[Federal Register Volume 63, Number 236 (Wednesday, December 9, 1998)]
[Notices]
[Pages 67970-67971]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32665]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40739; File No. SR-PCX-98-56]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to ASAP Members' Access to OptiMark
December 2, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ notice is hereby given that on
November 6, 1998, 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 PCX.\2\ 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\ Amendment No. 1 was received on November 27, 1998, the
substance of which is incorporated into this notice. Letter from
Robert Pacileo, Senior Attorney, Regulatory Policy, PCX, to Michael
Walinskas, Deputy Director, Division of Market Regulation,
Commission, dated November 25, 1998.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
PCX is proposing to change PCX Rule 1.14(a) to reflect that Members
with Automated System Access Privileges (``ASAP'') shall be entitled to
access OptiMark.\3\ Below is the text of the proposed rule change.
Proposed new language is in italics.
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\3\ The OptiMark System is a computerized screen-based trading
service intended for use by PCX members and their customers to
provide automatic order formulation, matching, and execution
capabilities in the equity securities listed or traded on the
Exchange. The OptiMark System is intended to be used in addition to
the Exchange's traditional floor facilities to buy and sell
securities on the PCX by allowing PCX members and their customers to
submit ranges of trading interest anonymously from their computer
terminals. The OptiMark System would then identify specific orders
capable of execution and all orders matched by the system would be
automatically executed on the Exchange. See Exchange Act Release No.
39086 (September 17, 1997), 62 FR 50036 (September 24, 1997).
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* * * * *
Electronic Access Membership
para. 3085 ``Automated System Access Privileges (ASAP)''
Rule 1.14(a). No Change.
(1)-(2) No Change.
(3) The ASAP Member shall be entitled to access to P/COAST, POETS,
OptiMark, and any other systems approved by the Board of Governors;
(4)-(7) 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, 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. 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
PCX proposes to amend PCX Rule 1.14(a)(3) to add OptiMark to the
list of systems approved for ASAP Members' access. The Exchange
proposes to make this change to Rule 1.14(a)(3) to codify that ASAP
Members are entitled to access OptiMark.
2. Statutory Basis
PCX believes the proposed rule change is consistent with Section
6(b) \4\ of the Act, in general, and furthers the objectives of Section
6(b)(5),\5\ in particular, because it is designed to promote just and
equitable principles of trade, and to protect investors and the public
interest.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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[[Page 67971]]
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
This proposed rule filing has been filed by the Exchange as a
``non-controversial'' rule change pursuant to Section 19(b)(3)(A)(iii)
of the Act \6\ and subparagraph (e)(6) of Rule 19b-4 thereunder.\7\
Consequently, because the foregoing proposed rule change: (1) does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not become operative until January 2, 1998, more than 30
days from November 6, 1998, the date on which it was filed, the
Commission waived the Rule 19b-4(e)(6)(iii) written notice requirement,
upon the request of PCX.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(e)(6).
\8\ See Amendment No. 1.
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At any time within 60 days of the filing of the 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.
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. 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 at the
Commission's Public Reference Room. Copies of such filing also will be
available for inspection and copying at the principal office of PCX.
All submissions should refer to File No. SR-PCX-98-56 and should be
submitted by December 30, 1998.
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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-32665 Filed 12-8-98; 8:45 am]
BILLING CODE 8010-01-M
