[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]


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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.
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    \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.
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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.
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    \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).
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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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f).
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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.\12\
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    \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).
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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, 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\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-17466 Filed 7-8-99; 8:45 am]
BILLING CODE 8010-01-M