[Federal Register Volume 70, Number 52 (Friday, March 18, 2005)]
[Notices]
[Page 13223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51360; File No. SR-PCX-2005-15]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to Primary Only 
Orders

March 11, 2005.
    On February 1, 2005, the Pacific Exchange, Incorporated (``PCX'' or 
``Exchange''), through its wholly-owned subsidiary, PCX Equities 
(``PCXE''), filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``;Act'') \1\ and Rule 19b-4 
thereunder,\2\ to amend PCXE Rule 7.31(x), to provide that Primary Only 
Orders (``PO Orders'') may apply to Nasdaq securities traded on the 
Archipelago Exchange (``ArcaEx'') facility, and may be either market or 
limit orders. The proposed rule change was published for comment in the 
Federal Register on February 9, 2005.\3\ The Commission received no 
comments on the proposal. This order approves the proposed rule change.
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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. 51125 (February 2, 
2005), 70 FR 6914.
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    After careful review, the Commission finds that the proposal is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange \4\ 
and, in particular, the requirements of Section 6 of the Act \5\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change is consistent with Section 6(b)(5) of the 
Act \6\ because it is designed to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and 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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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    As proposed, PCXE Rule 7.31(x) would define a PO Order as a market 
or limit order that is to be routed to the primary market, until a cut-
off time periodically determined by PCXE, and would expand the PO Order 
applicability from exclusively exchange-listed securities to include 
Nasdaq Stock Market, Inc. (``Nasdaq'') securities. The Commission notes 
that PO market orders in Nasdaq securities received prior to 6:28 a.m. 
PT will be marked On-Open and will be routed to Nasdaq for possible 
participation in Nasdaq's Opening Cross. As such, the Commission 
believes that implementing these changes may provide market 
participants with more choices for executing orders on the opening. In 
addition, the Commission believes that expanding the applicability of 
PO Orders to limit orders and to Nasdaq listed securities should 
enhance the opportunity for ArcaEx users to have their orders executed 
on the primary market.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-PCX-2005-15) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-1183 Filed 3-17-05; 8:45 am]
BILLING CODE 8010-01-P