Self-Regulatory Organizations; Pacific Exchange, Inc.; Order Approving Proposed Rule Change and Amendment Nos. 2 and 3 Thereto Relating to Exposure of Orders in the PCX Plus Crossing Mechanism, 71591-71592 [E5-6622]
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Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
particular, the Commission believes that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,10 which
requires, among other things, that the
Electronic Comments
rules of the Exchange be designed to
• Use the Commission’s Internet
promote just and equitable principles of
comment form (https://www.sec.gov/
trade, to remove impediments to and
rules/sro.shtml); or
perfect the mechanism of a free and
• Send an e-mail to ruleopen market and a national market
comments@sec.gov. Please include File
system, and, in general, to protect
Number SR–PCX–2005–108 on the
investors and the public interest.
subject line.
Under the proposed rule change, the
Paper Comments
Exchange would modify its ‘‘generic’’
• Send paper comments in triplicate
listing standards under PCXE Rule
to Jonathan G. Katz, Secretary,
5.2(j)(3) applicable to ICUs to remove
Securities and Exchange Commission,
the requirement that the Reporting
100 F Street NE., Washington, DC
Authority disseminate estimated values
20549–9303.
for each series every 15 seconds.
All submissions should refer to File
Instead, the proposal would impose a
Number SR–PCX–2005–108. This file
requirement to have one or more major
number should be included on the
subject line if e-mail is used. To help the market vendors to disseminate such
information during the time that ICUs
Commission process and review your
trade on ArcaEx. For the purposes of
comments more efficiently, please use
only one method. The Commission will this rule, the Exchange notes that its
post all comments on the Commission’s definition of major market data vendor
Internet Web site (https://www.sec.gov/
includes the Consolidated Tape and
rules/sro.shtml). Copies of the
services such as Reuters and Bloomberg.
submission, all subsequent
The Exchange has requested that the
amendments, all written statements
Commission find good cause for
with respect to the proposed rule
approving the proposed rule change
change that are filed with the
prior to the thirtieth day after
Commission, and all written
publication of notice thereof in the
communications relating to the
Federal Register. The Commission notes
proposed rule change between the
Commission and any person, other than that it previously approved a similar
rule change for the New York Stock
those that may be withheld from the
Exchange, Inc. (‘‘NYSE’’).11
public in accordance with the
provisions of 5 U.S.C. 552, will be
The Commission believes that
available for inspection and copying in
granting accelerated approval of the
the Commission’s Public Reference
proposal will allow the Exchange to
Room. Copies of such filing also will be implement, without undue delay, these
available for inspection and copying at
listing standards for dissemination of
the principal offices of the Exchange.
the estimated values for ICUs.
All comments received will be posted
Accordingly, the Commission finds
without change; the Commission does
good cause, pursuant to Section 19(b)(2)
not edit personal identifying
of the Act,12 for approving this proposal
information from submissions. You
before the thirtieth day after the
should submit only information that
you wish to make available publicly. All publication of notice thereof in the
Federal Register.
submissions should refer to File
Number SR–PCX–2005–108 and should V. Conclusion
be submitted on or before December 20,
It is therefore ordered, pursuant to
2005.
Section 19(b)(2) of the Act,13 that the
IV. Commission’s Findings and Order
proposed rule change (SR–PCX–2005–
Granting Accelerated Approval of
108) is hereby approved on an
Proposed Rule Change
accelerated basis.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
10 15 U.S.C. 78f(b)(5).
a national securities exchange.9 In
11
9 In
approving this proposed rule change, the
Commission has considered its impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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20:13 Nov 28, 2005
Jkt 208001
See Securities Exchange Act Release No. 52081
(July 20, 2005), 70 FR 43488 (July 27, 2005) (SR–
NYSE–2005–44).
12 15 U.S.C. 78s(b)(2).
13 15 U.S.C. 78s(b)(2).
PO 00000
Frm 00133
Fmt 4703
Sfmt 4703
71591
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6619 Filed 11–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52814; File No. SR–PCX–
2005–85]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Order Approving
Proposed Rule Change and
Amendment Nos. 2 and 3 Thereto
Relating to Exposure of Orders in the
PCX Plus Crossing Mechanism
November 21, 2005.
On July 19, 2005, the Pacific
Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’),
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 reduce the
exposure period in the Crossing
Mechanism of the PCX Plus System
from 30 seconds to 10 seconds. The PCX
filed Amendment No. 1 to the proposed
rule change on September 20, 2005 and
subsequently withdrew Amendment No.
1. The PCX filed Amendment Nos. 2
and 3 to the proposed rule change on
September 23, 2005 and September 27,
2005, respectively. The proposed rule
change, as amended, was published for
comment in the Federal Register on
October 7, 2005.3 The Commission
received no comments on the proposal.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of Section 6(b) of the Act 4
and the rules and regulations
thereunder applicable to a national
securities exchange,5 and in particular
with Section 6(b)(5) of the Act.6 The
Commission believes that, in the
electronic environment of PCX Plus,
reducing the exposure period to 10
seconds could facilitate the prompt
execution of orders, while providing
participants in the PCX Plus System
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 52542
(September 30, 2005), 70 FR 58773.
4 15 U.S.C. 78f(b).
5 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).
6 15 U.S.C. 78f(b)(5).
1 15
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71592
Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices
with an adequate opportunity to
compete for those orders.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–PCX–2005–
85), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6622 Filed 11–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52811; File No. SR–PCX–
2005–125]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change To Extend
Certain Exceptions From the Voting
and Ownership Limitations in the
Certificate of Incorporation of PCX
Holdings, Inc.
November 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 November
15, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ or the ‘‘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 Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons, and is
approving the proposal on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
PCX hereby submits to the
Commission a proposed rule change to
extend certain exceptions from the
voting and ownership limitations in the
certificate of incorporation of PCX
Holdings, Inc. (‘‘PCXH’’), a Delaware
corporation and the parent company of
PCX, approved by the Commission in an
order issued on September 22, 2005,3 so
as to allow Archipelago Holdings, Inc.
(‘‘Archipelago’’), a Delaware corporation
7 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 52497
(September 22, 2005), 70 FR 56949 (September 29,
2005) (‘‘Order Approving SR–PCX–2005–90’’).
8 17
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20:13 Nov 28, 2005
Jkt 208001
and the ultimate parent company of
PCXH and PCX, to continue to (i) own
and operate the ATS OTC Function (as
defined below) of its wholly-owned
subsidiary, Archipelago Trading
Services, Inc. (‘‘Arca Trading’’), and (ii)
until the closing of the proposed
business combination of Archipelago
and the New York Stock Exchange, Inc.
(the ‘‘NYSE’’), a New York not-for-profit
corporation (the ‘‘Proposed Archipelago
NYSE Merger’’), own and operate the
DOT Function (as defined below) of its
wholly-owned subsidiary, Archipelago
Securities, L.L.C. (‘‘Archipelago
Securities’’).
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 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
a. PCXH Acquisition and the
Amendment of the PCXH Certificate of
Incorporation
On September 26, 2005, Archipelago
completed its acquisition of PCXH and
all of its wholly-owned subsidiaries,
including PCX and PCX Equities, Inc.
(‘‘PCXE’’) (the ‘‘PCXH Acquisition’’).
The PCXH Acquisition was
accomplished by way of a merger of
PCXH with a wholly-owned subsidiary
of Archipelago, with PCXH being the
surviving corporation in the merger and
becoming a wholly-owned subsidiary of
Archipelago.
The certificate of incorporation of
PCXH (as amended to date, the ‘‘PCXH
Certificate of Incorporation’’) contains
various ownership and voting
restrictions on PCXH’s capital stock,
which are designed to safeguard the
independence of the self-regulatory
functions of PCX and to protect the
Commission’s oversight responsibilities.
In order to allow Archipelago to own
100% of the capital stock of PCXH, prior
to the completion of the PCXH
Acquisition, PCX filed with the
Commission a proposed rule change
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
which sought to, among other things,
amend the PCXH Certificate of
Incorporation to create an exception
from the voting and ownership
restrictions for Archipelago and certain
of its related persons (the ‘‘Original Rule
Filing’’).4 The Original Rule Filing, as
amended by Amendment No. 1 and
Amendment No. 2 thereto, was
approved by the Commission on
September 22, 2005 5 and the amended
PCXH Certificate of Incorporation
became effective on September 26, 2005,
upon the closing of the PCXH
Acquisition.
Article Nine of the PCXH Certificate
of Incorporation provides that no
Person,6 either alone or together with its
Related Persons,7 may own, directly or
indirectly, shares constituting more than
40% of the outstanding shares of any
class of PCXH capital stock,8 and that
no Person, either alone or together with
its Related Persons who is a trading
permit holder of PCX or an equities
trading permit holder of PCXE, may
own, directly or indirectly, shares
4 See Pacific Exchange, Inc., Proposed Rule
Change Relating to the Certificate of Incorporation
of PCX Holdings, Inc., PCX Rules, and Bylaws of
Archipelago Holdings, Inc., File No. SR–PCX–2005–
90 (August 1, 2005).
5 See Order Approving SR–PCX–2005–90.
6 ‘‘Person’’ is defined to mean an individual,
partnership (general or limited), joint stock
company, corporation, limited liability company,
trust or unincorporated organization, or any
governmental entity or agency or political
subdivision thereof. PCXH Certificate of
Incorporation, Article Nine, section 1(b)(iv).
7 The term ‘‘Related Person,’’ as defined in the
PCXH Certificate of Incorporation, means (i) with
respect to any person, all ‘‘affiliates’’ and
‘‘associates’’ of such person (as such terms are
defined in Rule 12b–2 under the Act; (ii) with
respect to any person constituting a trading permit
holder of PCX or an equities trading permit holder
of PCXE, any broker dealer with which such holder
is associated; and (iii) any two or more persons that
have any agreement, arrangement or understanding
(whether or not in writing) to act together for the
purpose of acquiring, voting, holding or disposing
of shares of the capital stock of PCXH. PCXH
Certificate of Incorporation, Article Nine, section
1(b)(iv).
8 PCXH Certificate of Incorporation, Article Nine,
section 1(b)(i). However, such restriction may be
waived by the Board of Directors of PCXH pursuant
to an amendment to the Bylaws of PCXH adopted
by the Board of Directors, if, in connection with the
adoption of such amendment, the Board of
Directors adopts a resolution stating that it is the
determination of such Board that such amendment
will not impair the ability of PCX to carry out its
functions and responsibilities as an ‘‘exchange’’
under the Act and is otherwise in the best interests
of PCXH and its stockholders and PCX, and will not
impair the ability of the Commission to enforce said
Act, and such amendment shall not be effective
until approved by said Commission; provided that
the Board of Directors of PCXH shall have
determined that such Person and its Related
Persons are not subject to any applicable ‘‘statutory
disqualification’’ (within the meaning of section
3(a)(39) of the Act). PCXH Certificate of
Incorporation, Article Nine, sections 1(b)(i)(B) and
1(b)(i)(C).
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]]>Agencies
[Federal Register Volume 70, Number 228 (Tuesday, November 29, 2005)]
[Notices]
[Pages 71591-71592]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6622]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52814; File No. SR-PCX-2005-85]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Order
Approving Proposed Rule Change and Amendment Nos. 2 and 3 Thereto
Relating to Exposure of Orders in the PCX Plus Crossing Mechanism
November 21, 2005.
On July 19, 2005, the Pacific Exchange, Inc. (``PCX'' or
``Exchange''), 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 reduce the exposure period in the Crossing Mechanism
of the PCX Plus System from 30 seconds to 10 seconds. The PCX filed
Amendment No. 1 to the proposed rule change on September 20, 2005 and
subsequently withdrew Amendment No. 1. The PCX filed Amendment Nos. 2
and 3 to the proposed rule change on September 23, 2005 and September
27, 2005, respectively. The proposed rule change, as amended, was
published for comment in the Federal Register on October 7, 2005.\3\
The Commission received no comments on the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 52542 (September 30,
2005), 70 FR 58773.
---------------------------------------------------------------------------
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of Section 6(b) of the
Act \4\ and the rules and regulations thereunder applicable to a
national securities exchange,\5\ and in particular with Section 6(b)(5)
of the Act.\6\ The Commission believes that, in the electronic
environment of PCX Plus, reducing the exposure period to 10 seconds
could facilitate the prompt execution of orders, while providing
participants in the PCX Plus System
[[Page 71592]]
with an adequate opportunity to compete for those orders.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 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).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-PCX-2005-85), as amended, is
approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6622 Filed 11-28-05; 8:45 am]
BILLING CODE 8010-01-P
