[Federal Register Volume 69, Number 145 (Thursday, July 29, 2004)]
[Notices]
[Pages 45364-45365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17292]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50066; File No. SR-PCX-2004-69]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to PCX Plus Priority and Order Allocation Procedures

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 July 16, 2004, 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. Pursuant to section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ PCX 
has designated this proposal as one concerned solely with the 
administration of the self-regulatory organization, which renders the 
proposal effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX is proposing to amend PCX Rule 6.76 Commentary .02, governing 
PCX Plus Priority and Order Allocation Procedures in order to extend 
the date when PCX Plus will support Floor Broker interaction with 
Electronic Book Executions (``EBEs'') via System Alert Messages 
(``SAMs'') from June 30, 2004, until December 31, 2004.
    The text of the proposed rule change is available at PCX and at 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, PCX 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 Exchange is proposing to amend PCX Rule 6.76 Commentary .02 
governing PCX Plus Priority and Order Allocation Procedures. PCX Plus 
is the Exchange's electronic order delivery, execution and reporting 
system for designated option issues through which orders and Quotes 
with Size \5\ are consolidated for execution and/or display. The 
trading system includes an electronic communications network that 
enables registered Market Makers to enter orders/Quotes with Size and 
execute transactions from remote locations or the Trading floor. As 
proposed, the Exchange seeks to extend the date by which it will 
provide the functionality to support Floor Broker interaction with EBEs 
via SAMs from June 30, 2004, until December 31, 2004. The Exchange 
represents that this extension is warranted in order to afford the PCX 
sufficient time to add this functionality. Extending the deadline for 
this functionality until December 31, 2004, will allow the Exchange to 
add this functionality after the Exchange has addressed any capacity 
issues the

[[Page 45365]]

system may have as a result of phasing in issues currently traded on 
the Exchange and adding new issues to be traded on the Exchange.
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    \5\ See PCX Rule 6.1(b)(33) (definition of Quotes with Size).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b)\6\ of the Act, in general, and furthers the 
objectives of section 6(b)(5),\7\ in particular, in that it is designed 
to facilitate transactions in securities, to promote just and equitable 
principles of trade, to enhance competition and to protect investors 
and the public interest.
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    \6\ 15 U.S.C. 78f(b).
    \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 Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(3) thereunder \9\ in 
that it is concerned solely with the administration of the self-
regulatory organization. At any time within 60 days of the filing of 
such proposed rule change, the Commission may summarily abrogate the 
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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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(3).
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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. 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 No. SR-PCX-2004-69 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 No. SR-PCX-2004-69. 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 Section, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of PCX. 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 No. SR-PCX-2004-69 and should be 
submitted on or before August 19, 2004.

    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. 04-17292 Filed 7-28-04; 8:45 am]
BILLING CODE 8010-01-P