[Federal Register: January 7, 2005 (Volume 70, Number 5)]
[Notices]
[Page 1490-1492]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja05-108]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50948; File No. SR-PCX-2004-128]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to the Phase-In of PCX Plus
December 29, 2004.
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 December 29, 2004, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the 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 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX proposes to amend PCX Rule 6.90, governing PCX Plus, in order
to
[[Page 1491]]
extend the system phase-in period from December 31, 2004 until March
31, 2005. Below is the text of the proposed rule change. Proposed new
language is italicized; proposed deletions are bracketed.
* * * * *
Rules of the Board of Governors of the Pacific Exchange, Inc.
* * * * *
Rule 6--Options Trading
* * * * *
PCX Plus
Rule 6.90(a)--No Change.
(b) System Phase-In and Applicability of the Rules. The PCX
estimates that the rules applicable to PCX Plus will be implemented
gradually on an issue-by-issue basis beginning October 6, 2003, and
will become completely operative and applicable to all options issues
by [December 31, 2004] March 31, 2005. At that time, the rules relating
to PCX Plus will supersede existing rule that are inapplicable to the
new trading environment.
(c)--(h)--No change.
* * * * *
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 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. The PCX 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
1. Purpose
The Exchange proposes to amend PCX Rule 6.90 governing the PCX Plus
system \3\ phase-in date. PCX Plus is the Exchange's electronic order
delivery, execution and reporting system for designated option issues
through which orders and Quotes with Size \4\ are consolidated for
execution and/or display. The trading system includes an electronic
communications network that enables registered Market Makers to enter
orders/Quotes with Size and execute transactions from remote locations
or the trading floor. As proposed, the Exchange seeks to extend the
date by which it expects to have PCX Plus completely operative and
applicable to all options issues from December 31, 2004 until March 31,
2005. The Exchange represents that this extension is warranted to
afford the PCX sufficient time to address any capacity issues the
system may have as a result of phasing in issues currently traded on
the Exchange and adding new issues to be traded on the Exchange.
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\3\ Securities Exchange Act Release No. 47838 (May 13, 2003), 68
FR 27129 (May 19, 2003) (Order Approving Proposal for PCX Plus).
\4\ See PCX Rule 6.1(b)(33) (definition of Quotes with Size).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5),\6\ in particular, in that it is designed
to facilitate transactions in securities, to promote just and equitable
principles of trade, to enhance competition and to protect investors
and the public interest.
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\5\ 15 U.S.C. 78f(b).
\6\ 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)(A)(iii) of the Act \7\ and subparagraph (f)(3) of Rule 19b-4
\8\ thereunder 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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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(3).
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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 proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments:
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an E-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2004-128 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-PCX-2004-128. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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 Section, 450 Fifth Street,
NW., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-PCX-2004-128 and should be
submitted on or before January 28, 2005.
[[Page 1492]]
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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-26 Filed 1-6-05; 8:45 am]
BILLING CODE 8010-01-P