[Federal Register Volume 66, Number 233 (Tuesday, December 4, 2001)]
[Notices]
[Pages 63087-63088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29932]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45105; File No. SR-PCX-2001-44]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the Pacific Exchange, Inc. Relating to Registered Representative Fees

November 26, 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 November 6, 2001, 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 PCX. 
On November 20, 2001, the PCX submitted Amendment No. 1 to the proposed 
rule change.\3\ The Commission is publishing this notice to solicit 
comments on the proposed rule change and Amendment No. 1 to 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.
    \3\ See letter from Michael D. Pierson, Vice President, 
Regulatory Policy, PCX, to John S. Polise, Senior Special Counsel, 
Division of Market Regulation, Commission, dated November 19, 2001 
(``Amendment No. 1''). In Amendment No. 1, the PCX made a correction 
to its proposal to reflect that the fee increase is from $45 to $50.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its Schedule of Fees and Charges by 
increasing its Registered Representative Fee. 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 Bais 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 currently charges a $45 annual fee for new 
applications, maintenance and transfer of registration status for each 
Registered Representative and each Registered Options Principal whose 
firm is a member firm of the Exchange.\4\ The Exchange is now proposing 
to increase this fee to $50.\5\ The Exchange believes this fee change 
is warranted based upon the Exchange's increased costs relating to its 
regulatory oversight and enforcement program. The Exchange notes that 
initial, transfer, and maintenance Registered Representative 
registration fees traditionally have been billed and collected by the 
NASD. Under the proposal, the NASD will continue to bill for and 
collect these fees.
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    \4\ The PCX's increase in this fee to $45 became effective in 
July 2001. See Securities Exchange Act Release No. 44571 (July 18, 
2001), 66 FR 38774 (July 25, 2001) (Notice of filing and Immediate 
Effectiveness of SR-PCX-2001-21).
    \5\ The Exchange notes that two other exchanges have recently 
increased their registration fees, annual fees and transfer fees for 
Registered Representatives and Registered Options Principals. See 
Securities Exchange Act Release No. 44947 (October 17, 2001), 66 FR 
53822 (October 24, 2001) (Notice of Filing and Immediate 
Effectiveness of SR-Phlx-2001-90); and Securities Exchange Act 
Release No. 44597 (July 26, 2001). 66 FR 40302 (August 2, 2001) 
(Notice of Filing and Immediate Effectiveness of SR-CBOE-2001-37).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) \6\ of the Act, in general, and 
Section 6(b)(4),\7\ in particular, in that it provides for the 
equitable allocation of reasonable dues,

[[Page 63088]]

fees and other charges among its members.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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)(ii) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4 
\9\ thereunder because it establishes or changes a due, fee, or other 
charge imposed by the Exchange. 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.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers that period 
to commence on November 6, 2001, the date the PCX filed the proposed 
rule change. See 15 U.S.C. 78s(b)(3)(C).
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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, as amended, 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, as 
amended, 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-2001-44 and should be 
submitted by December 26, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\

    \11\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-29932 Filed 12-3-01; 8:45 am]
BILLING CODE 8010-01-M