Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. Regarding Q Orders, 14489-14490 [E5-1247]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 54 / Tuesday, March 22, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51380; File No. SR–PCX–
2005–29]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Regarding Q
Orders
March 16, 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 March 9,
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 PCX. The Exchange filed this
proposal as a ‘‘non-controversial’’ rule
change pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(6)
thereunder,4 which renders 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
PCX, through its wholly-owned
subsidiary PCX Equities, Inc. (‘‘PCXE’’),
proposes to amend its rules governing
the Archipelago Exchange (‘‘ArcaEx’’),
the equities trading facility of PCXE.
With this filing, the Exchange proposes
to amend its rule describing Q Orders.
The text of the proposed rule change
appears below. Proposed deletions are
in brackets.
*
*
*
*
*
Rules of PCX Equities, Inc.
*
*
*
*
*
Rule 7
Equities Trading
*
*
*
*
*
Orders and Modifiers
Rule 7.31 (a)–(j)—No change.
Rule 7.31 (k) Q Order.
(1) A Q Order is a limit order
submitted to the Archipelago Exchange
by a Market Maker. [A Q Order may not
be a Working Order.]
(2) Auto Q Order. A Q Order may be
designated as an Auto Q Order that
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
VerDate jul<14>2003
15:26 Mar 21, 2005
Jkt 205001
would automatically repost a Q Order
after an execution in the ArcaEx book at
a designated increment [inferior to the
price at which it was originally posted]
and for the same amount of shares. After
an execution, the Auto Q order would
continue to repost in the ArcaEx book
pursuant to Rule 7.36 and would be
assigned a new price time priority as of
the time of each reposting at the
determined increment and size until the
total tradable size threshold is reached.
When entering an Auto Q Order, a
Market Maker would establish the
following parameters: (i) price; (ii) size;
(iii) buy or sell; (iv) increment update;
and (v) total tradable size.
(l)–(hh)—No change
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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. 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
As part of its continuing efforts to
enhance participation on the ArcaEx
facility, the PCX is proposing to amend
PCXE Rule 7.31(k) to provide market
makers with additional Q Order
functionality by allowing (i) reserve
capability and (ii) re-posting Auto Q
Orders at the same price.
Currently, PCXE Rule 7.31(k) requires
Auto Q Orders to be re-posted at
increments inferior to the price at which
they were originally posted. ArcaEx
proposes to modify language of PCXE
Rule 7.31(k) to enable re-posting at any
increment. Currently, PCXE Rule 7.31(k)
does not allow Q Orders to be Working
Orders. ArcaEx proposes removing the
limitation that Q Orders may not be
Working Orders to allow Q Orders
reserve capability.
The proposed changes to the Q Order
functionality are similar to the Auto
Quote Refresh (‘‘AQR’’) functionality
currently available to Nasdaq market
makers as described in NASD Rule
4710(b)(2)(B). For example, the AQR
refreshes a market maker’s quote when
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
14489
it is decremented to an amount and
price level designated by the market
maker. The Auto-Q Order functions in
the same manner in that the Q Order is
updated upon an execution at the size
of the original Q order and at a price
level designated by the market maker.
Further, the AQR provides reserve
capability. Accordingly, ArcaEx seeks to
provide that same functionality.
The Exchange believes that
implementing these changes will
provide ETP Holders with greater
opportunities for executing orders and
attract additional market maker
participation on the ArcaEx system.
Furthermore, the Exchange believes the
proposed changes are merely technical
changes to the existing Q Order
functionality.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system.
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 proposed rule change has been
designated by the PCX as a ‘‘noncontroversial’’ rule change pursuant to
Section 19(b)(3)(A) of the Act 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8 The foregoing rule change:
(1) Does not significantly affect the
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6).
6 15
E:\FR\FM\22MRN1.SGM
22MRN1
14490
Federal Register / Vol. 70, No. 54 / Tuesday, March 22, 2005 / Notices
protection of investors or the public
interest, (2) does not impose any
significant burden on competition, and
(3) by its terms does not become
operative for 30 days after the date of
filing, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest.
Consequently, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(6) thereunder.10
Pursuant to Rule 19b–4(f)(6)(iii), a
proposed ‘‘non-controversial’’ rule
change does not become operative for 30
days after the date of 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. The Commission has determined
that it is consistent with the protection
of investors and the public interest to
waive the 30-day operative delay.11
Accelerating the operative date will
allow the PCX to immediately allow Q
Orders reserve capability, and to enable
re-posting at any increment. 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 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–29 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 For the purposes 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).
10 17
VerDate jul<14>2003
15:26 Mar 21, 2005
Jkt 205001
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–PCX–2005–29. 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 (https://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
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
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 Number SR–PCX–
2005–29 and should be submitted on or
before April 12, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1247 Filed 3–21–05; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Notice Announcing Implementation of
Sections 302 and 303 of the Social
Security Protection Act of 2004
AGENCY:
Social Security Administration
(SSA).
ACTION:
Notice.
SUMMARY: The purpose of this notice is
to announce that the Social Security
Administration (SSA) has implemented
sections 302 and 303 of the Social
Security Protection Act of 2004 (SSPA).
Section 302 of the SSPA extends the
current attorney fee withholding and
payment process under title II of the
Social Security Act (the Act) to claims
PO 00000
12 17
CFR 200.30–3(a)(12).
Frm 00055
Fmt 4703
Sfmt 4703
for benefits under title XVI of the Act.
Section 303 of the SSPA requires the
Commissioner of Social Security (the
Commissioner) to develop and
implement a five-year nationwide
demonstration project that extends to
certain non-attorney representatives of
claimants under titles II and XVI of the
Act the option to have approved
representatives’ fees withheld and paid
directly from a beneficiary’s past-due
benefits.
FOR FURTHER INFORMATION CONTACT:
Michael Zambonato, Social Security
Administration, Office of Income
Security Programs, 2709 Rolling Road,
Baltimore, MD 21244, (410) 965–5419.
SUPPLEMENTARY INFORMATION: Pursuant
to section 303(d) of the SSPA, the
Commissioner notified Congress on
February 28, 2005, of our completion of
the actions necessary to fully implement
the requirements for full operation of
the demonstration project on fee
withholding for non-attorneys.
Accordingly, the five-year period of the
demonstration project under section 303
began on February 28, 2005. As
provided in section 302(c) of the SSPA,
the extension of the current
representative fee withholding and
payment process under title II of the Act
to claims for benefits under title XVI of
the Act also became effective for
favorably decided cases effectuated on
or after February 28, 2005.
Additional information on the
implementation of section 302 can be
found in operating instructions that we
have issued on fee withholding and
direct payment of fees under title XVI in
the Program Operations Manual System
(POMS), Subchapters GN 03920, GN
03930, and GN 03940. These
instructions may be accessed from our
Web site at https://
www.socialsecurity.gov, using the link
to Our Program Rules. You can also
access these instructions directly at
https://policy.ssa.gov/poms.nsf/
subchapterlist!openview&
restricttocategory=02039.
In accordance with the provisions of
section 303, we will determine the
eligibility of applicants to participate in
the demonstration project on fee
withholding for non-attorneys through a
process by which we will determine if
applicants satisfy the prerequisites to
participate in that project. We provided
information on the prerequisites process
in a Federal Register notice published
on January 13, 2005 (70 FR 2447).
Additional information on the
demonstration project and the
prerequisites process is available on our
Representing Claimants Web site at
https://www.ba.ssa.gov/representation/.
E:\FR\FM\22MRN1.SGM
22MRN1
]]>Agencies
[Federal Register Volume 70, Number 54 (Tuesday, March 22, 2005)]
[Notices]
[Pages 14489-14490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1247]
[[Page 14489]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51380; File No. SR-PCX-2005-29]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Regarding Q Orders
March 16, 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 March 9, 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 PCX. The Exchange filed this proposal as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX, through its wholly-owned subsidiary PCX Equities, Inc.
(``PCXE''), proposes to amend its rules governing the Archipelago
Exchange (``ArcaEx''), the equities trading facility of PCXE. With this
filing, the Exchange proposes to amend its rule describing Q Orders.
The text of the proposed rule change appears below. Proposed
deletions are in brackets.
* * * * *
Rules of PCX Equities, Inc.
* * * * *
Rule 7
Equities Trading
* * * * *
Orders and Modifiers
Rule 7.31 (a)-(j)--No change.
Rule 7.31 (k) Q Order.
(1) A Q Order is a limit order submitted to the Archipelago
Exchange by a Market Maker. [A Q Order may not be a Working Order.]
(2) Auto Q Order. A Q Order may be designated as an Auto Q Order
that would automatically repost a Q Order after an execution in the
ArcaEx book at a designated increment [inferior to the price at which
it was originally posted] and for the same amount of shares. After an
execution, the Auto Q order would continue to repost in the ArcaEx book
pursuant to Rule 7.36 and would be assigned a new price time priority
as of the time of each reposting at the determined increment and size
until the total tradable size threshold is reached. When entering an
Auto Q Order, a Market Maker would establish the following parameters:
(i) price; (ii) size; (iii) buy or sell; (iv) increment update; and (v)
total tradable size.
(l)-(hh)--No change
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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. 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
As part of its continuing efforts to enhance participation on the
ArcaEx facility, the PCX is proposing to amend PCXE Rule 7.31(k) to
provide market makers with additional Q Order functionality by allowing
(i) reserve capability and (ii) re-posting Auto Q Orders at the same
price.
Currently, PCXE Rule 7.31(k) requires Auto Q Orders to be re-posted
at increments inferior to the price at which they were originally
posted. ArcaEx proposes to modify language of PCXE Rule 7.31(k) to
enable re-posting at any increment. Currently, PCXE Rule 7.31(k) does
not allow Q Orders to be Working Orders. ArcaEx proposes removing the
limitation that Q Orders may not be Working Orders to allow Q Orders
reserve capability.
The proposed changes to the Q Order functionality are similar to
the Auto Quote Refresh (``AQR'') functionality currently available to
Nasdaq market makers as described in NASD Rule 4710(b)(2)(B). For
example, the AQR refreshes a market maker's quote when it is
decremented to an amount and price level designated by the market
maker. The Auto-Q Order functions in the same manner in that the Q
Order is updated upon an execution at the size of the original Q order
and at a price level designated by the market maker. Further, the AQR
provides reserve capability. Accordingly, ArcaEx seeks to provide that
same functionality.
The Exchange believes that implementing these changes will provide
ETP Holders with greater opportunities for executing orders and attract
additional market maker participation on the ArcaEx system.
Furthermore, the Exchange believes the proposed changes are merely
technical changes to the existing Q Order functionality.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanisms of a free and open market and a national market system.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 proposed rule change has been designated by the PCX as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\7\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\8\ The foregoing
rule change: (1) Does not significantly affect the
[[Page 14490]]
protection of investors or the public interest, (2) does not impose any
significant burden on competition, and (3) by its terms does not become
operative for 30 days after the date of filing, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest. Consequently, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Pursuant to Rule 19b-4(f)(6)(iii), a proposed ``non-controversial''
rule change does not become operative for 30 days after the date of
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. The Commission has determined that it is consistent with the
protection of investors and the public interest to waive the 30-day
operative delay.\11\ Accelerating the operative date will allow the PCX
to immediately allow Q Orders reserve capability, and to enable re-
posting at any increment. 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 Act.
---------------------------------------------------------------------------
\11\ For the purposes 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).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2005-29 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-PCX-2005-29. 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 (https://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 Section, 450 Fifth
Street, NW., Washington, DC 20549. Copies of such 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 Number SR-PCX-
2005-29 and should be submitted on or before April 12, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1247 Filed 3-21-05; 8:45 am]
BILLING CODE 8010-01-P
