[Federal Register Volume 69, Number 152 (Monday, August 9, 2004)]
[Notices]
[Pages 48265-48266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18123]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50139; File No. SR-PCX-2004-62]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto by 
the Pacific Exchange, Inc. Relating to the Exchange's Schedule of Fees 
and Charges

August 3, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ and Rule 19b-4\2\ thereunder, notice is hereby given that 
on July 7, 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 PCX. On July 28, 2004, PCX filed Amendment 
No. 1 to the proposed rule change.\3\ The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Steven B. Matlin, Regulatory Policy, PCX, to 
Nancy J. Sanow, Assistant Director, Division of Market Regulation, 
Commission, dated July 27, 2004 (``Amendment No. 1''). In Amendment 
No. 1, PCX clarified that Actant is a third-party vendor the 
Exchange has contracted with to provide quoting software to be 
employed in PCX Plus. PCX also amended the rule text to clarify that 
the proposed fee will apply to each OTP Holder that accesses the 
Exchange's server capacity to use the Actant quoting software and 
made conforming changes to the description and purpose sections of 
the proposal. Amendment No. 1 supercedes and replaces the proposed 
rule change in its entirety.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX proposes to amend its Schedule of Fees and Charges in order to 
adopt a fee that will apply to each OTP Holder that accesses the 
Exchange's server capacity to use the Actant quoting software employed 
in PCX Plus. The text of the proposed rule change is available at 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 parts of such statements.

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

1. Purpose
    The Exchange proposes to adopt a fee for those OTP Holders that 
wish to access the Exchange's server capacity to use the Actant quoting 
software employed in PCX Plus. Actant is a third-party vendor the 
Exchange has contracted with to provide quoting software to be employed 
in PCX Plus. PCX represents that, since it would be prohibitively 
expensive for small OTP Holders to purchase their own servers, the 
Exchange will create a server bank from which each OTP Holder could 
lease capacity. The Exchange believes that this will facilitate 
participation from smaller OTP Holders that might not have the 
expertise, capital, or staff to acquire and maintain the servers needed 
to support the quoting software. The Exchange states that it will 
charge the fee to each OTP Holder that accesses the Exchange's server 
capacity in order to use the Actant software.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act,\4\ in general, and furthers the objectives of section 
6(b)(4) of the Act,\5\ in particular, in that the proposed rule change 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective pursuant to 
section 19(b)(3)(A)(ii) of the Act \6\ and subparagraph (f)(2) of Rule 
19b-4\7\ thereunder, because the proposed rule change establishes or 
changes a due, fee, or other charge imposed by the Exchange.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the 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.\8\
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    \8\ For purposes of calculating the 60-day abrogation period 
within which the Commission may summarily abrogate the proposed rule 
change under section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), 
the Commission considers that period to commence on July 28, 2004, 
the date PCX filed Amendment No. 1 to the proposed rule change.
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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

[[Page 48266]]

Number SR-PCX-2004-62 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-2004-62. 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-2004-62 
and should be submitted on or before August 30, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-18123 Filed 8-6-04; 8:45 am]
BILLING CODE 8010-01-P