphia Stock Exchange, Inc., Relating to Amendment

to Foreign Currency Option Trading Hours

October 6, 1994.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on

September 22, 1994, 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 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

Currently, PHLX Rule 101, ``Hours of Business,'' provides that the

foreign currency option (``FCO'') trading session will be conducted

between 1:30 a.m. and 2:30 p.m. each business day. The PHLX proposes to

amend PHLX Rule 101 to provide that FCO trading will be conducted

between 2:30 a.m. and 2:30 p.m. each business day. Thus, the PHLX will

move the opening of FCO trading from 1:30 a.m. to 2:30 a.m. Eastern

time (``ET'') for all PHLX-listed FCOs except the Canadian dollar,

which will continue to commence trading at 7:00 a.m. ET each business

day.

The text of the proposal is available at the Office of the

Secretary, PHLX, 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

According to the PHLX, the Exchange's FCO trading hours for the

last nine months have commenced at 1:30 a.m. ET each Monday through

Friday and terminated at 2:30 p.m. ET on the afternoon of each trading

day. The PHLX states that over the past nine months, less than one

percent of the PHLX's FCO volume was generated during the 1:30 a.m. ET

to 2:30 a.m. ET time period. Upon the recommendation of the Exchange's

FCO Committee, a standing committee of the Board of Governors

(``Board''), the Board approved the proposed adjustment in trading

hours to change the commencement of FCO trading from 1:30 a.m. ET to

2:30 a.m. ET. The proposal is designed to ease the staffing burden on

current registered FCO specialist units as well as floor brokerage

units and registered option trader firms. The PHLX proposes to

implement the adjusted 2:30 a.m. ET commencement of FCO trading on

October 31, 1994, to coordinate with the resumption of trading during

Eastern Standard time, as October 30, 1994, will mark the end of

Eastern Daylight savings time.

The PHLX believes that the proposed rule change is consistent with

Section 6 of the Act, in general, and, in particular, with Section

6(b)(5), in that it is designed to further promote the mechanism of a

free and open market and 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.

(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 at the time

of the filing.

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

Commission Action

Within 35 days of the date of publication of this notice in the

Federal Register or within such longer period (i) as the Commission may

designate up to 90 days of such date if it finds such longer period to

be appropriate and publishes its reason for so finding or (ii) as to

which the self-regulatory organization consents, the Commission will:

(a) by order approve such proposed rule change, or (b) institute

proceedings to determine whether the proposed rule change should be

disapproved.

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. Copies of such filing will also be available for

inspection and copying at the principal office of the above-mentioned

self-regulatory organization. All submissions should refer to the file

number in the caption above and should be submitted by November 2,

1994.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.\1\

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\1\17 CFR 200.30-3(a)(12) (1993).

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Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-25254 Filed 10-11-94; 8:45 am]

BILLING CODE 8010-01-M