[Federal Register: January 22, 2003 (Volume 68, Number 14)]
[Notices]
[Page 3076-3077]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ja03-93]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 47178; File No. SR-PCX-2002-74]
Self-Regulatory Organizations; Order Granting Accelerated
Approval to a Rule Change Proposed by the Pacific Stock Exchange, Inc.
Relating to Two New Order Types on the Achipelago Exchange
January 13, 2003.
On December 9, 2002, the Pacific Stock Exchange, Inc. (``PCX'')
filed a proposed rule change with the Securities and Exchange
Commission pursuant to section 19(b)(1) of the Securities Exchange Act
of 1934 (``Act'')\1\ and rule 19b-4 thereunder \2\ to adopt two new
order types, an Immediate-or-Cancel (``IOC'') Cross Order and a Post No
Preference (``PNP'') Cross Order, on its equities trading facility, the
Archipelago Exchange (``ArcaEx''). The PCX also proposed to allow the
new order types to be subject to the recent de minimis exemption from
the trade-through restrictions of the Intermarket Trading System Plan
in certain exchange-traded funds.\3\
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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. 46428 (August 28,
2002), 67 FR 56607 (September 4, 2002) (Order of the Commission
pursuant to section 11A of Act).
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The Commission published notice of the proposed rule change for
comment in the Federal Register on December 24, 2002.\4\ The Commission
received no public comments with respect to the proposal. This order
grants accelerated approval to the PCX's proposed rule change.
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\4\ See Securities Exchange Act Release No. 47010 (December 16,
2002), 67 FR 78554 (December 24, 2002). The 15-day comment period
ran through January 8, 2003.
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The PCX requested that the Commission grant accelerated approval to
the proposed rule change pursuant to section 19(b)(2) of the Act \5\ so
that the PCX may implement the new order types before the 30th day
after publication of the notice in the Federal Register. The PCX
represented that the proposed IOC Cross and PNP Cross order types would
promote a more efficient and effective market operation and enhance the
investment choices available to investors in the handling of their
orders. Moreover, with respect to the proposal to amend PCXE rule 7.37,
the PCX believes that the proposed rule change would allow market
participants to take full advantage of the de minimis
[[Page 3077]]
exception to the ITS Plan's trade-through rule.
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\5\ 15 U.S.C. 78s(b)(2).
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After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the
regulations thereunder applicable to a national securities exchange.\6\
Specifically, the Commission believes that the proposal is consistent
with section 6(b)(5) of the Act,\7\ which requires that the rules of an
exchange be designed to promote just and equitable principles of trade,
to foster cooperation and coordination with person engaged in
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market, and to protect
investors and the public interest.
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\6\ In approving this rule, the Commission notes that it has
considered the proposal's impact on efficiency, competition, and
capital formation. See 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
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The Commission also finds good cause to approve the proposed rule
change before the 30th day after the date of publication of notice in
the Federal Register. The Commission believes that the proposed change
to PCXE rule 7.37 is consistent with the terms and spirit of the de
minimis exemption from the trade-through restrictions of the ITS Plan,
and will allow market participants to further benefit from this
exemption. The Commission believes that the proposed IOC Cross and PNP
Cross order types will promote an efficient and effective market
operation and will offer investors additional choices in the handling
of their orders. Accelerated approval of the proposal will make the
proposed order types available to investors more quickly and without
undue delay. Accordingly, the Commission finds it appropriate to
approve the proposed rule change before the 30th day after the date of
publication in the Federal Register.
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-PCX-2002-74) is hereby
approved and shall become effective immediately.
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\8\ 15 U.S.C. 78s(b)(2).
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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).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-1290 Filed 1-21-03; 8:45 am]
BILLING CODE 8010-01-P