[Federal Register Volume 69, Number 51 (Tuesday, March 16, 2004)]
[Notices]
[Pages 12390-12391]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 04-5886]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49381; File No. SR-PCX-2004-11]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to the Exchange's Designated Examination Fee Exemption

March 9, 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 February 18, 2004, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange''), through its wholly-owned subsidiary PCX Equities, Inc. 
(``PCXE''), 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. 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

    The Exchange is proposing to amend the regulatory fee portion of 
its Schedule of Fees and Charges (``Fees'') in order to make a 
technical change to its Designated Examination Fee (``DEA'') Fee 
exemption. The text of the proposed rule change is attached as Exhibit 
A. The text of the proposed rule changes is available at the 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, the 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. 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 regulatory fee portion of 
its Fees in order to make a technical change to the DEA Fee exemption.
    On September 24, 2003, the Exchange submitted a filing with the 
Commission to amend the DEA Fee exemption.\3\ In this filing, the 
Exchange amended the existing DEA Fee exemption to allow an exemption 
for any PCX Registered Floor Broker or Marker Maker \4\ that effects at 
least 25% of all securities transactions, as measured in contract or 
share volume, on the PCX Floor or any other PCX Options trading 
facility, including PCX Plus. The amendment was intended to more 
accurately reflect the application of the exemption and references the 
Exchange's new trading platform, PCX Plus. This amendment became 
effective upon filing.
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    \3\ See Securities Exchange Act Release No. 48569 (September 30, 
2003), 68 FR 57721 (October 6, 2003) (SR-PCX-2003-52).
    \4\ Pursuant to Rule 6.1(c)(2), the term ``Market Maker'' 
includes Lead Market Maker, Remote Market Maker, Floor Market Maker 
and Supplemental Market Maker.
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    At this time, the Exchange proposes to make one technical change to 
the DEA Fee exemption, by adding the word ``and'' to the phrase ``as 
measured in contract or share volume.'' As revised, the phrase would 
read ``as measured in contract and/or share volume.'' The exemption is 
intended to be calculated using all securities transactions, as 
measured in contract and/or share volume. In other words, the 25% 
securities transactions threshold can be met based on either a 
combination of contracts and share volume, or exclusively contracts or 
share volume. The word ``and'' was inadvertently omitted from the 
previously filing and the Exchange wishes to make the technical 
correction at this time.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\5\ in general, and Section 6(b)(4) of the Act,\6\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its members.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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

[[Page 12391]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3) of the Act \7\ and subparagraph (f) of Rule 19b-4.\8\ At any 
time within 60 days of the filing of such 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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    \7\ 15 U.S.C. 78f(b)(3).
    \8\ 17 CFR 240.19b-4(f).
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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. 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-2004-11. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review comments more efficiently, comments should be sent in hardcopy 
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 the PCX. All 
submissions should refer to File No. SR-PCX-2004-11, and should be 
submitted by April 6, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-5886 Filed 3-15-04; 8:45 am]
BILLING CODE 8010-01-P