[Federal Register Volume 69, Number 177 (Tuesday, September 14, 2004)]
[Notices]
[Pages 55486-55487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50312; File No. SR-PCX-2004-71]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Exchange, Inc. 
Regarding Rules Relating to Examinations for Floor Brokers and Market 
Makers and Waiver of the Examinations

September 3, 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 July 19, 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. On August 13, 2004, PCX filed 
Amendment No. 1 to the proposed rule change.\3\ On August 19, 2004, PCX 
filed Amendment No. 2 to the proposed rule change.\4\ Pursuant to 
section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(3) 
thereunder,\6\ PCX has designated this proposal as one concerned solely 
with the administration of the self-regulatory organization, which 
renders the proposal effective upon filing with the Commission. 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 
(``Division''), Commission, dated August 12, 2004 (``Amendment No. 
1''). Amendment No. 1 superseded and replaced the original proposal 
in its entirety.
    \4\ See Letter from Steven B. Matlin, Regulatory Policy, PCX, to 
Nancy J. Sanow, Assistant Director, Division, Commission, dated 
August 18, 2004 (``Amendment No. 2''). Amendment No. 2 made a 
technical correction to the proposed rule text.
    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX proposes to amend and move the provisions of PCX Rule 1.7, 
relating to PCX-administered examinations for floor brokers and market 
makers and the rules permitting a waiver of the examinations, to 
current PCX Rule 2.5. The text of the proposed rule change is available 
at the Exchange and the Commission, and may be viewed on the 
Commission's Web site, at http://www.sec.gov/rules/sro.shtml.

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 Exchange 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 Exchange 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
    PCX proposes to amend PCX Rule 1.7 to make administrative changes 
necessary as a result of the Exchange's change to a demutualized 
structure.\7\ Recently-approved changes to PCX Rule 1.7, relating to 
PCX-administered examinations for floor brokers and market makers and 
the rules permitting a waiver of the examinations, were filed by the 
Exchange prior to approval of the demutualized structure by the 
Commission.\8\ The approval order for the changes to PCX Rule 1.7, 
however, was issued by the Commission after the demutualized structure 
was approved. The approval of the demutualized PCX rules caused some of 
the Exchange's rules, including former PCX Rule 1.7, to be renumbered, 
and eliminated references to a Membership Committee. As a result of 
these changes, the changes approved in PCX Rule 1.7 must be modified 
and moved to current PCX Rule 2.5 to conform to the approved 
demutualized PCX Rules. The proposed rule change amends the PCX rules 
accordingly.
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    \7\ See Securities Exchange Act Release No. 49718 (May 17, 
2004), 69 FR 29611 (May 24, 2004) (approving File No. SR-PCX-2004-
08).
    \8\ See Securities Exchange Release No. 49922 (June 28, 2004), 
69 FR 40701 (July 6, 2004) (approving File No. File No. SR-PCX-2003-
51).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\9\ in general, and further the objectives 
of section 6(b)(5) of the Act,\10\ in particular, in that it is 
designed to facilitate transactions in securities, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 10 15 U.S.C. 78f(b)(5).
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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 rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(3) thereunder \12\ 
in that it is concerned solely with the administration of the self-
regulatory organization. At any time within 60 days of the filing of 
this 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.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(3).
    \13\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
section 19(b)(3)(C) of the Act, the Commission considers that period 
to commence on August 19, 2004, the date PCX submitted Amendment No. 
2. See 15 U.S.C. 78s(b)(3)(C).
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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, as amended, 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

[[Page 55487]]

     Send an e-mail to [email protected].

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-2004-71. 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-2004-71 
and should be submitted on or before October 5, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-2183 Filed 9-13-04; 8:45 am]
BILLING CODE 8010-01-P