[Federal Register Volume 63, Number 154 (Tuesday, August 11, 1998)]
[Notices]
[Pages 42896-42897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21479]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40293; File No. SR-PCX-98-34]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to Telephone Fees

July 31, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 26, 1998, the Pacific 
Exchange, Inc. (``PCX'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
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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 modify its Schedule of Rates for 
Exchange Services to include various charges for the use of telephones 
and telephone equipment on the trading floors.
    The text of the proposed rule change is available at the Office of 
the Secretary, 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 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.

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 adopt new telephone fees and charges 
to cover the cost of a new telephone system and telephones (MX Digital 
Turrets). The PCX currently provides the telephone system used by 
members on the Options Floor and Equities Floor in Los Angeles. To set 
pricing to cover the cost of this new technology, the PCX is proposing 
to establish the following fees:
    PCX Options Floor Telephone Fees: $60 per month for each MX phone; 
$30 per month for each non-MX phone; $14 per month for each line; $50 
per month for each cordless phone; and $110 per month for each drop 
phone.
    PCX Equities Floor Telephone Fees (Los Angeles only): \2\ $60 per 
month for each 32-button phone; $45 per month for each 16-button phone; 
$9 per month for each line; and $1 per month for each line appearance.
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    \2\ Fees for telephones and related equipment for the Equities 
Floor in San Francisco are passed through to Member Firms. Direct 
monthly billing for telephone and equipment leasing has not been 
implemented in San Francisco.
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    These fees are designed to cover the cost of the new MX telephone 
system and telephones.
2. Statutory Basis
    The Exchange represents that the proposed rule changes are 
consistent with Section 6(b) \3\ of the Act in general and further the 
objectives of Section 6(b)(4) \4\ in particular because it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among its members.\5\
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    \3\ 15 U.S.C. 78f(b).
    \4\15 U.S.C. 78f(b)(4).
    \5\ In approving these rules, the Commission has considered the 
proposed rules' impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).

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[[Page 42897]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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 and, therefore, has become effective pursuant to Section 
19(b)(3)(A) of the Act\6\ and subparagraph (e)(2) of Rule 19b-4 
thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(e)(2).
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    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.

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, N.W., Washington, D.C. 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 Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Exchange.
    All submissions should refer to File No. SR-PCX-98-34 and should be 
submitted by September 1, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 98-21479 Filed 8-10-98; 8:45 am]
BILLING CODE 8010-01-M