[Federal Register Volume 67, Number 177 (Thursday, September 12, 2002)]
[Notices]
[Page 57859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23235]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46461; File No. SR-PCX-2002-33]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order 
Granting Approval To Proposed Rule Change To Revise the Process for 
Designating Arbitrators for Member-to-Member Disputes

September 5, 2002.
    On May 30, 2002, 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 amend PCX Rule 
12.8(e) to revise the process for designating arbitrators for member-
to-member disputes.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The proposed rule change was published for comment in the Federal 
Register on July 19, 2002.\3\ The Commission received no comments 
regarding the proposed rule change.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 46190 (July 11, 
2002), 67 FR 47590.
---------------------------------------------------------------------------

    After careful review, 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.\4\ 
Specifically, the Commission finds that the proposal is consistent with 
section 6(b)(5) of the Act \5\ because it is designed to promote just 
and equitable principals of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, and to protect investors and the public interest. The 
Commission notes that the proposed rule change would simplify the PCX 
arbitrator selection process for Member Controversies by coordinating 
the rule with existing rules on Public Controversies and provide 
uniformity with PCX Rules for Public Controversies by raising the 
amount in controversy from $10,000 to $30,000 as the threshold in 
determining whether the controversy would be heard by at least three 
arbitrators. The proposed rule would also provide for a consistent 
source of arbitrators by using the same arbitrator list for the 
selection of arbitrators for both Public and Member Controversies.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-PCX-2002-33) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-23235 Filed 9-11-02; 8:45 am]
BILLING CODE 8010-01-P