[Federal Register Volume 68, Number 10 (Wednesday, January 15, 2003)]
[Notices]
[Pages 2095-2096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-795]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47131; File No. SR-PCX-2002-73]


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

January 6, 2003.
    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 December 9, 2002, 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 is proposing to amend its Schedule of Fees and Charges by 
making a technical change to its DEA Regulatory fees. In addition, the 
Exchange, through its wholly-owned subsidiary PCX Equities, Inc. is 
proposing to amend its Schedule of Fees and Charges to make a technical 
change to its DEA Regulatory fees. The text of the proposed rule change 
is below. New text is italicized; deleted text is in brackets.

           Schedule of Fees and Charges for Exchange Services
------------------------------------------------------------------------
 
------------------------------------------------------------------------
PCX General membership fees:
    Regulatory fees:
 
                              * * * * * * *
        DEA Fee [\1\]................  $2,000 monthly fee per firm\1\.
                                       $250 annual fee per trader\1\.
                                       $75 one-time registration fee per
                                        trader\1\.
                                       $250 per quarter for firms
                                        engaging in non-public business.
 
------------------------------------------------------------------------
\1\ These fees will apply to member organizations for which the Exchange
  is the Designated Examining Authority. Member Organizations that can
  demonstrate that at least 25% of their income, as reflected on the
  most recently submitted FOCUS report, was derived from on-floor
  activities will be exempt from these charges.


           Schedule of Fees and Charges for Exchange Services
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Archipelago Exchange: Other Fees and
 Charges
    Regulatory Fees:
 
                              * * * * * * *
        DEA Fee......................  $2,000 monthly fee per firm.
                                       $250 annual fee per trader.
                                       $75 one-time registration fee per
                                        trader.
                                       [$250 per quarter for firms
                                        engaging in non-public
                                        business].
------------------------------------------------------------------------


[[Page 2096]]

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 PCX 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 PCX 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 make the following technical changes 
to its Schedule of Fees and Charges in order to correct the fee 
schedule and accurately reflect the DEA fees that the Exchange intends 
to charge with respect to its options and equities businesses. With 
respect to the options DEA fees, the current fees schedule includes a 
footnote that provides an exemption of such fees for Member 
Organizations that demonstrate that at least 25% of their income was 
derived from on-floor activities. This footnote and the exemption were 
not, however, intended to apply to the $250 per quarter fee for firms 
engaging in non-public business. The Exchange proposes to move the 
footnote in order to have the fee schedule reflect the Exchange's 
intent as described herein. With respect to the equities DEA fee, the 
Exchange included a $250 per quarter fee for firms engaging in non-
public business; however, as this fee is not applicable to the market 
structure of the Archipelago Exchange, the Exchange erred in including 
this fee in the schedule. The Exchange proposes to delete this 
reference.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Act,\3\ in general, and furthers 
the objectives of Section 6(b)(4),\4\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its members.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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

    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

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \5\ and subparagraph (f)(2) 
of Rule 19b-4 \6\ thereunder. 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 at the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to the File No. SR-PCX-2002-73 
and should be submitted by February 5, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-795 Filed 1-14-03; 8:45 am]
BILLING CODE 8010-01-P