[Federal Register Volume 66, Number 227 (Monday, November 26, 2001)]
[Notices]
[Pages 59039-59040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29359]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45076; File No. SR-PCX-2001-41]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Relating to Fees for Continued Listings and Options Floor Access

November 19, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on October 29, 2001, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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

    Pursuant to rule 19b-4 under the Act,\3\ the Exchange proposes to 
modify its Schedule of Fees and Charges for Continued Listings and 
Options Floor Access.\4\
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    \3\ 17 CFR 240.19b-4.
    \4\ The Exchange states that it intends to implement the 
proposed charges beginning November 1, 2001. Telephone Conversation 
between Cindy Sink, Senior Attorney, PCX, and Christopher Solgan, 
Law Clerk, Division of Market Regulation, Commission, on November 6, 
2001.
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    The text of the proposed rule change appears below. New text is in 
italics; deletions are in brackets.

Schedule of Fees and Charges for Exchange Services

* * * * *

                PCX Options: Floor and Market Maker Fees
 
                  *        *        *        *        *
Continued Listings Fee.................  [$500 per month per eligible
                                          issue] Difference between $500
                                          and average monthly revenue
                                          for issues with less than $500
                                          in volume based charges
                                          (average monthly revenue based
                                          on trailing 3 months).
 
                  *        *        *        *        *
[Badges]...............................  [$30 initial issuance fee $30
                                          per booth for booth clerks,
                                          $60 per month for stock firm
                                          clerks, hard badge managers,
                                          and all other floor personnel,
                                          $5 per day for temporary
                                          badge; $30 per month maximum
                                          $100 replacement fee].
Options Floor Access Fee...............  $130 per month for all
                                          registered floor members and
                                          personnel, with a cap of
                                          $5,000 per month per firm.
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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 Exchange proposes to decrease its continued 
Listings Fee in conjunction with an increase of its Options Floor 
Access Fee to, as the Exchange believes, distribute Exchange costs more 
evenly between all trading participants.
1. Continued Listings Fee
    The Exchange states that a $500 Continued Listings Fee is applied 
monthly to options issues that generate less than $500 in monthly 
volume-based charges (including transaction, data entry, and comparison 
charges) and is based on a three-month trailing average.

[[Page 59040]]

The fee applies to the Lead Market Marker (``LMM'') in the particular 
issue. If the LMM elects not to pay the Continued Listings Fee for an 
issue meeting these criteria, it then becomes eligible for reallocation 
or delisting. Under the Exchange's proposal, the Continued Listings Fee 
will change from a flat $500 per month to the incremental difference 
between the average monthly revenue generated by the issue and $500. 
For example, for an issue generating $300 in average monthly revenue, 
the Continued Listings Fee will be $200 per month under the new 
schedule, compared to the $500 fee that would have applied under the 
original fee schedule.
2. Options Floor Access Fee
    The Exchange proposes to eliminate the current monthly Badge Fee. 
The Exchange states that this fee is currently $30 per month for booth 
clerks, $60 per month for other staff, $5 per day for temporary badge 
with a $30 per month maximum, and a $100 replacement fee. The Exchange 
proposes to replace these fees by a new Options Floor Access Fee of 
$130 per month for all registered floor members and personnel, with a 
cap of $5,000 per month on a member firm basis. The Exchange states 
that the intent of this rate change is to maintain a rate schedule that 
is competitive on an overall basis, while generating funds to help 
defray the costs involved in operating and maintaining the trading 
floor.
    (2) Statutory Basis The Exchange believes that the proposed rule 
change is consistent with section 6(b) of the Act,\5\ in general, and 
furthers the objectives of section (b)(4),\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)(4).
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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 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 
charge imposed by the Exchange and, therefore, has become effective 
upon filing pursuant to rule 19(b)(3)(A)(ii) of the Act \7\ and rule 
19b-4(f)(2) thereunder.\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 purpose of the Act.
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    \7\ 15 U.S.C. 78(s)(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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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. 
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 Section. Copies of such filing will also 
be available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-PCX-2001-41 and 
should be submitted by December 17, 2001.
    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).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-29359 Filed 11-23-01;845am]
BILLING CODE 8010-01-M