[Federal Register Volume 69, Number 73 (Thursday, April 15, 2004)]
[Notices]
[Pages 20094-20095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8566]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49550; File No. SR-PCX-2004-24]


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

April 9, 2004.
    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 March 26, 2004, 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 PCX. PCX filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective 
upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX, through its wholly owned subsidiary, PCX Equities, Inc. 
(``PCXE''), is proposing to amend its PCXE Schedule of Fees and Charges 
(``Schedule'') in order to amend the statutory disqualification 
application fee. The text of the proposed rule change is available at 
the principal office of the PCX and at the Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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. 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
    PCX is proposing to amend the PCXE statutory disqualification fee. 
On December 12, 2003, the Exchange filed a proposal with the Commission 
to amend the PCX statutory disqualification application fee for its 
Options Members, which became effective upon filing.\5\ In that rule 
proposal, the Exchange proposed to amend the PCX statutory 
disqualification fee to $2,000 for all applications resulting in 
statutory disqualification proceedings. PCX previously assessed $250 to 
process applications for approved status despite grounds for statutory 
disqualification. In order to bring this fee up to the competitive 
levels of other SROs, PCX proposed to increase the fee to $2,000 and 
assess the fee for all applications resulting in statutory 
disqualification proceedings.\6\ Hence, the fee would not be assessed 
unless the review of the application reveals that such a proceeding is 
necessary. The Exchange now proposes to amend the equivalent statutory 
disqualification application fee for PCXE, as the application 
procedures are identical for its PCX Members and PCXE ETP Holders.
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    \5\ See Release No. 34-48971 (Dec. 22, 2003), 68 FR 75307 (Dec. 
30, 2003) (SR-PCX-2003-69).
    \6\ See Chicago Board Options Exchange, Inc. (``CBOE'') Fee 
Schedule, Appendix A. The CBOE assesses a $2,700 fee for 
applications resulting in statutory disqualification proceedings.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and section 6(b)(4) of the 
Act,\8\ in particular, in that it provides for the equitable allocation 
of reasonable dues, fee, and other charges among its members.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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

    The Exchange has neither solicited nor received written comments on 
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) of the Act \9\ and Rule 19b-4(f)(2) 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 the proposed rule 
change, the Commission may summarily abrogate the 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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. 
Comments should be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-PCX-2004-24. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your comments more efficiently, comments should be sent in hard 
copy or by e-mail but not by both methods. 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

[[Page 20095]]

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-2004-24 and should be submitted by May 6, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-8566 Filed 4-14-04; 8:45 am]
BILLING CODE 8010-01-P