55200 Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 

7 15 U.S.C. 78s(b)(2). 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option 

linkage proposed by the American Stock Exchange 

LLC, the Chicago Board Options Exchange, 

Incorporated, and the International Securities 

Exchange, Inc. See Securities Exchange Act Release 

No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 

2000) (‘‘Linkage Plan’’). Subsequently, upon 

separate requests by the Philadelphia Stock 

Exchange, Inc., the PCX, and the Boston Stock 

Exchange, Inc., the Commission issued orders to 

permit these exchanges to participate in the Linkage 

Plan. See Securities Exchange Act Release Nos. 

43573 (November 16, 2000), 65 FR 70851 

(November 28, 2000); 43574 (November 16, 2000), 

65 FR 70850 (November 28, 2000); and 49198 

(February 5, 2004), 69 FR 7029 (February 12, 2004). 

4 In Amendment No. 1, the PCX revised the rule 

text to use terms consistent with PCX’s current 

rules and made clarifying changes in the purpose 

and statutory basis sections. 

5 In Amendment No. 3, the PCX made clarifying 

changes to the rule text and the purpose section. 

6See Securities Exchange Act Release No. 52206 

(August 4, 2005), 70 FR 46898. 

7See PCX Rule 6.92(a)(16). 

8See PCX Rule 6.92(a)(12). 

9 15 U.S.C. 78f. 

10 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(2). 

13 17 CFR 200.30–3(a)(12). 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

The Commission believes that by 

amending NYSE Rule 123C to eliminate 

the publication of pre-opening market 

order imbalances which do not include 

limit orders, the NYSE will no longer 

disseminate information that may have 

been misleading to investors. 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the Act,7

for approving the proposed rule change 

prior to the 30th day after the date of 

publication of notice in the Federal 

Register. The Commission does not 

believe that the proposed rule change 

raises novel regulatory issues. Granting 

accelerated approval of the proposed 

rule change allows the NYSE to 

implement the proposed rule change by 

the next expiration Friday. 

Consequently, the Commission believes 

that it is appropriate to grant accelerated 

approval to permit the Exchange to 

eliminate the publication of pre-opening 

market order imbalances on expiration 

Fridays as soon as possible. 

Accordingly, the Commission finds that 

there is good cause, consistent with the 

reasons herein, to approve the proposal 

on an accelerated basis. 

IV. Conclusion 

It Is Therefore Ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–NYSE–2005–

54) be, and hereby is approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18666 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52417; File No. SR–PCX–

2005–59] 

Self-Regulatory Organizations; Pacific 

Exchange, Inc.; Order Approving a 

Proposed Rule Change and 

Amendments No. 1 and 3 Thereto To 

Amend the Exchange’s Trade-Through 

and Locked Markets Rules 

September 13, 2005. 

On April 27, 2005, the Pacific 

Exchange, Inc. (‘‘PCX’’), 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 

implement Amendment No. 15 to the 

Plan for the Purpose of Creating and 

Operating an Intermarket Option 

Linkage 3 by amending PCX Rules 6.92 

and 6.95 to add a ‘‘trade and ship’’

exception to the definition of ‘‘TradeThrough’’ and add a ‘‘book and ship’’

exception to the provision relating to 

locked markets, respectively. On July 8, 

2005, the PCX filed Amendment No. 1 

to the proposed rule change.4 The PCX 

filed Amendment No. 2 to the proposed 

rule change on July 29, 2005 and 

withdrew Amendment No. 2 on August 

1, 2005. The PCX filed Amendment No. 

3 to the proposed rule change on August 

1, 2005.5 The proposed rule change, as 

amended, was published for comment 

in the Federal Register on August 11, 

2005.6 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change, as 

amended. 

Under the proposed rule change, a 

Participant Exchange 7 could trade an 

order at a price that is one minimum 

quoting increment inferior to the 

national best bid or offer (‘‘NBBO’’) if a 

Linkage Order 8 is sent 

contemporaneously to the market(s) 

disseminating the NBBO to satisfy all 

interest at the NBBO price. The 

proposed rule change also would 

provide that an OTP Holder, OTP Firm, 

or Eligible Market Maker may book an 

order that would otherwise lock another 

market if a Linkage Order is sent 

contemporaneously to such other 

market to satisfy all interest at the lock 

price and only the remaining portion of 

the order is booked. The PCX proposes 

that, under trade and ship, any 

execution received from the market 

disseminating the NBBO must (pursuant 

to agency obligations) be reassigned to 

the customer order that is underlying 

the Linkage Order that was sent to trade 

with the market disseminating the 

NBBO. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 6 of the Act 9

and the rules and regulations 

thereunder applicable to a national 

securities exchange.10 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,11 which requires, 

among other things, that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, 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. The Commission 

believes that the proposed rule change 

should help to implement the Linkage 

Plan by facilitating the ability of PCX’s 

participants to execute their customer 

orders in a timely manner and 

potentially could decrease the incidence 

of Trade-Throughs and locked markets. 

It Is Therefore Ordered, pursuant to 

Section 19(b)(2) of the Act,12 that the 

proposed rule change (SR–PCX–2005–

59) as amended, is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18622 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P