[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Notices]
[Pages 40770-40771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19379]


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SECURITIES AND EXCHANGE COMMISSION

[Docket No. 34-44603; File No. SR-PCX-2001-27]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Chane by the Pacific Exchange, Inc. 
Withdrawing From the Joint-Exchange Options Plan

July 27, 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 June 27, 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 PCX. 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 proposes to withdraw from the Joint-Exchange Options Plan 
(``JEOP'')\3\ upon Commission approval

[[Page 40771]]

of the proposed Options Listing Procedures Plan (``OLPP'').\4\
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    \3\ In September 1991, the Commission approved the JEOP for the 
selecting, listing, challenging, and arbitrating the eligibility of 
new standardized equity options filed by the American Stock Exchange 
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE)'', New 
York Stock Exchange, Inc., PCX, and Philadel;hia Stock Exchange, 
Inc. (``Phlx''). See Securities Exchange Act Release no. 29698 
(September 17, 1991), 56 FR 48594 (September 25, 1991).
    \4\ The Commission directed the PCX, Amex, CBOE, and Phlx to 
amend the JEOP to eliminate advance notice to other markets of 
theintention to list a new or existing option; to eliminate any 
provisions of the JEOP that prevent a market from commencing to list 
or trade any option listed on another market or an option that 
another market has expressed an intent to list; and to eliminate any 
provisions of the JEOP that allow one market to delay the 
commencement of trading of an option b anothermarket. See Section 
IV.B.a of the Order Institutig Public Administrative Proceedings 
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934, 
Making Findings and Imposing Sanctions, Securities Exchange Act 
Release No. 43268 (September 11, 2000) (``Order'').
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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 maybe 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 Organizaton's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In January 2001, the options exchanges, including the PCX, 
submitted a proposed OLPP to replace the JEOP as directed by the 
Order.\5\. The JEOP provided joint procedures to facilitate the orderly 
introduction of new equity options and established a mechanism to 
ensure that only eligible securities were selected for options trading. 
The OLPP eliminates various JEOP provisions that the Commission found 
objectionable, as specified in the Order. Therefore, the PCX has filed 
the proposed rule change to withdraw from the JEOP, effective as of the 
date of approval of the OLPP by the Commission. The Commission approved 
the OLPP on July 6, 2001.\6\
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    \5\ SeeExchange Act Release No. 44287 (May 10, 2001), 66 FR 
27184 (May 16, 2001).
    \6\ See Securities Exchange Act Release No. 4521 (July 6, 2001, 
66 FR 36809 (July 13, 2001).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \7\ in general and furthers the objectives 
of Section 6(b)(5)\8\ in particular in that it is designed to promote 
just and equitable principles of trade, remove impediments to a free 
and open market and a national market system, and protect investors and 
the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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

    Because the foregoing proposed rule change does not: (i) 
Sigificantly affect the protection of investors or the public interest; 
(ii) impose any significant burden on competion; (iii) become operative 
for 30 days from the date on which it was filed, or such shorter time 
as the Commission may designate; and the Exchange has given the 
Commission written notice of its intention to file the proposed rule 
change at least five business days prior to filing, or such shorter 
time as designated by the Commission, it has become effective pursuant 
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6)\10\ 
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, in 
furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19-4(f)(6).
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    The Exchange has requested that the Commission accelerate the 
operative date and to waive the fiveday pre-filing requirement so that 
the proposed rule change may take effect upon approval of the OLPP by 
the Commission. The Commission believes that it is consistent with the 
protection of investors and the public interest and therefore finds 
good cause to accelerate the operative date of the proposed rule change 
and to waive the five day pre-filing requirement. Acceleration of the 
operative date and waiving the pre-filing requirement will permit the 
Exchange to implement the OLPP without undue delay. For these reasons, 
the Commission finds good cause to designate that the proposal became 
operative immediately upon Commission approval of the OLPP.\11\
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    \11\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact of 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 
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 the File No. SR-PCX-2001-27 and should be 
submitted by August 24, 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. 01-19379 Filed 8-2-01; 8:45 am]
BILLING CODE 8010-01-M