[Federal Register Volume 67, Number 29 (Tuesday, February 12, 2002)]
[Notices]
[Page 6569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3304]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45395; File No. SR-PCX-2001-33]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order 
Granting Approval to Proposed Rule Change and Amendment No. 1, To Adopt 
Procedures for the Transfer of Options Positions

February 5, 2002.
    On August 10, 2001, the Pacific Exchange, Inc. (``PCX'') 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 adopt 
procedures for the transfer of options positions. On December 11, 2001, 
the Exchange amended the proposal to: (1) Clarify the intent of the 
rule that after the proper request has been completed, a transfer will 
be automatically permitted when the transfer satisfies one of the 
specified categories set forth in proposed Rule 6.78(d)(1); (2) revise 
Item 8 to state that the proposed rule change is based, in part, on 
Chicago Board Options Exchange Rule 6.49A; and (3) make technical 
changes to the rule text.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter dated December 10, 2001 from Cindy Sink, Senior 
Attorney, Regulatory Policy, PCX, to Joseph Morra, Special Counsel, 
Division of Market Regulation, Commission and attachments 
(``Amendment No. 1'').
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    The proposed rule change, as amended, was published for comment in 
the Federal Register on December 31, 2001.\4\ The Commission received 
no comments on the proposal.
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    \4\ See Securities Exchange Act Release No. 45188 (December 21, 
2001), 66 FR 67606.
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    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 \5\ and, in 
particular, the requirements of section 6 of the Act \6\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with section 6(b)(5) of the Act \7\ 
because it establishes which position transfers may occur off the floor 
and which position transfers must be offered to the floor, and the 
procedures for effecting such transfers. The Commission believes 
differentiating between on floor and off floor position transfers and 
clearly delineating the procedures for effecting such transfers, will 
aid in the orderly transfer of option positions which should help to 
perfect the mechanism of a free and open market and a national market 
system, and further the public interest.\8\
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ The Commission also notes that the proposed rule change is 
based, in part, on Chicago Board Options Exchange Rule 6.49A, which 
the Commission approved on December 28, 1995. See Securities 
Exchange Act Release No. 36647, 61 FR 566 (January 8, 1996).
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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-2001-33), as amended, 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. 02-3304 Filed 2-11-02; 8:45 am]
BILLING CODE 8010-01-P