[Federal Register Volume 63, Number 184 (Wednesday, September 23, 1998)]
[Notices]
[Pages 50951-50952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25410]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40442; File No. SR-PCX-98-43]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to OptiMark Pricing
September 16, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 8, 1998, the
Pacific Exchange, Inc. (``PCX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The PCX proposes to change its Schedule of Fees and Charges for
Exchange Services by adding OptiMark transaction charges. The text of
the proposed rule change is available at the Office of the Secretary,
PCX and at 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, 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
1. Purpose
Background. OptiMark is an electronic communications and
information system operated by OptiMark Services, Inc., to support
trading services offered by the Exchange. The OptiMark System is a
computerized, screen-based trading service intended for use by Exchange
[[Page 50952]]
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 matching by the system would be
automatically executed on the Exchange.
Proposed fees. The Exchange proposes to charge a fee of $1.19 per
100 shares on OptiMark transactions for OptiMark customers who are
regular PCX members and a fee of $1.25 per 100 shares on OptiMark
transactions for OptiMark customers who are ASAP Members on the PCX.\2\
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\2\ ASAP Members are authorized broker-dealers who have
``automated system access privileges.'' The ASAP Member must be a
broker-dealer registered under Section 15 of the Act. See Rule 1.14,
``Automated System Access Privileges (ASAP).''
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \3\ of the Act, in general, and furthers the objectives of
Section 6(b)(4),\4\ in particular, because it provides for the
equitable allocation of reasonable dues, fees and other charges among
its members and issuers and other persons using its facilities.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4).
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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 establishes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) \5\ and subparagraph (e)(2)
of Rule 19b-4 thereunder.\6\ 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.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(e)(2).
\7\ In reviewing this proposal, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 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-98-43 and should be
submitted by October 14, 1998.
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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Jonathan G. Katz,
Secretary.
[FR Doc. 98-25410 Filed 9-22-98; 8:45 am]
BILLING CODE 8010-01-M
