[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