[Federal Register Volume 60, Number 104 (Wednesday, May 31, 1995)]
[Notices]
[Pages 28433-28434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13218]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35757; File No. SR-PSE-95-15


Self Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange, 
Inc. Relating to Administrative ``Late'' Charges

May 24, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 16, 
1995, the Pacific Stock Exchange, Inc. (``PSE'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'' or ``SEC'') 
the proposed rule change as described in Items I, II and III below, 
which Items have been prepared by the self-regulatory organization. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The PSE is proposing to amend its Schedule of Rates to establish a 
late charge, applicable to members and member organizations, for the 
failure to pay Exchange dues, fees, fines or charges that are past due.

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 self-regulatory organization 
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 self-regulatory organization 
has prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements. [[Page 28434]] 

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 establish an administrative charge 
applicable to members and member organizations that are substantially 
late in making payments to the Exchange of dues, fees, fines, or other 
charges. The purpose of the rule change is to recover the Exchange's 
costs in seeking to collect such payments when they are past due and to 
encourage members and member organizations to make such payments in a 
timely manner.
    Currently, the Exchange provides invoices and related notices to 
members as follows: An initial invoice is sent to members approximately 
five days after a given month in which dues, fees and other charges are 
accrued (e.g., on March 5, a member is billed for fees and charges 
accrued in February). If no payment is made on the invoice within one 
month, the Exchange sends the member a ``late'' notice on the tenth day 
of the month following the month in which the invoices was issued 
(e.g., on April 10). Thereafter, if no payment is made by the 20th of 
that same month (i.e., April 20), the Exchange sends such member a 
second ``late'' notice. Under the proposal, the Exchange would apply a 
late charge concurrently with the issuance of the second ``late'' 
notice.
    The amount of the late charge would be as follows: $250.00 or 1.0 
percent of the invoice amount (whichever is greater) upon the first 
occurrence of a second ``late'' notice within a 12-month period; and 
$500 or 1.5 percent of the invoice amount (whichever is greater) if the 
member receives two or more second ``late'' notices within a 12-month 
period. For purposes of this provision, a member is ``late'' if the 
Exchange has sent such member a ``second late notice'' on a previous 
occasion.
    Although Article XIV, Section 1(b) of the PSE Constitution permits 
the Exchange to suspend members and member organizations for such non-
payment, the Exchange believes that the proposed charge will help to 
encourage members to pay their bills promptly, before a suspension is 
necessary.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(4) of the Act in that it provides for the equitable 
allocation of reasonable charges among its members.

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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
19b-4 thereunder. 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.

IV. Solicitation of Comments

    Intereste persons are invited to submit written data, views and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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 at the 
Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the PSE. All 
submissions should refer to File No. SR-PSE-95-15 and should be 
submitted by June 21, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-13218 Filed 5-30-95; 8:45 am]
BILLING CODE 8010-01-M