[Federal Register Volume 67, Number 59 (Wednesday, March 27, 2002)]
[Notices]
[Pages 14759-14760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7294]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45595; File No. SR-PCX-2002-07]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to 30-Second ITS Commitment Expirations

March 19, 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 February 22, 2002, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') 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, through its wholly owned subsidiary PCX Equities, 
Inc. (``PCXE''), proposes to amend PCXE Rule 7.66(b)(2)(F) to conform 
to the Seventeenth Amendment of the Intermarket Trading System 
(``ITS'') Plan, which provides for a 30-second commitment expiration 
period.\3\
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    \3\ See Securities Exchange Act Release No. 44903 (October 3, 
2001), 66 FR 52159 (October 12, 2001) (order approving the 
Seventeenth Amendment of the ITS Plan). The ITS is a National Market 
System (``NMS'') plan, which was designed to facilitate intermarket 
trading in exchange-listed equity securities based on current 
quotation information emanating from the linked markets. See 
Securities Exchange Act Release No. 19456 (January 27, 1983), 48 FR 
4938 (February 3, 1983) (adopting the restated ITS Plan).
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    The text of the proposed rule change is available upon request from 
Office of the Secretary, the PCX and 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, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend PCXE Rule 7.66(b)(2)(F) to provide 
for a 30-second commitment expiration period for orders received 
through the ITS, consistent with the Seventeenth Amendment to the ITS 
Plan. The Exchange notes that the 30-second commitment expiration 
period is a six-month pilot program under the ITS Plan that commenced 
on January 7, 2002 and would remain available until the last trading 
day of the sixth full calendar month following such commencement.
    Presently, PCXE Rule 7.66(b)(2)(F) provides that the sender of an 
ITS commitment may designate a time period during which a commitment 
will be irrevocable following acceptance by the system. The ITS Plan 
provides for three irrevocable time-period options consisting of 30-
seconds (or ``T-30s''), one minute and two minutes. Accordingly, PCX 
proposes to replace the current rule text in PCXE Rule 7.66(b)(2)(F), 
which states that there are ``two'' irrevocable time-period options, 
with the word ``three'' thereby making the rule text consistent with 
the ITS Plan.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) \4\ of the Act in general, and furthers the 
objectives of section (b)(5) of the Act \5\ in particular, in that it 
is designed to promote just and equitable principles of trade, to 
enhance competition and to protect investors and the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).

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[[Page 14760]]

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

    Because the foregoing proposed rule change does not (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (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 
provided the Commission with written notice of its intent to file the 
proposed rule change at least five business days prior to the filing 
date,\6\ it has become effective pursuant to section 19(b)(3)(A) of the 
Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ 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, or otherwise in furtherance of the purposes of 
the Act.
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    \6\ On January 29, 2002, the PCX submitted a draft proposal and 
asked the Commission to consider the proposal pursuant to section 
19(b)(3)(A) of Act and Rule 19b-4(f)(6) thereunder. 15 U.S.C. 
78s(b)(3)(A), 17 CFR 240.19b-4(f)(6). The Commission has agreed to 
accept the draft proposal as satisfying the 5-day pre-filing 
requirement pursuant to Rule 19b-4(f)(6). 17 CFR 240.19b-4(f)(6).
    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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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 
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 at 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 File No. SR-PCX-2002-07 and should 
be submitted by April 17, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-7294 Filed 3-26-02; 8:45 am]
BILLING CODE 8010-01-P