[Federal Register Volume 65, Number 193 (Wednesday, October 4, 2000)]
[Notices]
[Pages 59242-59243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25439]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43342; File No. SR-PCX-00-08]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 Thereto by the Pacific Stock Exchange, Inc. 
Relating to the Dissolution of the Appointments Committee

September 26, 2000.
    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 March 20, 2000, the Pacific Stock Exchange, Inc. (``PCX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. On September 21, 2000, the Exchange filed Amendment No. 1 to 
the proposal.\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\ In Amendment No. 1, the Exchange made technical corrections 
to the rule language and made non-substantive changes to the purpose 
section of the filing for clarity. See letter from Cindy L. Sink, 
Senior Attorney, Regulatory Policy, PCX to Jennifer L. Colihan, 
Division of Market Regulation, Commission, dated September 20, 2000.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange has filed with the Commission a proposed rule change 
to dissolve the Options Appointments Committee and to transfer all 
powers of the Options Appointments Committee to the Options Allocation 
Committee. The text of the proposed rule change is available at the 
Office of the Secretary, the 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.

[[Page 59243]]

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

1. Purpose
    Current PCX rules state that the duty of the Options Appointment 
Committee is to recommend to the Board of Governors the appointment, 
assignment, retention, reassignment, transfer, and taking leave of the 
privileges to deal in and trade options to, by, and among members on 
the Options Trading Floor.\4\ The Options Appointment Committee is also 
responsible for appointing Market Makers and appointing and approving 
Lead Market Makers (``LMMs'').\5\ The Options Appointment Committee may 
relieve LMMs of their appointments, designate interim LMMs, and make 
determinations pertaining to LMM-related issues not within the 
jurisdiction of any other standing committee. The Exchange proposes to 
eliminate the Options Appointment Committee and to transfer all of its 
authority and duties to the Options Allocation Committee, in order to 
centralize the PCX rules relating to the approval, evaluation, 
allocation to, and appointment of LMMs.
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    \4\ See PCX Rules 6.35, 6.37, 6.82, 11.10(c).
    \5\ See PCX Rules 6.35 and 6.82.
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    Specifically, the Exchange proposes to change all references to the 
``Options Appointment Committee'' in PCX Rule 11.10(a), to the 
``Options Allocation Committee'' and to transfer the language of PCX 
Rule 11.10(a), relating to the current duties of the Options 
Appointment Committee, to the Options Allocation Committee under new 
proposed PCX Rule 11.10(b)(2). The Exchange also proposes to renumber 
PCX Rule 11.10(b) as 11.10(a) and PCX Rule 11.10(c) as 11.10(b)(1). The 
Exchange believes that these changes will make the application of the 
transfer of all authority and duties from the Options Appointment 
Committee to the Options Allocation Committee consistent throughout the 
text of PCX Rule 11.
    The Exchange also proposes to change the references to the 
``Options Appointment Committee'' in PCX Rules 6.35; 6.37; Commentary 
.08; 6.82(a)(1) and (3); 6.82(b)(1) and (2); 6.82(f)(3); 6.82(g)(1); 
and 6.82(h)(1) to the ``Options Allocation Committee.'' The Exchange 
believes that these changes will make all rules referencing or relating 
to the Options Appointment Committee consistent with that committee's 
elimination and the delegation of its duties and powers to the Options 
Allocation Committee.
2. Statutory Purpose
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\6\ in general, and further the objectives 
of Section 6(b)(5),\7\ in particular, in that they are designed to 
promote just and equitable principles of trade, to enhance competition 
and to protect investors and the public interest.

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 not necessary or appropriate in 
furtherance of the purposes of the Act.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants, or Others

    The Exchange neither solicited nor received written comments with 
respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding, or (ii) as to 
which the Amex consents, the Commission will:
    A. by order approve the proposed rule change, or
    B. institute proceedings to determine whether the proposed rule 
change should be disapproved.

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, N.W., Washington, D.C. 20549-
0609. Copies of the submissions, 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 persons, 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 at 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-00-08 and should 
be submitted by October 25, 2000.

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-25439 Filed 10-3-00; 8:45 am]
BILLING CODE 8010-01-M