[Federal Register Volume 67, Number 16 (Thursday, January 24, 2002)]
[Notices]
[Pages 3523-3524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1741]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45301; File No. SR-PCX-2001-45]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order 
Granting Approval to Proposed Rule Change Relating to Inactive Lessors' 
Eligibility To Serve on the Board of Governors

January 17, 2002
    On December 7, 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 to amend Article III, Section 2(b) of the PCX 
Constitution and PCX Rule 1.1(h) to provide for the eligibility of 
inactive lessors to serve on the PCX Board of Governors (``Board'').
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on December 17, 2001.\3\ The Commission notes that the 
proposed rule change was noticed for a 15-day comment period, and the 
Commission received no comments regarding the proposed rule change.
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    \3\ See Securities Exchange Act Release No. 45144 (December 10, 
2001), 66 FR 65015.
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    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the

[[Page 3524]]

Act and the rules and regulations thereunder applicable to a national 
securities exchange.\4\ Specifically, the Commission finds that the 
proposal to clearly establish that PXC inactive lessors are eligible to 
serve on the PCX Board is consistent with Section 6(b)(5) of the 
Act,\5\ because it is designed to promote just and equitable principals 
of trade and to protect investors and the public interest. Inactive 
lessors have a financial interest in the activities of the Board and 
the Exchange due to their ownership of an Exchange membership. The 
Commission finds that allowing inactive lessors to serve on the Board 
is a fair and reasonable practice to provide inactive lessors and their 
interests to be represented on the Board.
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    \4\ 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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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-PCX-2001-45) be, and it 
hereby 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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 02-1741 Filed 1-23-02; 8:45 am]
BILLING CODE 8010-01-M