[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6777-6781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3493]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45416; File No. SR-PCX-2001-23]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Pacific Exchange, Inc. Amending Exchange Rule 6.46 To 
Adopt New Sanctioning Guidelines for Enforcing Compliance With the 
Exchange's Options Order Handling Rules

February 7, 2002.
    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 December 26, 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 Exchange. 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 Exchange proposes to adopt new sanctioning guidelines that will 
assist in effectively enforcing compliance with the Exchange's options 
order handling rules. The text of the proposed rule change is available 
at the PCX's Office of the Secretary and at the Commission.

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 Exchange 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 may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, Proposed Rule Change

(1) Purpose
    The Exchange believes that the proposed rule change will assist it 
in effectively enforcing compliance with its options order handling 
rules.\3\ The Exchange represents that it has undertaken to address and 
will continue to address the importance of compliance with order 
handling rules such as Best Execution, Limit Order Display, Priority, 
Firm Quote and Trade Reporting. The proposed rule change sets forth 
sanctioning guidelines for each separate area of the order handling 
rules. Each of these areas are discussed in detail below.
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    \3\ The Exchange filed this proposed rule change in accordance 
with the provisions of Section IV.B.i of the Commission's September 
11, 2000 Order Instituting Administrative Proceedings Pursuant to 
Section 19(h)(1) of the Act, which required the Exchange to adopt 
rules establishing, or modifying existing, sanctioning guidelines 
such that they are reasonably designed to effectively enforce 
compliance with options order handling rules. See Securities 
Exchange Act Release No. 43268 (September 11, 2000), Administrative 
Proceeding File No. 3-10282 (the ``Order'').
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    The Exchange states that currently, violations of the Exchange Firm 
Quote, Limit Order Display, and Priority Rules are treated as formal 
disciplinary actions and outside the scope of the Exchange's Minor Rule 
Plan (``MRP'').\4\ Violations of Trade Reporting and Best Execution 
obligations, however, are generally handled pursuant to the Exchange's 
MRP. While the MRP provides general guidance with respect to fine 
levels to be imposed for each distinct violation, nothing in the MRP 
prohibits the Exchange from removing a single violation of these 
obligations from the MRP and enforcing it as a formal disciplinary 
matter. The Exchange may also file a formal disciplinary action if it 
deems that a member or member organization's conduct amounts to a 
pattern or practice with respect to violations of the rules covered by 
its MRP.
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    \4\ See PCX Rule 10.13.
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    The Exchange believes that the proposed guidelines set forth in 
this filing would serve to assist the Exchange's Regulatory Staff and 
the Ethics and Business Conduct Committee (``EBCC'') in determining 
appropriate remedial sanctions for violations of all Exchange rules. 
The Exchange further believes that the proposed guidelines would work 
to promote consistency and uniformity in the imposition of 
penalties.\5\ With respect to the order handling rules, the guidelines 
provide both a range of fines as well as non-monetary sanctions that 
could be assessed against offending members. Fine amounts would differ 
depending on the number of disciplinary actions that have been brought 
by the Exchange against the particular member or member organization. 
The general principles that apply to all rule violations as well as the 
particular sanctions relating to the order handling rules are discussed 
in detail below.
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    \5\ The Exchange submitted to the Commission a letter, for which 
it requested confidential treatment, proposing how its regulatory 
staff would aggregate violations of the order handling rules, where 
the violations are identified through the Exchange's automated 
surveillance system. See letter from Hassan A. Abedi, Manager, 
Enforcement, PCX, to Nancy J. Sanow, Assistant Director, Commission, 
dated December 21, 2001.
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A. General Principles Applicable to All Sanction Determinations

    According to the Exchange, the proposed sanctioning guidelines 
would be used by various Exchange bodies that adjudicate disciplinary 
actions, including the EBCC, the PCX Board of Governors, the PCX 
Surveillance and Enforcement Departments, for in-house adjudications 
(collectively, ``Adjudicatory Bodies''), in determining appropriate 
remedial sanctions. The Exchange believes that it is important to note 
that the proposed guidelines do not prescribe fixed sanctions for 
particular violations. Rather, they assist Adjudicatory Bodies in 
imposing sanctions consistently and fairly. The Exchange believes that 
the proposed guidelines serve to promote consistency and uniformity in 
the imposition of penalties by applying the following general 
principles in connection with the imposition of sanctions in all cases.
    (1) Disciplinary sanctions are remedial in nature. The proposed 
guidelines set forth that the sanctions imposed should be designed to 
prevent and deter future misconduct.
    (2) Progressively escalating sanctions on recidivists. Repeated 
acts of

[[Page 6778]]

misconduct call for increasingly serious sanctions.
    (3) Sanctions should be tailored to address the misconduct at 
issue.
    (4) Aggregation or ``batching'' of violations may be appropriate in 
certain instances for purposes of determining sanctions. The proposed 
guidelines would allow for aggregation of several acts of misconduct as 
one ``violation'' for purposes of determining sanctions if the 
misconduct meets certain objective parameters.
    (5) Restitution should be ordered if necessary to remediate 
misconduct.
    (6) The amount of ill-gotten gain may be considered when 
determining sanctions.
    (7) Requiring requalification in any or all registered capacities 
or additional training may also be appropriate.
    (8) The inability to pay in connection with the imposition of 
monetary sanctions may also be considered when determining sanctions.
    The proposed guidelines also list several factors that should be 
considered in conjunction with the imposition of sanctions for specific 
violations.

B. Sanctions for Violation of Order Handling Rules

1. Firm Quotes--Specialist Options Transactions
    The Commission recently amended Rule 11Ac1-1 of the Act,\6\ the 
``Quote Rule,'' so that it would apply to the options markets.\7\ In 
response, the Exchange amended its rules in order to adopt various 
implementing provisions.\8\ According to the Exchange, it complies with 
Rule 11Ac1-1 under the Act \9\ by periodically publishing the quotation 
size for which each Responsible Broker or Dealer \10\ on the Exchange 
is obligated to execute an order to buy or sell an option series that 
is a reported security at its published bid or offer. The Exchange 
currently requires that the minimum quotation size for customer orders 
will be 20 contracts for each option series and for broker-dealer 
orders will be one contract for each option series.\11\
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    \6\ 17 CFR 240.11Ac1-1.
    \7\ See Securities Exchange Act Release No. 43591 (November 17, 
2000), 65 FR 75439 (December 1, 2000).
    \8\ See Securities Exchange Act Release No. 44145 (June 1, 
2001), 66 FR 30959 (June 8, 2001) (SR-PCX-2001-18).
    \9\ 17 CFR 240.11Ac1-1.
    \10\ The Exchange defines ``Responsible Broker or Dealer'' as 
``with respect to any bid or offer for any listed option made 
available by the Exchange to quotation vendors, the Lead Market 
Maker and any registered Market Makers constituting the trading 
crowd in such option series will collectively be the Responsible 
Broker or Dealer to the extent of the aggregate quotation size 
specified.'' See PCX Rule 6.86(a)(2).
    \11\ See PCX Rules 6.86(b) & (c).
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    The Exchange now proposes to establish specific sanctioning 
guidelines relating to disciplinary actions initiated as a result of 
violations of the PCX Firm Quote Rule 6.86. Along with the general 
principles enunciated above for determining sanctions, the Exchange 
proposes to adopt the additional factor of whether the wrongdoer 
remediated the failure to execute the transaction. The Exchange 
proposes the following monetary sanctions for disciplinary actions 
brought for violations of PCX Rule 6.86:

1st Disciplinary Action\12\--$500.00 to $5,000.00;
2nd Disciplinary Action--$1,000.00 to $10,000.00; and
Subsequent Disciplinary Actions--$3,000.00 to $50,000.00.

    \12\ When determining whether an action is the first 
disciplinary action, the Adjudicatory body would consider 
disciplinary actions with respect to violative conduct that occurred 
within the two years prior to the misconduct at issue. Recent acts 
of similar misconduct may be considered to be aggravating factors. 
For purposes of the proposed rule change, this two-year look-back 
provision would apply on a rolling basis. See telephone conversation 
between Hassan A. Abedi, Manager, Enforcement, PCX, and Sonia 
Patton, Staff Attorney, Commission, on February 6, 2002.

    According to the Exchange, the proposed guidelines would also allow 
for non-monetary sanctions such as suspension, expulsion, or other 
sanctions in egregious cases. The Exchange believes that the proposed 
fine levels would help to deter violations of its Firm Quote Rule.
2. Limit Order Display--Specialist Options Transactions
    The Exchange currently regulates for display of options bids and 
offers in its Public Limit Order Book (the ``book'') under PCX Rule 
6.55.\13\ According to the Exchange, PCX Rule 6.55 requires the Order 
Book Official (``OBO'') to continuously display, in a visible manner, 
the highest bid and lowest offer along with an indication of the number 
of options contracts bid for at the highest bid and offered at the 
lowest offer. The Exchange has filed a proposed rule change with the 
Commission to amend this rule.\14\ As amended, the Exchange states that 
the rule would require an OBO to immediately and continuously display 
an options limit order. For the purpose of this rule, ``immediately'' 
means as soon as practicable after receipt, which under normal market 
conditions means no later than 30 seconds after receipt. In its filing 
to the Commission, the Exchange indicated that the vast majority of 
these orders are now entered electronically into the OBO's custody when 
a member firm sends it to the Pacific Options Exchange Trading Systems 
(``POETS'') via the Exchange's Member Firm Interface. The Exchange 
states that these electronic orders are immediately displayed on the 
overhead screens on the trading floor and disseminated to the public 
via OPRA. The Exchange also indicated in its filing that although the 
rule change would initially apply to Exchange staff only, the Exchange 
anticipated that in the future, all Exchange members may begin to 
operate limit order books on the options floor and the modified rule 
would apply to them. The Exchange states that currently, some Exchange 
members operate some limit order books; and therefore the amended rule 
does apply to them. The Exchange ensures that it holds the members 
responsible for ensuring that the obligations under this rule are met. 
The Exchange is currently awaiting Commission approval of the proposed 
amendment to this rule.
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    \13\ The Exchange filed with the Commission a proposed rule 
change to amend PCX Rule 6.46 in order to assure that Floor Brokers 
promptly display limit orders that improve the market. See File No. 
SR-PCX-2001-40 (October 18, 2001).
    \14\ See Securities Exchange Act Release No. 43550 (November 13, 
2000), 65 FR 69979 (November 21, 2000) (SR-PCX-00-15).
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    In addition, the Exchange proposes to adopt specific sanctioning 
guidelines relating to disciplinary actions brought for violations of 
PCX Rule 6.55. Along with the general principles enunciated above, for 
determining sanctions, the Exchange proposes to adopt additional 
factors for consideration. These factors include: (1) Whether a 
customer limit order was executed during the period of non-compliance; 
(2) whether other transactions were executed at prices equal to or 
better than the customer limit order; (3) whether the misconduct had a 
significant adverse impact on market transparency and availability of 
price information; and (4) the amount of time beyond 30 seconds that 
elapsed before the limit order was displayed. The Exchange also 
proposes the following monetary sanctions for disciplinary actions 
brought for violations of PCX Rule 6.55:

1st Disciplinary Action\15\--$1,000.00 to $5,000.00;
2nd Disciplinary Action--$2,000.00 to $10,000.00; and

[[Page 6779]]

Subsequent Disciplinary Actions--$5,000.00 to $50,000.00.


    \15\ When determining whether an action is the first 
disciplinary action, the Adjudicatory body would consider 
disciplinary actions with respect to violative conduct that occurred 
within the two years prior to the misconduct at issue. Recent acts 
of similar misconduct may be considered to be aggravating factors.
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    According to the Exchange, the proposed guidelines would also allow 
for non-monetary sanctions such as suspension, expulsion, or other 
sanctions in egregious cases. The Exchange believes that the proposed 
fine levels would help to deter violations of its Limit Order Display 
Rule.
3. Priority Rules--Obligations of Market Makers and Priority of Bids 
and Offers
    According to the Exchange, PCX Rules 6.37 and 6.75 currently set 
forth the Obligations of Market Makers and the Priority of Bids, 
respectively. The Exchange states that it submitted a proposed rule 
change to amend these rules with the Commission pursuant to the 
requirements of the Order.\16\ According to the Exchange, the purpose 
of this proposed amendment is to adopt new rules pertaining to the 
allocation of option orders on the trading floor, priority of bids and 
offers on the trading floor, and the spreads or options prices 
established by Market Makers. In that same submission, the Exchange 
states that it also seeks Commission approval of an Exchange Regulatory 
Bulletin that is intended to summarize and clarify the Exchange rules 
relating to priority of bids and offers on the options trading floor 
and the allocation of orders in response to bids and offers that have 
been accepted by other floor members.\17\
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    \16\ File No. SR-PCX-2001-50.
    \17\ Id.
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    The Exchange now proposes to adopt specific sanctioning guidelines 
relating to disciplinary actions brought for violations of PCX Rules 
6.37 and 6.75. Along with the general principles enunciated above to be 
considered when determining sanctions, the Exchange proposes to adopt 
additional factors for consideration. These factors include: (1) 
Whether the misconduct involved violations of rules intended to provide 
protection to customer orders; (2) whether the misconduct resulted in 
the failure to execute a customer order; and (3) if so, whether the 
wrongdoer remediated the misconduct. The Exchange also proposes the 
following monetary sanctions for disciplinary actions brought for 
violations of PCX Rules 6.37 and 6.75:

1st Disciplinary Action \18\--$1,000.00 to $5,000.00;
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    \18\ When determining whether an action is the first 
disciplinary action, the Adjudicatory body would consider 
disciplinary actions with respect to violative conduct that occurred 
within the two years prior to the misconduct at issue. Recent acts 
of similar misconduct may be considered to be aggravating factors.
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2nd Disciplinary Action--$2,000.00 to $20,000.00; and
Subsequent Disciplinary Actions--$5,000.00 to $50,000.00.

    According to the Exchange, the proposed guidelines would also allow 
for non-monetary sanctions such as suspension, bar, or other sanctions 
in egregious cases. The Exchange believes that the proposed fine levels 
will help to deter violations of its Priority Rules.
4. Best Execution--Floor Broker's Use of Due Diligence in Handling 
Orders
    The Exchange currently sanctions members and member organizations 
for violations of its best execution rules under the Exchange's MRP. As 
previously discussed, although these violations are governed by the 
MRP, the Exchange states that it has authority to remove a specific 
violation from the MRP and treat it as a formal disciplinary action.
    The Exchange states that it enforces the obligations of best 
execution, with respect to handling of orders, under PCX Rule 6.46, 
which requires a floor broker handling an order to use due diligence to 
execute the order at the best price or prices available. According to 
the Exchange, a floor broker's use of due diligence in executing an 
order includes ascertaining whether a better price than that being 
displayed at that time is being quoted by another floor broker or 
market maker. The floor broker must also make all persons in the 
trading crowd aware of his request for a quotation. Finally, the 
Exchange states that it requires all floor brokers to immediately and 
continuously represent market and marketable orders at the trading post 
and execute the order in a prompt manner.
    As stated by the Exchange, violations of PCX Rule 6.46 are 
currently enforced under the Exchange's MRP.\19\ The Exchange, in an 
effort to encourage compliance with and deter future violations of its 
MRP rules, filed with and received approval from the Commission to 
increase the fines that it imposes under its MRP.\20\ The current fines 
being imposed by the Exchange for violations \21\ of Rule 6.46 are 
listed below.
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    \19\ See PCX Rule 10.13(k)(i)(1).
    \20\ See Securities Exchange Release Act No. 44010 (February 27, 
2001), 66 FR 13618 (March 6, 2001) (SR-PCX-00-37).
    \21\ According to the Exchange, fines for multiple violations 
are calculated on a running two-year basis pursuant to its MRP.
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Minor Rule Plan

1st Violation--$1,000.00
2nd Violation--$2,500.00
3rd Violation--$3,500.00

    In order to provide guidance to its Adjudicatory Bodies, the 
Exchange proposes to adopt specific sanctioning guidelines relating to 
formal disciplinary actions, outside of the MRP, brought for violations 
of PCX Rule 6.46. Along with the general principles enunciated above 
for determining sanctions, the Exchange proposes to adopt additional 
factors for consideration. These factors include: (1) Whether the 
misconduct involved violations of rules intended to provide protection 
to customer orders; (2) whether a customer was disadvantaged because of 
the floor broker's failure to exercise due diligence; (3) whether the 
misconduct resulted in the failure to execute a customer order; (4) if 
so, whether the wrongdoer remediated the misconduct; and (5) whether 
the wrongdoer acted with intent to disadvantage a customer. In 
addition, the Exchange proposes the following monetary sanctions for 
disciplinary actions brought for violations of PCX Rule 6.46:

1st Disciplinary Action \22\--$1,000.00 to $5,000.00;
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    \22\ When determining whether an action is the first 
disciplinary action, the Adjudicatory body would consider 
disciplinary actions with respect to violative conduct that occurred 
within the two years prior to the misconduct at issue. Recent acts 
of similar misconduct may be considered to be aggravating factors.
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2nd Disciplinary Action--$3,000.00 to $10,000.00; and
Subsequent Disciplinary Actions--$10,000.00 to $25,000.00.

    The Exchange believes that the increased focus of its regulatory 
staff in this area, combined with the increased fines in its MRP, as 
well as the proposed guidelines, which will also allow for non-monetary 
sanctions such as suspension, bar, or other sanctions in egregious 
cases will assist in reducing the number and deterring future 
violations of member and member organization best execution 
obligations.
5. Trade Reporting--PCX Rule 6.69  Reporting Duties
    The Exchange currently sanctions members and member organizations 
for violations of its trade reporting rules under the PCX MRP. As 
previously discussed, although these violations are governed by the 
MRP, the Exchange has authority to remove a specific violation from the 
MRP and treat it as a formal disciplinary action.
    As stated above, violations of PCX Rule 6.69 are currently enforced 
under the Exchange's MRP.\23\ PCX Rule 6.69 sets forth the trade 
reporting duties of its members and member organizations.

[[Page 6780]]

The Exchange recently amended PCX Rule 6.69 in order to clarify and 
reinforce the reporting obligations of its members and member 
organizations.\24\ As amended, the PCX Rule 6.69(a) requires that all 
option transactions be immediately reported to the Exchange for 
dissemination to the Options Price Reporting Authority (``OPRA'').\25\ 
PCX Rule 6.69(a) applies to all members and member organizations that 
are required to report trades either directly to OPRA or to another 
party who is responsible for reporting trades to OPRA. According to the 
Exchange, transactions not reported to OPRA within 90 seconds after 
execution are designated as ``late.'' The Exchange further states that 
under its MRP, members and member organizations who violate this rule 
are currently sanctioned in the following manner:
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    \23\ See PCX Rule 10.13(k)(i)(38).
    \24\ See Securities Exchange Release Act No. 43975 (February 15, 
2001), 66 FR 11624 (February 26, 2001) (SR-PCX-00-27).
    \25\ According to the Exchange, OPRA disseminates the options 
exchanges' best bid and offering price, but does not disseminate the 
sizes of those markets. However, the size of the best bid and offer 
in the book is displayed on the overhead screens on the floor. See 
PCX Rule 6.55.
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Minor Rule Plan

1st Violation--$100.00;
2nd Violation--$250.00; and
3rd Violation--$500.00.

    The Exchange intends to amend its MRP in order to increase the 
sanctions for trade reporting violations. The increased sanctions will 
be similar to those submitted by the Exchange in the previous amendment 
to the MRP.\26\ The Exchange believes that the increased fines will 
assist in deterring future violations of its trade reporting rule.
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    \26\ See Securities Exchange Release Act No. 44010 (February 27, 
2001), 66 FR 13618 (March 6, 2001) (SR-PCX-00-37).
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    On November 19, 2001, the Commission approved a rule change by the 
Exchange that requires all Exchange member organizations to synchronize 
their business clocks.\27\ In sum, this rule requires Exchange members 
to ensure that the business clocks they use at the Exchange are 
accurate to within three seconds of the National Institute of Standards 
and Technology Atomic Clock in Boulder, Colorado, or the United States 
Naval Observatory Master Clock in Washington, DC The Exchange states 
that this rule allows the Exchange members to generate more accurate 
automated reports and should assist members in reducing the number of 
reporting violations that might occur if their business clocks were not 
synchronized.
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    \27\ See Securities Exchange Release Act No. 45080 (November 19, 
2001), 66 FR 59281 (November 27, 2001) (SR-PCX-2001-24).
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    The Exchange states that in order to provide guidance to its 
Adjudicatory Bodies, it proposes to adopt specific sanctioning 
guidelines relating to formal disciplinary actions, outside of the MRP, 
brought for violations of PCX Rule 6.96. Along with the general 
principles enunciated above, for determining sanctions, the Exchange 
proposes to adopt additional factors for consideration. These factors 
include: (1) The extent of the abuse (i.e., whether a pattern of abuse 
exists, and the number of transactions involved); (2) presence of 
intent, recklessness, or negligence; (3) the nature of trade-reporting 
violation; (4) whether the violative conduct affected discovery of 
information regarding market price; (5) the amount of time beyond 90 
seconds that elapsed before trade was reported; and (6) whether the 
wrongdoer remediated the misconduct. In addition, the Exchange proposes 
the following monetary sanctions for disciplinary actions brought for 
violations of PCX Rule 6.69:

1st Disciplinary Action \28\--$1,000.00 to $5,000.00;
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    \28\ When determining whether an action is the first 
disciplinary action, the Adjudicatory body would consider 
disciplinary actions with respect to violative conduct that occurred 
within the two years prior to the misconduct at issue. Recent acts 
of similar misconduct may be considered to be aggravating factors.
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2nd Disciplinary Action--$3,000.00 to $10,000.00; and
Subsequent Disciplinary Actions--$10,000.00 to $50,000.00.

    The Exchange believes that these undertakings would help to prevent 
fraudulent and manipulative acts and practices as well as to promote 
just and equitable principles of trade. The Exchange also believes that 
these tools would enable the Exchange to provide timely trade 
information to investors more efficiently. Finally, the enhanced 
transparency associated with timely trade reporting should facilitate 
price discovery for investors and assist the Exchange's surveillance of 
its members' trading in listed options.
(2) Statutory Basis
    The Exchange believes that this proposal is consistent with Section 
6(b) of the Act,\29\ in general, and furthers the objectives of Section 
6(b)(5),\30\ in particular, in that it is designed to facilitate 
transactions in securities, to promote just and equitable principals of 
trade, and to protect investors and the public interest.
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    \29\ 15 U.S.C. 78f(b).
    \30\ 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 that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Exchange consents, the Commission will:
    A. By order approve such proposed rule change; or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 
statements with respect to the proposed rule change that are filed with 
the Commission, and 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 filings will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-PCX-2001-23 and 
should be submitted by March 6, 2002.


[[Page 6781]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-3493 Filed 2-12-02; 8:45 am]
BILLING CODE 8010-01-P