[Federal Register Volume 66, Number 107 (Monday, June 4, 2001)]
[Notices]
[Page 30037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13885]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44345; File No. SR-PCX-99-48]


Self-Regulatory Organization's; Pacific Exchange, Inc.; Order 
Approving Proposed Rule Change and Amendments No. 1, 2 and 3 Relating 
to Miscellaneous House-Keeping Amendments to Options Trading Rules

May 23, 2001.

I. Introduction

    On November 5, 1999, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 to amend its options trading 
rules for house-keeping purposes.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 43823 (January 9, 2001), 
66 FR 3633.
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    The proposed rule change and Amendment No. 1 were published for 
comment in the Federal Register on January 16, 2001.\3\ No comments 
were received on the proposal. The proposal was amended on January 11 
and April 12, 2001.\4\ In this order, the Commission is approving the 
proposed rule change, as amended.
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    \4\ See letters from Cindy L. Sink, Senior Attorney, Regulatory 
Policy, PCX to Heather Traeger, Attorney Adviser, Division of Market 
Regulation (``Division''), SEC, dated January 10 and April 11, 2001 
(``Amendment Nos. 2 and 3,'' respectively). In Amendment No. 2, 
proposed rules 10.13(h)(35) and 10.13(k)(i)(35) are renumbered as 
10.13(h)(38) and 10.13(k)(i)(38) because Rules 10.13(h)(35), (36) 
and (37) already exist. In Amendment No. 3, Rules 10.13(h)(30) and 
10.13(k)(i)(30), which address fines for violations of option floor 
trading restrictions on members with financial arrangements (Rule 
6.40(b)), are eliminated to reflect rule changes made by other 
filings. Also rules affected by the removal of Rules 10.13(h)(30) 
and 10.13(k)(i)(30) are renumbered. These are technical amendments 
that do not need to be published for comment.
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II. Description of the Proposal

    The PCX proposes to modify its rules on options trading by 
clarifying existing provisions, eliminating superfluous provisions, 
codifying current policies and procedures, and renumbering certain 
Option Floor Procedure Advices.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and in 
particular, with the requirements of section 6(b)(5).\5\ Specifically, 
the Commission finds that updating and clarifying rules and codifying 
current policies and procedures will enhance the ability of PCX members 
to comply with PCX's rules thereby promoting just and equitable 
principles of trade, fostering cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, and in general, protecting investors and the public 
interest.
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    \5\ 15 U.S.C. 78f(b)(5).
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    The Commission also considers the proposal as it relates to the 
PCX's minor rule violation plan to be consistent with section 
6(b)(5),\6\ which requires that members and persons associated with 
members be appropriately disciplined for violations of Exchange Rules.
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    \6\ 15 U.S.C. 78f(b)(6).
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IV. Conclusion

    It is therefore Ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-PCX-99-48), as amended, is 
approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-13885 Filed 6-1-01; 8:45am]
BILLING CODE 8010-01-M