[Federal Register Volume 69, Number 63 (Thursday, April 1, 2004)]
[Notices]
[Page 17259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7324]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49487; File No. SR-PCX-2004-05]


Self-Regulatory Organizations; Pacific Exchange, Inc; Order 
Approving Proposed Rule Change Imposing a Connectivity Fee Applicable 
to Non-Members That Maintain a Connectivity Line With the Exchange

March 26, 2004.
    On January 28, 2004, 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 Floor, Market Maker and Remote Market 
Maker portion of its Schedule of Fees and Charges (``Schedule'') in 
order to create a connectivity fee of $300 per line per month that 
would be applicable to non-members that maintain a connectivity line 
with the Exchange.\3\ The proposed rule change was published for 
comment in the Federal Register on February 24, 2004.\4\ The Commission 
received no comment letters on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The PCX recently implemented this charge for its members. 
See Securities Exchange Act Release No. 48970 (December 22, 2003), 
68 FR 75306 (December 30, 2003).
    \4\ See Securities Exchange Act Release No. 49263 (February 17, 
2004), 69 FR 8509.
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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 \5\ and, 
particularly, section 6(b)(4) of the Act.\6\ The Commission believes 
that amending the Exchange's rule to impose such a connectivity fee 
should promote equitable allocation of fees and other charges among 
Exchange members and other persons using the Exchange's facilities.
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    \5\ In approving this proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-PCX-2004-05) 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).

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-7324 Filed 3-21-04; 8:45 am]
BILLING CODE 8010-01-U