[Federal Register Volume 66, Number 183 (Thursday, September 20, 2001)]
[Notices]
[Pages 48502-48503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23436]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44790; File No. SR-PCX-2001-26]


Self-Regulatory Organizations; the Pacific Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to Accepting Orders 
From Professional Customers

September 13, 2001.
    On July 26, 2001, 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 that would allow PCX Floor Brokers and qualified 
Floor Clerks of

[[Page 48503]]

Floor Brokers to accept orders from Professional Customers (as defined 
in the proposed rule) for execution on the Exchange's trading floor, 
under certain terms and circumstances. Notice of the proposed rule 
change was published for comment in the Federal Register on August 8, 
2001.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 44637 (August 1, 2001), 
66 FR 41645.
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    The Commission has reviewed carefully the proposed rule change, and 
finds that it is consistent with the act and the rules and regulations 
promulgated thereunder applicable to a national securities exchange 
and, in particular, with the requirements of Section 6(b).\4\ 
Specifically, the Commission finds that approval of the proposed rule 
change is consistent with Section 6(b)(5)\5\ in that it is designed to 
promote just and equitable principles of trade, to prevent fraudulent 
and manipulative acts and practices, and to protect investors and the 
public interest.
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    \4\ 15 U.S.C. 78f(b). In approving this proposal, 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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    Additionally, the Commission believes the proposal's provision that 
would allow a Floor Clerk of a qualified Floor Member to accept orders 
from professional customers for execution on the Exchange's trading 
floor provided the Floor Clerk has successfully completed either the 
Series 7 Examination or the Series 7A Examination is consistent with 
Section 6(c)(3)(A) of the Act,\6\ which allows a national securities 
exchange to deny membership to, or condition the membership of, a 
registered broker or dealer if such broker or dealer, or persons 
associated with such broker or dealer, does not meet such standards of 
training, experience, and competence as are prescribed by the rules of 
the exchange. The Commission believes the proposed rule change will 
help the Exchange to ensure that Floor Clerks satisfy prescribed 
standards of training, experience, and competence, and will help to 
ensure that Floor Clerks who may accept orders from Professional 
Customers for execution on the Exchange's trading floor are 
sufficiently familiar with the rules and practices of the Exchange's 
trading floor.
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    \6\ 15 U.S.C. 78f(c)(3)(A).
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    For these reasons, the Commission finds that the proposed rule 
change is consistent with the provisions of the Act, in general, and 
with Sections 6(b)(5)\7\ and 6(c)(3)(A)\8\ in particular.
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    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(c)(3)(A).
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    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-PCX-2001-26) be and hereby is 
approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-23436 Filed 9-19-01; 8:45 am]
BILLING CODE 8010-01-M