Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Trading Securities in Subpenny Increments, 39842-39843 [05-13546]

Download as PDF 39842 Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of NSCC and on NSCC’s Web site at https:// www.nscc.com. 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–NSCC– 2005–07 and should be submitted on or before August 1, 2005. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–3619 Filed 7–8–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51972; File No. SR–PCX– 2005–84] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Trading Securities in Subpenny Increments July 5, 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 June 30, 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 substantially been prepared by the Exchange. The Exchange has filed this proposal 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 The Exchange, through its wholly owned subsidiary PCX Equities, Inc. (‘‘PCXE’’), is proposing to amend the interpretation to PCXE Rule 7.6(a) to 10 17 CFR 200.30–3(a)(12). 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). VerDate jul<14>2003 16:03 Jul 08, 2005 Jkt 205001 reflect the anticipated extension of a Commission exemption that permits securities transactions to be entered, executed, and reported in subpenny increments, although such quotations are disseminated in rounded, penny increments without a rounding identifier. The text of the proposed rule change is available on the PCX Web site (https://www.pacificex.com), at the Exchange’s principal office, and at the Commission’s Public Reference Room. 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 III 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 The Commission previously granted PCX an exemption from Rules 11Ac1– 1, 11Ac1–2, and 11Ac1–4 under the Act 5 with respect to securities priced less than $1.00 per share that permits Archipelago Exchange, a facility of PCX (‘‘ArcaEx’’), electronic trading permit (‘‘ETP’’) holders of ArcaEx, and vendors that distribute ArcaEx quotation information to enter, execute, and report quotations in exchange-listed, Nasdaq National Market, and SmallCap securities in increments less than $0.01 per share, although such quotations are disseminated in rounded, penny increments without a rounding identifier.6 In conjunction with the initial grant of this exemption, the Exchange modified Interpretation .05 to PCXE Rule 7.6(a) on a pilot basis to reflect a subpenny minimum price variation for securities priced less than $1.00. That pilot rule is operative until September 30, 2005.7 Subsequently, the Exchange requested the Commission to 5 17 CFR 240.11Ac1–1, 240.11Ac1–2, and 11Ac1– 4. 6 See Letter from David S. Shillman, Associate Director, Division of Market Regulation, Commission, to Mai S. Shiver, Director of Regulatory Policy, PCX, dated September 24, 2004. 7 See Securities Exchange Act Release No. 50441 (September 24, 2004), 69 FR 58570 (September 30, 2004). PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 extend the exemption to permit the Exchange to accept and execute orders and quotations of all exchange-listed, National Market, and SmallCap securities in increments less than $0.01 per share, although such quotations are disseminated in rounded, penny increments without a rounding identifier.8 That exemption expires on June 30, 2005.9 PCX has requested the Commission, in a separate letter, to extend this exemption until the effective date of Rule 612 of Regulation NMS.10 With this filing, the Exchange is amending Interpretation .05 to PCXE Rule 7.6(a) to reflect the anticipated extension of this Commission exemption.11 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,12 in general, and furthers the objectives of Section 6(b)(5),13 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments and perfect the mechanisms of a free and open market, 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. 8 See Letter from David S. Shillman, Associate Director, Division, Commission, to Mai S. Shiver, Director of Regulatory Policy, PCX, dated February 10, 2005. 9 See id. 10 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005) (Regulation NMS adopting release). Rule 612, which governs sub-penny quotations, will become effective on August 29, 2005. 11 The Commission notes that it has granted the Exchange the extension it requested. See Letter to Alden Adkins, Chief Regulatory Officer, PCX, from Annette L. Nazareth, Director, Division, Commission, dated July 1, 2005. 12 15 U.S.C. 78f(b). 13 15 U.S.C. 78f(b)(5). E:\FR\FM\11JYN1.SGM 11JYN1 Federal Register / Vol. 70, No. 131 / Monday, July 11, 2005 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange asserts that the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 14 and Rule 19b–4(f)(6) thereunder 15 because the rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) Impose any significant burden on competition; and (iii) 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.16 The Exchange has requested that the Commission waive the 30-day operative delay and designate the proposed rule change effective immediately. The Commission hereby grants the request.17 The Commission believes that such waiver is consistent with the protection of investors and the public interest because the sole purpose of the rule change to accurately reflect the new expiration date of a Commission exemption. 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 purposes 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 No. SR–PCX–2005–84 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 14 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 16 In addition, Rule 19b–4(f)(6)(iii) states that the Exchange must provide the Commission with written notice of its intent to file the proposed rule 15 17 VerDate jul<14>2003 16:03 Jul 08, 2005 Jkt 205001 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File No. SR–PCX–2005–84. 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 changes 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 PCX. 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 No. SR–PCX–2005–84 and should be submitted on or before August 1, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Jill M. Peterson, Assistant Secretary. [FR Doc. 05–13546 Filed 7–8–05; 8:45 am] BILLING CODE 8010–01–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Generalized System of Preferences (GSP): Notice of the Results of the 2004 Annual Product Review Office of the United States Trade Representative. ACTION: Notice. AGENCY: 39843 the 2004 Redesignation, and the 2004 Competitive Need Limitation Reviews. The GSP Subcommittee, Office of the United States Trade Representative (USTR), Room F–220, 1724 F Street, NW., Washington, DC 20508. The telephone number is (202) 395–6971 and the facsimile number is (202) 395–9481. FOR FURTHER INFORMATION CONTACT: The GSP program provides for the duty-free importation of designated articles when imported from beneficiary developing countries. The GSP program is authorized by Title V of the Trade Act of 1974 (19 U.S.C. 2461, et seq.), as amended (the ‘‘Trade Act’’), and is implemented in accordance with Executive Order 11888 of November 24, 1975, as modified by subsequent Executive Orders and Presidential Proclamations. In the 2004 Annual Review, the GSP Subcommittee of the Trade Policy Staff Committee reviewed petitions to change the product coverage of the GSP. The disposition of those petitions is described in Annex I of this notice. In the 2004 De Minimis Waiver and Redesignation Review, the GSP Subcommittee evaluated the appraised import values of each GSP-eligible article in 2004 to determine whether an article from a GSP beneficiary developing country exceeded the GSP Competitive Need Limitations (CNLs). Articles that exceeded one of the GSP CNLs in 2004, and that are newly excluded from GSP eligibility for a specific country, are listed in Annex II. Certain articles from GSP-eligible countries that had previously exceeded one of the CNLs, but had fallen below the CNLs in 2004 ($115 million and 50 percent of U.S. imports of the article), were redesignated for GSP eligibility. These articles and countries are listed in Annex III. De minimis waivers were granted to certain articles that exceeded the 50 percent import share CNL but for which the aggregate value of the imports of that article was below the 2004 de minimis level of $17.0 million. Annex IV to this notice contains a list of the articles and the associated countries granted de minimis waivers. SUPPLEMENTARY INFORMATION: SUMMARY: This notice announces the disposition of the product petitions accepted for review in the 2004 GSP Annual Product Review (including selfinitiated product reviews) and the results of the 2004 De Minimis Waiver, Marideth J. Sandler, Executive Director, Generalized System of Preferences (GSP) Program, Chairman, GSP Subcommittee. change at least five days prior to the date of filing of the proposed rule change. The Commission has determined to waive the requirement in this case. 17 For purposes only of accelerating the operative date of the proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 18 17 CFR 200.30–3(a)(12). PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 BILLING CODE 3190–W5–P E:\FR\FM\11JYN1.SGM 11JYN1

Agencies

[Federal Register Volume 70, Number 131 (Monday, July 11, 2005)]
[Notices]
[Pages 39842-39843]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-13546]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51972; File No. SR-PCX-2005-84]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Trading Securities in Subpenny Increments

July 5, 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 June 30, 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 substantially been prepared by the Exchange. The Exchange has 
filed this proposal 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

    The Exchange, through its wholly owned subsidiary PCX Equities, 
Inc. (``PCXE''), is proposing to amend the interpretation to PCXE Rule 
7.6(a) to reflect the anticipated extension of a Commission exemption 
that permits securities transactions to be entered, executed, and 
reported in subpenny increments, although such quotations are 
disseminated in rounded, penny increments without a rounding 
identifier. The text of the proposed rule change is available on the 
PCX Web site (https://www.pacificex.com), at the Exchange's principal 
office, and at the Commission's Public Reference Room.

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 III 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
    The Commission previously granted PCX an exemption from Rules 
11Ac1-1, 11Ac1-2, and 11Ac1-4 under the Act \5\ with respect to 
securities priced less than $1.00 per share that permits Archipelago 
Exchange, a facility of PCX (``ArcaEx''), electronic trading permit 
(``ETP'') holders of ArcaEx, and vendors that distribute ArcaEx 
quotation information to enter, execute, and report quotations in 
exchange-listed, Nasdaq National Market, and SmallCap securities in 
increments less than $0.01 per share, although such quotations are 
disseminated in rounded, penny increments without a rounding 
identifier.\6\ In conjunction with the initial grant of this exemption, 
the Exchange modified Interpretation .05 to PCXE Rule 7.6(a) on a pilot 
basis to reflect a subpenny minimum price variation for securities 
priced less than $1.00. That pilot rule is operative until September 
30, 2005.\7\ Subsequently, the Exchange requested the Commission to 
extend the exemption to permit the Exchange to accept and execute 
orders and quotations of all exchange-listed, National Market, and 
SmallCap securities in increments less than $0.01 per share, although 
such quotations are disseminated in rounded, penny increments without a 
rounding identifier.\8\ That exemption expires on June 30, 2005.\9\ PCX 
has requested the Commission, in a separate letter, to extend this 
exemption until the effective date of Rule 612 of Regulation NMS.\10\ 
With this filing, the Exchange is amending Interpretation .05 to PCXE 
Rule 7.6(a) to reflect the anticipated extension of this Commission 
exemption.\11\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.11Ac1-1, 240.11Ac1-2, and 11Ac1-4.
    \6\ See Letter from David S. Shillman, Associate Director, 
Division of Market Regulation, Commission, to Mai S. Shiver, 
Director of Regulatory Policy, PCX, dated September 24, 2004.
    \7\ See Securities Exchange Act Release No. 50441 (September 24, 
2004), 69 FR 58570 (September 30, 2004).
    \8\ See Letter from David S. Shillman, Associate Director, 
Division, Commission, to Mai S. Shiver, Director of Regulatory 
Policy, PCX, dated February 10, 2005.
    \9\ See id.
    \10\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005) (Regulation NMS adopting 
release). Rule 612, which governs sub-penny quotations, will become 
effective on August 29, 2005.
    \11\ The Commission notes that it has granted the Exchange the 
extension it requested. See Letter to Alden Adkins, Chief Regulatory 
Officer, PCX, from Annette L. Nazareth, Director, Division, 
Commission, dated July 1, 2005.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\12\ in general, and furthers the 
objectives of Section 6(b)(5),\13\ in particular, in that it is 
designed to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, to remove impediments and perfect the 
mechanisms of a free and open market, and to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 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.

[[Page 39843]]

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

    The Exchange asserts that the foregoing rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder \15\ because the rule change does not:
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) 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.\16\ The Exchange has requested that the Commission waive the 
30-day operative delay and designate the proposed rule change effective 
immediately.
---------------------------------------------------------------------------

    \16\ In addition, Rule 19b-4(f)(6)(iii) states that the Exchange 
must provide the Commission with written notice of its intent to 
file the proposed rule change at least five days prior to the date 
of filing of the proposed rule change. The Commission has determined 
to waive the requirement in this case.
---------------------------------------------------------------------------

    The Commission hereby grants the request.\17\ The Commission 
believes that such waiver is consistent with the protection of 
investors and the public interest because the sole purpose of the rule 
change to accurately reflect the new expiration date of a Commission 
exemption.
---------------------------------------------------------------------------

    \17\ For purposes only of accelerating the operative date of the 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 purposes 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 rule-comments@sec.gov. Please include 
File No. SR-PCX-2005-84 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File No. SR-PCX-2005-84. 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 changes 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 PCX. 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 No. SR-
PCX-2005-84 and should be submitted on or before August 1, 2005.
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 05-13546 Filed 7-8-05; 8:45 am]
BILLING CODE 8010-01-P
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