Self-Regulatory Organizations; Pacific Exchange, Inc.; Order Approving Proposed Rule Change, and Amendment No. 1 Thereto, Relating to the Tracking Order Process, 3910-3911 [E6-772]
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3910
Federal Register / Vol. 71, No. 15 / Tuesday, January 24, 2006 / Notices
access period for current non-NASD
member broker-dealer system users
proposed in this filing.
2. Statutory Basis
Nasdaq believes that the proposed
rule change, as amended, is consistent
with the provisions of section 15A of
the Act,9 in general, and with section
15A(b)(6) of the Act,10 in particular, in
that it is designed to promote just and
equitable principles of trade, and to
remove impediments to a free and open
market and a national market system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change, as amended, will
result in 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 were neither
solicited nor received.
rmajette on PROD1PC67 with NOTICES1
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change,
as amended, is subject to section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder 12 because the
proposal: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative prior to
30 days after the date of filing or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest; provided that Nasdaq has given
the Commission notice of its intent to
file the proposed rule change, along
with a brief description and text of the
proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.
Nasdaq has requested that the
Commission waive the five-day prefiling requirement and the 30-day
operative delay. The Commission
believes that waiving the five-day prefiling requirement and the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver will permit
9 15
U.S.C. 78o–3.
U.S.C. 78o–3(b)(6).
11 15 U.S.C. 78s(b)(3)(A)(iii).
12 17 CFR 240.19b–4(f)(6).
10 15
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14:44 Jan 23, 2006
Jkt 208001
current non-NASD member brokerdealers continued access to the Brut
system without disruption. In addition,
the Commission notes that the proposed
rule’s February 8, 2006 date matches the
date for which non-NASD members are
required to leave Nasdaq’s INET facility.
For these reasons, the Commission
designates the proposed rule change, as
amended, to be effective and operative
upon filing with the Commission.13
At any time within 60 days of the
filing of such proposed rule change, as
amended, 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.14
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2006–002 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NASD–2006–002. 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
13 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
14 The effective date of the original proposed rule
change is January 3, 2006 and the effective date of
Amendment No. 1 is January 12, 2006. For purposes
of calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, under section 19(b)(3)(C)
of the Act, the Commission considers the period to
commence on January 12, 2006, the date on which
the Exchange submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
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Sfmt 4703
amendments, all written statements
with respect to the proposed rule
change, as amended, 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 the filing also will be
available for inspection and copying at
the principal office of the NASD. 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–NASD–2006–002 and
should be submitted on or before
February 14, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–777 Filed 1–23–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53117; File No. SR–PCX–
2005–87]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Order Approving
Proposed Rule Change, and
Amendment No. 1 Thereto, Relating to
the Tracking Order Process
January 13, 2006.
I. Introduction
On July 26, 2005, the Pacific
Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’),
through its wholly-owned subsidiary
PCX Equities, Inc. (‘‘PCXE’’), filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to replace the existing PCXE
rules describing its current tracking
order process (‘‘Tracking Order
Process’’) 3 with new provisions for the
Tracking Order Process. The PCX filed
Amendment No. 1 to the proposed rule
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See PCXE Rule 7.37(c).
1 15
E:\FR\FM\24JAN1.SGM
24JAN1
Federal Register / Vol. 71, No. 15 / Tuesday, January 24, 2006 / Notices
change on November 22, 2005.4 The
proposed rule change, as amended, was
published for comment in the Federal
Register on December 13, 2005.5 The
Commission received no comments on
the proposed rule change, as amended.
II. Description
rmajette on PROD1PC67 with NOTICES1
The PCX proposes to amend its rules
governing the Archipelago Exchange
(‘‘ArcaEx’’), the equities trading facility
of PCXE. Specifically, the Exchange
proposes to restructure its Tracking
Order Process by modifying the current
rule text governing the Tracking Order
Process 6 to implement a process based
on the submission of orders, rather than
instructions, to be executed in price/
time priority.7
PCX represents that 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.8 Under the proposed rule
change, as is currently the case, if an
order submitted to the ArcaEx has not
been executed in its entirety after
progressing through ArcaEx’s directed
order, display order and working order
processes,9 the order (or the remaining
portion of the order) would enter the
Tracking Order Process. An incoming
order would be matched to Tracking
Orders held in the Tracking Order
Process based on the price and time the
Tracking Order was received. Under the
proposal, a ‘‘Tracking Order’’ is an
undisplayed, priced round lot order that
is eligible for execution in the Tracking
Order Process against an order equal to
or less than the aggregate size of
Tracking Order interest available at that
price.10 Tracking Orders would execute
only if the price of the Tracking Order
is equal to or better than the national
best bid or offer (‘‘NBBO’’).11 Pursuant
to the proposed rule change, odd lot
orders would continue to be matched to
odd lot tracking orders held in the
Tracking Order Process in accordance
with a user’s 12 set parameters, such as
maximum aggregate size, maximum
4 Amendment No. 1, which replaced the original
filing in its entirety, made technical and clarifying
changes to the proposed rule change.
5 See Exchange Act Release No. 52898 (Dec. 6,
2005), 70 FR 73811 (Dec. 13, 2005) (‘‘Notice’’).
6 See PCXE Rule 7.37(c).
7 See proposed PCXE Rule 7.31(f).
8 See Notice.
9 See PCXE Rule 7.37 for a description of the
ArcaEx execution processes that precede the
Tracking Order Process, including the directed
process, display process, and working order
process. See also proposed PCX Rule 7.37(c).
10 See Proposed PCXE Rule 7.31(f).
11 See PCXE Rule 7.37.
12 ‘‘User’’ is defined in PCXE Rule 1.1(yy).
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14:44 Jan 23, 2006
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3911
tradeable size, and the price (which is
set at the NBBO).13
87), as amended by Amendment No.1,
be, and hereby is, approved.
III. Discussion
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E6–772 Filed 1–23–06; 8:45 am]
After careful review, the Commission
finds that the proposed rule change, as
amended, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.14 In
particular, the Commission finds that
the proposal, as amended, is consistent
with Section 6(b)(5) of the Act,15 which
requires, among other things, that a
national securities exchange’s rules be
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, and, in general, to protect
investors and the public interest.
The Commission believes that under
the proposal, incoming orders executed
in the Tracking Order Process should be
executed in a manner equivalent to that
under PCX’s existing rules, but that the
proposed rule change should simplify
the process for entering Tracking
Orders. Thus, the Commission believes
that the proposed changes to the
Tracking Order Process do not raise any
new issues or regulatory concerns. The
Commission notes that an order may not
be executed pursuant to the new
Tracking Order Process at a price that is
inferior to the NBBO.16 Furthermore,
the Commission notes that any order
that is not executed in its entirety
pursuant to one of ArcaEx’s other order
execution processes is eligible for
matching and execution pursuant to the
Tracking Order Process, and that any
User of the ArcaEx system may submit
a Tracking Order.17
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–PCX–2005–
13 See current and proposed PCXE Rule 7.31(g) for
a definition of the odd lot tracking order and
proposed PCXE Rule 7.37(c) for a description of the
odd lot tracking order process.
14 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
15 15 U.S.C. 78f(b)(5).
16 See PCXE Rule 7.37.
17 As is currently the case, only an ‘‘Odd Lot
Dealer,’’ as defined in PCXE Rule 1.1(gg), may
submit an odd lot tracking order. See current and
proposed PCXE Rule 7.31(g).
18 15 U.S.C. 78s(b)(2).
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BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10316 and # 10317]
Oklahoma Disaster # OK–00002
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Oklahoma
(FEMA–1623–DR), dated 01/10/2006 .
Incident: Severe Wildfire Threat.
Incident Period: 12/01/2005 and
continuing.
Effective Date: 01/10/2006.
Physical Loan Application Deadline
Date: 03/13/2006.
Economic Injury (EIDL) Loan
Application Deadline Date: 10/10/2006.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
01/10/2006, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (physical damage and
economic injury loans):
Canadian, Cotton, Garvin, Hughes,
Lincoln, Logan, Mayes, Okfuskee,
Oklahoma, Pottawatomie,
Seminole, Stephens.
Contiguous Counties (Economic Injury
Loans Only):
Oklahoma: Blaine, Caddo, Carter,
Cherokee, Cleveland, Coal,
Comanche, Craig, Creek, Delaware,
Garfield, Grady, Jefferson,
Kingfisher, Mcclain, Mcintosh,
18 15
E:\FR\FM\24JAN1.SGM
U.S.C. 78s(b)(2).
24JAN1
]]>Agencies
[Federal Register Volume 71, Number 15 (Tuesday, January 24, 2006)]
[Notices]
[Pages 3910-3911]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-772]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53117; File No. SR-PCX-2005-87]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Order
Approving Proposed Rule Change, and Amendment No. 1 Thereto, Relating
to the Tracking Order Process
January 13, 2006.
I. Introduction
On July 26, 2005, the Pacific Exchange, Inc. (``PCX'' or
``Exchange''), through its wholly-owned subsidiary PCX Equities, Inc.
(``PCXE''), filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to replace the existing PCXE rules describing its
current tracking order process (``Tracking Order Process'') \3\ with
new provisions for the Tracking Order Process. The PCX filed Amendment
No. 1 to the proposed rule
[[Page 3911]]
change on November 22, 2005.\4\ The proposed rule change, as amended,
was published for comment in the Federal Register on December 13,
2005.\5\ The Commission received no comments on the proposed rule
change, as amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See PCXE Rule 7.37(c).
\4\ Amendment No. 1, which replaced the original filing in its
entirety, made technical and clarifying changes to the proposed rule
change.
\5\ See Exchange Act Release No. 52898 (Dec. 6, 2005), 70 FR
73811 (Dec. 13, 2005) (``Notice'').
---------------------------------------------------------------------------
II. Description
The PCX proposes to amend its rules governing the Archipelago
Exchange (``ArcaEx''), the equities trading facility of PCXE.
Specifically, the Exchange proposes to restructure its Tracking Order
Process by modifying the current rule text governing the Tracking Order
Process \6\ to implement a process based on the submission of orders,
rather than instructions, to be executed in price/time priority.\7\
---------------------------------------------------------------------------
\6\ See PCXE Rule 7.37(c).
\7\ See proposed PCXE Rule 7.31(f).
---------------------------------------------------------------------------
PCX represents that 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.\8\ Under the proposed rule change, as is currently the case, if
an order submitted to the ArcaEx has not been executed in its entirety
after progressing through ArcaEx's directed order, display order and
working order processes,\9\ the order (or the remaining portion of the
order) would enter the Tracking Order Process. An incoming order would
be matched to Tracking Orders held in the Tracking Order Process based
on the price and time the Tracking Order was received. Under the
proposal, a ``Tracking Order'' is an undisplayed, priced round lot
order that is eligible for execution in the Tracking Order Process
against an order equal to or less than the aggregate size of Tracking
Order interest available at that price.\10\ Tracking Orders would
execute only if the price of the Tracking Order is equal to or better
than the national best bid or offer (``NBBO'').\11\ Pursuant to the
proposed rule change, odd lot orders would continue to be matched to
odd lot tracking orders held in the Tracking Order Process in
accordance with a user's \12\ set parameters, such as maximum aggregate
size, maximum tradeable size, and the price (which is set at the
NBBO).\13\
---------------------------------------------------------------------------
\8\ See Notice.
\9\ See PCXE Rule 7.37 for a description of the ArcaEx execution
processes that precede the Tracking Order Process, including the
directed process, display process, and working order process. See
also proposed PCX Rule 7.37(c).
\10\ See Proposed PCXE Rule 7.31(f).
\11\ See PCXE Rule 7.37.
\12\ ``User'' is defined in PCXE Rule 1.1(yy).
\13\ See current and proposed PCXE Rule 7.31(g) for a definition
of the odd lot tracking order and proposed PCXE Rule 7.37(c) for a
description of the odd lot tracking order process.
---------------------------------------------------------------------------
III. Discussion
After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\14\ In particular, the Commission finds that the
proposal, as amended, is consistent with Section 6(b)(5) of the
Act,\15\ which requires, among other things, that a national securities
exchange's rules be 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, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\14\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that under the proposal, incoming orders
executed in the Tracking Order Process should be executed in a manner
equivalent to that under PCX's existing rules, but that the proposed
rule change should simplify the process for entering Tracking Orders.
Thus, the Commission believes that the proposed changes to the Tracking
Order Process do not raise any new issues or regulatory concerns. The
Commission notes that an order may not be executed pursuant to the new
Tracking Order Process at a price that is inferior to the NBBO.\16\
Furthermore, the Commission notes that any order that is not executed
in its entirety pursuant to one of ArcaEx's other order execution
processes is eligible for matching and execution pursuant to the
Tracking Order Process, and that any User of the ArcaEx system may
submit a Tracking Order.\17\
---------------------------------------------------------------------------
\16\ See PCXE Rule 7.37.
\17\ As is currently the case, only an ``Odd Lot Dealer,'' as
defined in PCXE Rule 1.1(gg), may submit an odd lot tracking order.
See current and proposed PCXE Rule 7.31(g).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-PCX-2005-87), as amended by
Amendment No.1, be, and hereby is, approved.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-772 Filed 1-23-06; 8:45 am]
BILLING CODE 8010-01-P
