[Federal Register Volume 66, Number 121 (Friday, June 22, 2001)]
[Notices]
[Pages 33597-33598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15678]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44432; File No. SR-PCX-2001-22]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to Fees for Application for Approved Status Despite Grounds 
for Statutory Disqualification Fee

June 15, 2001.
    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 June 1, 2001, 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. 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 PCX proposes to change its schedule of Fees and Charges for 
Exchange Services by adding a fee for an Application for Approved 
Status Despite Grounds for Statutory Disqualification.\3\ The text of 
the proposed rule change is below. New text is in italics.
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    \3\ See PCX Rule 1.7(a)--Denial of and Conditions to Membership.
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Text of the Proposed Rule Change

SCHEDULE OF FEES AND CHARGES FOR EXCHANGE SERVICES

* * * * *

                       PCX General Membership Fees
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Application for Approved Status Despite     $250.00 per application.
 Ground for Statutory Disqualification.
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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 purpose of the proposed new fee is to cover the expenses of 
handling the Application for Approved Status Despite Grounds for 
Statutory Disqualification.
    This fee is payable whenever a person or entity is subject to a 
statutory disqualification under the Act and (1) is an applicant for 
Exchange membership, (2) is seeking to be an associated person of an 
Exchange Member (except where the Exchange is merely asked to concur in 
an SEC Rule 19h-1 filing by another self-regulatory organization), or 
(3) is an existing Exchange member or associated person who submits an 
Application for Approved Status Despite Grounds for Statutory 
Disqualification. This fee is in addition to any other membership fees 
that might be applicable.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\4\ in general, and Section 6(b)(4) of the Act,\5\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its members.\6\
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ The proposed fee will be applied to the expenses of Exchange 
staff review, investigation and evaluation of Applications for 
Approved Status Despite Grounds for Statutory Disqualification. 
Telephone discussion between Cindy L. Sink, Senior Staff Attorney, 
Regulatory Policy, PCX, Karl Varner, Senior Counsel, Division of 
Market Regulation (``Division''), Commission, and Frank N. Genco, 
Attorney Advisor, Division, Commission (June 11, 2001).
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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 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)(A) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4 \8\ 
thereunder, because it establishes or changes a due, fee, or other 
charge. 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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 U.S.C. 240.19b-4.
    \9\ See 15 U.S.C. 78(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, view 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. 
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.

[[Page 33598]]

SR-PCX-2001-22 and should be submitted by July 13, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-15678 Filed 6-21-01; 8:45 am]
BILLING CODE 8010-01-M