[Federal Register Volume 67, Number 116 (Monday, June 17, 2002)]
[Notices]
[Pages 41288-41289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15137]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46055; File No. SR-PCX-2002-31]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to a One-Year Extension of the Automatic Opening Rotations
Pilot Program
June 10, 2002.
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 May 31, 2002, the Pacific Exchange, Inc. (``Exchange'' or ``PCX'')
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 proposed rule change has been
filed by the PCX as a ``non-controversial'' rule change under Rule 19b-
4(f)(6) under the Act.\3\ 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
PCX proposes to extend its Automated Opening Rotations (``AOR'')
pilot program for one year, until September 30, 2003. The text of the
proposed rule change is available at the Office of the Secretary, 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, 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
On September 30, 1999, the Commission approved a one-year pilot
program for the operation of the Exchange's AOR System.\4\ On August
21, 2000 \5\ and August 13, 2001,\6\ respectively, the Commission
granted one-year extensions to the pilot program. The extension program
is currently set to expire on September 30, 2002.\7\ AOR provides a
procedure to facilitate the execution of option orders at the opening
by providing an electronic means of establishing a single price
opening. In its order approving the pilot program, the Commission
stated that it expects the Exchange to study the issues related to the
Commission's concerns during the pilot period and to report back to the
Commission at least sixty days prior to seeking permanent approval of
AOR.
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\4\ See Securities Exchange Act Release No. 41970 (September 30,
1999), 64 FR 54713 (October 7, 1999).
\5\ See Securities Exchange Act Release No. 43187 (August 21,
2000), 65 FR 52464 (August 29, 2000).
\6\ See Securities Exchange Act Release No. 44688 (August 13,
2001) 66 FR 43600 (August 20, 2001).
\7\ Id.
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The Exchange is requesting an additional one-year extension of the
pilot program from September 30, 2002 to September 30, 2003. The added
time permits the Exchange an opportunity to continue reviewing and
evaluating the program in order to properly address the Commission's
concerns before seeking permanent approval. The Exchange believes that
this program is operating successfully and without any problems, and on
that basis, the Exchange believes that a one-year extension of the
program is warranted. At this time, the Exchange is not seeking to
modify the pilot program.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \8\ in general, and furthers the
objectives of section 6(b)(5) of the Act \9\ in particular, because it
is designed to promote just and equitable principles of trade.
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\8\ 15 U.S.C. 78f(b).
\9\ 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
[[Page 41289]]
any inappropriate burden on competition that is not necessary 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(6) \11\
thereunder because the proposal: (1) Does not significantly affect the
protection of investors or the public interest; (2) does not impose any
significant burden on competition; and (3) does not become operative
for 30 days from the date of filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest; provided that the Exchange has given the
Commission written notice of its intent to file the proposed rule
change at least five business days prior to the filing date of the
proposed rule change.\12\ At any time within 60 days of the filing of
the 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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ As required under Rule 19b-4(f)(6)(iii), the Exchange
provided the Commission with written notice of its intent to file
the proposed rule change at least five business days prior to the
filing date.
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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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.
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 will also be
available for inspection and copying at the principal office of the
PCX. All submissions should refer to File No. SR-PCX-2002-31 and should
be submitted by July 8, 2002.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 02-15137 Filed 6-14-02; 8:45 am]
BILLING CODE 8010-01-P