[Federal Register Volume 66, Number 23 (Friday, February 2, 2001)]
[Notices]
[Pages 8832-8834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2848]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43898; File No. SR-PCX-01-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to Electronic Mail Accounts

January 29, 2001.
    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 January 3, 2001, 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 the Exchange. 
Amendment No. 1 to the proposed rule change was filed on January 5, 
2001. Amendment No. 2 to the proposed rule change was filed on January 
16, 2001.\3\ 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\ 17 CFR 240.19b-4.
    \3\ In Amendment Nos. 1 and 2, the PCX changed the filing number 
by withdrawal and re-filing, and corrected numbering and captions in 
the text of the proposed rule change. See letters from Hasan Abedi, 
Attorney, PCX, to Andrew Shipe, Attorney, Division of Market 
Regulation, Commission, dated January 4, 2001 and January 12, 2001 
(``Amendment Nos. 1 and 2'').

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[[Page 8833]]

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange is proposing to adopt new rules requiring all members 
and member organizations to establish with the Exchange an Internet 
electronic mail account. Below is the text of the proposed rule change. 
New text is in italics.
* * * * *

Pacific Exchange, Inc.

Rules of the Board of Governors

* * * * *

Rule 1

Memberships

para. 3083  Electronic Mail Address

    Rule 1.13  Each member organization must maintain with the PCX an 
Internet electronic mail account for communication with the PCX. Each 
member organization must update its member firm contact information via 
the electronic mail account or such other means as prescribed by the 
PCX. The PCX will use the electronic mail account to provide member 
organizations with regulatory bulletins, rule adoption notices, and 
other official notices.
* * * * *

Rules of the Board of Directors of PCX Equities, Inc.

* * * * *

Rule 2

Equity Trading Permits and Equity ASAPS

para. 7904Y  Electronic Mail Address

    Rule 2.26  Each ETP Holder, Equity ASAP Holder and ETP Firm must 
maintain with the PCX Equities, Inc. (``PCXE'') an Internet electronic 
mail account for communication with the PCXE. Each ETP Holder, Equity 
ASAP Holder and ETP Firm must update firm contact information via the 
electronic mail account or such other means as prescribed by the PCXE. 
The PCXE will use the electronic mail account to provide ETP Holders, 
Equity ASAP Holders and ETP Firms with regulatory bulletins, rule 
adoption notices, and other official notices.
* * * * *

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 Exchange 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 proposed rule promotes Internet use by the Exchange and its 
member organizations \4\ as a communication tool. As proposed, the rule 
would require each member organization to acquire and maintain an 
Internet electronic mail address. The electronic mail account will be 
used to provide member organizations with regulatory bulletins, rule 
adoption notices, and other official notices. The proposed rule will 
allow for a more convenient and efficient manner of communication than 
the current mail system. Use of this electronic mail account will 
facilitate timely communication between the Exchange and its members, 
more rapid distribution of Exchange information, and reduction or 
elimination of printed publications. The Commission has approved a 
similar rule filing submitted by the National Association of Securities 
Dealers, Inc. (``NASD'').\5\ In the order approving the NASD filing, 
the Commission stated that use of the Internet as a business tool is 
expanding rapidly.\6\ The Commission also stated that the Internet is 
recognized as an efficient and cost-effective means of communication in 
the business world.\7\
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    \4\ As used herein, the term ``member organization'' will be 
synonymous with Equity Trading Permit Holder (``ETP Holder''), 
Equity Automated Systems Access Privileges Holder (``Equity ASAP 
Holder'') and Equity Trading Permit Firm (``ETP Firm'') under the 
proposed new rule for PCX Equities, Inc. Telephone conservation 
between Hassan Abedi, Attorney, PCX, and Andrew Shipe, Attorney, 
Division of Market Regulation, SEC, January 12, 2001.
    \5\ See Securities Exchange Release Act No. 39958 (May 5, 1998), 
63 FR 26240 (May 12, 1998).
    \6\ Id. at 26241.
    \7\ Id. at 26241.
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2. Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5),\9\ in particular, in that it is designed 
to promote just and equitable principles of trade, prevent fraudulent 
and manipulative acts and practices, and protect investors and the 
public interest by allowing for a more efficient and convenient manner 
of communication with member organizations.
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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 Exchange 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

    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 shall become operative 30 days after the 
date of filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest 
pursuant to Section 19(b)(3)(A)(iii) of the Act,\10\ and subparagraph 
(f)(6) of Rule 19b-4 thereunder.\11\ At any time within 60 days of the 
filing of such 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.
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    \10\ 15 U.S.C. 78s(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
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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, as amended, 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. 20549-0609. 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

[[Page 8834]]

available for inspection and copying at the principal office of the 
PCX. All submissions should refer to File No. SR-PCX-01-02 and should 
be submitted by February 23, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-2848 Filed 2-1-01; 8:45 am]
BILLING CODE 8010-01-M