[Federal Register: February 5, 2004 (Volume 69, Number 24)]
[Notices]
[Page 5642-5643]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05fe04-163]
[[Page 5642]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-49140; File No. SR-PCX-2003-72]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc.
Relating to Exchange Fees and Charges
January 28, 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 January 2, 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 the PCX has prepared. The PCX has designated this
proposal as one establishing or changing a due, fee or other charge
imposed by the self-regulatory organization under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the rule effective upon Commission receipt of this
filing. 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).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The PCX proposes to amend the Trade-Related Charges portion of its
Schedule of Fees and Charges (``Schedule'') in order to delete the fee
relating to its Volume Discount Program.
The text of the proposed rule change is below. Proposed deletions
are in [brackets].
* * * * *
Schedule of Fees and Charges for Exchange Services
PCX Options: Trade-Related Charges
Transactions
Customer $0.00 per contract side
Firm $0.10 per contract side for customer
facilitation
Broker/Dealer $0.21 per contract side
------------------------------------------------------------------------
Market share
Market share tiers Marg rate tiers Marg rate
------------------------------------------------------------------------
0.00% to 11.00%............. $0.21 0% to 15%...... $0.21
11.00% to 20.00%............ 0.11 15% to 25%..... 0.15
20% to 100.00%.............. ............ 25% to 100%.... 0.05
------------------------------------------------------------------------
Market Maker Marginal Transaction Market Maker Marginal Transaction
Rates on Top 120 Issues Rates on Non-Top 120 Issues. Singly
listed issues will be assessed a
flat $0.21 Market Maker transaction
charge.
[VOLUME DISCOUNT PROGRAM
PCX Quarterly Average Daily Per Contract Reduction in Market
Contract Volume Maker Transaction Charge For
Following Quarter
449,000 or lower................. No reduction
450,000 to 474,999............... $0.01
475,000 to 499,999............... $0.02
500,000 to 524,999............... $0.03
525,000 or higher................ $0.04]
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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. The Exchange 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 is proposing to amend the Trade-Related Charges
portion of its Schedule in order to delete the fee relating to its
Volume Discount Program. On December 16, 2003, the Exchange submitted a
filing with the Commission to implement the new Incentive Pricing
Program for Market Maker transaction charges.\5\ As part of its ongoing
effort to secure existing volumes and attract higher levels of
liquidity, the PCX proposed a three-tiered rate schedule that would
lower transaction charges for Market Makers (including Lead Market
Makers) as the Exchange attains higher levels of market share on
individual issues. The Incentive Pricing Program became effective upon
filing. As a result of the application of the new Incentive Pricing
Program, the Exchange no longer has need for the Volume Discount
Program and proposes to eliminate it from the Schedule.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 48976 (December 23,
2003), 68 F.R. 75701 (December 31, 2003) (SR-PCX-2003-68).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that this proposal to amend its schedule of
dues, fees and charges would be an equitable allocation of reasonable
fees among PCX members, and that the proposal is consistent with
Section 6(b) of the Act \6\ and furthers the objectives of Section
6(b)(4) of the Act.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
[[Page 5643]]
B. Self-Regulatory Organization's Statement on Burden on Competition
PCX does not believe that the proposed rule change will impose any
inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
PCX neither solicited nor received written comments on this
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2)\9\ thereunder. Accordingly, the proposal has taken effect upon
filing with the Commission. At any time within 60 days after the filing
of the proposed rule change, the Commission may summarily abrogate the
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
Comments may also be submitted electronically at the following e-mail
address: rule-comments@sec.gov. All comment letters should refer to
File No. SR-PCX-2003-72. 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, comments should be sent in hard
copy or by e-mail, but not by both methods. 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 will also be available for
inspection and copying at the principal office of PCX. All submissions
should refer to File No. SR-PCX-2003-72 and should be submitted by
February 26, 2004.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-2334 Filed 2-4-04; 8:45 am]
BILLING CODE 8010-01-P