[Federal Register Volume 68, Number 215 (Thursday, November 6, 2003)]
[Notices]
[Pages 62861-62862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27993]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48722; File No. SR-PCX-2003-31]


Self-Regulatory Organizations; Order Granting Approval to a 
Proposed Rule Change and Amendments No. 1 and 2 Thereto by the Pacific 
Exchange, Inc. Making Housekeeping Changes to its Options Trading Rules

October 31, 2003.
    On July 8, 2003, the Pacific Exchange, Inc. (``PCX'' 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 amend its rules to clarify existing provisions, 
eliminate superfluous provisions, re-number rules where appropriate, 
and to otherwise update its rules. On September 10, 2003, the PCX filed 
Amendment No. 1 to the proposed rule change.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the PCX's original Rule 19b-4 
filing in its entirety.
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    The proposed rule change and Amendment No. 1 were published for 
comment in the Federal Register on September 29, 2003.\4\ The 
Commission received no comments on the proposal. On September 24, 2003, 
the PCX filed Amendment No. 2 to the proposed rule change.\5\
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    \4\ See Securities Exchange Act Release No. 48522 (September 23, 
2003), 68 FR 56029.
    \5\ See letter from Tania J. Cho, Staff Attorney, Regulatory 
Policy, PCX, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation, Commission, dated September 23, 2003 (Amendment 
No. 2''). In Amendment No. 2, PCX made a technical correction to its 
rule text. Because this is a technical amendment, it is not subject 
to notice and comment.
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    The Commission finds that the proposed rule change, as amended, 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. Specifically, the Commission 
finds that the proposed rule change, as amended, is consistent with 
Section 6(b)(5) of the Act \8\ because it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of

[[Page 62862]]

trade, to foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, 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. 
The Commission finds that the proposed rule change, as amended, is also 
consistent with Section 6(b)(6) of the Act,\9\ which requires that 
members and persons associated with members be appropriately 
disciplined for violations of Exchange rules.\10\
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    \6\ In approving this proposed rule change, as amended, the 
Commission notes that it 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).
    \9\ 15 U.S.C. 78f(b)(6).
    \10\ The Commission believes that PCX's amendment to PCX Rule 
6.35 should help to clarify that Market Makers must apply for 
primary appointments and that a Market Maker's refusal to accept a 
primary appointment zone may be deemed a sufficient cause for 
termination or suspension of the Market Maker's registration.
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    The Commission believes that the housekeeping changes proposed by 
the Exchange to PCX Rule 6 (``Options Trading--Rules Principally 
Applicable to Trading of Options Contracts'') and to other PCX rules 
should help to correct, clarify, and ensure consistency in and among 
the PCX's current rules and in the terminology used in those rules. The 
Commission notes that many of these housekeeping changes are the result 
of the incorporation of new or amended rules pursuant to the 
Commission's approval of PCX Plus.\11\
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    \11\ See Securities Exchange Act Release No. 47838 (May 13, 
2003), 68 FR 27129 (May 19, 2003) (File No. SR-PCX-2002-36) (order 
approving PCX Plus, the Exchange's new electronic platform for 
options trading).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\12\ that the proposed rule change (File No. SR-PCX-2003-31), as 
amended, is hereby approved.
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    \12\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-27993 Filed 11-5-03; 8:45 am]
BILLING CODE 8010-01-P