[Federal Register Volume 66, Number 38 (Monday, February 26, 2001)]
[Notices]
[Pages 11624-11625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4595]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43975; File No. SR-PCX-00-27]


Self-Regulatory Organizations; Order Approving a Proposed Rule 
Change by the Pacific Exchange, Inc. Relating to Options Trade 
Reporting

February 16, 2001.

I. Introduction

    On August 5, 2000, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change relating to the reporting of options transactions. 
The proposed rule change was published for comment in the Federal 
Register on November 8, 2000.\3\ The Commission received no comments on 
the proposal. This order approves the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 43505 (November 1, 
2000), 65 FR 67030.
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II. Description of the Proposal

    The PCX proposes to adopt new PCX Rule 6.69(a) to require all 
Exchange members and member organizations who are required to report 
trades either directly to the Options Price Reporting Authority 
(``OPRA'') or to another party responsible for reporting trades to 
OPRA, to immediately report all trades to the Exchange for 
dissemination to OPRA within 90 seconds.
    Currently, Commentary .01 to Exchange Rule 6.69 states that trades 
must be immediately reported at the time of execution. The Exchange 
proposes to require immediate trade reporting, and in any event, no 
later than 90 seconds following execution. The Exchange also proposes 
to amend PCX Rule 10.13 to include violations of proposed Rule 6.69(a) 
in the Exchange's minor Rule Plan.

III. Discussion

    The Commission finds that the proposal is consistent with the 
requirements of the Act.\4\ In particular, the Commission finds that 
the proposed rule change furthers the objectives of Section 6(b)(5),\5\ 
in that it is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and

[[Page 11625]]

equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
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    \4\ In approving this rule, the Commission has considered the 
proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the proposal, which requires the 
reporting of all options transactions immediately, and in any event, 
within 90 seconds of execution, should help to prevent fraudulent and 
manipulative acts and practices, as well as to promote just and 
equitable principles of trade. The Commission believes that the 
proposed rule change should enable the Exchange to provide timely trade 
information to investors more efficiently. The enhanced transparency 
associated with timely trade reporting should facilitate price 
discovery for investors and assist the Exchange's surveillance of its 
members' trading in listed options.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-PCX-00-27) is approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-4595 Filed 2-23-01; 8:45 am]
BILLING CODE 8010-01-M