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Notice

Self-Regulatory Organizations; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change by the Philadelphia Stock Exchange, Inc., Relating to Advice F-15 and the Expanded Equity Option Hedge Exemption January 19, 1996. 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 December 7, 1995, 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 and II below, which Items have been prepared by the self- regulatory organization. The Commission is approving this proposal on an accelerated basis. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The PHLX proposes to amend paragraph (b) of Floor Procedure Advice (``Advice'') F-15, ``Minor Infractions of Position/Exercise Limits and Hedge Exemptions,'' to indicate that the maximum allowable position for each option contract ``hedged'' by 100 shares of stock or securities convertible into the stock will be three times, instead of twice, the standard position and exercise limit of the option.\1\ The proposed amendment to Advice F-15 will make Advice F-15 consistent with a proposal approved previously by the Commission which expands the maximum allowable hedge exemption for equity options to three times the standard limit of the option.\2\ \1\ Position limits impose a ceiling on the aggregate number of option contracts on the same side of the market that an investor, or group of investors acting in concert, may hold or write. Exercise limits impose a ceiling on the aggregate long positions in option contracts that an investor, or group of investors acting in concert, can or will have exercised within five consecutive business days. \2\ See Securities Exchange Act Release No. 36409 (October 23, 1996), 60 FR 55399 (October 31, 1995) (order approving File Nos. SR- NYSE-95-31; SR-PSE-95-25; SR-Amex-95-42; and SR-PHLX-95-71) (``Hedge Exemption Order''). See also Securities Exchange Act Release No. 36371 (October 13, 1995), 60 FR 54269 (October 20, 1995) (order approving File No. SR-CBOE-95-42). -

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