regulatory organizations; proposed rule changes: Pacific Exchange, Inc.,

[Federal Register: September 23, 1998 (Volume 63, Number 184)]

[Notices]

[Page 50951-50952]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr23se98-113]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40442; File No. SR-PCX-98-43]

Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. Relating to OptiMark Pricing

September 16, 1998.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on September 8, 1998, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'') filedwith the Securities and Exchange Commission (``Commission'' or ``SEC'') the proposed rule change as described in Items I, II, and III 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.

\1\ 15 U.S.C. 78s(b)(1).

1. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

   The PCX proposes to change its Schedule of Fees and Charges for Exchange Services by adding OptiMark transaction charges. The text of the proposed rule change is available at the Office of the Secretary, PCX and at the Commission.

2. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

   In its filing with the Commission, PCX included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. PCX has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.

   1. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

      1. Purpose

         Background. OptiMark is an electronic communications and information system operated by OptiMark Services, Inc., to support trading services offered by the Exchange. The OptiMark System is a computerized, screen-based trading service intended for use by Exchange

         [[Page 50952]]

         members and their customers to provide automatic order formulation, matching, and execution capabilities in the equity securities listed or traded on the Exchange. The OptiMark System is intended to be used in addition to the Exchange's traditional floor facilities to buy and sell securities on the PCX by allowing PCX members and their customers to submit ranges of trading interest anonymously from their computer terminals. The OptiMark System would then identify specific orders capable of execution and all orders matching by the system would be automatically executed on the Exchange.

         Proposed fees. The Exchange proposes to charge a fee of $1.19 per 100 shares on OptiMark transactions for OptiMark customers who are regular PCX members and a fee of $1.25 per 100 shares on OptiMark transactions for OptiMark customers who are ASAP Members on the PCX.\2\

         \2\ ASAP Members are authorized broker-dealers who have ``automated system access privileges.'' The ASAP Member must be a broker-dealer registered under Section 15 of the Act. See Rule 1.14, ``Automated System Access Privileges (ASAP).''

      2. Statutory Basis

         The Exchange believes the proposed rule change is consistent with Section 6(b) \3\ of the Act, in general, and furthers the objectives of Section 6(b)(4),\4\ in particular, because it provides for the equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities.

         \3\ 15 U.S.C. 78f(b).

         \4\ 15 U.S.C. 78f(b)(4).

   2. Self-Regulatory Organization's Statement on Burden on Competition

      The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.

   3. 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.

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

   The foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange and, therefore, has become effective pursuant to Section 19(b)(3)(A) \5\ and subparagraph (e)(2) of Rule 19b-4 thereunder.\6\ At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.\7\

   \5\ 15 U.S.C. 78s(b)(3)(A)(ii).

   \6\ 17 CFR 240.19b-4(e)(2).

   \7\ In reviewing this proposal, the Commission has considered the proposal's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).

4. Solicitation of Comments

   Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 20549. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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 at the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of PCX.

   All submissions should refer to File No. SR-PCX-98-43 and should be submitted by October 14, 1998.

   For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\

   \8\ 17 CFR 200.30-3(a)(12).

   Jonathan G. Katz, Secretary.

   [FR Doc. 98-25410Filed9-22-98; 8:45 am]

   BILLING CODE 8010-01-M