[Federal Register Volume 68, Number 89 (Thursday, May 8, 2003)]
[Notices]
[Pages 24779-24780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11442]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47786; File No. SR-PCX-2003-08]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the Pacific Exchange, Inc., Relating to a One-Year Pilot for 
Options Intermarket Linkage Fees

May 2, 2003.
    On March 11, 2003, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its fee structure to clarify which fees 
apply to trades pertaining to the options intermarket linkage 
(``Linkage'') and to specify that such fees are for a one-year pilot. 
On March 21, 2003, PCX submitted Amendment No. 1 to the proposed rule 
change.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Mai Shiver, Senior Attorney, Regulatory 
Policy, PCX, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation, Commission, dated March 18, 2003 (``Amendment No. 
1'').
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    The Commission published the amended proposal for comment in the 
Federal Register on March 28, 2003.\4\ The Commission received no 
comments on the proposal. This order approves the proposal rule change, 
as amended.
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    \4\ See Securities Exchange Act Release No. 47560 (March 21, 
2003), 68 FR 15257.
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    Two PCX fees would apply to Linkage trades other than satisfaction 
orders: A per transaction per contract side fee of $.21; and a $.05 
comparison fee. Each of these Linkage-related fees would be implemented 
as a one-year pilot, expiring on January 31, 2004.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \5\ and, in 
particular, the requirements of section 6 of the Act.\6\ The Commission 
finds that the proposed rule change is consistent with section 6(b)(4) 
of the Act,\7\ which requires that the rules of an exchange provide 
equitable allocation of reasonable dues, fees and other charges among 
its members and other persons using its facilities. The Commission

[[Page 24780]]

believes the one-year pilot will give the Exchange and the Commission 
the opportunity to evaluate whether these fees are appropriate.
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    \5\ 5 In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 6 15 U.S.C. 78f.
    \7\ 7 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change, as amended, is approved on a 
pilot basis until January 31, 2004.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 9 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-11442 Filed 5-7-03; 8:45 am]
BILLING CODE 8010-01-P