[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Notices]
[Pages 37184-37185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17466]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41582; File No. SR-PCX-99-23]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to the Reorganization of PCX Rule 6.87
June 30, 1999.
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 June 15, 1999, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the PCX. On June 21,
1999, the PCX filed with the Commission Amendment No. 1 to the proposed
rule change.\3\ The Commission is publishing the notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange made technical
modifications to its filing and further clarified the proposal. See
letter to Michael A. Walinskas, Associate Director, Division of
Market Regulation, Commission, from Robert P. Pacileo, Staff
Attorney, PCX, dated June 18, 1999.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to redesignate the subsections of PCX Rule
6.87 to conform to proposed changes to this rule previously approved by
the Commission.
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 redesignate and clarify the provisions of
PCX Rule 6.87, relating to the Exchange's Automatic Execution System
(``Auto-Ex'') for options, to reflect changes to the rule recently
approved by the Commission.
First, the Exchange proposes to redesignate subsection (d)
pertaining to ``Suspension of Auto-Ex,'' approved by the Commission in
February, 1998, as subsection (h).\4\ Second, the Exchange proposes to
redesignate subsection (d) pertaining to ``Auto-Ex NBBO,'' approved by
the Commission in September, 1998 and amended in a filing approved in
January, 1999, as subsection (i).\5\ Third, the Exchange proposes to
redesignate subsection (e) pertaining to ``Crossed or Locked Markets,''
approved by the Commission in January, 1999, as subsection (j).\6\
Fourth, the Exchange proposes to redesignate subsections (d) pertaining
to ``Market Maker Requirements and Eligibility,'' (e), and (f)
pertaining to ``Price Adjustments,'' approved by the Commission in
October, 1998, as subsections (e), (f) and (g).\7\ In addition, the
Exchange proposes to redesignate Commentary .01 of the rule as
subsection (c) and to change the reference to ``this commentary'' in
proposed subsection (c) to ``this subsection.'' The Exchange also
proposes to redesignate current subsection (c) as subsection (d). The
Exchange proposes these changes to recognize recent revisions to PCX
Rule 6.87.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 39635 (February 10,
1998), 63 FR 8246 (February 18, 1998) (SR-PCX-97-21).
\5\ See Securities Exchange Act Release No. 40980 (January
26,1999), 64 FR 5335 (February 3, 1999) (SR-PCX-98-55) and
Securities Exchange Act Release No. 40412 (September 8, 1998), 63 FR
49626 (September 16, 1998) (SR-PCX-98-27).
\6\ See Securities Exchange Act Release No. 40980 (January 26,
1999), 64 FR 5335 (February 3, 1999) (SR-PCX-98-55).
\7\ See Securities Exchange Act Release No. 40598 (October 23,
1998), 63 FR 58439 (October 30, 1998) (SR-PCX-97-48).
---------------------------------------------------------------------------
2. Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \8\ of the Act, in general, and furthers the objectives of
Section 6(b)(5) \9\ in particular, because it is designed to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments and perfect the
mechanisms of a free and open market and a national market system and
to protect investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The PCX does not believe that the proposed rule change will impose
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
[[Page 37185]]
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective immediately pursuant
to Section 19(b)(3(a)(iii) \10\ of the Act and subparagraph (f) of Rule
19b-4 thereunder \11\ because it is concerned solely with the
administration of the Exchange.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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.\12\
---------------------------------------------------------------------------
\11\ In reviewing this proposal, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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 20549-0609.
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-99-23 and should
be submitted by July 30, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17466 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M
