[Federal Register Volume 69, Number 218 (Friday, November 12, 2004)]
[Notices]
[Pages 65489-65490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3150]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50635; File No. SR-PCX-2004-103]


Self-Regulatory Organizations; Pacific Exchange, Inc. Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Changes to PCX's Schedule of Fees and Charges for Exchange Services

November 4, 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 October 20, 2004, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. The Exchange has filed this proposed rule change pursuant to 
Section 19(b)(3)(A) and Rule 19b-4(f)(6) thereunder,\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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange, through its wholly owned subsidiary PCX Equities, 
Inc. (``PCXE'' or ``Corporation''), proposes to make a change to the 
Schedule of Fees and Charges for Exchange Services (``Schedule'') with 
respect to the fingerprinting fee and investigation fee for PCXE. The 
text of the proposed rule change is attached below. Proposed new 
language is italicized; proposed deletions are in [brackets].
* * * * *

Schedule of Fees and Charges for Exchange Services

Archipelago Exchange: ETP Fees and Charges
* * * * *
Investigation Fee: $125 [$100] fee per applicant for registration as 
ETP Holder (includes any control person listed on Schedule A of Form 
BD) or Market Maker Authorized Trader. Fee is also applicable to each 
Authorized Trader and its designated supervisor associated with an ETP 
Holder for which PCX is DEA.

[[Page 65490]]

Fingerprinting Fee: $35 [$30] fee per applicant for registration as ETP 
Holder (includes any control person listed on Schedule A of Form BD) or 
Market Maker Authorized Trader. Fee is also applicable to each 
Authorized Trader and its designated supervisor associated with an ETP 
Holder for which PCX is DEA.
* * * * *

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 proposal. 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

1. Purpose
    The Exchange proposes to make a change to the Schedule with respect 
to the fingerprinting fee and the investigation fee for PCXE.
    In September 2003, the Exchange modified the PCX membership fees 
relating to the options orientation fee.\4\ Previously, the orientation 
and testing fee ($1,000) was comprised of different components 
including orientation and examination administration, background 
investigations and fingerprinting. Due to the launch of PCX Plus, the 
Exchange reconfigured a development and delivery process for the 
Exchange's orientation and testing program and proposed to revise the 
options orientation and test fee to allow separate charges for the 
options orientation fee ($1,000), the background investigations ($125), 
and the fingerprinting fee ($35).
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    \4\ See Securities Exchange Act Release No. 48597 (October 7, 
2003), 68 FR 59439 (October 15, 2003) (SR-PCX-2003-57).
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    In establishing these new options fees, the Exchange inadvertently 
failed to modify the existing PCXE fingerprinting fee and investigation 
fee \5\ to match the proposed fee changes for PCX options. At that 
time, the PCXE fingerprinting fee was $100 and the investigation fee 
was $30. Therefore, the Exchange proposes to modify the PCXE 
fingerprinting fee and investigation fee in order to make the fees 
identical to the PCX options fingerprinting fee and investigation fee.
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    \5\ See Securities Exchange Act Release No. 45680 (April 2, 
2002), 67 FR 17094 (April 9, 2002) (SR-PCX-2002-16).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act, in general, and Section 6(b)(4) of the Act, in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its ETP Holders, issuers 
and other persons using the facilities.

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 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) \6\ of the Act and subparagraph (f)(2) of Rule 19b-4 
thereunder because it establishes or changes a due, fee, or other 
charged 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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    \6\ 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. 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 
SR-PCX-2004-103 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 SR-PCX-2004-103. 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 Room. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
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 SR-PCX-2004-103 and 
should be submitted on or before December 3, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-3150 Filed 11-10-04; 8:45 am]
BILLING CODE 8010-01-P