Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. Relating to Amendments to the Bylaws of PCX Holdings, Inc., 15374-15375 [E5-1303]
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Federal Register / Vol. 70, No. 57 / Friday, March 25, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51389; File No. SR–PCX–
2005–17]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Relating to
Amendments to the Bylaws of PCX
Holdings, Inc.
March 17, 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 the Exchange. The Exchange has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under subparagraph (f)(6) of
Rule 19b–4 under the Act,3 which
renders the proposal effective upon
receipt of this filing by 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 is submitting on behalf of PCX
Holdings, Inc. (‘‘PCXH’’) a proposed
rule change to reflect an amendment to
the Bylaws of PCXH to adopt new
Section 7.07. This Bylaw provision
states that PCXH would take such action
as is necessary to insure that its officers,
directors, and employees consent to the
applicability of Sections 7.03 and 7.04
of the PCXH Bylaws with respect to
Exchange-related activities. The text of
the proposed rule change is below.
Proposed new language is in italics.
*
*
*
*
*
PCX HOLDINGS, INC.
BYLAWS
ARTICLE 7
MISCELLANEOUS
Section 7.01–7.06—No Change.
Section 7.07—The Corporation shall
take such action as is necessary to
ensure that the Corporation’s officers,
directors and employees consent to the
applicability of Section 7.03 and 7.04
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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16:11 Mar 24, 2005
Jkt 205001
with respect to Exchange-related
activities.
*
*
*
*
*
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
Exchange 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
self-regulatory organization 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 May 17, 2004, the Commission
approved the PCX’s plan of
demutualization.4 As a condition for
Commission approval of the plan of
demutualization, Exchange staff
represented to the Commission 5 that it
would present to the Board of Directors
of PCXH for its approval a proposed
new PCXH Bylaw provision stating that
PCXH would take such action as is
necessary to insure that its officers,
directors, and employees consent to the
applicability of sections 7.03 and 7.04 of
the PCXH Bylaws with respect to
Exchange-related activities. The purpose
of proposed Section 7.07 to the PCXH
Bylaws is to allow the Exchange to
satisfy the representation it made to the
Commission as part of the
demutualization order.
The Directors of PCXH approved this
amendment to the PCXH Bylaws on
June 24, 2004. Pursuant to Section 7.06
of the PCXH Bylaws, the proposed
amendment was submitted to the PCX
Board of Directors. The PCX Board of
Directors determined at its September
11, 2004 meeting that this amendment
should be submitted to the Commission.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
4 See Securities Exchange Act Release No. 49718
(May 17, 2004), 69 FR 29611 (May 24, 2004)
(approving File No. SR–PCX–2004–08).
5 See Footnote 27 of Securities Exchange Act
Release No. 49718 (May 17, 2004), 69 FR 29611
(May 24, 2004) (approving File No. SR–PCX–2004–
08).
6 15 U.S.C. 78f(b).
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
of the Act,7 in particular, in that it is
designed to facilitate transactions in
securities, to promote just and equitable
principles of trade 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 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 become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder,9 because the Exchange has
designated the proposed rule change as
one that: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days from the date on which it was
filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest. The PCX provided the
Commission with written notice of its
intent to file this proposed rule change
at least five business days prior to the
date of filing the proposed rule change.
At any time within 60 days of the filing
of such 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 purpose 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:
7 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
8 15
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Federal Register / Vol. 70, No. 57 / Friday, March 25, 2005 / Notices
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–2005–17 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–2005–17. 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. 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–2005–17 and should
be submitted on or before April 15,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1303 Filed 3–24–05; 8:45 am]
BILLING CODE 8010–01–P
SECURTITES AND EXCHANGE
COMMISSION
[Release No. 34–51401; File No. SR–PCX–
2005–26]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Remote
Market Makers’ Ability To Be
Reappointed Options Issues
March 21, 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 4,
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 the
proposal pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(3) thereunder 4 as being
concerned solely with the
administration of the Exchange, which
renders the proposal effective upon the
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 is proposing to amend PCX Rules
6.35(g)(4) to eliminate the requirement
that a Remote Market Maker (‘‘RMM’’)
wait one full calendar quarter prior to
being reappointed in an option issue
that such RMM previously relinquished.
Below is the text of the proposed rule
change. Proposed deletions are in
brackets.
*
*
*
*
*
Rule 6.35 Appointment of Market
Makers
(a)–(f) No Change.
(g) Remote Market Makers.
(1)–(3) No Change.
(4) Remote Market Makers may
withdraw from trading an option issue
that is within their primary
appointment by providing the Exchange
with a three-business-day written notice
of such withdrawal. Remote Market
Makers who fail to give advance written
notice of withdrawal to the Exchange
may be subject to formal disciplinary
action pursuant to Rule 10. [Subsequent
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(3).
2 17
10 17
CFR 200.30–3(a)(12).
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PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
15375
to withdrawal, the Remote Market
Maker may not be re-appointed as a
Remote Market Maker in that option
issue for a period of one full calendar
quarter.]
(5)–(6) No Change.
(h)–(i) 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. The Exchange 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
PCX Rule 6.35(g)(4) currently
specifies that an RMM must wait one
full calendar quarter prior to being
reappointed in an option issue that was
previously relinquished by such RMM.
According to the Exchange, when PCX
Rule 6.35(g)(4) was originally approved,
the one calendar quarter prohibition
was necessary to facilitate an effective
rollout of PCX’s new electronic trading
platform, PCX Plus. In addition, the
restriction was designed to mitigate the
anticipated administrative burden
related to frequent requests for the
addition and removal of issues included
in an RMM’s primary appointment.
Since the introduction of PCX Plus,
the original reasons for the one calendar
quarter restriction no longer exist. PCX
Plus has been fully implemented and is
operating effectively. The need to
prohibit RMMs from adding and
removing issues on a regular basis to
maintain system integrity is no longer
necessary. Further, based on actual
results, the Exchange has learned that
RMMs do not switch issues on a
frequent basis, as originally anticipated.
As such, the Exchange overestimated
the administrative burden related to
adding and/or removing issues from an
RMM’s primary appointment. Based on
actual results, the Exchange staff is
capable of handling the administrative
workload that would result from the
removal of the current restriction.
Finally, the elimination of the one
calendar quarter prohibition would
E:\FR\FM\25MRN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 57 (Friday, March 25, 2005)]
[Notices]
[Pages 15374-15375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1303]
[[Page 15374]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51389; File No. SR-PCX-2005-17]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to Amendments to the Bylaws of PCX Holdings, Inc.
March 17, 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 the Exchange. The Exchange has designated the
proposed rule change as constituting a ``non-controversial'' rule
change under subparagraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX is submitting on behalf of PCX Holdings, Inc. (``PCXH'') a
proposed rule change to reflect an amendment to the Bylaws of PCXH to
adopt new Section 7.07. This Bylaw provision states that PCXH would
take such action as is necessary to insure that its officers,
directors, and employees consent to the applicability of Sections 7.03
and 7.04 of the PCXH Bylaws with respect to Exchange-related
activities. The text of the proposed rule change is below. Proposed new
language is in italics.
* * * * *
PCX HOLDINGS, INC.
BYLAWS
ARTICLE 7
MISCELLANEOUS
Section 7.01-7.06--No Change.
Section 7.07--The Corporation shall take such action as is
necessary to ensure that the Corporation's officers, directors and
employees consent to the applicability of Section 7.03 and 7.04 with
respect to Exchange-related activities.
* * * * *
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 Exchange 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 self-regulatory organization 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 May 17, 2004, the Commission approved the PCX's plan of
demutualization.\4\ As a condition for Commission approval of the plan
of demutualization, Exchange staff represented to the Commission \5\
that it would present to the Board of Directors of PCXH for its
approval a proposed new PCXH Bylaw provision stating that PCXH would
take such action as is necessary to insure that its officers,
directors, and employees consent to the applicability of sections 7.03
and 7.04 of the PCXH Bylaws with respect to Exchange-related
activities. The purpose of proposed Section 7.07 to the PCXH Bylaws is
to allow the Exchange to satisfy the representation it made to the
Commission as part of the demutualization order.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 49718 (May 17,
2004), 69 FR 29611 (May 24, 2004) (approving File No. SR-PCX-2004-
08).
\5\ See Footnote 27 of Securities Exchange Act Release No. 49718
(May 17, 2004), 69 FR 29611 (May 24, 2004) (approving File No. SR-
PCX-2004-08).
---------------------------------------------------------------------------
The Directors of PCXH approved this amendment to the PCXH Bylaws on
June 24, 2004. Pursuant to Section 7.06 of the PCXH Bylaws, the
proposed amendment was submitted to the PCX Board of Directors. The PCX
Board of Directors determined at its September 11, 2004 meeting that
this amendment should be submitted to the Commission.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it
is designed to facilitate transactions in securities, to promote just
and equitable principles of trade and to protect investors and the
public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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 become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4
thereunder,\9\ because the Exchange has designated the proposed rule
change as one that: (i) Does not significantly affect the protection of
investors or the public interest; (ii) does not impose any significant
burden on competition; and (iii) does not become operative for 30 days
from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest. The PCX provided the Commission with written
notice of its intent to file this proposed rule change at least five
business days prior to the date of filing the proposed rule change. At
any time within 60 days of the filing of such 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 purpose of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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:
[[Page 15375]]
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-2005-17 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-2005-17. 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. 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-2005-17 and should be submitted on or before April
15, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1303 Filed 3-24-05; 8:45 am]
BILLING CODE 8010-01-P
