[Federal Register Volume 66, Number 66 (Thursday, April 5, 2001)]
[Notices]
[Pages 18136-18137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8352]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44131; File No. SR-PCX-01-11]


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

March 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 February 12, 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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The PCX is proposing to file with the Commission its statements on 
Fiduciary Responsibility of the Members of the Board of Governors, 
Fiduciary Responsibilities of Committee Members and Floor Officials and 
Employee Handbook.
    The text of the proposed rule change is available at the 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, 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 has and will continue to insist that Members of its 
Board of Governors, its Committee Members, employees, officers, 
directors and other

[[Page 18137]]

officials or agents observe the highest standards of business ethics 
and ensure fair dealings in the operation of the Exchange.
    Therefore, the Exchange is proposing to file with the Commission 
its statements on Fiduciary Responsibilities of the Members of the 
Board of Governors, Fiduciary Responsibilities of Committee Members and 
Floor Officials and Employee Handbook which reflect its policy 
prohibiting its Governors, Committee Members, employees, officers, 
directors, and other officials or agents from engaging directly or 
indirectly in any conduct that threatens, harasses, intimidates, 
constitutes a refusal to deal or retaliate against any member, employee 
of a member or any other market participant because such member: (1) 
Has made a proposal to any exchange or other market to list or trade 
any option issue; (2) has advocated or made proposals concerning the 
listing or trading of an option issue on any exchange or other market; 
(3) has commenced making a market in or trading any option issue on any 
exchange or other market; (4) seeks to increase the capacity of any 
options exchange or the options industry to disseminate quote or trade 
data; (5) seeks to introduce new option products; or (6) acts or seeks 
to act competitively.
    The PCX believes that the prohibited conduct discussed above is 
inconsistent with the obligation of all Governors, Committee Members, 
employees, officers, directors, and other officials or agents in their 
responsibilities to the Exchange and the public interest in the 
operation of fair and efficient options markets. The PCX will strictly 
enforce the requirements of the proposed rule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\3\ in general, and furthers the 
objectives of Section 6(b)(5) \4\ 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 prohibiting harassment in the listing of options.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The proposed rule change has been filed by the Exchange as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A)(iii) of the 
Act \5\ and Rule 19b-4(f)(6) thereunder.\6\ Because the foregoing 
proposed rule change: (1) Does not significantly affect the protection 
of investors or the public interest, (2) does not impose any 
significant burden on competition, and (3) by its terms does not become 
operative for 30 days after February 12, 2001, the date on which it was 
filed, or such shorter time as the Commission may designate, and the 
Exchange provided the Commission with written notice of its intent to 
file the proposed rule change at least five business days prior to the 
filing date, it has become effective pursuant to Section 
19(b)(3)(A)(iii) \7\ of the Act and Rule 19b-4(f)(6) \8\ thereunder. 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(6).
    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 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 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 at the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to the File No. SR-PCX-01-11 and 
should be submitted by April 26, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-8352 Filed 4-4-01; 8:45 am]
BILLING CODE 8010-01-M