[Federal Register Volume 68, Number 63 (Wednesday, April 2, 2003)]
[Notices]
[Pages 16112-16113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7936]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47582; File No. SR-PHLX-2002-18]


Self Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change To Make Permanent a 
PACE Automatic Price Improvement Pilot Program and a PACE Order 
Execution and Price Protection Pilot Program

March 27, 2003.
    On March 11, 2002, the Philadelphia Stock Exchange, Inc. (``Phlx'' 
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 make permanent two Philadelphia Stock Exchange 
Automated Communication and Execution System (``PACE'') pilot programs 
that were introduced with the advent of decimal pricing in the 
securities industry. The first pilot program consists of an automated 
price improvement feature that incorporates a percentage of the spread 
between the bid and the offer, and has been in effect since January 30, 
2001.\3\ The second pilot program incorporates immediate execution of 
certain market orders through the Public Order Exposure System 
(``POES'') and mandatory double-up/double-down price protection, and 
has been in effect since August 25, 2000.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 43901 (January 30, 
2001), 66 FR 8988 (February 5, 2001) (SR-Phlx-2001-12).
    \4\ See Securities Exchange Act Release No. 43206 (August 25, 
2000), 65 FR 53250 (September 1, 2000) (SR-Phlx-2000-08).
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    The proposed rule change was published for comment in the Federal 
Register on March 22, 2002.\5\ The Commission received no comments on 
the proposal.
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    \5\ See Securities Exchange Act Release No. 45580 (March 18, 
2002), 67 FR 13399.
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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 \6\ and, in 
particular, the requirements of section 6 of the Act \7\ and the rules 
and regulations thereunder. The Commission finds

[[Page 16113]]

specifically that the proposed rule change is consistent with section 
6(b)(5) of the Act \8\ because it is designed to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest.
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    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-PHLX-2002-18), be, and it 
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. 03-7936 Filed 4-1-03; 8:45 am]
BILLING CODE 8010-01-P