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Pacific Exchange Proposes Electronic Trading Facility
Washington, DC, December 20, 2000 - The Securities and Exchange Commission has published for comment a proposed rule change filed by the Pacific Exchange (PCX), through its subsidiary, PCX Equities (PCXE), to create a new electronic trading facility of the PCXE called the Archipelago Exchange (Arca). Arca, to be operated by Archipelago Exchange, L.L.C., would provide automatic order execution capabilities for the equity securities listed or traded on the PCXE and would operate in the place of the PCXE’s traditional floor trading environment. Comments on the proposed rule change are due to the SEC no later than January 5, 2001.
Under the proposal, the PCX and PCXE would maintain responsibility for all regulatory functions related to Arca and Archipelago Exchange, L.L.C. would be responsible for the business of the trading facility.
The proposing release contains several items on which the SEC specifically requests comments. In particular, the SEC requests comments on:
- discretionary orders,
- the minimum price improvement level for directed orders,
- the priority of customer orders, and
- the Arca trading sessions.