[Federal Register Volume 70, Number 240 (Thursday, December 15, 2005)]
[Notices]
[Pages 74397-74398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7371]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52927; File No. SR-PCX-2005-128]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Clarifying 
the Hours Certain Vanguard International Equity Index Funds Are 
Eligible To Trade on the Archipelago Exchange

December 8, 2005.
    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 22, 2005, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
filed the proposed rule change as a ``non-controversial'' rule change 
under Rule 19b-4(f)(6) under the Act,\3\ which rendered 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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange, through its wholly owned subsidiary PCX Equities, 
Inc. (``PCXE''), proposes to amend its rules governing the Archipelago 
Exchange (``ArcaEx''), the equity trading facility of PCXE. With this 
filing, the Exchange proposes to clarify the hours under PCXE Rule 7.34 
that three exchange traded funds based on Vanguard International Equity 
Indices--Morgan Stanley Capital International Inc. (``MSCI'') Europe 
Index (ticker symbol: VGK), MSCI Pacific Index (ticker symbol: VPL), 
and MSCI Emerging Markets Select Index (ticker symbol: VWO) (the 
``Funds'')--are eligible to trade on ArcaEx pursuant to unlisted 
trading privileges (``UTP''). A copy of the proposed rule change is 
available on the PCX Web site (http://www.pacificex.com), at the PCX's 
Office of the Secretary, and at the Commission's Public Reference Room.

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. The Exchange has prepared summaries, set forth in 
sections A, B and C below, of the most significant aspects of such 
statements.

[[Page 74398]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 8, 2005, the Commission approved the Exchange's proposal 
to trade the Funds pursuant to UTP.\4\ The Approval Order provided that 
the Funds would be eligible to trade on ArcaEx during the hours that 
the Intraday Indicative Value (``IIV'') is disseminated.\5\ With this 
filing, the Exchange seeks to clarify the Funds' trading hours, 
proposing that the Funds should instead be eligible to trade on ArcaEx 
in accordance with PCXE Rule 7.34, except that the Funds will not be 
eligible to trade during the Opening Session (4 a.m. ET to 9:30 a.m. 
e.t.) unless the IIV is disseminated during that time.
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    \4\ See Securities Exchange Act Release No. 34-52221 (August 8, 
2005), 70 FR 48222 (August 16, 2005) (SR-PCX-2005-74) (``Approval 
Order'').
    \5\ See id. at text accompanying note 8.
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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) of the Act,\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 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 Exchange has designated the proposed rule change as one that: 
(i) Does not significantly affect the protection of investors or the 
public interest; (ii) does not impose any significant burden on 
competition; and (iii) by its terms, does not become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest pursuant to section 19(b)(3)(A)(iii) of the Act 
\8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    As required by Rule 19b-4(f)(6)(iii) under the Act,\10\ the 
Exchange provided the Commission with written notice of its intent to 
file the proposed rule change, along with a brief description and text 
of the proposed rule change, at least five business days prior to the 
date of filing the proposed rule change. Pursuant to Rule 19b-
4(f)(6)(iii) under the Act,\11\ the proposal does not become operative 
for 30 days after the date of its filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest. The PCX has requested that the Commission 
waive the 30-day operative delay so that the proposed rule change can 
become immediately effective upon filing.
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    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative date is 
consistent with the protection of investors and the public 
interest.\12\ Specifically, the Funds are currently trading on ArcaEx 
in accordance with the Approval Order, and accelerating the operative 
date to allow the Funds to trade on ArcaEx, immediately upon 
effectiveness, in accordance with the proposed revised trading hours, 
would provide Equity Trading Permit Holders and the public greater 
liquidity and opportunities to trade, thereby helping to reduce trading 
costs and promote competition among marketplaces. For these reasons, 
the Commission designates the proposed rule change to be effective and 
operative upon filing with the Commission.
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    \12\ For the purpose only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the 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.

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 email to [email protected]. Please include 
File No. SR-PCX-2005-128 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-9303.

All submissions should refer to File No. SR-PCX-2005-128. 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 Room. Copies of the 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 No. SR-
PCX-2005-128 and should be submitted on or before January 5, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7371 Filed 12-14-05; 8:45 am]
BILLING CODE 8010-01-P