Federal Register: August 3, 2001 (Volume 66, Number 150)
DOCID: FR Doc 01-19379
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
Docket ID: [Docket No. 34-44603; File No. SR-PCX-2001-27]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Chane by the Pacific Exchange, Inc. Withdrawing From the Joint-Exchange Options Plan
DOCUMENT SUMMARY:
July 27, 2001.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on June 27, 2001, 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 240.19b4.
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The PCX proposes to withdraw from the JointExchange Options Plan (``JEOP'')\3\ upon Commission approval
[[Page 40771]]
of the proposed Options Listing Procedures Plan (``OLPP'').\4\
\3\ In September 1991, the Commission approved the JEOP for the
selecting, listing, challenging, and arbitrating the eligibility of
new standardized equity options filed by the American Stock Exchange
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE)'', New
York Stock Exchange, Inc., PCX, and Philadel;hia Stock Exchange,
Inc. (``Phlx''). See Securities Exchange Act Release no. 29698 (September 17, 1991), 56 FR 48594 (September 25, 1991).
\4\ The Commission directed the PCX, Amex, CBOE, and Phlx to
amend the JEOP to eliminate advance notice to other markets of
theintention to list a new or existing option; to eliminate any
provisions of the JEOP that prevent a market from commencing to list
or trade any option listed on another market or an option that
another market has expressed an intent to list; and to eliminate any provisions of the JEOP that allow one market to delay the
commencement of trading of an option b anothermarket. See Section
IV.B.a of the Order Institutig Public Administrative Proceedings
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934,
Making Findings and Imposing Sanctions, Securities Exchange Act Release No. 43268 (September 11, 2000) (``Order'').
II. SelfRegulatory 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 maybe 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. SelfRegulatory Organizaton's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
In January 2001, the options exchanges, including the PCX,
submitted a proposed OLPP to replace the JEOP as directed by the
Order.\5\. The JEOP provided joint procedures to facilitate the orderly
introduction of new equity options and established a mechanism to
ensure that only eligible securities were selected for options trading.
The OLPP eliminates various JEOP provisions that the Commission found
objectionable, as specified in the Order. Therefore, the PCX has filed
the proposed rule change to withdraw from the JEOP, effective as of the
date of approval of the OLPP by the Commission. The Commission approved the OLPP on July 6, 2001.\6\
\5\ SeeExchange Act Release No. 44287 (May 10, 2001), 66 FR 27184 (May 16, 2001).
\6\ See Securities Exchange Act Release No. 4521 (July 6, 2001, 66 FR 36809 (July 13, 2001).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general and furthers the objectives
of Section 6(b)(5)\8\ in particular in that it is designed to promote
just and equitable principles of trade, remove impediments to a free
and open market and a national market system, and protect investors and the public interest.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will impose any burden on competition.
C. SelfRegulatory 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
Because the foregoing proposed rule change does not: (i)
Sigificantly affect the protection of investors or the public interest;
(ii) impose any significant burden on competion; (iii) become operative
for 30 days from the date on which it was filed, or such shorter time
as the Commission may designate; and the Exchange has given the
Commission written notice of its intention to file the proposed rule
change at least five business days prior to filing, or such shorter
time as designated by the Commission, it has become effective pursuant
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b4(f)(6)\10\
thereunder. 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, in furtherance of the purposes of the Act.
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.194(f)(6).
The Exchange has requested that the Commission accelerate the operative date and to waive the fiveday prefiling requirement so that the proposed rule change may take effect upon approval of the OLPP by the Commission. The Commission believes that it is consistent with the protection of investors and the public interest and therefore finds good cause to accelerate the operative date of the proposed rule change and to waive the five day prefiling requirement. Acceleration of the operative date and waiving the prefiling requirement will permit the Exchange to implement the OLPP without undue delay. For these reasons, the Commission finds good cause to designate that the proposal became operative immediately upon Commission approval of the OLPP.\11\ \11\ For purposes only of accelerating the operative date of this proposal, the Commission has considered the proposed rule's impact of efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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 205490609. Copies of the submission, all subsequent amendments, 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 the File No. SRPCX200127 and should be submitted by August 24, 2001.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\12\
\12\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0119379 Filed 8201; 8:45 am]
BILLING CODE 801001M
SUMMARY:
Pacific Exchange, Inc.,
DOCUMENT BODY 2:
July 27, 2001.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on June 27, 2001, 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 240.19b4.
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The PCX proposes to withdraw from the JointExchange Options Plan (``JEOP'')\3\ upon Commission approval
[[Page 40771]]
of the proposed Options Listing Procedures Plan (``OLPP'').\4\
\3\ In September 1991, the Commission approved the JEOP for the
selecting, listing, challenging, and arbitrating the eligibility of
new standardized equity options filed by the American Stock Exchange
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE)'', New
York Stock Exchange, Inc., PCX, and Philadel;hia Stock Exchange,
Inc. (``Phlx''). See Securities Exchange Act Release no. 29698 (September 17, 1991), 56 FR 48594 (September 25, 1991).
\4\ The Commission directed the PCX, Amex, CBOE, and Phlx to
amend the JEOP to eliminate advance notice to other markets of
theintention to list a new or existing option; to eliminate any
provisions of the JEOP that prevent a market from commencing to list
or trade any option listed on another market or an option that
another market has expressed an intent to list; and to eliminate any provisions of the JEOP that allow one market to delay the
commencement of trading of an option b anothermarket. See Section
IV.B.a of the Order Institutig Public Administrative Proceedings
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934,
Making Findings and Imposing Sanctions, Securities Exchange Act Release No. 43268 (September 11, 2000) (``Order'').
II. SelfRegulatory 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 maybe 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. SelfRegulatory Organizaton's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
In January 2001, the options exchanges, including the PCX,
submitted a proposed OLPP to replace the JEOP as directed by the
Order.\5\. The JEOP provided joint procedures to facilitate the orderly
introduction of new equity options and established a mechanism to
ensure that only eligible securities were selected for options trading.
The OLPP eliminates various JEOP provisions that the Commission found
objectionable, as specified in the Order. Therefore, the PCX has filed
the proposed rule change to withdraw from the JEOP, effective as of the
date of approval of the OLPP by the Commission. The Commission approved the OLPP on July 6, 2001.\6\
\5\ SeeExchange Act Release No. 44287 (May 10, 2001), 66 FR 27184 (May 16, 2001).
\6\ See Securities Exchange Act Release No. 4521 (July 6, 2001, 66 FR 36809 (July 13, 2001).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general and furthers the objectives
of Section 6(b)(5)\8\ in particular in that it is designed to promote
just and equitable principles of trade, remove impediments to a free
and open market and a national market system, and protect investors and the public interest.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will impose any burden on competition.
C. SelfRegulatory 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
Because the foregoing proposed rule change does not: (i)
Sigificantly affect the protection of investors or the public interest;
(ii) impose any significant burden on competion; (iii) become operative
for 30 days from the date on which it was filed, or such shorter time
as the Commission may designate; and the Exchange has given the
Commission written notice of its intention to file the proposed rule
change at least five business days prior to filing, or such shorter
time as designated by the Commission, it has become effective pursuant
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b4(f)(6)\10\
thereunder. 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, in furtherance of the purposes of the Act.
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.194(f)(6).
The Exchange has requested that the Commission accelerate the operative date and to waive the fiveday prefiling requirement so that the proposed rule change may take effect upon approval of the OLPP by the Commission. The Commission believes that it is consistent with the protection of investors and the public interest and therefore finds good cause to accelerate the operative date of the proposed rule change and to waive the five day prefiling requirement. Acceleration of the operative date and waiving the prefiling requirement will permit the Exchange to implement the OLPP without undue delay. For these reasons, the Commission finds good cause to designate that the proposal became operative immediately upon Commission approval of the OLPP.\11\ \11\ For purposes only of accelerating the operative date of this proposal, the Commission has considered the proposed rule's impact of efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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 205490609. Copies of the submission, all subsequent amendments, 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 the File No. SRPCX200127 and should be submitted by August 24, 2001.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\12\
\12\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0119379 Filed 8201; 8:45 am]
BILLING CODE 801001M