[Federal Register Volume 69, Number 145 (Thursday, July 29, 2004)]
[Notices]
[Pages 45360-45364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17291]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50064; File No. SR-PCX-2003-64]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment Nos. 1 and 2 Thereto by the Pacific Exchange, Inc. 
Relating to Facilitation Crosses

    July 22, 2004.
    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 November 20, 2003, 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. On July 
7, 2004, and July 15, 2004, respectively, the Exchange filed Amendment 
Nos. 1 and 2 to the proposed rule change.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letters from Mai S. Shiver, Acting Director/Senior 
Counsel, PCX, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated July 6, 2004, 
and July 14, 2004. The changes made by Amendment Nos. 1 and 2 have 
been incorporated in this notice.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX is proposing to modify its facilitation crossing procedures in 
several respects in order to ensure that the customer side of a 
facilitation order will be executed if it is priced at or between 
quoted markets. Among other things, the proposal would also increase to 
40% the guaranteed percentage of the customer order that a Floor Broker 
is entitled to cross at the quoted market. The text of the proposed 
rule change is set forth below. Proposed new language is italicized and 
proposed deletions are in brackets.

Rules of the Board of Governors of the Pacific Exchange, Inc.

Rule 6
Options Trading
``Crossing'' Orders and Stock/Option Orders
    Rule 6.47 (a)-No change.
    (b) Facilitation Procedure. [Crossing of Facilitation Orders.] The 
Facilitation Procedure is a process by which a [A] Floor Broker who 
holds an order for a [public] customer [or a broker-dealer] 
(``[c]Customer [o]Order'') and an order for the proprietary account of 
an OTP Holder or OTP Firm or an organization under common control with 
a Lead Market Maker ``LMM'' that is representing that customer (the 
``[f]Facilitation [o]Order'') may cross those orders [only if the 
following procedures and requirements are followed]. The Floor Broker 
may do so by following the Facilitation Procedure outlined in this 
subsection (b) of this Rule. The Floor Broker must be willing to 
facilitate the entire size of the Customer Order entered via the 
Facilitation Procedure.
    (1) The size of the [c]Customer [o]Order subject to facilitation 
must be at least fifty contracts. Orders for less than fifty contracts 
may be facilitated pursuant to this rule but are not subject to the 
firm guarantees of subsections (4) through (6) of this Rule [below 
pertaining to firm guarantees] and therefore must satisfy all orders in 
the book and orders represented in the trading crowd (affording the 
trading crowd a reasonable period of time to respond) before the floor 
broker may cross the order.
    (2) The option order tickets for both the [f]Facilitation [o]Order 
and the [c]Customer [o]Order must display all of the terms of such 
orders, including any contingencies involving, and all related 
transactions in, either options or underlying or related securities. 
The Floor Broker must disclose all securities that are components of 
the [c]Customer [o]Order.
    (3) The Floor Broker must request bids and offers for all 
components of the [c]Customer [o]Order, including the size of the 
order, but does not have to specifically request a ``facilitation 
market.'' Once the trading crowd has been afforded a reasonable time to 
provide a quote, the quote will remain in effect only for such time as 
is necessary for the Floor Broker to immediately vocalize the Customer 
Order. [and clearly disclose his intention to execute a facilitation 
cross transaction to the trading crowd. Once the trading crowd has 
provided a quote,

[[Page 45361]]

it will remain in effect until: (A) a reasonable amount of time has 
passed, or (B) there is a significant change in the price of the 
underlying security, or (C) the facilitation market has been improved. 
(The term ``significant change'' will be interpreted on a case-by-case 
basis by two Trading Officials or the Exchange based upon the extent of 
recent trading in the option and in the underlying security, and any 
other relevant factors.)]
    (4) In response to the trading crowd's quoted market, the Floor 
Broker may immediately consummate the facilitation cross if: (i) he or 
she immediately bids (offers) a price on the Customer Order that is on 
or inside the quoted market (``Facilitation Price'') provided by the 
trading crowd in response to the Floor Broker's request for a market 
and (ii) satisfies all other contingencies associated with the Customer 
Order. After satisfying any orders for the account of persons who are 
not OTP Holders or OTP Firms of the Exchange pending at the 
Facilitation Price, the Floor Broker may facilitate up to forty percent 
(40%) of the remaining Customer Order against the Facilitation Order at 
the Facilitation Price and must allow any other members of the trading 
crowd interested in trading at the facilitation price to execute the 
remaining sixty percent (60%) or more of the Customer Order. The 
allocation of the remaining Customer Order will be made on a (i) size 
pro-rata basis (the percentage of the orders that is the ratio of the 
size of the offers (bids) to the total size of the offers (bids) as 
described in 6.75(f)(6)); or (ii) equal basis (in the case of identical 
offers (bids) as described in PCX Rule 6.75(c)) where the floor 
broker's bid (offer) improved the crowd's price in response to the 
request for a market. If after providing the crowd reasonable time to 
execute the remaining 60% of the Customer Order any amount of the 
Customer Order remains, the Floor Broker must fill the remainder of the 
Customer Order by executing it against the Facilitation Order at the 
Facilitation Price. [Once a market has been established and all public 
customer orders represented in the trading crowd have been satisfied, 
the Floor Broker may cross:
    (A) forty percent (40%) of any remaining contracts at a price 
between the trading crowd's quoted market (e.g., if the trading crowd's 
quoted market is 2.10-2.50, and the Floor Broker is representing a 
customer order to buy 1000 contracts, then the Floor Broker may cross 
40% of 1000 at any 2.25 or any other improved price); or
    (B) twenty-five percent (25%) of the contracts at the trading 
crowd's best bid or offer (e.g., if the trading crowd's quoted market 
is 2.10--2.50, and the Floor Broker is representing a customer order to 
buy 1000 contracts, then the Floor Broker may cross 25% of 1000 at the 
trading crowd's offer).]
    (5) If the trading crowd does not provide a bid and offer for all 
components of the Customer Order in response to the Floor Broker's 
request within a reasonable period of time, for the purposes of this 
rule, either: (i) the quoted market disseminated by the Exchange prior 
to the commencement of the Facilitation Procedure will constitute the 
market quoted by the trading crowd in response to the Floor Broker's 
request; or (ii) for orders for which there is no disseminated market 
(such as complex orders), the market for the order will be determined 
by the disseminated quote for each leg of the transaction prior to the 
commencement of the Facilitation Procedure. Once the Floor Broker 
provides a Facilitation Price and can satisfy all of the contingencies 
associated with the Customer Order, the Customer Order is deemed 
consummated at the Facilitation Price. After satisfying the orders of 
any persons who are not OTP Holders or OTP Firms of the Exchange 
pending at the Facilitation Price, the Floor Broker may facilitate up 
to forty percent (40%) of the remaining Customer Order against the 
Facilitation Order at the Facilitation Price and must allow any other 
member of the trading crowd interested in trading at the facilitation 
price to execute the remaining sixty percent (60%) or more of the 
Customer Order. After providing the crowd reasonable time to execute 
the remaining 60% of the Customer Order, the Floor Broker must fill the 
remainder of the Customer Order by executing it against the 
Facilitation Order at the Facilitation Price. [If the facilitation 
trade occurs at the LMM's quoted bid or offer in their allocated issue, 
then the LMM's guaranteed participation level shall apply only to the 
number of contracts remaining after all public customer orders and the 
firm facilitation order being represented by the Floor Broker have been 
satisfied pursuant to this rule. However, the total amount of 
participation that any firm and/or LMM may receive, as a guarantee, may 
not exceed, in the aggregate, forty percent (40%) of the customer 
order. If the trade occurs at a price other than the LMM's quoted bid 
or offer, the LMM is entitled to no guaranteed participation.]
    (6) If the facilitation trade occurs at the LMM's quoted bid or 
offer in their allocated issue and the Floor Broker takes less than 
forty percent (40%) of the trade, then the LMM may elect to accept 
either: (i) a guaranteed participation level of forty percent (40%) 
minus the Floor Broker's allocation percentage, or (ii) to participate 
in the pro-rata allocation on a non-guarantee participation level. If 
the trade occurs at a price other than the LMM's quoted bid or offer, 
the LMM is entitled to no ``guaranteed'' participation. Nothing in this 
rule is intended to prohibit a Floor Broker or LMM from trading more 
than their percentage entitlements if the other members of the trading 
crowd do not choose to trade the remaining portion of the order. [The 
OTP Holders or OTP Firms of the trading crowd who established the 
facilitation market will have priority over all other non-public 
customer orders that were not represented in the trading crowd at the 
time that the facilitation market was established and will maintain 
priority over non-customer orders except for orders that improve the 
bid or offer. A Floor Broker who is holding a customer order and a 
facilitation order and who calls for a facilitation market will be 
deemed to be representing both the customer order and the facilitation 
order, so that the customer order and the facilitation order will also 
have priority over all other non-public customer orders that were not 
being represented in the trading crowd at the time that the 
facilitation market was established.]
    (c)--No change.
    (d)--Trading Crowd Opportunity to Respond. Except as provided in 
subparagraph (b) of this rule relating to the Facilitation Procedure 
for Customer Orders of at least 50 contracts, Floor Brokers are 
cautioned that they must allow OTP Holder or OTP Firm represented in 
the trading crowd a reasonable period in which to respond to the bid 
and/or offer prior to consummating the cross transaction. A reasonable 
period will not be defined in terms of specific time limit. However, an 
obvious attempt to execute a cross in an uninterrupted sequence with 
the announcement of the bid and offer is deemed to be a violation of 
Rule 6.47 and Rule 6.73, and grounds for objection to the cross 
transaction.
    (e)-(f)--No change.

Commentary:

    .01 The term ``[public] customer of an OTP Holder or OTP Firm'' 
shall mean, in connection with Rule 6.62(i) and 6.47, a customer that 
is neither an OTP Holder or OTP Firm nor a broker/dealer.
    .02 When accepting a bid or offer made on behalf of a [public] 
customer,

[[Page 45362]]

all contingencies of the [public] [c]Customer [o]Order must be 
satisfied by the accepting OTP Holder or OTP Firm.
    .03--No change.
    .04 Where a related transaction must be effected in another market, 
that transaction must be effected prior to [effecting] the options 
transaction.
    .05--No change.
    .06 [The Exchange has determined that deliberate misrepresentation 
of an order will subject an OTP Holder or OTP Firm to disciplinary 
action.] It will be a violation of a Floor Broker's duty to use due 
diligence in representing its Customer Order if a Floor Broker does not 
employ the Facilitation Procedure on the PCX immediately upon receipt 
on the PCX of the order that the OTP Holder or OTP Firm wishes to have 
executed as a facilitation cross.
    .07 It will be a violation of an OTP Holder or OTP Firm's duty of 
best execution to its customer if it were to cancel a Facilitation 
Order to avoid execution of the order at a better price. The 
availability of the Facilitation Procedure does not alter an OTP Holder 
or OTP Firm's best execution duty to get the best price for its 
customer. Accordingly, while facilitation orders can be cancelled prior 
to a trading crowd providing quotes in response to a request for a 
market, if an OTP Holder or OTP Firm were to cancel a Facilitation 
Order when there was a superior price available on the Exchange and 
subsequently re-enter the Facilitation Order at the same Facilitation 
Price after the better price was no longer available without attempting 
to obtain that better price for its customer, there would be a 
presumption that the OTP Holder or OTP Firm did so to avoid execution 
of its Customer Order in whole or in part by other brokers at the 
better price.
* * * * *

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. PCX 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 facilitation crossing procedure as provided in PCX Rule 6.47(b) 
allows a Floor Broker who holds an order for a customer and an order 
for the proprietary account of an OTP (Options Trading Permit) Holder 
or OTP Firm representing that customer to cross those orders. The 
Exchange seeks to amend its facilitation crossing rules in order to 
ensure that the customer side of a facilitation cross will be executed 
in a facilitation cross if it is priced at or between markets quoted in 
response to a request for a market. Among other things, the proposal 
would also increase to 40% the guaranteed percentage of the customer 
order that a Floor Broker is entitled to cross at the quoted market. 
The Exchange represents that the proposed amendment to its facilitation 
crossing rules makes the Exchange's crossing rules more competitive and 
generally consistent with the crossing rules of other options 
exchanges.\4\ Accordingly, the Exchange proposes to make the following 
changes to its rule:
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    \4\ See, e.g., International Stock Exchange Rule 716.
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Size of the Customer Order and Applicability
    The current rule specifies that the size of the customer order 
subject to facilitation generally must be at least fifty contracts. The 
proposed rule change clarifies the rule's provision for orders for 
fewer than fifty contracts to state that such orders may be facilitated 
pursuant to the rule, but are not subject to the firm guarantees of the 
facilitation crossing rule and therefore must satisfy all orders in the 
book and orders represented in the trading crowd (affording the trading 
crowd a reasonable period of time to respond) before the Floor Broker 
may cross the order. The Exchange also seeks to expand the newly 
amended rule (``Facilitation Procedure'') to an organization under 
common control with a Lead Market Maker (``LMM'') that is representing 
the customer order. The proposed rule change would also amend the rule 
so that the Facilitation Procedure applies only to a cross of a 
proprietary order of an OTP Holder, OTP Firm, or organization under 
common control with an LMM with an order of a customer (``Customer 
Order''), meaning a customer that is not an OTP Holder, an OTP Firm or 
a broker-dealer.\5\
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    \5\ Telephone conversation between Mai S. Shiver, Director/
Senior Counsel, PCX, and Ira L. Brandriss, Assistant Director, et 
al., Division, Commission, July 22, 2004.
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Vocalization Requirements
    Currently, PCX Rule 6.47(b)(3) requires a Floor Broker to clearly 
disclose all components of a Customer Order and his or her intention to 
execute a facilitation cross transaction in the trading crowd. Once the 
crowd provides a quote, the quote remains in effect until (i) a 
reasonable amount of time has passed, (ii) there is a significant 
change in price of the underlying security, or (iii) the facilitation 
market has been improved. The Exchange seeks to amend the rule to 
eliminate the requirement that the Floor Broker specifically request a 
``facilitation market'' and add the requirement that in calling for a 
market, the Floor Broker would have to reveal the size of the 
transaction in addition to the components of the order. The Exchange 
believes that the disclosure of the size of the transaction, including 
any components, will provide the crowd more information relevant to the 
decision-making process and enable the crowd to respond more 
expeditiously than disclosure of the fact that the Floor Broker is 
calling for a facilitation market.\6\
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    \6\ According to the PCX, in eliminating the requirement that 
the Floor Broker specifically request a facilitation market, the 
proposed Facilitation Procedure reflects the Exchange's facilitation 
crossing rules that existed before the Exchange amended its current 
rules in May 2000. Telephone conversation between Mai S. Shiver, 
Director/Senior Counsel, PCX, and Ira L. Brandriss, Assistant 
Director, et al., Division, Commission, July 14, 2004. See also 
Securities Exchange Act Release No. 42848 (May 26, 2000), 65 FR 
36206 (June 7, 2000) (PCX 99-18).
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Facilitation Procedure and Allocation
    PCX Rule 6.47(b)(4) provides the participation percentages to which 
a Floor Broker representing a facilitation cross is entitled. The rule 
currently provides that once a market has been established and all 
public customer orders represented in the trading crowd have been 
satisfied, the Floor Broker may cross either (i) 40% of any remaining 
contracts at a price between the trading crowd's quoted market, or (ii) 
25% of the contracts at the trading crowd's best bid or offer.
    The Exchange seeks to modify this rule in two respects: (i) to 
clearly delineate a Facilitation Procedure and (ii) to modify the 
guaranteed participation levels of the Floor Broker providing the 
facilitation order. The Exchange proposes that in response to

[[Page 45363]]

the trading crowd's quoted market, the Floor Broker may immediately 
provide a bid (offer) price for the Customer Order, so long as the 
Floor Broker's price (``Facilitation Price'') is on or inside the 
quoted market provided by the trading crowd in response to the Floor 
Broker's request for a market. As proposed, once the Floor Broker 
provides a Facilitation Price and can satisfy all of the contingencies 
associated with the Customer Order, the Customer Order is deemed 
consummated at the Facilitation Price.
    Once the facilitation process described above is achieved, the 
Exchange proposes to allocate the Customer Order in the following way: 
After first satisfying any orders for the account of persons who are 
not OTP Holders or OTP Firms pending at the Facilitation Price, the 
Floor Broker may facilitate up to 40% of the remaining Customer Order 
against the facilitation order at the Facilitation Price and must allow 
any other member of the trading crowd interested in trading at the 
Facilitation Price to execute the remaining 60% or more of the Customer 
Order. The allocation of the remaining Customer Order would be made on 
(i) a size pro-rata basis (the percentage of the orders that is the 
ratio of the size of the offers (bids) to the total size of the offers 
(bids) as described in 6.75(f)(6)); or (ii) an equal basis (in the case 
of identical offers (bids) as described in PCX Rule 6.75(c)) where the 
Floor Broker's bid (offer) improved the crowd's price in response to 
the request for a market. If after providing the crowd reasonable time 
to execute the remaining 60% of the Customer Order any amount of the 
Customer Order remains, the Floor Broker would be required to fill the 
remainder of the Customer Order by executing it against the 
Facilitation Order at the Facilitation Price.
    The Exchange also proposes to add new PCX Rule 6.47(b)(5) to state 
that if the trading crowd does not provide a bid and offer for all 
components of the Customer Order in response to the Floor Broker's 
request within a reasonable period of time, the ``market quote'' for 
the purpose of this rule will be: (i) the quoted market disseminated by 
the Exchange prior to the commencement of the Facilitation Procedure, 
or (ii) for orders for which there is no disseminated market, the 
market for the order will be determined by the disseminated quote for 
each leg of the transaction prior to the commencement of the 
Facilitation Procedure. Once the Floor Broker provides a Facilitation 
Price and can satisfy all of the contingencies associated with the 
Customer Order, the Customer Order would be deemed consummated at the 
Facilitation Price. After satisfying the orders of any persons who are 
not OTP Holders or OTP Firms pending at the Facilitation Price, the 
Floor Broker would be permitted to facilitate up to 40% of the 
remaining Customer Order against the Facilitation Order at the 
Facilitation Price and would be required to allow any other member of 
the trading crowd interested in trading at the facilitation price to 
execute the remaining 60% or more of the Customer Order. After 
providing the crowd reasonable time to execute the remaining 60% of the 
Customer Order, the Floor Broker would be required to fill the 
remainder of the Customer Order by executing it against the 
Facilitation Order at the Facilitation Price.
Participation of Lead Market Makers
    Currently, PCX Rule 6.47(b)(5) provides that if the facilitation 
trade occurs at the LMM's quoted bid or offer in its allocated issue, 
then the LMM's guaranteed participation level shall apply only to the 
number of contracts remaining after all public customer orders and firm 
facilitation orders being represented by the Floor Brokers have been 
satisfied. The rule further provides that the total amount of 
participation that any firm and/or LMM may receive as a guarantee may 
not exceed 40% of the Customer Order. If the trade occurs at a price 
other than the LMM's quoted bid or offer, the LMM is entitled to no 
guaranteed participation.
    The Exchange seeks to renumber this rule as proposed PCX Rule 
6.47(b)(6) and amend it to provide that if the facilitation trade 
occurs at the LMM's quoted bid or offer in their allocated issue and 
the Floor Broker takes less than 40% of the trade, then the LMM may 
elect either (i) to accept a guaranteed participation level of 40% 
minus the Floor Broker's allocation percentage, or (ii) to participate 
in the pro-rata allocation on a non-guarantee participation level. If 
the trade occurs at a price other than the LMM's quoted bid or offer, 
the LMM would be entitled to no ``guaranteed'' participation. The 
proposed rule would not prohibit a Floor Broker or LMM from trading 
more than their guaranteed participation levels if the members of the 
trading crowd do not choose to trade the remaining portion of the 
order.
Violative Conduct
    Current Commentary .06 to PCX Rule 6.47 provides that the Exchange 
has determined that deliberate misrepresentation of an order will 
subject an OTP Holder or OTP Firm to disciplinary action. The Exchange 
seeks to replace this provision with new Commentaries .06 and .07, 
which expressly define the conduct that the Exchange deems to be in 
violation of existing Exchange rules. As proposed, new Commentary .06 
provides that it will be a violation of a Floor Broker's duty to use 
due diligence in representing its Customer Order if the Floor Broker 
does not employ the Facilitation Procedure on the PCX immediately upon 
receipt on the PCX of the order that the OTP Holder or OTP Firm wishes 
to have executed as a facilitation cross.
    The Exchange also proposes to add Commentary .07, which provides 
that it will be a violation of an OTP Holder's or OTP Firm's duty of 
best execution to its customer if it cancels a facilitation order for 
the purpose of avoiding execution of the order at a better price. The 
Exchange believes that the availability of the Facilitation Procedure 
does not alter an OTP Holder or OTP Firm's best execution duty to get 
the best price for its customer. Therefore, while facilitation orders 
can be cancelled prior to obtaining quotes from a trading crowd, an OTP 
Holder or OTP Firm that (i) cancels a facilitation order when there is 
a superior price available on the Exchange and (ii) subsequently 
reenters the facilitation order at the same Facilitation Price after 
the better price is no longer available and does not attempt to obtain 
that better price for its customer is presumed to have acted in 
violation of his or her duty of best execution.
2. Statutory Basis
    The Exchange states that the basis under the Act for the proposed 
rule change is the requirement under section 6(b)(5) of the Act \7\ 
that an exchange have rules that are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, 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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    \7\ 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

[[Page 45364]]

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. Comments may be submitted by any of 
the following methods:

Electronic comments:

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-PCX-2003-64 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-PCX-2003-64. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 
filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-PCX-2003-64 and should be submitted on or before August 
19, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-17291 Filed 7-28-04; 8:45 am]
BILLING CODE 8010-01-P