[Federal Register: December 14, 2004 (Volume 69, Number 239)]
[Notices]
[Page 74559-74560]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14de04-112]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50817; File No. SR-PCX-2004-105]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change and
Amendment No. 1 Thereto To Make Clarifying Changes to the PCX Schedule
of Fees and Charges With Respect to the Options Orientation Fee To
Include the Cost of the Series 44 or 45 Examination and To Adopt a New
Fee Associated With the Series 46 Examination
December 7, 2004
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 October 28, 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 the Exchange. On
December 3, 2004, PCX filed Amendment No. 1 to the proposed rule
change.\3\ PCX filed this proposal pursuant to Section 19(b)(3)(A) \4\
of the Act and Rule 19b-4(f)(6) \5\ thereunder, which renders the
proposal effective upon filing with the Commission. 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\3\ Amendment No. 1 replaced and superseded the original filing
in its entirety. For purpose of calculating the 60-day period within
which the Commission may summarily abrogate the proposed rule change
under Section 19(b)(3)(C) of the Act, the Commission considers that
period to commence on December 3, 2004, the date that the PCX filed
Amendment No. 1.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX is proposing to make a clarifying change to the PCX Schedule of
Fees and Charges (``Schedule'') with respect to the Options Orientation
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 its proposal and discussed any
comments it received regarding the proposal. 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Schedule to make a clarifying
change to the Options Orientation Fee. In October of 2003, the Exchange
amended the Options Orientation Fee in connection with the launch of
PCX Plus.\6\ At the time, the Exchange reconfigured a development and
delivery process for the Exchange's Orientation and
[[Page 74560]]
Examination program. Pursuant to the revised structure, the Exchange
developed an orientation and examination content to be administered by
the National Association of Securities Dealers, Inc (``NASD''). The
revised Options Orientation Fee of $1,000 was intended to include the
cost of the Series 44 or Series 45 examination, the investigation fee
and the fingerprinting fee,\7\ but not the Series 46 examination.\8\
Thus, since October 2003, the Exchange has charged $1,000 for the
Options Orientation Fee (including the cost of the Series 44 or 45
examination) and no charge has applied for the Series 46 examination.
The Exchange proposes to amend the Options Orientation Fee by adding a
parenthetical in the Schedule to clarify that the Options Orientation
Fee only includes the cost of the Series 44 or Series 45 examination.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 48597 (October 7,
2003), 69 FR 59439 (October 15, 2003) (SR-PCX-2003-57).
\7\ If the applicant is not required to take the examination
(i.e., qualifies for a waiver), such applicant is only required to
pay a separate investigation and fingerprinting fee.
\8\ Series 46 is an optional examination taken subsequent to the
Series 44 examination.
---------------------------------------------------------------------------
The Exchange also proposes to adopt a new fee of $200 to help
recover the costs associated with the Series 46 examination. Pursuant
to a contractual agreement between PCX and NASD, PCX incurs fixed
expenses in connection with the administration of each Series 46
examination. Further, the Exchange expends staff resources for ongoing
development and maintenance of examination content. As such, the
proposed fee will recover expenses relating to administration,
development and ongoing support of the Series 46 examination.
The Exchange believes that these proposed changes are necessary to
alleviate confusion among the OTP Holders and OTP Firms with respect to
the Options Orientation Fee.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \9\ in general, and Section 6(b)(4) of the Act \10\ in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its OTP Holders, OTP
Firms, issuers and persons using the facilities.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and
Rule 19b-4(f)(6) thereunder.\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2004-105 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-2004-105. 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 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-2004-105 and should be submitted on or before
January 4, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E4-3634 Filed 12-13-04; 8:45 am]
BILLING CODE 8010-01-P