[Federal Register Volume 69, Number 149 (Wednesday, August 4, 2004)]
[Notices]
[Page 47195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17773]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50101; File No. SR-PCX-2004-51]


Self-Regulatory Organizations; Pacific Exchange, Inc; Order 
Granting Approval to a Proposed Rule Change Amending the Designated 
Options Examination Authority Fee on a Retroactive Basis

July 28, 2004.
    On June 1, 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 its Schedule of Fees and Charges by 
changing the Designated Options Examination Authority (``DOEA'') fee 
charged to its members. The Exchange proposed to apply the fee changes 
on a retroactive basis effective as of January 2004.\3\ The proposed 
rule change was published for comment in the Federal Register on June 
18, 2004.\4\ The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On April 15, 2004, the Exchange filed an identical amendment 
to its Schedule of Fees and Charges, as immediately effective. See 
Securities Exchange Act Release No. 49671 (May 7, 2004), 69 FR 27665 
(May 17, 2004) (File No. SR-PCX 2004-32). Because the Exchange also 
sought to apply the amendment to the DOEA fee on a retroactive 
basis, the Exchange submitted the proposed rule change for notice 
and comment.
    \4\ See Securities Exchange Act Release No. 49828 (June 8, 
2004), 69 FR 34210.
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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, which requires that the rules 
of an exchange provides for the equitable allocation of reasonable fees 
among its members.\6\ The current DOEA fee is a pass through of the 
costs the Exchange pays the National Association of Securities Dealers 
for conducting DOEA examinations plus a 17% administrative charge. The 
Commission believes that the Exchange's proposal to apply its current 
DOEA fee on a retroactive basis to January 2004 is equitable because it 
allows the Exchange to charge members the actual costs of the 
examinations.
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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-2004-51) 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. 04-17773 Filed 8-3-04; 8:45 am]
BILLING CODE 8010-01-P