[Federal Register Volume 68, Number 168 (Friday, August 29, 2003)]
[Notices]
[Pages 52065-52066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22088]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48392; File No. SR-PCX-2003-17]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto 
by the Pacific Exchange, Inc. Relating to the Exchange's Rules Under 
the Minor Rule Plan

August 22, 2003.
    On April 15, 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 the Recommended Fine Schedule (``RFS'') 
of the Exchange's Minor Rule Plan (``MRP'') in order to increase the 
fines for Late Trade Reporting violations pursuant to PCX Rule 6.69(a). 
The Exchange amended the proposed rule change on June 6, 2003.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change, as amended, was published for comment in 
the Federal Register on July 17, 2003.\3\ The Commission received no 
comments on the proposal.
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    \3\ See Securities Exchange Act Release No. 48158 (July 17, 
2003), 68 FR 42449.
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    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 \4\ and, in 
particular, the requirements of Section 6 of the Act \5\ and the rules 
and regulations thereunder, and finds specifically that the proposed 
rule change is consistent with Section 6(b)(6) \6\ of the Act. The 
Commission believes that the rule change should strengthen the ability 
of

[[Page 52066]]

the Exchange to carry out its oversight and enforcement 
responsibilities as a self-regulatory organization. The rule should 
also aid the Exchange in carrying out its surveillance and enforcement 
functions.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(6).
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    In approving this proposed rule change, the Commission in no way 
minimizes the importance of compliance with PCX Rule 6.69(a), and all 
other rules subject to the imposition of fines under the Exchange's 
MRP. The Commission believes that the violation of any self-regulatory 
organization's rules, as well as Commission rules, is a serious matter. 
However, in an effort to provide the Exchange with greater flexibility 
in addressing certain violations, the Exchange's minor rule violation 
plan provides a reasonable means to address rule violations that do not 
rise to the level of requiring formal disciplinary proceedings. The 
Commission expects that the PCX will continue to conduct surveillance 
with due diligence, and make a determination based on its findings 
whether fines of more or less than the recommended amount are 
appropriate for violations of rules under the Exchange's minor rule 
violation plan, on a case by case basis, or if a violation requires 
formal disciplinary action.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-PCX-2003-17) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-22088 Filed 8-28-03; 8:45 am]
BILLING CODE 8010-01-P