[Federal Register Volume 70, Number 5 (Friday, January 7, 2005)]
[Notices]
[Pages 1490-1492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-26]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50948; File No. SR-PCX-2004-128]


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

December 29, 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 December 29, 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 PCX. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX proposes to amend PCX Rule 6.90, governing PCX Plus, in order 
to

[[Page 1491]]

extend the system phase-in period from December 31, 2004 until March 
31, 2005. Below is the text of the proposed rule change. Proposed new 
language is italicized; proposed deletions are bracketed.
* * * * *

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

* * * * *
Rule 6--Options Trading
* * * * *
PCX Plus
    Rule 6.90(a)--No Change.
    (b) System Phase-In and Applicability of the Rules. The PCX 
estimates that the rules applicable to PCX Plus will be implemented 
gradually on an issue-by-issue basis beginning October 6, 2003, and 
will become completely operative and applicable to all options issues 
by [December 31, 2004] March 31, 2005. At that time, the rules relating 
to PCX Plus will supersede existing rule that are inapplicable to the 
new trading environment.
    (c)--(h)--No change.
* * * * *

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 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. The 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 proposes to amend PCX Rule 6.90 governing the PCX Plus 
system \3\ phase-in date. PCX Plus is the Exchange's electronic order 
delivery, execution and reporting system for designated option issues 
through which orders and Quotes with Size \4\ 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 expects to have PCX Plus completely operative and 
applicable to all options issues from December 31, 2004 until March 31, 
2005. The Exchange represents that this extension is warranted to 
afford the PCX sufficient time to address any capacity issues the 
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.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 47838 (May 13, 2003), 68 
FR 27129 (May 19, 2003) (Order Approving Proposal for PCX Plus).
    \4\ See PCX Rule 6.1(b)(33) (definition of Quotes with Size).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5),\6\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 on the proposed rule change 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 \7\ and subparagraph (f)(3) of Rule 19b-4 
\8\ thereunder because it is concerned solely with the administration 
of the Exchange. At any time within 60 days of the filing of such 
proposed rule change, the Commission may summarily abrogate such 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

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-2004-128 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-2004-128. 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 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-2004-128 and should be 
submitted on or before January 28, 2005.


[[Page 1492]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-26 Filed 1-6-05; 8:45 am]
BILLING CODE 8010-01-P