[Federal Register Volume 69, Number 117 (Friday, June 18, 2004)]
[Notices]
[Pages 34209-34210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13843]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49843; File No. SR-PCX-2004-50]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. To 
Extend a Temporary Waiver of Fees for Market Makers that Utilize More 
Than One Seat

June 10, 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 May 26, 2004, 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 PCX has designated this 
proposal as one establishing or changing a due, fee, or other charge 
imposed by the PCX under section 19(b)(3)(A)(ii) of the Act,\3\ 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)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PCX proposes to amend the Market Maker Fee portion of its 
Schedule of Fees and Charges (``Schedule'') in order to extend a 
temporary waiver of the fee for those market makers that utilize more 
than one seat. The text of the proposed rule change is available at 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, 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

Purpose
    The purpose of this proposed rule change is to extend for an 
additional month the temporary waiver of the Market Maker Fee for those 
market makers that utilize more than one seat. The Exchange proposes to 
extend the temporary waiver of the Market Maker Fee for those market 
makers that utilize more than one seat.\4\
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    \4\ See Securities Exchange Act Release Nos. 49207 (February 6, 
2004), 69 FR 7277 (February 13, 2004) (File No. SR-PCX-2004-04); and 
49631 (April 29, 2004), 69 FR 25162 (May 5, 2004) (File No. SR-PCX-
2004-35).
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    Under the current Schedule, all market makers are assessed a fee of 
$1,750 per month for each seat that such market maker holds a primary 
appointment. PCX Rule 6.35(g)(2) permits market makers to increase the 
number of issues within their primary appointments depending on the 
number of seats that the market maker holds. The PCX believes a market 
maker would benefit from additional issues as a result of holding 
multiple seats.
    The Exchange proposes to extend the temporary waiver of the $1,750 
Market Maker Fee for all market makers for each additional seat (for 
which the market maker holds a primary appointment) beyond the first 
seat held by such market maker. In other words, a market maker will 
only be assessed one Market Maker Fee of $1,750 per month whether the 
market maker utilizes one seat or multiple seats. The PCX believes that 
a temporary waiver of the Market Maker Fee in this limited circumstance 
is appropriate to encourage participation by a larger number of market 
makers on PCX Plus.\5\ As PCX Plus continues to expand, the PCX 
believes that this temporary waiver will provide market makers with an 
incentive to take on a larger number of issues without incurring 
additional Market Maker Fees. Therefore, the PCX believes that the 
added participation will result in increased liquidity, which, in turn, 
will further competition. This waiver will remain in effect until June 
30, 2004, or such earlier date as determined by the Exchange.
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    \5\ The temporary waiver of the Market Maker Fee only applies to 
market makers on PCX Plus, because only remote market makers on PCX 
Plus utilize multiple seats. See PCX Rule 6.35(g)(2). PCX represents 
that this waiver has no negative impact upon floor-based operations. 
Telephone conversation between Tania Blanford and Steven Matlin, 
Regulatory Policy, PCX, and Frank N. Genco, Attorney, Division of 
Market Regulation, Commission, on June 8, 2004.
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Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act,\6\ in general, and section 6(b)(4) of the Act,\7\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among its members.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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.

[[Page 34210]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
\9\ 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 such 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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. Comments may be submitted by any of 
the following methods:
Electronic comments:

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-PCX-2004-50 on the subject line.

Paper comments:

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.

All submissions should refer to File Number SR-PCX-2004-50. 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, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 in the Commission's Public Reference Section, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of PCX. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-PCX-2004-50 and should be 
submitted on or before July 9, 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. 04-13843 Filed 6-17-04; 8:45 am]
BILLING CODE 8010-01-P