[Federal Register: September 27, 2004 (Volume 69, Number 186)]
[Notices]
[Page 57744-57745]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27se04-87]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50390; File No. SR-PCX-2004-81]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.,
Relating to the Exchange's Schedule of Fees and Charges
September 15, 2004.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on August 23, 2004, 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 PCX. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX proposes to make a clarifying change to the PCX Schedule of
Fees and Charges (``Schedule'') with respect to the options issue
relinquishment request fee. The text of the proposed rule change is
available at PCX and at the Commission.
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 IV below. PCX has prepared summaries, set forth in sections A, B,
and C below, of the most significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make a clarifying change to the Schedule
with respect to the options issue relinquishment request fee.
Currently, an assigned Lead Market Maker (``LMM'') is charged a fee of
$100 for each options issue the LMM requests to be relinquished. The
Exchange proposes to clarify this fee by adding a footnote in the
Schedule specifying that the fee will not apply in cases of involuntary
delisting requests initiated by PCX.
According to the Exchange, the $100 options issue relinquishment
request fee is designed to cover administrative costs associated with
voluntary delisting requests initiated by LMMs. The Exchange represents
that occasionally an issue relinquishment may result from an action
that is initiated by PCX, as opposed to the LMM, due to internal system
and/or business considerations. In such cases, the assigned LMM would
not be assessed the $100 fee.
The Exchange also proposes to delete reference to a temporary fee
waiver for Market Makers for each additional
[[Page 57745]]
options trading permit (``OTP'') (for which a Market Maker holds a
primary appointment) beyond the first OTP held by such Market Maker.
This waiver expired on June 30, 2004. Hence, the Exchange proposes to
delete this language as obsolete.
2. Statutory Basis
The Exchange believes that the proposal is consistent with section
6(b) of the Act,\3\ in general, and furthers the objectives of section
6(b)(5) of the Act, \4\ in particular, because it is designed to
promote just and equitable principals of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and to protect
investors and the public interest.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. 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.
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 with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule
19b-4 \6\ thereunder, because the proposed rule change establishes or
changes a due, fee, or other charge imposed by the Exchange.
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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
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IV. 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. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2004-81 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609. All submissions should refer to File Number
SR-PCX-2004-81. 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 (http://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 Section, 450 Fifth Street, NW., Washington, DC 20549. Copies
of such filing also will be available for inspection and copying at the
principal office of 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-2004-81 and should be submitted on or before October 18, 2004.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E4-2387 Filed 9-24-04; 8:45 am]
BILLING CODE 8010-01-P