[Federal Register Volume 63, Number 223 (Thursday, November 19, 1998)]
[Notices]
[Pages 64307-64308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30892]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40675; File No. SR-PCX-98-54]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Pacific Exchange, Inc. Relating to Extension of PCX
Specialist Evaluation Program for One Year
November 12, 1998.
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 November 2, 1998, the Pacific Exchange, Inc. (``PCX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') a proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
Exchange. 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
The PCX is proposing to extend its specialist evaluation program
for one year.
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 Exchange 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 Exchange 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
Purpose
On December 22, 1997, the Commission approved a one-year extension
of the Exchange's pilot program for the evaluation of equity
specialists.\3\ The filing was intended to establish an overall score
and individual passing scores for specialists, replace the ``Bettering
the Quote'' criterion with ``Price Improvement,'' and lower the
weighting of the ``Specialist Evaluation Questionnarie'' criterion from
15% to 10% so that Price Improvement could be given a weight of 10%.
Subsequently, on May 8, 1998, the Commission approved an Exchange
proposal to codify the aforementioned changes.\4\ The Exchange is now
proposing to extend the pilot program for one year, to January 1, 2000.
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\3\ See Exchange Act Release No. 39477 (December 22, 1997), 62
FR 68334 (December 30, 1997) and Exchange Act Release No. 39358
(November 25, 1997), 62 FR 64035 (December 3, 1997).
\4\ See Exchange Act Release No. 39976 (May 8, 1998), 63 FR
26834 (May 14, 1998).
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The Exchange is requesting a one-year extension of the pilot
program so that it will have an opportunity to continue reviewing and
evaluating the program before seeking permanent approval. In that
regard, on October 29, 1998, the Exchange submitted a report to the
Commission responding to particular questions set forth in the May 8,
1998 pilot approval order. The Exchange believes that this program is
operating successfully and without any problems, and on that basis, the
Exchange believes that a one-year extension of the program is
warranted. At this time, the Exchange is not seeking to modify the
pilot program.
Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \5\ of the Act, in general, and furthers the objectives of
Section 6(b)(5),\6\ in particular, in that it is designed to promote
just and equitable principles of trade.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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[[Page 64308]]
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Persons making written submissions should file
six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549. 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 Room. Copies of such filing will also be available for
inspection and copying at the principal office of the PCX. All
submissions should refer to File No. SR-PCX-98-54 and should be
submitted by December 10, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-30892 Filed 11-18-98; 8:45 am]
BILLING CODE 8010-01-M
