[Federal Register: April 2, 2003 (Volume 68, Number 63)]
[Notices]
[Page 16112-16113]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02ap03-178]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47582; File No. SR-PHLX-2002-18]
Self Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Granting Approval to Proposed Rule Change To Make Permanent a
PACE Automatic Price Improvement Pilot Program and a PACE Order
Execution and Price Protection Pilot Program
March 27, 2003.
On March 11, 2002, the Philadelphia Stock Exchange, Inc. (``Phlx''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and rule 19b-4 thereunder,\2\ a
proposed rule change to make permanent two Philadelphia Stock Exchange
Automated Communication and Execution System (``PACE'') pilot programs
that were introduced with the advent of decimal pricing in the
securities industry. The first pilot program consists of an automated
price improvement feature that incorporates a percentage of the spread
between the bid and the offer, and has been in effect since January 30,
2001.\3\ The second pilot program incorporates immediate execution of
certain market orders through the Public Order Exposure System
(``POES'') and mandatory double-up/double-down price protection, and
has been in effect since August 25, 2000.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 43901 (January 30,
2001), 66 FR 8988 (February 5, 2001) (SR-Phlx-2001-12).
\4\ See Securities Exchange Act Release No. 43206 (August 25,
2000), 65 FR 53250 (September 1, 2000) (SR-Phlx-2000-08).
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The proposed rule change was published for comment in the Federal
Register on March 22, 2002.\5\ The Commission received no comments on
the proposal.
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\5\ See Securities Exchange Act Release No. 45580 (March 18,
2002), 67 FR 13399.
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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 \6\ and, in
particular, the requirements of section 6 of the Act \7\ and the rules
and regulations thereunder. The Commission finds
[[Page 16113]]
specifically that the proposed rule change is consistent with section
6(b)(5) of the Act \8\ because it is designed to remove impediments to
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.
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\6\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\9\ that the proposed rule change (SR-PHLX-2002-18), be, and it
hereby is, approved.
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\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-7936 Filed 4-1-03; 8:45 am]
BILLING CODE 8010-01-P