[Federal Register: March 18, 2005 (Volume 70, Number 52)]
[Notices]
[Page 13223]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr05-112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51360; File No. SR-PCX-2005-15]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order
Granting Approval of Proposed Rule Change Relating to Primary Only
Orders

March 11, 2005.
    On February 1, 2005, the Pacific Exchange, Incorporated (``PCX'' or
``Exchange''), through its wholly-owned subsidiary, PCX Equities
(``PCXE''), filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``;Act'') \1\ and Rule 19b-4
thereunder,\2\ to amend PCXE Rule 7.31(x), to provide that Primary Only
Orders (``PO Orders'') may apply to Nasdaq securities traded on the
Archipelago Exchange (``ArcaEx'') facility, and may be either market or
limit orders. The proposed rule change was published for comment in the
Federal Register on February 9, 2005.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
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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. 51125 (February 2,
2005), 70 FR 6914.
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    After careful review, the Commission finds that the proposal is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange \4\
and, in particular, the requirements of Section 6 of the Act \5\ and
the rules and regulations thereunder. The Commission finds specifically
that the proposed rule change is consistent with Section 6(b)(5) of the
Act \6\ because it is designed to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and 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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    \4\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    As proposed, PCXE Rule 7.31(x) would define a PO Order as a market
or limit order that is to be routed to the primary market, until a cut-
off time periodically determined by PCXE, and would expand the PO Order
applicability from exclusively exchange-listed securities to include
Nasdaq Stock Market, Inc. (``Nasdaq'') securities. The Commission notes
that PO market orders in Nasdaq securities received prior to 6:28 a.m.
PT will be marked On-Open and will be routed to Nasdaq for possible
participation in Nasdaq's Opening Cross. As such, the Commission
believes that implementing these changes may provide market
participants with more choices for executing orders on the opening. In
addition, the Commission believes that expanding the applicability of
PO Orders to limit orders and to Nasdaq listed securities should
enhance the opportunity for ArcaEx users to have their orders executed
on the primary market.
    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-PCX-2005-15) be, and it
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-1183 Filed 3-17-05; 8:45 am]

BILLING CODE 8010-01-P