Self-Regulatory Organizations; The Pacific Exchange, Inc.; Notice of Filing of Proposed Rule Change, and Amendment No. 1 Thereto, Relating to the Tracking Order Process, 73811-73815 [E5-7263]
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Federal Register / Vol. 70, No. 238 / Tuesday, December 13, 2005 / Notices
a broker-dealer, INET remains subject to
the applicable NASD rules.
The Commission notes that the
proposed rule change articulates
Nasdaq’s operation of INET and INET’s
integration with the Nasdaq Market
Center and Brut. The rules that are the
subject of this filing encompass a wide
range of areas, including the INET
System’s order display and matching
function, access standards, order types,
time-in-force designations, out-bound
order routing, order execution
algorithm, clearly erroneous trade
procedures, other system features and
standards, and fees. The Commission
believes that the proposed rules are
reasonably designed to provide order
interaction and price competition.
Under the proposed rule change, INET
will continue to participate in market
surveillance and audit trail programs
conducted by Nasdaq and NASD, and,
for the temporary period during which
it posts its top-of-file quotes through the
facilities of the NSX, would also remain
subject to all applicable rules and
regulations of the NSX. In addition, the
Commission notes that many of the
proposed trading rules for the INET
System are modeled on existing rules
that apply to Nasdaq’s Brut facility and
the Nasdaq Market Center.16
Accordingly, the Commission believes
that granting approval to substantially
similar rules for Nasdaq’s INET facility
is appropriate because such rules do not
raise any novel or significant regulatory
issues.
The Commission notes that, under
this proposal, there is a temporary
transition period during which INET
would continue to operate in
functionally the same manner in which
it operates today; thus, the immediate
transition to INET’s operation as a
16 See Securities Exchange Act Release No. 51326
(March 7, 2005), 70 FR 12521 (March 14, 2005)
(‘‘Brut Approval Order’’). On September 7, 2004,
Nasdaq acquired Brut LLC, a registered brokerdealer and member of NASD, and operator of the
Brut ECN (‘‘Brut’’). Once purchased by Nasdaq, Brut
became a facility of a national securities
association. Nasdaq initially operated Brut pursuant
to a Temporary Conditional Exemption under
Section 36 of the Act, which the Commission
granted for a period of six months following
Nasdaq’s acquisition of Brut. See Exchange Act
Release No. 50311 (September 3, 2004), 69 FR
54818 (September 10, 2004). On November 3, 2004,
NASD, through Nasdaq, filed with the Commission
a proposed rule change to establish rules governing
the operation of its Brut trading facility. The
proposed rule change, as amended by Amendment
No. 1 thereto, was published for comment in the
Federal Register on January 31, 2005. See Securities
Exchange Act Release No. 51078 (January 25, 2005),
70 FR 4902 (January 31, 2005) (SR–NASD–2004–
173) (‘‘Brut Notice’’). The Commission received no
comments on the Brut Notice, as amended by
Amendment Nos. 1 and 2 thereto, and approved the
proposed rule change, as amended, on March 7,
2005. See Brut Approval Order.
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Nasdaq facility should be seamless from
a market structure perspective for
market participants, in general, and
INET subscribers, in particular. The
Commission also emphasizes that INET,
as a Nasdaq facility, will now be subject
to Section 19 of the Act 17 and, to the
extent that proposed rule changes are
required to effectuate the Nasdaq/INET
integration as described above, such
proposed rule changes must be
submitted to, and reviewed by, the
Commission.
In addition, the Commission notes
that several of Nasdaq’s proposed rules
would apply for a temporary period,
allowing INET to continue certain of its
current practices during a limited
transition period immediately following
the closing of the Nasdaq/INET
transaction. For example, INET’s
proposed rules relating to the
registration of all INET system
participants as members of NASD,18
clearly erroneous transactions,19
limitation of liability,20 and system
service charges 21 only apply for a
period of time not to exceed 60 days
after INET becomes a facility of Nasdaq.
Likewise, INET’s display of its best
priced orders through the facilities of
the NSX may continue on a temporary
basis until September 30, 2006.22 The
Commission notes that this proposal
represents an interim step toward
Nasdaq’s ultimate plan to unify INET,
the Nasdaq Market Center, and Brut into
a single technology platform, which
Nasdaq has committee to complete
before the end of the third quarter of
2006. Finally, the Commission expects
that, as Nasdaq has stated, soon after the
formal close of the Nasdaq/INET
transaction, Nasdaq will merge the INET
broker-dealer into Nasdaq’s Brut brokerdealer and that Brut as a single brokerdealer would operate both ECNs as
separate systems, with separate order
processing and execution, which would
permit the NYSE to continue to serve as
the designated examining authority for
financial responsibility purposes for
Nasdaq’s wholly-owned broker-dealer.
The Commission believes that this
arrangement should held to eliminate
actual, or the appearance of any,
conflicts of interest between NASD and
INET’s broker-dealer operation.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (File No. SR–
NASD–2005–128) be, and hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.24
Jonathan G. Katz,
Secretary.
[FR Doc. 05–23946 Filed 12–12–05; 8:45 am]
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52898; File No. SR–PCX–
2005–87]
Self-Regulatory Organizations; The
Pacific Exchange, Inc.; Notice of Filing
of Proposed Rule Change, and
Amendment No. 1 Thereto, Relating to
the Tracking Order Process
December 6, 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 July 26,
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, II, and
III below, which Items have been
prepared by the PCX. On November 22,
2005, the Exchange submitted
Amendment No. 1 to the proposed rule
change.3 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The 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 replace the existing PCXE rules
describing the current ArcaEx Tracking
Order Process 4 with new provisions
setting forth a simplified price/time
execution priority for the Tracking
Order Process. Further, the PCX
23 15
17 15
U.S.C. 78s(b).
18 Proposed NASD Rule 4952.
19 Proposed NASD Rule 4961.
20 Proposed NASD Rule 4964.
21 Proposed NASD Rule 7010(w).
22 Proposed NASD Rule 4954(b)(2).
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73811
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 Amendment No.1, which replaced the original
filing in its entirety, made technical and clarifying
changes to the proposed rule change.
4 See PCXE Rule 7.37(c).
24 17
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Federal Register / Vol. 70, No. 238 / Tuesday, December 13, 2005 / Notices
proposes to modify the Tracking Order 5
for use in the revised Tracking Order
Process.
The text of the proposed rule change,
as amended, appears below. Additions
are italicized; deletions are [bracketed].
*
*
*
*
*
Rules of PCX Equities, Inc.
Rule 7
Equities Trading; Section 3
Archipelago Exchange–Orders and
Modifiers
Rule 7.31(a)–(e)—No Change.
(f) Tracking Order.
An undisplayed, priced round lot
order that is eligible for execution in the
Tracking Order Process against orders
equal to or less than the aggregate size
of Tracking Order interest available at
that price. If a Tracking Order is
executed but not exhausted, the
remaining portion of the order shall be
cancelled, without routing the order to
another market center or market
participant.
[(1) Any User may submit an
instruction to the Archipelago Exchange
for the parameters of a Tracking Order
at any time during the day. The
parameters shall include:]
[(A) the maximum aggregate size,
which is the aggregate size of all partial
orders generated in the Tracking Order
Process for a particular security that the
User is willing to trade on that day;]
[(B) the maximum tradeable size,
which is the maximum size of any
partial order generated in response to an
order entering the Tracking Order
Process that the User is willing to trade
on that day;]
[(C) the price in relation to the NBBO;
and]
[(D) the relevant security.]
[(2) Once a User has submitted an
instruction for the parameters of the
Tracking Order, the instruction will
remain in effect until closing or until
the User has traded its maximum
aggregate size for that day, whichever
comes first.]
[(3) The Tracking Order Process
rotation is as follows: Users who have
submitted an instruction for the
parameters of a Tracking Order will be
assigned trades on a price/time rotating
basis, such that within each price level,
trades shall be assigned by the time the
Users’ instructions are received by the
Archipelago Exchange. Within each
price level, the first User to send an
instruction for a Tracking Order will be
the first User to be assigned a trade in
the rotation process. For each order that
enters the Tracking Order Process, the
5 See
PCXE Rule 7.31(f).
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Tracking Order Process will rotate once
through the Users in the rotation
pattern. In each rotation, the User will
be responsible for one trade up to the
User’s maximum tradeable size.]
[(4) The order described in the User’s
Tracking Order instruction will only be
generated if:]
[(A) an unfilled round or mixed lot
order enters the Tracking Order Process
and]
[(B) it is such User’s turn as
determined by the Tracking Order
Process rotation pattern.]
[(5) Each partial order generated in a
rotation is a limit order in which:]
[(A) The price is set at or better than
the NBBO at the time the unfilled order
enters the Tracking Order Process, based
on the User’s parameters; and]
[(B) The size is (i) equal to the User’s
maximum tradeable size if the unfilled
order is equal to or larger than the
maximum tradeable size; or (ii) equal to
the size of the unfilled order if the
unfilled order is smaller than the
maximum tradeable size.]
[(6) A User may modify the
parameters of the instruction for the
Tracking Order from time to time, as the
Corporation permits.]
[(7) The Corporation shall suspend
the Tracking Order Process for a
security when a locked or crossed
market exists in that security. The
Tracking Order Process for that security
shall resume when the locked or crossed
market in that security no longer exists.]
[(8) Whenever in the judgment of the
Corporation, because of an influx of
orders, a system malfunction or other
unusual conditions or circumstances,
the interests of a fair and orderly market
so require, the Corporation may suspend
the Tracking Order Process. The
Tracking Order Process shall resume
when the Corporation determines that
the conditions supporting the
suspension no longer exist.]
(g) Odd Lot Tracking Order.
(1)—No Change.
(2) An Odd Lot Dealer may submit an
instruction to the Archipelago Exchange
for the parameters of an OLTO at any
time during the day. The parameters
shall include: [is a Tracking Order, as
described in paragraph (f), in which:]
(A) The maximum aggregate size [is
unlimited;], which is the unlimited
aggregate size of all orders generated in
the Odd Lot Tracking Order Process for
a particular security that the Odd Lot
Dealer is willing to trade on that day;
(B) The maximum tradeable size [is]
up to 99 shares, which is the maximum
size of any order generated in response
to an order entering the Odd Lot
Tracking Order Process that the Odd Lot
Dealer is willing to trade on that day;
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(C) The price is set at the NBBO; and
(D) The relevant security [is one] in
which the Odd Lot Dealer is registered
as such; and
(E) The instruction must be in effect
for the duration of Core Trading Hours;
provided, however, the order described
in the OLTO instruction will only be
generated if:
(1) An unfilled odd lot market order
enters the Odd Lot Tracking Order
Process pursuant to Rule 7.37(c); or
(2) An odd lot limit order causes a
locked market as described in Rule 7.56.
(3) Each order generated in a rotation
is a limit order in which:
(A) The price is set at the NBBO at the
time the unfilled order enters the Odd
Lot Tracking Order Process, based on
the Odd Lot Dealer’s parameters; and
(B) The size is (i) equal to the Odd Lot
Dealer’s maximum tradeable size; or (ii)
equal to the size of the unfilled order if
the unfilled order is smaller than the
maximum tradeable size.
(4) An Odd Lot Dealer may modify the
parameters of the instruction for the
Odd Lot Tracking Order from time to
time, as the Corporation permits.
(5) The Corporation shall suspend the
Odd Lot Tracking Order Process for a
security when a locked or crossed
market exists in that security. The Odd
Lot Tracking Order Process for that
security shall resume when the locked
or crossed market in that security no
longer exists.
(6) Whenever in the judgment of the
Corporation, because of an influx of
orders, a system malfunction or other
unusual conditions or circumstances,
the interests of a fair and orderly market
so require, the Corporation may
suspend the Odd Lot Tracking Order
Process. The Odd Lot Tracking Order
Process shall resume when the
Corporation determines that the
conditions supporting the suspension
no longer exist.
(h)–(hh)—No Change.
*
*
*
*
*
Order Execution
Rule 7.37
*
*
*
*
*
(a)–(b)—No Change.
(c) Step 4: Tracking Order Process.
During Core Trading Hours only, orders
may be matched and executed in the
Tracking Order Process as follows: If an
order has not been executed in its
entirety pursuant to paragraphs (a) and
(b) of this Rule, the Archipelago
Exchange shall match and execute any
remaining part of the order in the
Tracking Order Process in price/time
priority [the following manner];
provided, however, any portion of an
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Federal Register / Vol. 70, No. 238 / Tuesday, December 13, 2005 / Notices
order received from another market
center or market participant shall be
cancelled immediately[:].
[(1) If the unfilled order is a mixed lot
or round lot order, the order shall be
matched against any Tracking Orders
pursuant to the rotation pattern
described in Rule 7.31(f)(3) for
immediate execution thereafter. After
the order has been matched against any
Tracking Orders, if the order has not
been executed in its entirety and the
remaining part of the order is an odd lot,
the odd lot order shall be executed in
the Odd Lot Tracking Order Process, as
described in paragraph (2).]
Odd Lot Tracking Order Process
[(2)](1) If the unfilled order is an odd
lot, and there is an Odd Lot Dealer
registered in that security, the order
shall be matched in the Odd Lot
Tracking Order Process against any
OLTOs pursuant to the following
rotation pattern:
Odd Lot Dealers who have submitted
an instruction for the parameters of an
Odd Lot Tracking Order will be assigned
trades on a price/time rotating basis,
such that within each price level, trades
shall be assigned by the time the Odd
Lot Dealers’ instructions are received by
the Archipelago Exchange. Within each
price level, the first Odd Lot Dealer to
send an instruction for an Odd Lot
Tracking Order will be the first Odd Lot
Dealer to be assigned a trade in the
rotation process. For each order that
enters the Odd Lot Tracking Order
Process, the Odd Lot Tracking Order
Process will rotate once through the
Odd Lot Dealers in the rotation pattern.
In each rotation, the Odd Lot Dealer will
be responsible for one trade up to the
Odd Lot Dealer’s maximum tradeable
size. [described in Rule 7.31(f)(3) for
immediate execution thereafter.]
(2) If there is no Odd Lot Dealer
registered in that security, the odd lot
will be routed away pursuant to PCXE
Rule 7.37(d).
(d)—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, the
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.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
To enhance participation on the
ArcaEx facility, the Exchange proposes
to restructure its Tracking Order Process
by modifying the current rule text
governing the Tracking Order Process to
implement a simplified price/time
priority execution process. In addition,
the Exchange proposes to modify the
existing Tracking Order for use in the
revised and simplified Tracking Order
Process.
Current ArcaEx Tracking Order Process
Current PCXE Rules 7.31(f) and
7.37(c) describe the Tracking Order
Process. The purpose of the Tracking
Order Process is to provide a final
opportunity for execution against any
remaining liquidity on the ArcaEx
system before routing to an away market
center. As currently written, Users 6 of
the Tracking Order Process submit a
Tracking Order instruction to ArcaEx
based on certain parameters. ArcaEx
generates orders based on these User
instructions. Executions occur in a
rotating manner pursuant to PCXE Rule
7.37(c). In general, the first User to send
an instruction for a Tracking Order for
each price level is the first User to be
assigned a trade in the rotation process.
With each rotation, a User who has
entered a Tracking Order is responsible
for one trade up to the User’s maximum
tradable size.
Proposed Changes to the Tracking Order
Process
As proposed, the rule change would
modify the current Tracking Order
Process described above and replace it
with a new process based on the
submission of orders, rather than
instructions, to be executed in price/
time priority. Users would no longer be
required to submit and maintain
Tracking Order instructions to
participate in the Tracking Order
Process. Instead, Users would simply
submit a Tracking Order (as described
below) designed specifically to reside in
the modified Tracking Order Process.
ArcaEx would continue to process all
orders residing in the modified Tracking
Order Process after it processes orders
entered into the other ArcaEx execution
processes.7 Within the Tracking Order
Process, the modified Tracking Order
would execute based on its price and
time received as opposed to the price
and time the instruction was received.
This filing also proposes changes to
the existing Odd Lot Tracking Order
Process.8 The Odd Lot Tracking Order
Process that is currently available for
incoming odd lot orders would continue
to exist and would be distinct from the
Tracking Order Process which would be
available for incoming mixed lot and
round lot orders. Accordingly, the
existing Tracking Order Process and
associated assignment of trades on a
price/time rotating basis would
continue to apply to the Odd Lot
Tracking Order Process. The rule text
that previously resided in PCXE Rule
7.31(f)(3) would be inserted into PCXE
Rule 7.37(c)(1) to describe the Odd Lot
Tracking Order Process and revised to
clarify that only Odd Lot Dealers 9 may
be assigned trades under the Odd Lot
Tracking Order Process.10 Also, under
the proposal, orders would only
participate in the Odd Lot Tracking
Order Process if there is an Odd Lot
Dealer registered in that security. If no
such dealer exists, the odd lot order
would be routed away pursuant to PCXE
Rule 7.37(d). Further, the proposal
includes clarifying changes that the Odd
Lot Tracking Order Process does not
generate partial fills.
The Tracking Order
The rule proposal modifies an
existing order type, the Tracking Order,
for use in the revised Tracking Order
Process. Currently, a User submits a
Tracking Order instruction that includes
specific parameters that must be entered
including maximum aggregate size and
maximum tradeable size. The revised
Tracking Order is an undisplayed,
priced order with a specified size that
would be eligible for execution against
other ArcaEx orders that have already
been exposed to other ArcaEx execution
processes and have not been executed in
full. The Tracking Order would execute
in the revised Tracking Order Process
against an incoming order only if the
size of the incoming order is less than
or equal to the aggregate Tracking Order
interest available at the price of the
incoming order and the incoming order
is not an odd lot order. If the size of any
contra order exposed to the revised
Tracking Order Process is greater than
8 See
PCXE Rule 7.37(c).
PCXE Rule 1.1(gg).
10 Similarly, the rule text that describes the
generation of Tracking Orders in PCXE Rule 7.31(f)
and that also applies to Odd Lot Tracking Orders
would be inserted in PCXE Rule 7.31(g). PCXE Rule
7.31(g) would also be further modified, as
necessary, to accommodate such insertion.
9 See
6 See
PCXE Rule 1.1(yy).
PCXE Rule 7.37 for a description of the
ArcaEx execution processes that precede the
Tracking Order Process. These include the Directed
Process, Display Process and Working Order
Process.
7 See
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Federal Register / Vol. 70, No. 238 / Tuesday, December 13, 2005 / Notices
the size of the aggregate Tracking Order
interest residing in the Tracking Order
Process at the executable price, such
Tracking Orders would not execute
against the contra order. For example, if
a Tracking Order was entered for 300
shares and a contra order with a size of
301 shares was exposed to the Tracking
Order Process (after being exposed to all
other ArcaEx execution processes), the
contra order would not execute against
the Tracking Order and would route out
of ArcaEx.
Tracking Orders would execute only
if the price of the Tracking Order is
equal to or better than prices found at
away markets (and would therefore
execute at the price of the NBBO at the
time of execution or better).11 If a
Tracking Order is executed but not
exhausted, the remaining portion of the
Tracking Order shall be cancelled,
without routing to another market
center or market participant. Tracking
Orders residing in the Tracking Order
Process would be sorted and executed
against in price/time priority. Tracking
Orders may only be entered as round
lots and are not displayed to any Users.
However, mixed lot contra orders
exposed to a Tracking Order would be
eligible for execution against such
Tracking Order (assuming the size of the
contra order is equal to or less than the
size of the Tracking Order).12 An odd lot
contra order would be exposed to an
Odd Lot Tracking Order and eligible for
execution against such Odd Lot
Tracking Order as described above. In
the circumstance when a Tracking
Order receives a partial fill, the
unexecuted portion of the Tracking
Order would be cancelled. Because
Tracking Orders may be cancelled and
are only executed against once, the
current provision in PCXE Rule
7.31(f)(8) that enables ArcaEx to
suspend the Tracking Order Process
because of an influx of orders, a system
malfunction, or other unusual
circumstances is no longer relevant and
would be removed. In addition, the
current provision in PCXE Rule
7.31(f)(7) is no longer relevant because
the new Tracking Order Process would
be integrated into existing order book
processing, which is not suspended in
the instance of a locked or crossed
market. Accordingly, PCXE Rule
11 See PCXE Rule 7.37 which states that ‘‘for an
execution to occur in any Order Process, the price
must be equal to or better than the NBBO.’’
12 PCX clarified that a contra order would be
eligible for execution against such Tracking Order
if the size of the contra order is equal to or less than
the size of the Tracking Order. Telephone
conversation between Bridget M. Farrell, Director,
Strategy PCX/ArcaEx and Johnna B. Dumler,
Attorney, Division of Market Regulation,
Commission, on December 1, 2005.
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7.31(f)(7) would not be incorporated
into the modified Tracking Order
Process. Tracking Orders would not
route to other market centers, would not
be eligible for execution against other
Tracking Orders, and would not execute
against incoming ITS orders.
The Exchange believes that the
implementation of the aforementioned
rule changes relating to ArcaEx order
processing would enhance order
execution opportunities on ArcaEx. In
particular, the Exchange believes the
revisions to the Tracking Order Process
and Tracking Order would simplify the
Tracking Order Process and encourage
order interaction on ArcaEx.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with section 6(b) of the Act,13
in general, and furthers the objectives of
section 6(b)(5) of the Act 14 in particular
because 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 mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The PCX 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, as amended, or
13 15
14 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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(B) Institute proceedings to determine
whether the proposed rule change, as
amended, should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form at (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR-PCX–2005–87 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
Number SR–PCX–2005–87. 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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the 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
Number SR-PCX–2005–87 and should
be submitted on or before January 3,
2006.
E:\FR\FM\13DEN1.SGM
13DEN1
Federal Register / Vol. 70, No. 238 / Tuesday, December 13, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7263 Filed 12–12–05; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages that will require
clearance by the Office of Management
and Budget (OMB) in compliance with
Public Law 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. The information collection
packages that may be included in this
notice are for new information
collections, approval of existing
information collections, revisions to
OMB-approved information collections,
and extensions (no change) of OMBapproved information collections.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and on ways
to minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Written
comments and recommendations
regarding the information collection(s)
should be submitted to the OMB Desk
Officer and the SSA Reports Clearance
Officer. The information can be mailed
and/or faxed to the individuals at the
addresses and fax numbers listed below:
(OMB), Office of Management and
Budget, Attn: Desk Officer for SSA. Fax:
202–395–6974.
(SSA), Social Security
Administration, DCFAM, Attn: Reports
Clearance Officer, 1333 Annex Building,
6401 Security Blvd., Baltimore, MD
21235. Fax: 410–965–6400.
I. The information collections listed
below are pending at SSA and will be
submitted to OMB within 60 days from
the date of this notice. Therefore, your
comments should be submitted to SSA
within 60 days from the date of this
publication. You can obtain copies of
the collection instruments by calling the
SSA Reports Clearance Officer at 410–
965–0454 or by writing to the address
listed above.
15 17
1. 20 Day Letter to RepresentativeClaimant’s Benefits Withheld—20 CFR
404.1720, 404.1725, 404.1730(b),
404.1730(c)(2)(i) and (ii), 416.1520,
416.1525, 416.1530(b)—0960–NEW. In a
favorable decision where there are pastdue benefits, SSA withholds a portion
of those benefits for potential direct
payment to a representative. 20 CFR
404.1730(c)(2)(i) requires a
representative to make a timely request
for fee approval if the representative
wishes to receive direct payment. As a
courtesy, SSA sends this letter to a
representative before releasing withheld
funds to the claimant. Respondents are
representatives who wish to receive
direct payment.
Type of Request: Collection in Use
Without OMB Number.
Number of Respondents: 1,000.
Frequency of Response: 1.
Average Burden Per Response: 5
minutes.
Estimated Annual Burden: 83 hours.
2. Recommendation for Fee Greater
Than $7000—Referral to Regional Chief
Administrative Law Judge—20 CFR
404.1720, 404.1725, 404.1730(b),
404.1730(c)(2)(i) and (ii), 416.1520,
416.1525, 416.1530(b)—0960–NEW.
This letter refers an ALJ’s
recommendation on a fee petition to a
Regional Chief Administrative Law
Judge (RCALJ) with a courtesy copy to
the representative. The RCALJ, who is
an SSA employee, will subsequently
inform the representative of the
approved fee. Respondents are
representatives with fee petitions greater
than $7000.
Type of Request: Collection in Use
Without OMB Number.
Number of Respondents: 1,000.
Frequency of Response: 1.
Average Burden Per Response: 1
minute.
Estimated Annual Burden: 17 hours.
3. Request for DDS Assistance in
Obtaining Consultative Examination—
20 CFR 404.1512, 404.1513(a), (b) and
(e), 404.1514, 404.1517, 404.1546,
416.912, 416.913(a), (b) and (e),
416.917, 416.946—0960–NEW. SSA
requires that consultative examinations
be scheduled through the state DDSs.
When an ALJ believes a CE is required,
this form is used to transmit the request,
and a courtesy status letter is sent to the
claimant. Respondents are claimants
requesting DDS assistance in obtaining
consultative examinations.
Type of Request: Collection in Use
Without OMB Number.
Number of Respondents: 102,000.
Frequency of Response: 1.
Average Burden Per Response: 35
minutes.
Estimated Annual Burden: 59,500
hours.
4. Request for Evidence from Doctor
or Hospital—20 CFR 404.1512,
404.1513(a), (b), and (e), 404.1514,
416.912, 416.913(a), (b) and (e),
416.914—0960–NEW. Claimants are
required to provide medical evidence of
their impairment(s) in pursuing a
disability claim. SSA uses these forms
to request medical evidence from
sources (doctors and hospitals) where
the claimant has been treated, seen or
otherwise evaluated. Respondents are
doctors and hospitals where the
claimant has been evaluated.
Type of Request: Collection in Use
Without OMB Number.
Number of Respondents: 20,000.
Frequency of Response: 20.
Average Burden Per Response: 15
minutes.
Estimated Annual Burden: 100,000
hours.
5. Request for School Records—20
CFR part 416, subpart I, 416.906,
416.913, 416.946, 404, subpart P,
Appendix 1—0960–NEW. School
records are pertinent evidence in a
childhood claim for disability benefits.
ALJs use this for to request that
evidence. This letter will be used to
request school records from the
school(s) which the claimant has
attended for evidence relative to the
claimant’s impairments or ability to do
age-appropriate activities. Respondents
are the school(s) which the claimant has
attended.
Type of Request: Collection in Use
Without OMB Number.
Number of Respondents: 10,000.
Frequency of Response: 6.
Average Burden Per Response: 30
minutes.
Estimated Annual Burden: 30,000
hours.
6. 20 CFR part 429, subpart 100,
Filing Claims Under the Federal Tort
Claims Act—20 CFR 429.101–429.110—
0960–0667. SSA uses the information
provided to investigate and determine
whether to make an award, compromise,
or settlement under the Federal Tort
Claims Act (FTCA). The information is
only used by those Agency employees
who need the information in the scope
of their official duties. The respondents
are individuals/entities making a claim
under the FTCA.
Type of Request: Extension of an
OMB-approved information collection.
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
00:22 Dec 13, 2005
Jkt 208001
PO 00000
Frm 00096
Fmt 4703
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E:\FR\FM\13DEN1.SGM
13DEN1
]]>Agencies
[Federal Register Volume 70, Number 238 (Tuesday, December 13, 2005)]
[Notices]
[Pages 73811-73815]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7263]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52898; File No. SR-PCX-2005-87]
Self-Regulatory Organizations; The Pacific Exchange, Inc.; Notice
of Filing of Proposed Rule Change, and Amendment No. 1 Thereto,
Relating to the Tracking Order Process
December 6, 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 July 26, 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, II, and III below, which
Items have been prepared by the PCX. On November 22, 2005, the Exchange
submitted Amendment No. 1 to the proposed rule change.\3\ The
Commission is publishing this notice to solicit comments on the
proposed rule change, as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No.1, which replaced the original filing in its
entirety, made technical and clarifying changes to the proposed rule
change.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The 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 replace the existing PCXE rules
describing the current ArcaEx Tracking Order Process \4\ with new
provisions setting forth a simplified price/time execution priority for
the Tracking Order Process. Further, the PCX
[[Page 73812]]
proposes to modify the Tracking Order \5\ for use in the revised
Tracking Order Process.
---------------------------------------------------------------------------
\4\ See PCXE Rule 7.37(c).
\5\ See PCXE Rule 7.31(f).
---------------------------------------------------------------------------
The text of the proposed rule change, as amended, appears below.
Additions are italicized; deletions are [bracketed].
* * * * *
Rules of PCX Equities, Inc.
Rule 7
Equities Trading; Section 3 Archipelago Exchange-Orders and Modifiers
Rule 7.31(a)-(e)--No Change.
(f) Tracking Order.
An undisplayed, priced round lot order that is eligible for
execution in the Tracking Order Process against orders equal to or less
than the aggregate size of Tracking Order interest available at that
price. If a Tracking Order is executed but not exhausted, the remaining
portion of the order shall be cancelled, without routing the order to
another market center or market participant.
[(1) Any User may submit an instruction to the Archipelago Exchange
for the parameters of a Tracking Order at any time during the day. The
parameters shall include:]
[(A) the maximum aggregate size, which is the aggregate size of all
partial orders generated in the Tracking Order Process for a particular
security that the User is willing to trade on that day;]
[(B) the maximum tradeable size, which is the maximum size of any
partial order generated in response to an order entering the Tracking
Order Process that the User is willing to trade on that day;]
[(C) the price in relation to the NBBO; and]
[(D) the relevant security.]
[(2) Once a User has submitted an instruction for the parameters of
the Tracking Order, the instruction will remain in effect until closing
or until the User has traded its maximum aggregate size for that day,
whichever comes first.]
[(3) The Tracking Order Process rotation is as follows: Users who
have submitted an instruction for the parameters of a Tracking Order
will be assigned trades on a price/time rotating basis, such that
within each price level, trades shall be assigned by the time the
Users' instructions are received by the Archipelago Exchange. Within
each price level, the first User to send an instruction for a Tracking
Order will be the first User to be assigned a trade in the rotation
process. For each order that enters the Tracking Order Process, the
Tracking Order Process will rotate once through the Users in the
rotation pattern. In each rotation, the User will be responsible for
one trade up to the User's maximum tradeable size.]
[(4) The order described in the User's Tracking Order instruction
will only be generated if:]
[(A) an unfilled round or mixed lot order enters the Tracking Order
Process and]
[(B) it is such User's turn as determined by the Tracking Order
Process rotation pattern.]
[(5) Each partial order generated in a rotation is a limit order in
which:]
[(A) The price is set at or better than the NBBO at the time the
unfilled order enters the Tracking Order Process, based on the User's
parameters; and]
[(B) The size is (i) equal to the User's maximum tradeable size if
the unfilled order is equal to or larger than the maximum tradeable
size; or (ii) equal to the size of the unfilled order if the unfilled
order is smaller than the maximum tradeable size.]
[(6) A User may modify the parameters of the instruction for the
Tracking Order from time to time, as the Corporation permits.]
[(7) The Corporation shall suspend the Tracking Order Process for a
security when a locked or crossed market exists in that security. The
Tracking Order Process for that security shall resume when the locked
or crossed market in that security no longer exists.]
[(8) Whenever in the judgment of the Corporation, because of an
influx of orders, a system malfunction or other unusual conditions or
circumstances, the interests of a fair and orderly market so require,
the Corporation may suspend the Tracking Order Process. The Tracking
Order Process shall resume when the Corporation determines that the
conditions supporting the suspension no longer exist.]
(g) Odd Lot Tracking Order.
(1)--No Change.
(2) An Odd Lot Dealer may submit an instruction to the Archipelago
Exchange for the parameters of an OLTO at any time during the day. The
parameters shall include: [is a Tracking Order, as described in
paragraph (f), in which:]
(A) The maximum aggregate size [is unlimited;], which is the
unlimited aggregate size of all orders generated in the Odd Lot
Tracking Order Process for a particular security that the Odd Lot
Dealer is willing to trade on that day;
(B) The maximum tradeable size [is] up to 99 shares, which is the
maximum size of any order generated in response to an order entering
the Odd Lot Tracking Order Process that the Odd Lot Dealer is willing
to trade on that day;
(C) The price is set at the NBBO; and
(D) The relevant security [is one] in which the Odd Lot Dealer is
registered as such; and
(E) The instruction must be in effect for the duration of Core
Trading Hours; provided, however, the order described in the OLTO
instruction will only be generated if:
(1) An unfilled odd lot market order enters the Odd Lot Tracking
Order Process pursuant to Rule 7.37(c); or
(2) An odd lot limit order causes a locked market as described in
Rule 7.56.
(3) Each order generated in a rotation is a limit order in which:
(A) The price is set at the NBBO at the time the unfilled order
enters the Odd Lot Tracking Order Process, based on the Odd Lot
Dealer's parameters; and
(B) The size is (i) equal to the Odd Lot Dealer's maximum tradeable
size; or (ii) equal to the size of the unfilled order if the unfilled
order is smaller than the maximum tradeable size.
(4) An Odd Lot Dealer may modify the parameters of the instruction
for the Odd Lot Tracking Order from time to time, as the Corporation
permits.
(5) The Corporation shall suspend the Odd Lot Tracking Order
Process for a security when a locked or crossed market exists in that
security. The Odd Lot Tracking Order Process for that security shall
resume when the locked or crossed market in that security no longer
exists.
(6) Whenever in the judgment of the Corporation, because of an
influx of orders, a system malfunction or other unusual conditions or
circumstances, the interests of a fair and orderly market so require,
the Corporation may suspend the Odd Lot Tracking Order Process. The Odd
Lot Tracking Order Process shall resume when the Corporation determines
that the conditions supporting the suspension no longer exist.
(h)-(hh)--No Change.
* * * * *
Order Execution
Rule 7.37
* * * * *
(a)-(b)--No Change.
(c) Step 4: Tracking Order Process. During Core Trading Hours only,
orders may be matched and executed in the Tracking Order Process as
follows: If an order has not been executed in its entirety pursuant to
paragraphs (a) and (b) of this Rule, the Archipelago Exchange shall
match and execute any remaining part of the order in the Tracking Order
Process in price/time priority [the following manner]; provided,
however, any portion of an
[[Page 73813]]
order received from another market center or market participant shall
be cancelled immediately[:].
[(1) If the unfilled order is a mixed lot or round lot order, the
order shall be matched against any Tracking Orders pursuant to the
rotation pattern described in Rule 7.31(f)(3) for immediate execution
thereafter. After the order has been matched against any Tracking
Orders, if the order has not been executed in its entirety and the
remaining part of the order is an odd lot, the odd lot order shall be
executed in the Odd Lot Tracking Order Process, as described in
paragraph (2).]
Odd Lot Tracking Order Process
[(2)](1) If the unfilled order is an odd lot, and there is an Odd
Lot Dealer registered in that security, the order shall be matched in
the Odd Lot Tracking Order Process against any OLTOs pursuant to the
following rotation pattern:
Odd Lot Dealers who have submitted an instruction for the
parameters of an Odd Lot Tracking Order will be assigned trades on a
price/time rotating basis, such that within each price level, trades
shall be assigned by the time the Odd Lot Dealers' instructions are
received by the Archipelago Exchange. Within each price level, the
first Odd Lot Dealer to send an instruction for an Odd Lot Tracking
Order will be the first Odd Lot Dealer to be assigned a trade in the
rotation process. For each order that enters the Odd Lot Tracking Order
Process, the Odd Lot Tracking Order Process will rotate once through
the Odd Lot Dealers in the rotation pattern. In each rotation, the Odd
Lot Dealer will be responsible for one trade up to the Odd Lot Dealer's
maximum tradeable size. [described in Rule 7.31(f)(3) for immediate
execution thereafter.]
(2) If there is no Odd Lot Dealer registered in that security, the
odd lot will be routed away pursuant to PCXE Rule 7.37(d).
(d)--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, the 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
To enhance participation on the ArcaEx facility, the Exchange
proposes to restructure its Tracking Order Process by modifying the
current rule text governing the Tracking Order Process to implement a
simplified price/time priority execution process. In addition, the
Exchange proposes to modify the existing Tracking Order for use in the
revised and simplified Tracking Order Process.
Current ArcaEx Tracking Order Process
Current PCXE Rules 7.31(f) and 7.37(c) describe the Tracking Order
Process. The purpose of the Tracking Order Process is to provide a
final opportunity for execution against any remaining liquidity on the
ArcaEx system before routing to an away market center. As currently
written, Users \6\ of the Tracking Order Process submit a Tracking
Order instruction to ArcaEx based on certain parameters. ArcaEx
generates orders based on these User instructions. Executions occur in
a rotating manner pursuant to PCXE Rule 7.37(c). In general, the first
User to send an instruction for a Tracking Order for each price level
is the first User to be assigned a trade in the rotation process. With
each rotation, a User who has entered a Tracking Order is responsible
for one trade up to the User's maximum tradable size.
---------------------------------------------------------------------------
\6\ See PCXE Rule 1.1(yy).
---------------------------------------------------------------------------
Proposed Changes to the Tracking Order Process
As proposed, the rule change would modify the current Tracking
Order Process described above and replace it with a new process based
on the submission of orders, rather than instructions, to be executed
in price/time priority. Users would no longer be required to submit and
maintain Tracking Order instructions to participate in the Tracking
Order Process. Instead, Users would simply submit a Tracking Order (as
described below) designed specifically to reside in the modified
Tracking Order Process. ArcaEx would continue to process all orders
residing in the modified Tracking Order Process after it processes
orders entered into the other ArcaEx execution processes.\7\ Within the
Tracking Order Process, the modified Tracking Order would execute based
on its price and time received as opposed to the price and time the
instruction was received.
---------------------------------------------------------------------------
\7\ See PCXE Rule 7.37 for a description of the ArcaEx execution
processes that precede the Tracking Order Process. These include the
Directed Process, Display Process and Working Order Process.
---------------------------------------------------------------------------
This filing also proposes changes to the existing Odd Lot Tracking
Order Process.\8\ The Odd Lot Tracking Order Process that is currently
available for incoming odd lot orders would continue to exist and would
be distinct from the Tracking Order Process which would be available
for incoming mixed lot and round lot orders. Accordingly, the existing
Tracking Order Process and associated assignment of trades on a price/
time rotating basis would continue to apply to the Odd Lot Tracking
Order Process. The rule text that previously resided in PCXE Rule
7.31(f)(3) would be inserted into PCXE Rule 7.37(c)(1) to describe the
Odd Lot Tracking Order Process and revised to clarify that only Odd Lot
Dealers \9\ may be assigned trades under the Odd Lot Tracking Order
Process.\10\ Also, under the proposal, orders would only participate in
the Odd Lot Tracking Order Process if there is an Odd Lot Dealer
registered in that security. If no such dealer exists, the odd lot
order would be routed away pursuant to PCXE Rule 7.37(d). Further, the
proposal includes clarifying changes that the Odd Lot Tracking Order
Process does not generate partial fills.
---------------------------------------------------------------------------
\8\ See PCXE Rule 7.37(c).
\9\ See PCXE Rule 1.1(gg).
\10\ Similarly, the rule text that describes the generation of
Tracking Orders in PCXE Rule 7.31(f) and that also applies to Odd
Lot Tracking Orders would be inserted in PCXE Rule 7.31(g). PCXE
Rule 7.31(g) would also be further modified, as necessary, to
accommodate such insertion.
---------------------------------------------------------------------------
The Tracking Order
The rule proposal modifies an existing order type, the Tracking
Order, for use in the revised Tracking Order Process. Currently, a User
submits a Tracking Order instruction that includes specific parameters
that must be entered including maximum aggregate size and maximum
tradeable size. The revised Tracking Order is an undisplayed, priced
order with a specified size that would be eligible for execution
against other ArcaEx orders that have already been exposed to other
ArcaEx execution processes and have not been executed in full. The
Tracking Order would execute in the revised Tracking Order Process
against an incoming order only if the size of the incoming order is
less than or equal to the aggregate Tracking Order interest available
at the price of the incoming order and the incoming order is not an odd
lot order. If the size of any contra order exposed to the revised
Tracking Order Process is greater than
[[Page 73814]]
the size of the aggregate Tracking Order interest residing in the
Tracking Order Process at the executable price, such Tracking Orders
would not execute against the contra order. For example, if a Tracking
Order was entered for 300 shares and a contra order with a size of 301
shares was exposed to the Tracking Order Process (after being exposed
to all other ArcaEx execution processes), the contra order would not
execute against the Tracking Order and would route out of ArcaEx.
Tracking Orders would execute only if the price of the Tracking
Order is equal to or better than prices found at away markets (and
would therefore execute at the price of the NBBO at the time of
execution or better).\11\ If a Tracking Order is executed but not
exhausted, the remaining portion of the Tracking Order shall be
cancelled, without routing to another market center or market
participant. Tracking Orders residing in the Tracking Order Process
would be sorted and executed against in price/time priority. Tracking
Orders may only be entered as round lots and are not displayed to any
Users. However, mixed lot contra orders exposed to a Tracking Order
would be eligible for execution against such Tracking Order (assuming
the size of the contra order is equal to or less than the size of the
Tracking Order).\12\ An odd lot contra order would be exposed to an Odd
Lot Tracking Order and eligible for execution against such Odd Lot
Tracking Order as described above. In the circumstance when a Tracking
Order receives a partial fill, the unexecuted portion of the Tracking
Order would be cancelled. Because Tracking Orders may be cancelled and
are only executed against once, the current provision in PCXE Rule
7.31(f)(8) that enables ArcaEx to suspend the Tracking Order Process
because of an influx of orders, a system malfunction, or other unusual
circumstances is no longer relevant and would be removed. In addition,
the current provision in PCXE Rule 7.31(f)(7) is no longer relevant
because the new Tracking Order Process would be integrated into
existing order book processing, which is not suspended in the instance
of a locked or crossed market. Accordingly, PCXE Rule 7.31(f)(7) would
not be incorporated into the modified Tracking Order Process. Tracking
Orders would not route to other market centers, would not be eligible
for execution against other Tracking Orders, and would not execute
against incoming ITS orders.
---------------------------------------------------------------------------
\11\ See PCXE Rule 7.37 which states that ``for an execution to
occur in any Order Process, the price must be equal to or better
than the NBBO.''
\12\ PCX clarified that a contra order would be eligible for
execution against such Tracking Order if the size of the contra
order is equal to or less than the size of the Tracking Order.
Telephone conversation between Bridget M. Farrell, Director,
Strategy PCX/ArcaEx and Johnna B. Dumler, Attorney, Division of
Market Regulation, Commission, on December 1, 2005.
---------------------------------------------------------------------------
The Exchange believes that the implementation of the aforementioned
rule changes relating to ArcaEx order processing would enhance order
execution opportunities on ArcaEx. In particular, the Exchange believes
the revisions to the Tracking Order Process and Tracking Order would
simplify the Tracking Order Process and encourage order interaction on
ArcaEx.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with section 6(b) of the Act,\13\ in general, and furthers
the objectives of section 6(b)(5) of the Act \14\ in particular because
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 mechanism of a free and open market and a national market system.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The PCX 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
(A) By order approve such proposed rule change, as amended, or
(B) Institute proceedings to determine whether the proposed rule
change, as amended, should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form at (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2005-87 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 Number SR-PCX-2005-87. 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 Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the 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 Number SR-PCX-2005-87 and
should be submitted on or before January 3, 2006.
[[Page 73815]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7263 Filed 12-12-05; 8:45 am]
BILLING CODE 8010-01-P
